Loews Corp.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 2 November 2026: press release, prepared remarks. The quarter’s numbers.

Key takeaways

Net income and EPS fell: Net income attributable to Loews was $306 million, or $1.50 per share, compared with $504 million, or $2.43 per share, a year earlier. Source
CNA reserve review drove decline: Management named the annual long-term care reserve review as the largest driver of the year-over-year decline, which reduced net income attributable to Loews by $125 million. Source
CNA net income fell to $180 million: CNA contributed $180 million to Loews, against $371 million, as core income fell to $203 million from $409 million, reflecting reserves, underwriting and catastrophes. Source
Underlying loss ratio rose on trends: The underlying loss ratio was flat against the first half of the year but higher than a year earlier, driven by loss cost trends and lower-than-expected rate in some lines. Source
Long-term care reserves raised $173 million: CNA added $173 million pre-tax to long-term care reserves in its annual review, mainly for higher near-term cost-of-care inflation and unfavorable morbidity, partly offset by premium rate actions. Source
Subsidiary dividends and distributions: Loews received $194 million from subsidiaries in the quarter, including $119 million from CNA and $75 million from Boardwalk; year to date it received almost $1.1 billion. Source
Q3 buybacks of $167 million: Loews repurchased 1.6 million shares in the quarter, and a further 0.6 million shares for $67 million from October 1 to October 30, 2026. Source

“This is a time for underwriting discipline, not for chasing growth, and CNA is managing the business accordingly.”
Ben Tisch, CEO

Guidance

Area	Period	Figure	Against last quarter
Boardwalk capital investment Source	not stated	approximately $90 million
CNA long-term care active policy count Source	over the next decade	fall another 40%

What changed from last quarter

New: Boardwalk's revenue backlog rose by almost $600 million in the quarter, which management attributed largely to the new Carthage Crossing project. Source

Results and earnings drivers

Net income and EPS fell: Net income attributable to Loews was $306 million, or $1.50 per share, compared with $504 million, or $2.43 per share, a year earlier. Source
CNA reserve review drove decline: Management named the annual long-term care reserve review as the largest driver of the year-over-year decline, which reduced net income attributable to Loews by $125 million. Source
Nine-month net income declined: Nine-month net income attributable to Loews was $1,087 million, or $5.29 per share, against $1,265 million, or $6.03 per share, in 2025. Source

Segment results

CNA net income fell to $180 million: CNA contributed $180 million to Loews, against $371 million, as core income fell to $203 million from $409 million, reflecting reserves, underwriting and catastrophes. Source
Boardwalk charges lowered net income: Boardwalk recorded $10 million of net unrealized losses at Continuum and a $9 million impairment on relocating its corporate office, each about $7 million after tax. Source
Boardwalk improved before those charges: Excluding the two items, Boardwalk net income and EBITDA rose by $5 million and $14 million, on higher gas transportation revenue from contracting rates and utilization. Source
Loews Hotels net income rose: Hotels net income was $16 million against a $3 million loss, and adjusted EBITDA rose 25% to $86 million, with stronger results in Miami and Arlington. Source
Corporate income declined on lower trading returns: Corporate segment net income was $25 million against $42 million, reflecting lower parent company trading-portfolio investment income of $59 million against $77 million. Source

“In other words, for income statement purposes, one side of the economic equation gets updated while the other remains frozen in time.”
Ben Tisch, CEO

CNA property and casualty underwriting

Underlying loss ratio rose on trends: The underlying loss ratio was flat against the first half of the year but higher than a year earlier, driven by loss cost trends and lower-than-expected rate in some lines. Source
Expense ratio rose modestly: The expense ratio rose 0.6 points from the prior-year quarter, in line with the first half of the year. Source
Prior-year reserve development was mixed: Development in excess casualty and professional and management liability was unfavorable, offset by workers’ compensation, property, surety and international development. Source
Retention and CNA investment income: Retention was 83%, and CNA net investment income was essentially flat as fixed income gains offset lower hedge fund limited partnership returns. Source

Long-term care reserves and portfolio

Long-term care reserves raised $173 million: CNA added $173 million pre-tax to long-term care reserves in its annual review, mainly for higher near-term cost-of-care inflation and unfavorable morbidity, partly offset by premium rate actions. Source
Duration extended on long-term care bonds: CNA completed more than $1.3 billion of trades in 2026, exchanging BBB-rated bonds yielding 5.5% for longer-duration A-rated bonds yielding 6.2%. Source
Statutory margin and runoff economics: CNA cites a $1.3 billion statutory margin and continued runoff improvements from rate increases, investment actions and policy buyouts. Source

