Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) should be read in conjunction with our Consolidated Condensed Financial Statements included under Item 1 of this Report and the Consolidated Financial Statements, Risk Factors, and MD&A included in our Annual Report on Form 10-K for the year ended December 31, 2022. This MD&A is comprised of the following sections:

			Page No.
Overview			43
Results of Operations			44
Consolidated Financial Results			44
CNA Financial			45
Boardwalk Pipelines			54
Loews Hotels & Co			56
Corporate			58
Liquidity and Capital Resources			59
Parent Company			59
Subsidiaries			59
Investments			60
Critical Accounting Estimates			66
Accounting Standards Update			66
Forward-Looking Statements			67

OVERVIEW

Loews Corporation is a holding company and has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA Financial Corporation (“CNA”), Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”) and Loews Hotels Holding Corporation (“Loews Hotels & Co”); and the Corporate segment. The Corporate segment is primarily comprised of Loews Corporation, excluding its operating subsidiaries, and the equity method of accounting for Altium Packaging LLC (“Altium Packaging”).

Unless the context otherwise requires, as used herein, the term “Company” means Loews Corporation including its subsidiaries, the terms “Parent Company,” “we,” “our,” “us” or like terms mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders.

We rely upon our invested cash balances and distributions from our subsidiaries to generate the funds necessary to meet our obligations and to declare and pay any dividends to our shareholders. The ability of our subsidiaries to pay dividends is subject to, among other things, the availability of sufficient earnings and funds in such subsidiaries, applicable state laws, including in the case of the insurance subsidiaries of CNA, laws and rules governing the payment of dividends by regulated insurance companies (see Note 14 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022) and compliance with covenants in their respective loan agreements. Claims of creditors of our subsidiaries will generally have priority as to the assets of such subsidiaries over our claims and those of our creditors and shareholders. We are not responsible for the liabilities and obligations of our subsidiaries and there are no Parent Company guarantees.

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RESULTS OF OPERATIONS

Consolidated Financial Results

The following table summarizes net income (loss) attributable to Loews Corporation by segment and the basic and diluted net income per share attributable to Loews Corporation for the three and nine months ended September 30, 2023 and 2022:

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions, except per share data)
CNA Financial (a)			$	235					$	(37)		$	758					$	398
Boardwalk Pipelines			49						34			191						164
Loews Hotels & Co			17						25			115						84
Corporate			(48)						(44)			(76)						(179)
Net income (loss) attributable to Loews Corporation			$	253					$	(22)		$	988					$	467
Basic net income (loss) per share			$	1.12					$	(0.09)		$	4.32					$	1.91
Diluted net income (loss) per share (a)			$	1.12					$	(0.09)		$	4.31					$	1.90

(a)			As of January 1, 2023, Accounting Standards Update (“ASU”) 2018-12, “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts,” (“ASU 2018-12”) was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. For additional information see Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Net income attributable to Loews Corporation for the three months ended September 30, 2023 was $253 million, or $1.12 per share, compared to net loss of $22 million, or $0.09 per share in the comparable 2022 period. Net income attributable to Loews Corporation for the nine months ended September 30, 2023 was $988 million, or $4.31 per share, compared to $467 million, or $1.90 per share in the comparable 2022 period. Corporate includes a $37 million after-tax charge for the termination of a non-contributory defined benefit pension plan for the three and nine months ended September 30, 2023. Loews Hotels & Co includes a $36 million after-tax gain related to the acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property for the nine months ended September 30, 2023.

The increase in net income attributable to Loews Corporation in the third quarter of 2023 as compared to the comparable 2022 period was driven by improved results at CNA due to higher net investment income, lower investment losses, higher underlying underwriting income, and a significantly lower unfavorable impact from long-term care annual reserve reviews performed in the third quarter of each year. Additionally the parent company posted higher investment returns on equity securities and short-term investments.

Results drivers for the nine months ended September 30, 2023 as compared to the comparable 2022 period are consistent with the three-month period discussed above.

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CNA Financial

The following table summarizes the results of operations for CNA for the three and nine months ended September 30, 2023 and 2022 as presented in Note 13 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report. For further discussion of Net investment income and Investment gains (losses), see the Investments section of this MD&A.

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022 (a)			2023						2022 (a)
(In millions)
Revenues:
Insurance premiums			$	2,406					$	2,221		$	7,001					$	6,435
Net investment income			553						422			1,653						1,302
Investment losses			(38)						(96)			(105)						(166)
Non-insurance warranty revenue			407						399			1,221						1,173
Other revenues			8						11			22						24
Total			3,336						2,957			9,792						8,768
Expenses:
Insurance claims and policyholders’ benefits			1,826						1,880			5,258						4,959
Amortization of deferred acquisition costs			426						383			1,208						1,101
Non-insurance warranty expense			386						371			1,154						1,092
Other operating expenses			338						346			1,021						1,001
Interest			34						28			93						84
Total			3,010						3,008			8,734						8,237
Income (loss) before income tax			326						(51)			1,058						531
Income tax (expense) benefit			(68)						9			(220)						(88)
Net income (loss)			258						(42)			838						443
Amounts attributable to noncontrolling interests			(23)						5			(80)						(45)
Net income (loss) attributable to Loews Corporation			$	235					$	(37)		$	758					$	398

(a)			As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. For additional information see Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Three Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Net income attributable to Loews Corporation increased $272 million for the three months ended September 30, 2023 as compared with the comparable 2022 period primarily due to higher net investment income from limited partnership and common stock returns and fixed income securities, lower investment losses driven by a decrease in net losses on fixed maturity securities, improved underlying underwriting income and lower catastrophe losses. Catastrophe losses were $94 million ($67 million after tax and noncontrolling interests) for the three months ended September 30, 2023 as compared with $114 million ($80 million after tax and noncontrolling interests) in the comparable 2022 period. Net income for the three months ended September 30, 2022 also included a $186 million ($131 million after tax and noncontrolling interests) increase to long term care reserves primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate assumptions. These increases to net income were partially offset by unfavorable net prior year loss reserve development for the three months ended September 30, 2023 as compared with favorable net prior year loss reserve development for the comparable 2022 period.

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Nine Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Net income attributable to Loews Corporation increased $360 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period primarily due to higher net investment income from limited partnership and common stock returns and fixed income securities and lower investment losses driven by the favorable relative change in fair value of non-redeemable preferred stock and improved underlying underwriting income. Net income for the nine months ended September 30, 2022 also included a $186 million ($131 million after tax and noncontrolling interests) increase to long term care reserves primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate assumptions. These increases to net income were partially offset by higher catastrophe losses and unfavorable net prior year loss reserve development for the nine months ended September 30, 2023 as compared with favorable net prior year loss reserve development for the comparable 2022 period. Catastrophe losses were $214 million ($152 million after tax and noncontrolling interests) for the nine months ended September 30, 2023 as compared with $171 million ($121 million after tax and noncontrolling interests) in the comparable 2022 period.

Results for the three and nine months ended September 30, 2023 were impacted by unfavorable net pension costs related to CNA’s legacy United States of America (“U.S.”) pension plan, primarily due to higher interest cost on projected benefit obligations as a result of an increase in discount rates year over year, as well as a lower expected return on plan assets as a result of a lower plan asset base given actual asset returns in 2022. A portion of this additional cost has resulted in an unfavorable impact on the expense ratio for the three and nine months ended September 30, 2023.