“The distinction is timing: GAAP accounting requires CNA to recognize the reserve charge immediately, while the expected benefit of higher investment yields will flow through investment income over time.”
Jane Wang, CFO

Demand, strategy and hotel markets

Boardwalk backdrop contrasted with CNA: Management described Boardwalk's backdrop as higher transportation rates, higher utilization and natural gas infrastructure demand, in contrast to CNA's competitive market. Source
Greenfield pipeline activity continuing: No greenfield project was announced this quarter, though management said demand and activity continue at a robust pace. Source
World Cup lifted several hotels: Several hotel properties, including the Arlington complex, benefited from the World Cup through higher occupancy and average daily rates; Miami occupancy also rose after renovations. Source
Universal Orlando joint venture rates eased: Joint venture equity income fell as average daily rates normalized from elevated prior-year levels after a new theme park opened at Universal Orlando. Source
Decentralized management model: Management said each business team runs its own operations under a decentralized model, with the parent balance sheet supporting capital allocation flexibility. Source

Capital, cash and returns to shareholders

Book value excluding AOCI rose: Excluding AOCI, book value per share rose to $100.67 from $95.89 at year-end 2025, while the reported figure decreased from $90.71 at December 31, 2025. Source
Parent cash and investments $4.4 billion: At September 30, the parent company held $4.4 billion of cash and investments against $1.8 billion of debt. Source
Subsidiary dividends and distributions: Loews received $194 million from subsidiaries in the quarter, including $119 million from CNA and $75 million from Boardwalk; year to date it received almost $1.1 billion. Source
Q3 buybacks of $167 million: Loews repurchased 1.6 million shares in the quarter, and a further 0.6 million shares for $67 million from October 1 to October 30, 2026. Source
Repurchases since year-end total $412 million: Shares outstanding were 202.9 million at September 30, against 206.0 million at December 31, 2025, after 3.9 million shares were repurchased since year-end. Source

Coming up, as management said on 2 November 2026

Americana adds third Arlington hotel: Americana will add a third hotel to the Arlington campus; the documents give no opening date. Source
Boardwalk backlog additions expected: Management expects Boardwalk to add to its existing $3.6 billion project backlog in the quarters and years ahead. Source

Figures management reported

Figure	Reported
Combined ratio (P&C) Source	97.0%
Underlying combined ratio (P&C) Source	94.2%
Net written premiums growth (P&C) Source	3%
Prior-year reserve development (combined ratio effect) Source	flat
Catastrophe losses (combined ratio points) Source	2.8 points
Net investment income (consolidated, $ millions) Source	713
Book value per share Source	$90.24

Risks management discussed

Operational: Loss cost trends in longer-tail casualty lines were cited as a driver of the higher underlying loss ratio. Source
External: Catastrophe losses were higher than in the prior-year quarter, which management described as a particularly light period. Source
Regulatory: Under LDTI accounting, reserves cannot reflect changed expected portfolio yields, so claim inflation changes are recognized without the offsetting yield. Source
Financial: Higher rates raised unrealized losses on CNA's fixed income investments, which are reflected in AOCI. Source

Earlier plans management reported on

Not stated: Management referred to CNA's continued portfolio extension backing long-term care liabilities, which it had discussed the prior quarter. Source
On track: Management said Americana construction in Arlington is progressing on schedule and within budget. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

LOEWS CORPORATION REPORTS NET INCOME OF $306 MILLION

FOR THE THIRD QUARTER OF 2026

New York, NY, November 2, 2026: Loews Corporation (NYSE: L) today released its third quarter 2026 financial results.

Third Quarter 2026 highlights:

Loews Corporation reported net income of $306 million, or $1.50 per share, in the third quarter of 2026, compared to $504 million, or $2.43 per share, in the third quarter of 2025. The following are key highlights of our third quarter results:

CNA Financial Corporation’s (NYSE: CNA) net income attributable to Loews Corporation decreased year-over-year primarily due to an unfavorable impact of $125 million (after-tax and noncontrolling interest) in 2026 from its annual long-term care reserve assumption updates, as well as lower Property and Casualty underlying underwriting results and higher catastrophe losses. The unfavorable long-term care reserve charge will almost entirely be offset by higher investment yields from recent investment portfolio actions. This anticipated benefit will flow through investment income over time.
Boardwalk Pipelines’ net income decreased year-over-year primarily due to higher operating expenses, including $14 million (after-tax) of charges related to net unrealized losses at Continuum and an impairment charge associated with the relocation of Boardwalk’s corporate office. Excluding those items, results improved year-over-year, benefiting from higher gas transportation revenues.
Loews Hotels’ net income increased year-over-year primarily due to a higher overall average daily rate and an increase in occupied room nights across most of the portfolio, partially offset by lower equity income from joint ventures.
Corporate segment net income decreased year-over-year primarily due to lower investment income from the parent company trading portfolio.
Book value per share decreased to $90.24 as of September 30, 2026, from $90.71 as of December 31, 2025.
Book value per share, excluding AOCI, increased to $100.67 as of September 30, 2026, from $95.89 as of December 31, 2025.
On September 30, 2026, the parent company had $4.4 billion of cash and investments and $1.8 billion of debt.
Loews Corporation repurchased 1.6 million shares of its common stock during the third quarter of 2026 for a total cost of $167 million.

Consolidated highlights:

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
Net Income (Loss) Attributable to Loews Corporation:
CNA Financial	$180		$371		$668		$897
Boardwalk Pipelines	85		94		344		334
Loews Hotels & Co	16		(3)		90		25
Corporate	25		42		(15)		9
Net income attributable to Loews Corporation	$306		$504		$1,087		$1,265
Net income per share attributable to Loews Corporation	$1.50		$2.43		$5.29		$6.03

	September 30, 2026	December 31, 2025
Book value per share	$90.24	$90.71
Book value per share excluding AOCI	$100.67	$95.89
Shares of common stock outstanding (in millions)	202.9	206.0

Three months ended September 30, 2026 compared to 2025

CNA:

Net income attributable to Loews Corporation is $180 million compared to $371 million.
Core income decreased to $203 million compared to $409 million primarily driven by an increase in long-term care reserves in 2026 resulting from the annual reserve review, lower Property and Casualty underlying underwriting results and higher catastrophe losses.
The unfavorable impact of $125 million (after-tax and noncontrolling interest) due to CNA’s long-term care reserve charge will almost entirely be offset by higher investment yields from recent investment portfolio actions. This anticipated benefit will flow through investment income over time.
Net earned premiums grew by 2% and net written premiums grew by 3% for CNA’s Property and Casualty business.
Property and Casualty’s combined ratio increased by 4.2 points to 97.0% compared to 92.8% largely due to a higher underlying loss ratio and higher catastrophe losses. Property and Casualty’s underlying combined ratio increased to 94.2% from 91.3%.
Property and Casualty’s underlying loss ratio of 64.1% was consistent with the second quarter of 2026, but increased by 2.2 points compared to the prior year third quarter, mainly driven by higher loss cost trends and lower-than-expected rate in certain lines in recent quarters.
Net investment income was relatively flat as lower limited partnership returns were partially offset by higher income from fixed income securities, as a result of a larger invested asset base and favorable reinvestment rates, and higher common stock returns.

Boardwalk:

Net income is $85 million compared to $94 million.
EBITDA decreased to $262 million compared to $267 million.
Net income and EBITDA declined primarily due to $10 million ($7 million after tax) of net unrealized losses at Continuum and a $9 million ($7 million after tax) impairment charge related to the relocation of Boardwalk’s corporate office.
Excluding these two items, net income and EBITDA increased by $5 million and $14 million, driven by higher revenues from gas transportation due to higher contracting rates and utilization.

Loews Hotels:

Net income increased to $16 million compared to a net loss of $3 million.
Adjusted EBITDA increased 25% to $86 million compared to $69 million.
Net income and adjusted EBITDA improved primarily due to higher overall average daily rates and an increase in occupied room nights across most of the portfolio, particularly at the Loews Miami Beach Hotel following the conclusion of its renovation at the end of 2025, as well as the Loews Hotels & Co Arlington hotel properties.
Equity income from joint ventures decreased primarily due to lower average daily rate and higher operating expenses at the Universal Orlando Resort.

Corporate:

Net income is $25 million compared to $42 million.
Net income decreased primarily due to lower investment income from the parent company trading portfolio.

Nine months ended September 30, 2026 compared to 2025

Loews Corporation reported net income of $1,087 million, or $5.29 per share, compared to $1,265 million, or $6.03 per share, in 2025. The following are key highlights:

CNA’s net income attributable to Loews Corporation decreased primarily due to an unfavorable impact of $125 million (after-tax and noncontrolling interest) in 2026 from its annual long-term care reserve assumption updates and lower Property and Casualty underwriting results, partially offset by higher net investment income.
Property and Casualty’s combined ratio increased by 3.5 points to 98.6% compared to 95.1% largely due to a higher underlying loss ratio and unfavorable net prior year loss reserve development. Property and Casualty’s underlying combined ratio was 94.4% compared to 91.7%.
Property and Casualty’s underlying loss ratio increased by 2.5 points, mainly driven by higher loss cost trends and lower-than-expected rate in certain lines in recent quarters.
CNA’s net investment income increased due to higher income from fixed income securities, as a result of a larger invested asset base and favorable reinvestment rates, as well as higher common stock returns, partially offset by lower limited partnership returns.
Boardwalk’s net income improved primarily due to an increase in gas transportation revenues from higher contracting rates and higher utilization-based and growth project revenues, as well as higher storage and parking and lending revenues, partially offset by higher operating expenses, including costs associated with growth projects.
Loews Hotels’ net income improved primarily due to a higher overall average daily rate and an increase in occupied room nights across most of the portfolio and higher equity income from joint ventures, driven by the Universal Orlando Resort, partially offset by higher operating expenses.
Corporate segment results declined year-over-year primarily driven by lower investment income from the parent company trading portfolio and higher interest expense related to a recent debt refinancing.

Share Purchases:

On September 30, 2026, there were 202.9 million shares of Loews common stock outstanding.
During the three months ended September 30, 2026, Loews Corporation repurchased 1.6 million shares of its common stock for a total cost of $167 million.
An additional 0.6 million shares were repurchased for $67 million between October 1, 2026 and October 30, 2026.
Depending on market conditions, Loews may from time to time purchase shares of its and its subsidiaries’ outstanding common stock in the open market (including, with respect to Loews common stock, in open market transactions that may or may not satisfy all of the conditions of the Rule 10b-18 voluntary safe harbor), in privately negotiated transactions or otherwise.

Reconciliation of GAAP Measures to Non-GAAP Measures

This news release contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries’ financial performance. CNA utilizes core income, underlying loss ratio and underlying combined ratio. Boardwalk utilizes earnings before interest, income tax expense, depreciation and amortization (“EBITDA”), and Loews Hotels utilizes Adjusted EBITDA. These non-GAAP measures are defined and reconciled to the most comparable GAAP measures on pages 6 through 8 of this release.

Earnings Remarks

For Loews Corporation

- Today, November 2, 2026, earnings remarks will be available on the Investors section of our website at www.loews.com.

- Remarks will include commentary from Loews’s president and chief executive officer and chief financial officer.

For CNA

- Today, November 2, 2026, earnings remarks will be available on the Investor Relations section of CNA’s website at www.cna.com.

- Remarks will include commentary from CNA’s president and chief executive officer and chief financial officer.

About Loews Corporation

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit www.loews.com.

Forward-Looking Statements

Forward-looking statements notice

Statements contained in this news release which are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by the Company. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Company’s overall business and financial performance, can be found in the Company’s reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this news release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Investor relations and media relations contact:

Chris Nugent

1-212-521-2403

Loews Corporation and Subsidiaries

Selected Financial Information

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
Revenues:
CNA Financial (a)	$3,821		$3,817		$11,327		$11,161
Boardwalk Pipelines	616		546		1,823		1,705
Loews Hotels & Co	250		211		780		710
Corporate investment income, net	72		97		118		144
Total	$4,759		$4,671		$14,048		$13,720
Income (Loss) Before Income Tax:
CNA Financial (a)	$237		$513		$909		$1,242
Boardwalk Pipelines (b)	114		124		458		443
Loews Hotels & Co	20		(3)		126		40
Corporate:
Investment income, net	75		97		126		146
Other (c)	(40)		(42)		(138)		(129)
Total	$406		$689		$1,481		$1,742
Net Income (Loss) Attributable to Loews Corporation:
CNA Financial (a)	$180		$371		$668		$897
Boardwalk Pipelines (b)	85		94		344		334
Loews Hotels & Co	16		(3)		90		25
Corporate:
Investment income, net	59		77		100		117
Other (c)	(34)		(35)		(115)		(108)
Net income attributable to Loews Corporation	$306		$504		$1,087		$1,265

(a)The three months ended September 30, 2026 and 2025 include net investment losses of $9 million and $7 million ($7 million and $5 million after tax and noncontrolling interests). The nine months ended September 30, 2026 and 2025 include net investment losses of $32 million and $62 million ($23 million and $45 million after tax and noncontrolling interests).

(b)Includes $10 million ($7 million after tax) of charges related to net unrealized losses at Continuum and a $9 million ($7 million after tax) impairment charge related to the relocation of Boardwalk’s corporate office for the three and nine months ended September 30, 2026.

(c)Consists of parent company interest expense, corporate expenses and the equity loss of Altium Packaging.