CNA’s Property & Casualty and Other Insurance Operations

CNA’s commercial property and casualty insurance operations (“Property & Casualty Operations”) include its Specialty, Commercial and International lines of business. CNA’s Other Insurance Operations outside of Property & Casualty Operations include its long term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and the results of certain property and casualty businesses in run-off, including CNA Re, asbestos and environmental pollution (“A&EP”), a legacy portfolio of excess workers’ compensation (“EWC”) policies and certain legacy mass tort reserves. We believe the presentation of CNA as one reportable segment is appropriate in accordance with applicable accounting standards on segment reporting. However, for purposes of this discussion and analysis of the results of operations, we provide greater detail with respect to CNA’s Property & Casualty Operations and Other Insurance Operations to enhance the reader’s understanding and to provide further transparency into key drivers of CNA’s financial results.

In assessing its insurance operations, CNA utilizes the core income (loss) financial measure. Core income (loss) is calculated by excluding investment gains or losses from net income (loss). In addition, core income (loss) excludes the effects of noncontrolling interests. The calculation of core income (loss) excludes investment gains or losses because investment gains or losses are generally driven by economic factors that are not necessarily reflective of CNA’s primary insurance operations. Core income (loss) is deemed to be a non-GAAP financial measure and management believes some investors may find this measure useful to evaluate CNA’s insurance operations. Please see the non-GAAP reconciliation of net income (loss) to core income (loss) that follows in this MD&A.

Property & Casualty Operations

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 losses and development-related items from the loss ratio. Development-related items represent net prior year loss reserve and premium development, and includes the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. 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, expense and dividend ratios. The underlying combined ratio is the sum of the underlying loss ratio, the expense ratio and the dividend ratio. In addition, renewal premium change, rate, retention and new business are also utilized in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. For certain products within Small Business, where quantifiable, rate includes the influence of new business as well. Exposure represents the measure of risk used in the pricing of the insurance product. The change in exposure represents the change in premium dollars on policies that renew as a result of the change in risk of the policy. Retention represents the percentage of premium dollars renewed, excluding rate and exposure changes, in comparison to the expiring premium dollars from policies available to renew. New business represents premiums from policies written with new customers and additional policies written with existing customers. Gross written

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premiums, excluding third-party captives, excludes business which is ceded to third-party captives, including business related to large warranty programs. CNA uses underwriting gain (loss), calculated using GAAP financial results, to monitor insurance operations. Underwriting gain (loss) is pretax and is calculated as net earned premiums less total insurance expenses, which includes insurance claims and policyholders’ benefits, amortization of deferred acquisition costs and other insurance related expenses. Underlying underwriting gain (loss) represents underwriting results excluding catastrophe losses and development-related items.

The following tables summarize the results of CNA’s Property & Casualty Operations for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended September 30, 2023			Specialty						Commercial						International						Total
(In millions, except %)
Gross written premiums			$	1,775					$	1,343					$	306					$	3,424
Gross written premiums excluding third-party captives			949						1,340						306						2,595
Net written premiums			825						1,071						282						2,178
Net earned premiums			829						1,170						296						2,295
Underwriting gain			83						13						35						131
Net investment income			136						156						26						318
Core income			178						133						40						351
Other performance metrics:
Loss ratio excluding catastrophes and development			58.6		%				61.5		%				57.9		%				60.0		%
Effect of catastrophe impacts									7.4						2.3						4.1
Effect of development-related items			(0.6)																		(0.2)
Loss ratio			58.0		%				68.9		%				60.2		%				63.9		%
Expense ratio			31.8						29.5						28.1						30.1
Dividend ratio			0.3						0.5												0.3
Combined ratio			90.1		%				98.9		%				88.3		%				94.3		%
Combined ratio excluding catastrophes and development			90.7		%				91.5		%				86.0		%				90.4		%
Rate			1		%				8		%				2		%				5		%
Renewal premium change			2						9						7						6
Retention			87						83						84						84
New business			$	121					$	292					$	62					$	475

Three Months Ended September 30, 2022
Gross written premiums			$	1,890					$	1,187					$	288					$	3,365
Gross written premiums excluding third-party captives			958						1,184						288						2,430
Net written premiums			840						962						258						2,060
Net earned premiums			810						1,023						270						2,103
Underwriting gain (loss)			92						(23)						15						84
Net investment income			102						112						16						230
Core income			161						80						19						260
Other performance metrics:
Loss ratio excluding catastrophes and development			58.4		%				61.5		%				58.6		%				59.9		%
Effect of catastrophe impacts			0.2						10.0						4.1						5.5
Effect of development-related items			(1.9)																		(0.8)
Loss ratio			56.7		%				71.5		%				62.7		%				64.6		%
Expense ratio			31.7						29.9						31.7						30.8
Dividend ratio			0.3						0.5												0.4
Combined ratio			88.7		%				101.9		%				94.4		%				95.8		%
Combined ratio excluding catastrophes and development			90.4		%				91.9		%				90.3		%				91.1		%
Rate			5		%				4		%				6		%				5		%
Renewal premium change			6						7						15						8
Retention			88						86						83						86
New business			$	130					$	246					$	79					$	455

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Nine Months Ended September 30, 2023			Specialty						Commercial						International						Total
(In millions, except %)
Gross written premiums			$	5,324					$	4,504					$	1,125					$	10,953
Gross written premiums excluding third-party captives			2,796						4,384						1,125						8,305
Net written premiums			2,438						3,588						912						6,938
Net earned premiums			2,438						3,336						888						6,662
Underwriting gain			237						96						66						399
Net investment income			407						470						74						951
Core income			526						443						102						1,071
Other performance metrics:
Loss ratio excluding catastrophes and development			58.5		%				61.5		%				57.8		%				59.9		%
Effect of catastrophe impacts									5.7						2.7						3.2
Effect of development-related items			(0.3)						(0.2)						1.7
Loss ratio			58.2		%				67.0		%				62.2		%				63.1		%
Expense ratio			31.9						29.6						30.3						30.6
Dividend ratio			0.2						0.5												0.3
Combined ratio			90.3		%				97.1		%				92.5		%				94.0		%
Combined ratio excluding catastrophes and development			90.6		%				91.6		%				88.1		%				90.8		%
Rate			1		%				8		%				4		%				5		%
Renewal premium change			2						10						7						7
Retention			88						85						83						85
New business			$	349					$	945					$	239					$	1,533

Nine Months Ended September 30, 2022
Gross written premiums			$	5,640					$	3,824					$	1,033					$	10,497
Gross written premiums excluding third-party captives			2,816						3,711						1,033						7,560
Net written premiums			2,443						3,097						839						6,379
Net earned premiums			2,376						2,901						803						6,080
Underwriting gain			273						94						58						425
Net investment income			305						343						44						692
Core income			485						350						63						898
Other performance metrics:
Loss ratio excluding catastrophes and development			58.6		%				61.5		%				58.6		%				60.0		%
Effect of catastrophe impacts			0.1						5.0						2.7						2.8
Effect of development-related items			(1.4)						(0.5)						(0.6)						(0.9)
Loss ratio			57.3		%				66.0		%				60.7		%				61.9		%
Expense ratio			31.0						30.1						32.1						30.8
Dividend ratio			0.2						0.5												0.3
Combined ratio			88.5		%				96.6		%				92.8		%				93.0		%
Combined ratio excluding catastrophes and development			89.8		%				92.1		%				90.7		%				91.1		%
Rate			7		%				5		%				7		%				6		%
Renewal premium change			8						8						11						8
Retention			86						86						79						85
New business			$	407					$	754					$	245					$	1,406

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Three Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Gross written premiums, excluding third-party captives, for Specialty decreased $9 million for the three months ended September 30, 2023 as compared with the comparable 2022 period driven by lower new business and rate. Net written premiums for Specialty decreased $15 million for the three months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the three months ended September 30, 2023 was consistent with the trend in net written premiums in recent quarters for Specialty.