Loews Corporation and Subsidiaries

Consolidated Financial Review

	September 30,
	Three Months				Nine Months
(In millions, except per share data)		2026		2025		2026		2025
Revenues:
Insurance premiums	$2,829		$2,783		$8,285		$8,103
Net investment income	713		743		2,087		2,065
Investment losses	(9)		(7)		(32)		(62)
Operating revenues and other	1,226		1,152		3,708		3,614
Total	4,759		4,671		14,048		13,720
Expenses:
Insurance claims and policyholders’ benefits	2,347		2,032		6,691		6,144
Operating expenses and other	2,006		1,950		5,876		5,834
Total	4,353		3,982		12,567		11,978
Income before income tax	406		689		1,481		1,742
Income tax expense	(84)		(153)		(334)		(398)
Net income	322		536		1,147		1,344
Amounts attributable to noncontrolling interests	(16)		(32)		(60)		(79)
Net income attributable to Loews Corporation	$306		$504		$1,087		$1,265
Net income per share attributable to Loews Corporation	$1.50		$2.43		$5.29		$6.03
Weighted average number of shares	204.57		207.71		205.46		209.88

Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures:

CNA Financial Corporation

Core income is calculated by excluding from CNA’s net income attributable to Loews Corporation the after-tax effects of investment gains or losses and gains or losses resulting from pension settlement transactions. In addition, core income excludes the effects of noncontrolling interests. The calculation of core income excludes investment gains or losses because they are generally driven by economic factors that are not necessarily reflective of CNA’s primary insurance operations. The calculation of core income excludes gains or losses resulting from pension settlement transactions as they result from decisions regarding CNA’s defined benefit pension plans which are unrelated to its primary insurance operations.

The following table presents a reconciliation of CNA net income attributable to Loews Corporation to core income:

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
CNA net income attributable to Loews Corporation	$180		$371		$668		$897
Investment losses	7		6		24		49
Noncontrolling interests	16		32		60		79
Core income	$203		$409		$752		$1,025

In evaluating the results of Property & Casualty operations, CNA utilizes the loss ratio, the underlying loss ratio, the expense ratio, the dividend ratio, the combined ratio and the underlying combined ratio. These ratios are calculated using GAAP financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The underlying loss ratio excludes the impact of catastrophe-related reinstatement premiums, catastrophe losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and include the effects of interest accretion and change in allowance for uncollectible reinsurance. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums. The combined ratio is the sum of the loss ratio, the expense ratio and the dividend ratio. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. The underlying loss ratio and the underlying combined ratio are deemed to be non-GAAP financial measures, and management believes some investors may find these ratios useful to evaluate CNA’s underwriting performance since they remove the impact of catastrophes which are unpredictable as to timing and amount, and development-related items as they are not indicative of current year underwriting performance.

The following table presents a reconciliation of CNA’s loss ratio to underlying loss ratio and CNA’s combined ratio to underlying combined ratio:

	September 30,
	Three Months		Nine Months
	2026	2025	2026	2025
Loss ratio	66.9%	63.4%	68.3%	65.0%
Expense ratio	29.7	29.1	29.9	29.7
Dividend ratio	0.4	0.3	0.4	0.4
Combined ratio	97.0%	92.8%	98.6%	95.1%
Less: Effect of catastrophe impacts	2.8	1.5	2.9	2.6
Less: Effect of development-related items			1.3	0.8
Underlying combined ratio	94.2%	91.3%	94.4%	91.7%
Underlying loss ratio	64.1%	61.9%	64.1%	61.6%

Boardwalk Pipelines

EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk’s net income attributable to Loews Corporation to its EBITDA:

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
Boardwalk net income attributable to Loews Corporation	$85		$94		$344		$334
Interest, net	34		36		106		111
Income tax expense	29		30		114		109
Depreciation and amortization	114		107		337		333
EBITDA	$262		$267		$901		$887

Loews Hotels & Co

Adjusted EBITDA is calculated by excluding from Loews Hotels & Co’s EBITDA, the noncontrolling interest share of EBITDA adjustments, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including Loews Hotels & Co’s pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying Loews Hotels & Co’s ownership percentage to the underlying equity method investment’s components of Adjusted EBITDA and excluding distributions in excess of basis.

The following table presents a reconciliation of Loews Hotels & Co net income (loss) attributable to Loews Corporation to its Adjusted EBITDA:

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
Loews Hotels & Co net income (loss) attributable to Loews Corporation	$16		$(3)		$90		$25
Interest, net	11		14		35		43
Income tax expense	4				36		15
Depreciation and amortization	27		27		80		75
EBITDA	58		38		241		158
Noncontrolling interest share of EBITDA adjustments							(2)
Asset impairments					9
Equity investment adjustments:
Loews Hotels & Co’s equity method income	(17)		(25)		(102)		(60)
Pro rata Adjusted EBITDA of equity method investments	47		58		201		164
Consolidation adjustments	(2)		(2)		(2)		(1)
Adjusted EBITDA	$86		$69		$347		$259

The following table presents a reconciliation of Loews Hotels & Co’s equity method income to the Pro rata Adjusted EBITDA of its equity method investments:

	September 30,
	Three Months				Nine Months
(In millions)		2026		2025		2026		2025
Loews Hotels & Co’s equity method income	$17		$25		$102		$60
Pro rata share of equity method investments:
Interest, net	17		17		53		43
Income tax expense
Depreciation and amortization	16		17		51		45
Asset impairments							9
Distributions in excess of basis	(2)		(1)		1		7
Other adjustments	(1)				(6)
Pro rata Adjusted EBITDA of equity method investments	$47		$58		$201		$164

Open the filing on EDGAR

Loews Corporation Third Quarter 2026 Earnings Remarks

Ben Tisch, CEO:

Loews reported net income of $306 million, or $1.50 per share, in the third quarter, compared with $504 million, or $2.43 per share, a year ago. The largest driver of the year-over-year decline was CNA's annual long-term care reserve review, which resulted in a $125 million reduction in net income attributable to Loews. I'd like to spend a few minutes discussing this charge because, while it’s meaningful from a GAAP earnings perspective, we expect the economic impact to be closer to breakeven.

CNA increased its long-term care reserves by $173 million pre-tax, primarily reflecting higher inflation expectations on future claim costs. While that increase is certainly not welcome, there's an important accounting nuance here that I think is worth understanding.

Historically, when evaluating our long-term care reserves, we would update our assumptions for both future claim inflation and the investment yields we expect to earn on the assets backing those liabilities. That approach made intuitive economic sense. Over long periods of time, interest rates and inflation tend to move together, and the inflation in long-term care claims has historically been broadly correlated with the consumer price index. Higher inflation might mean higher future claims, but it also generally means higher interest rates and, consequently, higher portfolio yields on the assets backing those claims.

That relationship changed with the adoption of LDTI accounting. Under the new rules, while we continue to update our assumptions for future claim inflation, we are no longer permitted to reflect changes in expected portfolio yields in the calculation of our reserves. Instead, we must use the investment return assumptions established when LDTI was adopted.

Think about what that means in today's environment. We're required to recognize the impact of higher expected future claims, but we're not permitted to recognize the offsetting benefit of the considerably higher investment yields available to us today. In other words, for income statement purposes, one side of the economic equation gets updated while the other remains frozen in time. The impact of inflation changes is felt immediately, while the impact of investment yields is dribbled in as earned over time. It's an asymmetry that investors should understand when evaluating our long-term care results.

And this isn't just a theoretical argument. As I discussed last quarter, CNA has been deliberately extending the duration of the investment portfolio backing its long-term care liabilities, locking in today's higher yields for longer periods while simultaneously improving credit quality. During 2026, CNA completed more than $1.3 billion of these trades, exchanging shorter-duration, BBB-rated bonds yielding 5.5% for longer-duration, A-rated bonds yielding 6.2%.

When we consider these investment actions, along with the higher yields available on future reinvestments, we believe the additional investment income should substantially, if not entirely, offset the higher expected claims identified in this year's reserve review. Said another way, while the accounting requires us to recognize a charge today, we expect the ultimate economic impact to be little to none.

We remain confident that our long-term care block is appropriately reserved. CNA maintains a substantial $1.3 billion statutory margin and continues to improve the economics of the runoff through rate increases, investment actions and policy buyouts. Active policy counts have declined by 50% since 2015 and are expected to fall another 40% over the next decade. We believe reserves have reached a plateau and should gradually decline over the coming years as the block continues to run off and the benefits of the portfolio changes will be felt through net investment income over time.

Turning to CNA's property and casualty business, the market remains competitive. The underlying loss ratio was 64.1%, consistent with the first half of the year but about two points higher than the third quarter of 2025, driven in part by elevated loss cost trends in longer-tail casualty lines.

It is worth remembering, however, that underwriting margin is only one part of the economics of these businesses. In longer-tail casualty lines, premiums can be invested for years before claims are ultimately paid. At today's investment yields, these businesses can continue to generate attractive returns on equity even at lower underwriting margins. As a result, capital is likely to remain plentiful and competition strong, and I would not count on a meaningful improvement in the pricing environment in the near term. This is a time for underwriting discipline, not for chasing growth, and CNA is managing the business accordingly.