Gross written premiums for Commercial increased $156 million for the three months ended September 30, 2023 as compared with the comparable 2022 period driven by rate and higher new business. Net written premiums for Commercial increased $109 million for the three months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the three months ended September 30, 2023 was consistent with the trend in net written premiums for Commercial.

Gross written premiums for International increased $18 million, or $12 million excluding the effect of foreign currency exchange rates, for the three months ended September 30, 2023 as compared with the comparable 2022 period driven by favorable renewal premium change and retention. Net written premiums for International increased $24 million, or $17 million excluding the effect of foreign currency exchange rates, for the three months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the three months ended September 30, 2023 was consistent with the trend in net written premiums for International.

Core income for Property & Casualty Operations increased $91 million for the three months ended September 30, 2023 as compared with the comparable 2022 period primarily due to higher net investment income, improved underlying underwriting income and lower catastrophe losses partially offset by lower favorable net prior year loss reserve development.

Total catastrophe losses for Property & Casualty Operations were $94 million for the three months ended September 30, 2023 as compared with $114 million for the comparable 2022 period. For the three months ended September 30, 2023 and 2022, Specialty had no catastrophe losses and catastrophe losses of $1 million, Commercial had catastrophe losses of $87 million and $103 million and International had catastrophe losses of $7 million and $10 million.

Favorable net prior year loss reserve development for Property & Casualty Operations of $7 million and $17 million was recorded for the three months ended September 30, 2023 and 2022. For the three months ended September 30, 2023 and 2022, Specialty recorded favorable net prior year loss reserve development of $5 million and $15 million, Commercial recorded favorable net prior year loss reserve development of $2 million for each period and International recorded no net prior year loss reserve development. Further information on net prior year loss reserve development is included in Note 5 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Specialty’s combined ratio increased 1.4 points for the three months ended September 30, 2023 as compared with the comparable 2022 period largely due to a 1.3 point increase in the loss ratio. The increase in the loss ratio was primarily driven by lower favorable net prior year loss reserve development.

Commercial’s combined ratio improved 3.0 points for the three months ended September 30, 2023 as compared with the comparable 2022 period due to a 2.6 point improvement in the loss ratio and a 0.4 point improvement in the expense ratio. The improvement in the loss ratio was due to lower catastrophe losses, which were 7.4 points of the loss ratio for the three months ended September 30, 2023, as compared with 10.0 points of the loss ratio in the comparable 2022 period. The improvement in the expense ratio was driven by higher net earned premiums, partially offset by higher employee related and acquisition costs.

International’s combined ratio improved 6.1 points for the three months ended September 30, 2023 as compared with the comparable 2022 period due to a 3.6 point improvement in the expense ratio and a 2.5 point improvement in the loss ratio. The improvement in the expense ratio was driven by a 4.7 point favorable reinsurance acquisition related catch-up adjustment and higher net earned premiums partially offset by higher employee related costs. The improvement in the loss ratio was driven by lower catastrophe losses, which were 2.3 points of the loss ratio for the three months ended September 30, 2023, as compared with 4.1 points of the loss ratio in the comparable 2022 period.

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Nine Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Gross written premiums, excluding third-party captives, for Specialty decreased $20 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period driven by lower new business and rate. Net written premiums for Specialty decreased $5 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the nine months ended September 30, 2023 was consistent with the trend in net written premiums in recent quarters for Specialty.

Gross written premiums for Commercial increased $680 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period driven by rate and higher new business. Net written premiums for Commercial increased $491 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the nine months ended September 30, 2023 was consistent with the trend in net written premiums for Commercial.

Gross written premiums for International increased $92 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. Excluding the effect of foreign currency exchange rates, gross written premiums increased $111 million driven by favorable renewal premium change and retention. Net written premiums for International increased $73 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. Excluding the effect of foreign currency exchange rates, net written premiums increased $83 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. The increase in net earned premiums for the nine months ended September 30, 2023 was consistent with the trend in net written premiums for International.

Core income for Property & Casualty Operations increased $173 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period primarily due to higher net investment income and improved underlying underwriting income, partially offset by lower favorable net prior year loss reserve development and higher catastrophe losses.

Total catastrophe losses for Property & Casualty Operations were $214 million for the nine months ended September 30, 2023 as compared with $171 million for the comparable 2022 period. For the nine months ended September 30, 2023 and 2022, Specialty had no catastrophe losses and catastrophe losses of $2 million, Commercial had catastrophe losses of $190 million and $148 million and International had catastrophe losses of $24 million and $21 million.

Favorable net prior year loss reserve development for Property & Casualty Operations of $11 million and $66 million was recorded for the nine months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, Specialty recorded favorable net prior year loss reserve development of $9 million and $35 million, Commercial recorded favorable net prior year loss reserve development of $17 million and $26 million and International recorded unfavorable net prior year loss reserve development of $15 million and favorable net prior year loss reserve development of $5 million. Further information on net prior year loss reserve development is included in Note 5 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Specialty’s combined ratio increased 1.8 points for the nine months ended September 30, 2023 as compared with the comparable 2022 period due to a 0.9 point increase in the expense ratio and a 0.9 point increase in the loss ratio. The increase in the expense ratio was primarily driven by higher employee related costs. The increase in the loss ratio was primarily driven by lower favorable net prior year loss reserve development.

Commercial’s combined ratio increased 0.5 points for the nine months ended September 30, 2023 as compared with the comparable 2022 period due to a 1.0 point increase in the loss ratio, partially offset by a 0.5 point improvement in the expense ratio. The increase in the loss ratio was driven by higher catastrophe losses, which were 5.7 points of the loss ratio for the nine months ended September 30, 2023, as compared with 5.0 points of the loss ratio in the comparable 2022 period, and lower favorable net prior year loss reserve development. The improvement in the expense ratio was driven by higher net earned premiums, partially offset by higher employee related costs.

International’s combined ratio improved 0.3 points for the nine months ended September 30, 2023 as compared with the comparable 2022 period due to a 1.8 point improvement in the expense ratio, partially offset by a 1.5 point increase in the loss ratio. The improvement in the expense ratio was driven by a 1.3 point favorable reinsurance acquisition related catch-up adjustment and higher net earned premiums partially offset by higher employee related costs. The increase in the loss ratio was driven by unfavorable net prior period loss reserve development of $15 million recorded for the nine months ended September 30, 2023 as compared with favorable net prior year loss reserve development of $5 million recorded in the comparable 2022 period. Catastrophe losses were 2.7 points of the loss ratio for each of the nine months ended September 30, 2023 and 2022.