At Boardwalk, the backdrop could hardly be more different. The business continues to benefit from higher transportation rates, increased pipeline utilization and strong demand for natural gas infrastructure. During the quarter, Boardwalk's revenue backlog grew by almost $600 million, largely as a result of the new Carthage Crossing project.

For an expected investment of approximately $90 million, Boardwalk will add compression to increase capacity on its existing system from Carthage, Texas, to northern Louisiana. This is exactly the kind of opportunity we like: deploying incremental capital into an existing system, with long-term contractual visibility and an investment-grade counterparty. Projects like this can generate highly attractive returns while carrying considerably less execution risk than a greenfield pipeline. Speaking of greenfield pipes, while we have nothing to report today, I can say that demand and activity continue at a robust pace, and I’d expect us to add to the existing $3.6 billion project backlog in the quarters and years ahead.

Loews Hotels had another very good quarter, with Adjusted EBITDA increasing 25% to $86 million. The improvement reflected stronger performance across most of the portfolio, particularly in Miami and Arlington.

Construction of Americana by Loews Hotels in Arlington continues to progress on time and on budget. Arlington is a market where our strategy is working exactly as designed: locating hotels next to major demand generators and pairing that leisure demand with substantial meeting space that attracts group business. Americana will add a third hotel to an already successful campus and expand our ability to serve both group and leisure travelers in a market we know well.

Looking ahead, we remain excited about the growth opportunities at Boardwalk and the addition of Americana to our Arlington campus. While the insurance market remains soft, we are confident in CNA's ability to grow profitably without compromising underwriting discipline.

The diversity of our portfolio remains a significant advantage. Our decentralized model allows each management team to focus on running its business, while our strong balance sheet gives us the flexibility to allocate capital where we see the most attractive long-term returns.

Jane Wang, CFO:

For the third quarter of 2026, Loews reported net income of $306 million, or $1.50 per share, compared with $504 million, or $2.43 per share, in the prior-year quarter. The year-over-year decline primarily reflected a $125 million after-tax impact from CNA’s annual long-term care reserve review. Declines in CNA’s P&C underwriting income and parent company net investment income also pressured results, partially offset by strong growth at Loews Hotels.

Book value per share was $90.24, compared with $90.71 at year-end 2025. Higher interest rates during the quarter increased unrealized losses on CNA’s fixed income investments, which are reflected in AOCI. Excluding AOCI, book value per share increased to $100.67 at the end of the third quarter of 2026, compared with $95.89 at year-end 2025.

CNA contributed $180 million of net income to Loews, compared with $371 million in the third quarter of 2025. The company’s annual reserve assumption review in the third quarter resulted in a $173 million pre-tax increase to its GAAP reserves, reducing Loews’s net income by $125 million. This charge primarily reflected higher near-term cost-of-care inflation and unfavorable morbidity, partially offset by better-than-expected premium rate actions.

From an economic perspective, the unfavorable assumption changes are expected to be almost entirely offset by higher investment yields from recent investment portfolio extension trades. The distinction is timing: GAAP accounting requires CNA to recognize the reserve charge immediately, while the expected benefit of higher investment yields will flow through investment income over time.

CNA’s P&C underwriting income declined over the prior year’s third quarter, driven by a 4.2-point increase in the combined ratio to 97.0%. The underlying loss ratio rose 2.2 points, and the expense ratio increased 0.6 points, although both were in line with the first half of the year. Catastrophes were 1.3 points higher than in the prior-year period, which was a particularly light quarter. The P&C net prior-period development impact on the combined ratio was flat in the current quarter. Unfavorable development in excess casualty and professional and management liability was offset by favorable development in workers’ compensation , property, surety and international.

From a top-line perspective, net written premiums grew by 3%, driven by 3 points of renewal premium change including 2 points of rate. Retention remained strong at 83%.

Net investment income at CNA was essentially flat, as higher fixed income results were offset by lower income from hedge fund limited partnerships.

Please refer to CNA’s Investor Relations website for more details on its results.

Turning to our natural gas pipeline business, Boardwalk reported EBITDA of $262 million in the third quarter of 2026, compared with $267 million in the third quarter of 2025. Net income attributable to Loews was $85 million versus $94 million in the prior-year quarter. Results were impacted by a $10 million ($7 million after tax) unrealized mark-to-market loss at Continuum Marketing as well as a $9 million ($7 million after tax) impairment related to office space that was vacated when Boardwalk moved its headquarters to accommodate growth. Excluding those items, EBITDA and net income increased due to higher transportation rates and pipeline utilization.

Loews Hotels reported Adjusted EBITDA of $86 million in the third quarter of 2026, compared with $69 million in the third quarter of 2025. The 25% year-over-year increase reflected stronger performance across most of the portfolio, particularly at the Miami and Arlington properties. In Miami, both available room nights and occupancy increased compared with the prior-year quarter, when the property was undergoing renovations. Additionally, several of our hotel properties, including the Arlington complex, benefited from the World Cup, which led to higher occupancy and higher average daily rates. These gains were partially offset by lower results from joint ventures, reflecting the normalization of average daily rates at the Universal Orlando hotels from elevated prior-year levels following the opening of a new theme park.

Loews Hotels contributed $16 million of net income to Loews in the third quarter of 2026, compared with a $3 million net loss in the prior-year quarter. In addition to higher Adjusted EBITDA, results benefited from lower interest expense following the refinancing of the Arlington complex.

At the parent company, Loews recorded $59 million of net investment income for the quarter, compared with $77 million in the third quarter of 2025. Although investment performance was strong, it trailed the prior-year quarter, which benefited from particularly strong gains in the trading portfolio. The corporate segment generated $25 million of net income in the third quarter of 2026, after corporate expenses.

From a cash flow perspective, Loews received $194 million from its subsidiaries in the third quarter, including $119 million in dividends from CNA and $75 million of distributions from Boardwalk. Year to date, Loews has received almost $1.1 billion from its subsidiaries: $855 million in dividends from CNA, including a special dividend of $497 million, and $225 million of distributions from Boardwalk. During the third quarter, Loews repurchased 1.6 million shares of its common stock for $167 million. Since the end of 2025, Loews has repurchased 3.9 million shares of its common stock at a cost of $412 million. Loews ended the third quarter of 2026 with $4.4 billion in cash and investments.

Reconciliation of GAAP Measures to Non-GAAP Measures

These earnings remarks contain financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries’ financial performance. CNA utilizes underlying loss ratio and underlying combined ratio, Boardwalk Pipelines utilizes earnings before interest, income tax expense, depreciation and amortization (“EBITDA”) and Loews Hotels & Co utilizes Adjusted EBITDA. These non-GAAP measures are defined and reconciled to the most comparable GAAP measures.

About Loews Corporation

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. For more information, please visit www.loews.com.

Forward-Looking Statements

Forward-looking statements notice

Statements contained in these earnings remarks which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by the Company. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Company's overall business and financial performance, can be found in the Company's reports filed with the Securities and Exchange Commission and readers of these remarks are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of these remarks. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures

CNA Financial Corporation

The following table presents a reconciliation of CNA’s loss ratio to underlying loss ratio and CNA’s combined ratio to underlying combined ratio:

	Three Months Ended September 30,
	2026	2025
Loss ratio	66.9%	63.4%
Expense ratio	29.7	29.1
Dividend ratio	0.4	0.3
Combined ratio	97.0%	92.8%
Less: Effect of catastrophe impacts	2.8	1.5
Less: Effect of development-related items
Underlying combined ratio	94.2%	91.3%
Underlying loss ratio	64.1%	61.9%

Boardwalk Pipelines

	Three Months Ended September 30,
(In millions)		2026		2025
Boardwalk net income attributable to Loews Corporation	$85		$94
Interest, net	34		36
Income tax expense	29		30
Depreciation and amortization	114		107
EBITDA	$262		$267

Loews Hotels & Co

The following table presents a reconciliation of Loews Hotels & Co net income (loss) attributable to Loews Corporation to its Adjusted EBITDA:

	Three Months Ended September 30,
(In millions)		2026		2025
Loews Hotels & Co net income (loss) attributable to Loews Corporation	$16		$(3)
Interest, net	11		14
Income tax expense	4
Depreciation and amortization	27		27
EBITDA	58		38
Equity investment adjustments:
Loews Hotels & Co’s equity method income	(17)		(25)
Pro rata Adjusted EBITDA of equity method investments	47		58
Consolidation adjustments	(2)		(2)
Adjusted EBITDA	$86		$69

The following table presents a reconciliation of Loews Hotels & Co’s equity method income to the Pro rata Adjusted EBITDA of its equity method investments:

	Three Months Ended September 30,
(In millions)		2026		2025
Loews Hotels & Co’s equity method income	$17		$25
Pro rata share of equity method investments:
Interest, net	17		17
Income tax expense
Depreciation and amortization	16		17
Distributions in excess of basis	(2)		(1)
Other adjustments	(1)
Pro rata Adjusted EBITDA of equity method investments	$47		$58