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Other Insurance Operations

The following table summarizes the results of CNA’s Other Insurance Operations for the three and nine months ended September 30, 2023 and 2022.

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Net earned premiums			$	112					$	118		$	340					$	356
Net investment income			235						192			702						610
Core loss (a)			(62)						(217)			(149)						(327)

(a)			As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. Core loss for Other Insurance Operations for the three and nine months ended September 30, 2022 was adjusted by $(170) million and $(203) million as a result of adopting the standard. For additional information see Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Three Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Core results for Other Insurance Operations improved $155 million for the three months ended September 30, 2023 as compared with the comparable 2022 period. Both periods are inclusive of cash flow assumption updates as a result of the annual long-term care reserve reviews completed in the third quarter of each year. Results for the prior year quarter have been adjusted to reflect the application of ASU 2018-12 and include an unfavorable impact from cash flow assumption updates in 2022.

The cash flow assumption updates for the three months ended September 30, 2023 resulted in an $8 million pretax increase in long term care reserves. Adjusted to reflect the application of ASU 2018-12, the cash flow assumption updates for the three months ended September 30, 2022 resulted in a $186 million pretax increase to long term care reserves, primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate assumptions.

The annual structured settlement reserve review resulted in a pretax reduction in claim reserves of $6 million and $5 million for the three months ended September 30, 2023 and 2022.

Core results for the three months ended September 30, 2023 also included higher net investment income as compared with the comparable 2022 period, partially offset by a $16 million charge for the three months ended September 30, 2023 related to unfavorable net prior year loss reserve development largely associated with legacy mass tort claims as compared with no charge for the comparable 2022 period. Further information on net prior year loss reserve development is included in Note 5 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Nine Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Core results for Other Insurance Operations improved $178 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period primarily due to the annual reserve reviews performed in the third quarter of each year partially offset by long term care policy buyouts. Policy buyouts generally result in an unfavorable impact on core results, as the cash payments are linked to higher statutory reserve levels. CNA expects to continue offering policy buyouts for the remainder of 2023 and into future years.

Core results for the nine months ended September 30, 2023 also included higher net investment income and lower unfavorable net period year loss reserve development associated with legacy mass tort claims as compared with the comparable 2022 period. Further information on net prior year loss reserve development is included in Note 5 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

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Impact of Office Consolidation on Fourth Quarter 2023 Results

In the fourth quarter of 2023, CNA committed to consolidate some of its offices, which include its principal executive offices. As a result of the consolidation, a pretax charge of approximately $24 million is anticipated to be recorded in the fourth quarter of 2023 in Other Insurance Operations.

Future Policy Benefit Reserves

Annually in the third quarter, an actuarial analysis is performed on policyholder morbidity, persistency, premium rate increases and expense experience. This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the liability for future policyholder benefits (“LFPB”). Further information on the reserving process is included in Note 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

The table below summarizes the estimated pretax impact on CNA’s results of operations from various hypothetical revisions to its LFPB reserve assumptions. CNA has assumed that revisions to such assumptions would occur in each policy type, age and duration within each policy group. The impact of each sensitivity is discrete and does not reflect the impact one factor may have on another or the mitigating impact from management actions, which may include additional future premium rate increases. Although such hypothetical revisions are not currently required or anticipated, CNA believes they could occur based on past variances in experience and its expectations of the ranges of future experience that could reasonably occur. Any actual adjustment would be dependent on the specific policies affected and, therefore, may differ from the estimates summarized below. The estimated impacts to results of operations in the table below are after consideration of any net premium ratio impacts.

September 30, 2023			Estimated Reduction to Pretax Income
(In millions)
Hypothetical revisions
Morbidity:
2.5% increase in morbidity			$	275
5% increase in morbidity			600
Persistency:
5% decrease in active life mortality and lapse			$	150
10% decrease in active life mortality and lapse			300
Premium rate actions:
25% decrease in anticipated future premium rate increases			$	25
50% decrease in anticipated future premium rate increases			50

The following table summarizes policyholder reserves for CNA’s long term care operations:

September 30, 2023			Claim and claim adjustment expenses						Future policy benefits						Total
(In millions)
Long term care									$	12,654					$	12,654
Structured settlement annuities and other			$	552											552
Total			552						12,654						13,206
Ceded reserves			97												97
Total gross reserves			$	649					$	12,654					$	13,303

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December 31, 2022			Claim and claim adjustment expenses						Future policy benefits						Total
(In millions)
Long term care (a)(b)									$	13,480					$	13,480
Structured settlement annuities and other			$	594											594
Total			594						13,480						14,074
Ceded reserves			101												101
Total gross reserves			$	695					$	13,480					$	14,175

(a)			As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. For additional information see Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.
(b)			In conjunction with the adoption of ASU 2018-12, at January 1, 2023 the long term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses to Future policy benefits. This change was applied retrospectively as of January 1, 2021.

As part of the annual reserve reviews, statutory long term care reserve adequacy is evaluated by premium deficiency testing, by comparing carried statutory reserves with best-estimate reserves, which incorporates best estimate discount rate and liability assumptions in its determination. Statutory margin is the excess of carried reserves over best estimate reserves. As of September 30, 2023, statutory long term care margin increased to $1.3 billion, primarily driven by a more favorable interest rate environment resulting in a higher yielding investment portfolio.

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Non-GAAP Reconciliation of Net Income Attributable to Loews Corporation to Core Income

The following table reconciles net income attributable to Loews Corporation to core income for the three and nine months ended September 30, 2023 and 2022:

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Net income (loss) attributable to Loews Corporation (a)			$	235					$	(37)		$	758					$	398
Investment losses			31						84			84						127
Consolidation adjustments including noncontrolling interests (a)			23						(4)			80						46
Total core income			$	289					$	43		$	922					$	571
Core income (loss):
Property & Casualty Operations			$	351					$	260		1,071						$	898
Other Insurance Operations (a)			(62)						(217)			(149)						(327)
Total core income			$	289					$	43		$	922					$	571

(a)			As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021. Prior period amounts presented in the financial statements have been adjusted to reflect application of the new guidance. Core loss for Other Insurance Operations for the three and nine months ended September 30, 2022 was adjusted by $(170) million and $(203) million as a result of adopting the standard. For additional information see Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Boardwalk Pipelines

A significant portion of Boardwalk Pipelines’ revenues is fee-based, being derived from capacity reservation charges under firm agreements with customers, which do not vary significantly period to period, but are impacted by longer term trends in its business such as changes in pricing on contract renewals and other factors. Boardwalk Pipelines’ operating costs and expenses do not vary significantly based upon the amount of products transported, with the exception of costs recorded in fuel and transportation expense, which are netted with fuel retained on our Consolidated Condensed Statements of Operations. For further information on Boardwalk Pipelines’ revenue recognition policies see Note 1 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022. Boardwalk Pipelines’ operations and maintenance expenses are impacted by its compliance with the requirements of, among other regulations, the Pipeline and Hazardous Materials Safety Administration Mega Rule (“Mega Rule”) and Boardwalk Pipelines’ efforts to monitor, control and reduce emissions, as further discussed in Results of Operations of our MD&A included under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022.

The following table summarizes the results of operations for Boardwalk Pipelines for the three and nine months ended September 30, 2023 and 2022, as presented in Note 13 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report. Boardwalk Pipelines also utilizes a non-GAAP measure, earnings before interest, income tax expense, depreciation and amortization (“EBITDA”) as a financial measure to assess its operating and financial performance and return on invested capital. Management believes some investors may find this measure useful in evaluating Boardwalk Pipelines’ performance.

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			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Revenues:
Operating revenues and other			$	357					$	339		$	1,114					$	1,045
Interest income			6									11
Total			363						339			1,125						1,045
Expenses:
Operating and other:
Operating costs and expenses			155						147			445						401
Depreciation and amortization			103						103			306						297
Interest			39						42			117						126
Total			297						292			868						824
Income before income tax			66						47			257						221
Income tax expense			(17)						(13)			(66)						(57)
Net income attributable to Loews Corporation			$	49					$	34		$	191					$	164
EBITDA			$	202					$	192		$	669					$	644

Three Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Net income attributable to Loews Corporation and EBITDA increased $15 million and $10 million for the three months ended September 30, 2023 as compared with the comparable 2022 period.

Total revenues increased $24 million for the three months ended September 30, 2023 as compared with the comparable 2022 period, due to higher operating revenues. Including fuel and transportation expenses, operating revenues increased $16 million, primarily driven by an increase in transportation revenues of $14 million due to re-contracting at higher rates, higher natural gas liquids and other hydrocarbons (referred to together as “NGLs”) transportation revenues and recently completed growth projects, as well as a $7 million increase in storage, parking and lending revenues due to favorable market conditions.

Operating costs and expenses increased $8 million for the three months ended September 30, 2023 as compared with the comparable 2022 period. Excluding expenses offset with operating revenues, operating costs and expenses increased $6 million, primarily due to increased costs from maintenance projects associated with the requirements of the Mega Rule and higher employee-related and outside services costs.

Interest expenses decreased $3 million for the three months ended September 30, 2023 as compared with the comparable 2022 period, primarily due to lower average outstanding long-term debt.

Nine Months Ended September 30, 2023 Compared to the Comparable 2022 Period

Net income attributable to Loews Corporation and EBITDA increased $27 million and $25 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period.

Total revenues increased $80 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period. This increase was primarily due to operating revenues, which increased $69 million, primarily driven by an increase in transportation revenues of $60 million primarily due to re-contracting at higher rates and recently completed growth projects as well as a $20 million increase in storage, parking and lending revenues due to favorable market conditions, partially offset by lower product sales of $9 million. In addition, interest income increased $11 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period.

Operating costs and expenses increased $44 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period, due to higher costs from increased maintenance projects associated with the requirements of the Mega Rule and higher employee-related, materials and supplies and outside services costs.

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Depreciation and amortization expenses increased $9 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period due to an increased asset base from recently completed growth projects and a change in the estimated life of certain assets.

Interest expenses decreased $9 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period, primarily due to lower average outstanding long-term debt.

Non-GAAP Reconciliation of Net Income Attributable to Loews Corporation to EBITDA

The following table reconciles net income attributable to Loews Corporation to EBITDA for the three and nine months ended September 30, 2023 and 2022:

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Net income attributable to Loews Corporation			$	49					$	34		$	191					$	164
Interest, net			33						42			106						126
Income tax expense			17						13			66						57
Depreciation and amortization			103						103			306						297
EBITDA			$	202					$	192		$	669					$	644

Loews Hotels & Co

The following table summarizes the results of operations for Loews Hotels & Co for the three and nine months ended September 30, 2023 and 2022, as presented in Note 13 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

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			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Revenues:
Operating revenue			$	160					$	149		$	497					$	440
Gain on acquisition of a joint venture												46
Revenues related to reimbursable expenses			36						31			99						92
Total			196						180			642						532
Expenses:
Operating and other:
Operating			141						128			413						359
Asset impairments									8			9						22
Reimbursable expenses			36						31			99						92
Depreciation and amortization expense			18						16			51						47
Equity income from joint ventures			(26)						(36)			(98)						(115)
Interest			3						(1)			9						7
Total			172						146			483						412
Income before income tax			24						34			159						120
Income tax expense			(7)						(9)			(44)						(36)
Net income attributable to Loews Corporation			$	17					$	25		$	115					$	84

Net income attributable to Loews Corporation decreased $8 million and increased $31 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods primarily due to the reasons discussed below.

Operating revenues improved by $11 million and $57 million and operating expenses increased by $13 million and $54 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods. The increase in operating revenues was driven by consolidating the results of a property previously accounted for under the equity method and a higher overall occupancy level at owned hotels. The increase in operating expenses was largely due to consolidating the results of a property previously accounted for under the equity method in addition to increased staffing costs and higher property taxes.

The nine months ended September 30, 2023 includes a gain of $46 million ($36 million after tax) related to the acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property.

Equity income from joint ventures decreased $10 million and $17 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods. The overall occupancy level at joint venture properties was lower in 2023 compared to the comparable prior year periods. Average daily rates increased nominally for the nine months ended September 30, 2023, but declined for the three months ended September 30, 2023, compared to the comparable prior year periods. Expenses at joint venture properties have increased in 2023 compared to 2022, largely due to increased staffing costs, as well as higher property insurance, property taxes and interest costs.

The nine months ended September 30, 2023 includes impairment charges of $9 million and the three and nine months ended September 30, 2022 include impairment charges of $8 million and $22 million to reduce the carrying value of assets to their estimated fair value.

Interest expense increased $4 million and $2 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods due primarily to consolidating the results of a property in the three and nine months ended September 30, 2023 that was previously accounted for under the equity method, and lower favorable impact of interest rate caps, offset by the increase in capitalized interest on projects under development.

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Corporate

Corporate operations consist primarily of investment income, interest expense and administrative costs at the Parent Company. Investment income includes earnings on cash and short term investments held at the Parent Company to meet current and future liquidity needs, as well as results of the trading portfolio held at the Parent Company. Corporate also includes the equity method of accounting for Altium Packaging.

The following table summarizes the results of operations for Corporate for the three and nine months ended September 30, 2023 and 2022 as presented in Note 13 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report:

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Revenues:
Net investment income (loss)			$	31					$	(19)		$	84					$	(100)
Operating revenues and other									4									6
Total			31						(15)			84						(94)
Expenses:
Operating and other			69						16			105						58
Equity method loss			4						1			9						4
Interest			18						23			61						67
Total			91						40			175						129
Loss before income tax			(60)						(55)			(91)						(223)
Income tax benefit			12						11			15						44
Net loss attributable to Loews Corporation			$	(48)					$	(44)		$	(76)					$	(179)

Net investment income for the Parent Company was $31 million and $84 million for the three and nine months ended September 30, 2023 as compared with net investment losses of $19 million and $100 million in the comparable 2022 periods, primarily due to the favorable change in the fair value of equity based investments and improved results from short term investments and fixed maturity securities in the trading portfolio.

Operating and other expenses increased by $53 million and $47 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods. These increases were primarily due to a settlement expense of $47 million in the third quarter of 2023 to recognize unrealized losses, which were included in AOCI, due to the termination of a non-contributory defined benefit plan. For additional information see Note 10 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Interest expenses decreased by $5 million and $6 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods due to the retirement of the Parent Company’s $500 million aggregate principal amount of its 2.6% senior notes in May of 2023.

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LIQUIDITY AND CAPITAL RESOURCES

Parent Company

Parent Company cash and investments, net of receivables and payables, totaled $2.3 billion at September 30, 2023 as compared to $3.2 billion at December 31, 2022. During the nine months ended September 30, 2023, we received $602 million in cash dividends from CNA, including a special cash dividend of $293 million. Cash outflows during the nine months ended September 30, 2023 included the payment of $709 million to fund treasury stock purchases, $500 million to retire at maturity the outstanding aggregate principal amount of our 2.6% senior notes, $43 million of cash dividends to our shareholders, $178 million to purchase common shares of CNA and equity contributions of $38 million to Loews Hotels & Co. As a holding company we depend on dividends from our subsidiaries and returns on our investment portfolio to fund our obligations. We also have an effective shelf registration statement on file with the Securities and Exchange Commission (“SEC”) under which we may publicly issue an unspecified amount of our debt, equity or hybrid securities from time to time. We are not responsible for the liabilities and obligations of our subsidiaries and there are no Parent Company guarantees.

Depending on market and other conditions, we may purchase shares of our and our subsidiaries outstanding common stock in the open market, in privately negotiated transactions or otherwise. During the nine months ended September 30, 2023, we purchased 11.9 million shares of Loews Corporation common stock and 4.5 million shares of CNA’s common stock. As of October 27, 2023, there were 223,250,642 shares of Loews Corporation common stock outstanding.

Future uses of our cash may include investing in our subsidiaries, new acquisitions, dividends and/or purchases of our and our subsidiaries’ outstanding common stock. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will depend on many factors, including our earnings, financial condition and business needs.

Subsidiaries

CNA’s cash provided by operating activities was $1.8 billion for the nine months ended September 30, 2023 as compared with $2.0 billion for the comparable 2022 period. The decrease in cash provided by operating activities was driven by higher net claim payments, which includes long term care policy buyouts of $160 million and lower distributions from limited partnerships, partially offset by an increase in premiums collected.

CNA paid cash dividends of $2.46 per share on its common stock, including a special cash dividend of $1.20 per share, during the nine months ended September 30, 2023. On October 27, 2023, CNA’s Board of Directors declared a quarterly cash dividend of $0.42 per share payable November 30, 2023 to shareholders of record on November 13, 2023. CNA’s declaration and payment of future dividends is at the discretion of its Board of Directors and will depend on many factors, including CNA’s earnings, financial condition, business needs and regulatory constraints. CNA believes that its present cash flows from operating, investing and financing activities are sufficient to fund its current and expected working capital and debt obligation needs and does not expect this to change in the near term.

Dividends to CNA from Continental Casualty Company (“CCC”), a subsidiary of CNA, are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the “Department”), are determined based on the greater of the prior year’s statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding 12 months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of September 30, 2023, CCC was in a positive earned surplus position. CCC paid dividends of $770 million and $845 million during the nine months ended September 30, 2023 and 2022. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.

In May of 2023, CNA completed a public offering of $400 million aggregate principal amount of its 5.5% senior notes due June 15, 2033 and in August of 2023, CNA completed a public offering of an additional $100 million aggregate principal amount of its 5.5% senior notes due June 15, 2033.

CNA has an effective shelf registration statement on file with the SEC under which it may publicly issue an unspecified amount of debt, equity or hybrid securities from time to time.

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Boardwalk Pipelines’ cash provided by operating activities increased $48 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period, primarily due to changes in net income adjusted for depreciation and amortization and other non-cash operating activities.

For the nine months ended September 30, 2023 and 2022, Boardwalk Pipelines’ capital expenditures were $232 million and $208 million, consisting of growth capital expenditures of $137 million and $122 million and maintenance capital expenditures of $95 million and $79 million. During the nine months ended September 30, 2022, Boardwalk Pipelines also spent $7 million on natural gas to be used in its integrated natural gas pipeline system. During the nine months ended September 30, 2023, Boardwalk Pipelines purchased Williams Olefins Pipeline Holdco LLC (“Bayou Ethane”) for $348 million in cash. For further information, see Note 2 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Boardwalk Pipelines anticipates that its existing capital resources, including its cash on hand, revolving credit facility and cash flows from operating activities, will be adequate to fund its operations and capital expenditures for 2023. During the third quarter of 2023, Boardwalk Pipelines filed a $1.5 billion shelf registration statement with the SEC, which was declared effective in September of 2023, under which it may publicly issue debt securities, warrants or rights from time to time. As of September 30, 2023, Boardwalk Pipelines had available the entire $1.0 billion of borrowing capacity under its revolving credit facility. In June of 2023, Boardwalk Pipelines’ amended its revolving credit facility to extend the maturity date by one year to May 26, 2028. For further information, see Note 8 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

As of September 30, 2023, Loews Hotels & Co, through its subsidiaries, had $464 million in mortgage loans that mature within twelve months. Loews Hotels & Co currently intends to exercise options to extend or refinance these loans prior to maturity. Extending or refinancing any indebtedness, including loans of unconsolidated joint venture partnerships, may require Loews Hotels & Co to make principal pay downs, establish restricted cash reserves or provide guaranties of the subsidiary’s debt. Through the date of this Report, all Loews Hotels & Co’s subsidiaries are in compliance with their debt covenants.

Through October 27, 2023, Loews Hotels & Co received capital contributions of $38 million from Loews Corporation to fund development projects during 2023.

INVESTMENTS

Investment activities of our non-insurance subsidiaries primarily consist of investments in fixed income securities, including short term investments. The Parent Company portfolio also includes equity securities, including short sales and derivative instruments. Certain of these types of Parent Company investments generally have greater volatility, less liquidity and greater risk than fixed income investments and are included within Results of Operations – Corporate.

The Parent Company enters into short sales and invests in certain derivative instruments that are used for asset and liability management activities, income enhancements to its portfolio management strategy and to benefit from anticipated future movements in the underlying markets. If such movements do not occur as anticipated, significant losses may occur. Monitoring procedures include senior management review of daily reports of existing positions and valuation fluctuations to seek to ensure that open positions are consistent with the portfolio strategy.

Credit exposure associated with non-performance by counterparties to derivative instruments is generally limited to the uncollateralized change in fair value of the derivative instruments recognized in the Consolidated Condensed Balance Sheets. The risk of non-performance is mitigated by monitoring the creditworthiness of counterparties and diversifying derivatives by using multiple counterparties. Collateral is occasionally required from derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty.

Insurance

CNA maintains a large portfolio of fixed maturity and equity securities, including large amounts of corporate and government issued debt securities, residential and commercial mortgage-backed securities, other asset-backed securities and investments in limited partnerships which pursue a variety of long and short investment strategies across a broad array of asset classes. CNA’s investment portfolio supports its obligation to pay future insurance claims and provides investment returns which are an important part of CNA’s overall profitability.

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Net Investment Income

The significant components of CNA’s net investment income are presented in the following table. Fixed income securities, as presented, include both fixed maturity securities and non-redeemable preferred stock.

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Fixed income securities:
Taxable fixed income securities			$	457					$	410		$	1,331					$	1,163
Tax-exempt fixed income securities			43						55			138						194
Total fixed income securities			500						465			1,469						1,357
Limited partnership and common stock investments			28						(44)			124						(51)
Other, net of investment expense			25						1			60						(4)
Net investment income			$	553					$	422		$	1,653					$	1,302

Effective income yield for the fixed income securities portfolio			4.7		%				4.4		%	4.6		%				4.3		%
Limited partnership and common stock return			1.3		%				(2.1)		%	5.8		%				(2.4)		%

CNA’s net investment income increased $131 million and $351 million for the three and nine months ended September 30, 2023 as compared with the comparable 2022 periods, driven by higher limited partnership and common stock returns and higher income from fixed income securities and other.

Investment Gains (Losses)

The components of CNA’s investment gains (losses) are presented in the following table:

			Three Months Ended									Nine Months Ended
			September 30,									September 30,
			2023						2022			2023						2022
(In millions)
Investment gains (losses):
Fixed maturity securities:
Corporate and other bonds			$	(11)					$	(41)		$	(46)					$	(68)
States, municipalities and political subdivisions			(4)						6			3						28
Asset-backed			(22)						(17)			(43)						(29)
Total fixed maturity securities			(37)						(52)			(86)						(69)
Non-redeemable preferred stock			2						(2)			(9)						(111)
Derivatives, short term and other			(3)						(42)			(10)						14
Total investment losses			(38)						(96)			(105)						(166)
Income tax benefit			7						12			21						39
Amounts attributable to noncontrolling interests			4						8			9						12
Investment losses attributable to Loews Corporation			$	(27)					$	(76)		$	(75)					$	(115)

CNA’s pretax investment losses decreased $58 million for the three months ended September 30, 2023 as compared with the comparable 2022 period, which reflects lower net losses on fixed maturity securities. CNA’s pretax investment losses

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decreased $61 million for the nine months ended September 30, 2023 as compared with the comparable 2022 period, driven by the favorable relative change in fair value of non-redeemable preferred stock.

Additionally, Derivatives, short term and other for the three months ended September 30, 2022 included a $35 million non-economic net loss related to the novation of a coinsurance agreement on CNA’s legacy annuity business in Other Insurance Operations and the associated funds withheld embedded derivative. The coinsurance agreement was novated in the fourth quarter of 2022.

Further information on CNA’s investment gains and losses is set forth in Note 3 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Portfolio Quality

The following table presents the estimated fair value and net unrealized gains (losses) of CNA’s fixed maturity securities by rating distribution:

			September 30, 2023												December 31, 2022
			Estimated Fair Value						Net Unrealized Gains (Losses)						Estimated Fair Value						Net Unrealized Gains (Losses)
(In millions)
U.S. Government, Government agencies and Government-sponsored enterprises			$	2,672					$	(464)					$	2,419					$	(336)
AAA			2,464						(340)						2,398						(208)
AA			5,916						(950)						6,342						(663)
A			9,372						(772)						9,043						(531)
BBB			15,632						(1,776)						15,651						(1,447)
Non-investment grade			1,800						(190)						1,774						(219)
Total			$	37,856					$	(4,492)					$	37,627					$	(3,404)

As of September 30, 2023 and December 31, 2022, 1% of CNA’s fixed maturity portfolio was rated internally. AAA rated securities included $0.2 billion and $0.3 billion of pre-funded municipal bonds as of September 30, 2023 and December 31, 2022.

The following table presents CNA’s available-for-sale fixed maturity securities in a gross unrealized loss position by ratings distribution:

September 30, 2023			Estimated Fair Value						Gross Unrealized Losses
(In millions)
U.S. Government, Government agencies and Government-sponsored enterprises			$	2,620					$	466
AAA			1,893						382
AA			4,458						1,037
A			7,240						913
BBB			13,704						1,881
Non-investment grade			1,202						209
Total			$	31,117					$	4,888

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The following table presents the maturity profile for these available-for-sale fixed maturity securities. Securities not due to mature on a single date are allocated based on weighted average life:

September 30, 2023			Estimated Fair Value						Gross Unrealized Losses
(In millions)
Due in one year or less			$	953					$	45
Due after one year through five years			9,059						701
Due after five years through ten years			9,535						1,550
Due after ten years			11,570						2,592
Total			$	31,117					$	4,888

Commercial Real Estate

CNA’s investment portfolio has exposure to the commercial real estate sector primarily through its fixed maturity securities and mortgage loan portfolios. The performance of these assets is dependent on a number of factors, including the performance of the underlying collateral (which is influenced by cash flows from underlying property leases), changes in the fair value of collateral, refinancing risk, and the creditworthiness of tenants of credit tenant loan properties (where lease payments directly service the loan).

Within CNA’s fixed maturity securities portfolio, its exposure is primarily through the commercial mortgage-backed securities portfolio and the corporate and other bonds portfolio, which contains obligations of real estate investment trust (“REIT”) issuers. Commercial mortgage-backed securities include both single asset, single borrower collateral that is securitized independently and conduit collateral that is securitized in diversified pools.

The following tables present the estimated fair value and net unrealized gains (losses) of CNA’s commercial mortgage-backed securities by property type and by ratings distribution:

September 30, 2023			Estimated Fair Value						Net Unrealized Gains (Losses)
(In millions)
Commercial mortgage-backed:
Single asset, single borrower:
Office			$	293					$	(83)
Retail			269						(37)
Lodging			216						(23)
Industrial			91						(6)
Multifamily			58						(4)
Total single asset, single borrower			927						(153)
Conduits (multi property, multi borrower pools)			627						(119)
Total commercial mortgage-backed			$	1,554					$	(272)

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September 30, 2023			Estimated Fair Value						Net Unrealized Gains (Losses)
(In millions)
Commercial mortgage backed:
AAA			$	504					$	(39)
AA			578						(120)
A			198						(37)
BBB			222						(52)
Non-investment grade			52						(24)
Total commercial mortgage-backed			$	1,554					$	(272)

The following tables present the estimated fair value and net unrealized gains (losses) of the REIT issuer exposure within CNA’s corporate and other bonds portfolio by property type and by ratings distribution:

September 30, 2023			Estimated Fair Value						Net Unrealized Gains (Losses)
(In millions)
Corporate and other bonds - REITs:
Retail			$	462					$	(53)
Office			237						(32)
Industrial			83						(8)
Other (a)			412						(41)
Total corporate and other bonds - REITs			$	1,194					$	(134)

(a)			Other includes a diversified mix of property type strategies including self-storage, healthcare and apartments.

September 30, 2023			Estimated Fair Value						Net Unrealized Gains (Losses)
(In millions)
Corporate and other bonds - REITs:
AA			$	10					$	(1)
A			244						(18)
BBB			918						(112)
Non-investment grade			22						(3)
Total corporate and other bonds - REITs			$	1,194					$	(134)

Mortgage loans are commercial in nature and are carried at unpaid principal balance, net of unamortized fees and an allowance for expected credit losses. The allowance for expected credit losses is developed by assessing the credit quality of pools of mortgage loans in good standing using debt service coverage ratios (“DSCR”) and loan-to-value ratios (“LTV”). This assessment utilizes historical credit loss experience adjusted to reflect current conditions and reasonable and supportable forecasts. As of September 30, 2023 the allowance for expected credit losses on CNA’s mortgage portfolio was $35 million, or 3.4% of its amortized cost basis.

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The following table presents the amortized cost basis of mortgage loans by property type:

September 30, 2023			Amortized Cost						Percentage of Total
(In millions, except %)
Mortgage loans:
Retail			$	470					45		%
Office			246						24
Industrial			133						13
Other			181						18
Total mortgage loans			1,030						100		%
Less: Allowance for expected credit losses			(35)
Total mortgage loans - net of allowance			$	995

In addition to the mortgage loan portfolio, CNA invests in securitized credit tenant loans and ground lease financings that are classified as fixed maturity securities and are largely investment grade quality. As of September 30, 2023, these holdings had an estimated fair value of $437 million and net unrealized losses of $128 million.

CNA owns other fixed maturity securities which have exposure to cell towers, data centers and other collateral types that could be viewed as having real estate characteristics. CNA views these securities to have risks more similar to operating enterprises that do not share the same risks as the broader commercial real estate market.

CNA does not hold any direct investments in commercial real estate. Additionally, CNA does not have significant exposure through its limited partnership portfolio to funds whose primary strategy is real estate focused.

Duration

A primary objective in the management of CNA’s investment portfolio is to optimize return relative to the corresponding liabilities and respective liquidity needs. CNA’s views on the current interest rate environment, tax regulations, asset class valuations, specific security issuer and broader industry segment conditions as well as domestic and global economic conditions, are some of the factors that enter into an investment decision. CNA also continually monitors exposure to issuers of securities held and broader industry sector exposures and may from time to time adjust such exposures based on its views of a specific issuer or industry sector.

A further consideration in the management of CNA’s investment portfolio is the characteristics of the corresponding liabilities and the ability to align the duration of the portfolio to those liabilities and to meet future liquidity needs, minimize interest rate risk and maintain a level of income sufficient to support the underlying insurance liabilities. For portfolios where future liability cash flows are determinable and typically long term in nature, CNA segregates investments for asset/liability management purposes. The segregated investments support the long term care and structured settlement liabilities in Other Insurance Operations. The effective durations of CNA’s fixed income securities and short term investments are presented in the following table. Amounts presented are net of payable and receivable amounts for securities purchased and sold, but not yet settled.

			September 30, 2023												December 31, 2022
			Estimated Fair Value						Effective Duration (Years)						Estimated Fair Value						Effective Duration (Years)
(In millions of dollars)
Investments supporting Other Insurance Operations			$	13,737					9.8						$	14,511					9.9
Other investments			26,459						4.6						25,445						4.7
Total			$	40,196					6.3						$	39,956					6.6

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CNA’s investment portfolio is periodically analyzed for changes in duration and related price risk. Certain securities have duration characteristics that are variable based on market interest rates, credit spreads and other factors that may drive variability in the amount and timing of cash flows. Additionally, CNA periodically reviews the sensitivity of the portfolio to the level of foreign exchange rates and other factors that contribute to market price changes. A summary of these risks and specific analysis on changes is included in the Quantitative and Qualitative Disclosures about Market Risk included under Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2022.

CRITICAL ACCOUNTING ESTIMATES

Certain accounting policies require us to make estimates and judgments that affect the amounts reflected in the Consolidated Condensed Financial Statements. Such estimates and judgments necessarily involve varying, and possibly significant, degrees of uncertainty. Accordingly, certain amounts currently recorded or disclosed in the financial statements will likely be adjusted in the future based on new available information and changes in other facts and circumstances. See the Critical Accounting Estimates for accounting estimates related to Reinsurance and Insurance Receivables, Valuation of Investments and Impairment of Securities, and the Insurance Reserves sections of our MD&A in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

The information presented below restates in their entirety, as a result of the adoption of ASU 2018-12 and its impact on long term care reserves, the accounting estimates related to Insurance Reserves and Long Term Care Reserves included in the Critical Accounting Estimates section of our MD&A in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022. Further information on the long term care reserving process under the new guidance is included in Notes 1 and 6 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

Insurance Reserves

Insurance reserves are established for both short and long-duration insurance contracts. Short-duration contracts are primarily related to property and casualty insurance policies where the reserving process is based on actuarial estimates of the amount of loss, including amounts for known and unknown claims. Long-duration contracts are primarily related to long term care policies and the reserves are recorded as Future policy benefits reserves as discussed below. The reserve for unearned premiums represents the portion of premiums written related to the unexpired terms of coverage. The reserving process is discussed in further detail in the Insurance Reserves section of our MD&A in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022.

Long Term Care Reserves

Future policy benefits reserves for long term care policies are based on certain assumptions, including morbidity, persistency (inclusive of mortality), future premium rate increases and expenses. The adequacy of the reserves is contingent upon actual experience and future expectations related to these key assumptions. If actual or expected future experience differs from these assumptions, the reserves may not be adequate, requiring an increase to reserves. The reserves are discounted using upper-medium grade fixed income instrument yields as of each reporting date. In addition, regulatory approval may not be received for the level of premium rate increases requested.

Changes to reserves could materially adversely impact our results of operations, financial condition and equity.

ACCOUNTING STANDARDS UPDATE

In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12. The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. For the Company, this includes CNA’s long term care business in Other Insurance Operations.

Prior period amounts in the financial statements have been adjusted to reflect application of ASU 2018-12. Net income attributable to Loews Corporation for the third quarter of 2022 decreased $152 million from what was previously reported under legacy accounting guidance, primarily related to CNA’s third quarter 2022 annual review of cash flow reserving assumptions. Under legacy accounting guidance, the third quarter 2022 gross premium valuation assessment indicated a pretax margin of $125 million and no unlocking event occurred. Under the new guidance favorable changes to the upper-medium grade fixed income instrument discount rate were recorded through Accumulated other comprehensive income quarterly, while the net unfavorable impact of increased cost of care inflation offset by favorable premium rate action assumptions was recorded in income. Excluding the third quarter of 2022, net income attributable to Loews Corporation did not change materially from what was reported prior to adoption of ASU 2018-12.

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For a discussion of accounting standards updates that have been adopted, please read Note 1 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report.

FORWARD-LOOKING STATEMENTS

Investors are cautioned that certain statements contained in this Report as well as in other of our and our subsidiaries’ SEC filings and periodic press releases and certain statements made by us and our subsidiaries and our and their officials during presentations may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, without limitation, any statement that does not directly relate to any historical or current fact and may project, indicate or imply future results, events, performance or achievements. Such statements may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions. In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions taken by us or our subsidiaries are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected.

Developments in any of the risks or uncertainties facing us or our subsidiaries, including those described under Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022 and in our and our subsidiaries’ other filings with the SEC, could cause our and our subsidiaries’ results to differ materially from results that have been or may be anticipated or projected. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made and we and our subsidiaries expressly disclaim any obligation or undertaking to update these statements to reflect any change in expectations or beliefs or any change in events, conditions or circumstances on which any forward-looking statement is based.