Item 1. Financial Statements.

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Item 1. Financial Statements.

Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED BALANCE SHEETS

(Unaudited)


	June 30,		December 31,
	2024		2023
(Dollar amounts in millions, except per share data)

Assets:

Investments:
Fixed maturities, amortized cost of $43,469 and $42,615, less allowance for credit loss of $17 and $16	$	40,879	$	40,626
Equity securities, cost of $1,076 and $1,015	1,117		1,050
Limited partnership investments	2,367		2,174
Other invested assets, primarily mortgage loans, less allowance for credit loss of $35 and $35	1,067		1,123
Short-term investments	4,916		4,396
Total investments	50,346		49,369
Cash	470		399
Receivables	10,280		9,660
Property, plant and equipment	10,710		10,718
Goodwill	347		347
Deferred non-insurance warranty acquisition expenses	3,598		3,661
Deferred acquisition costs of insurance subsidiaries	948		896
Other assets	4,358		4,147
Total assets	$	81,057	$	79,197

Liabilities and Equity:

Insurance reserves:
Claim and claim adjustment expense	$	23,974	$	23,304
Future policy benefits	13,211		13,959
Unearned premiums	7,409		6,933
Total insurance reserves	44,594		44,196
Payable to brokers	130		79
Short-term debt	1,013		1,084
Long-term debt	8,558		7,919
Deferred income taxes	502		398
Deferred non-insurance warranty revenue	4,623		4,694
Other liabilities	4,436		4,302
Total liabilities	63,856		62,672

Commitments and contingent liabilities

Preferred stock, $0.10 par value:
Authorized – 100,000,000 shares
Common stock, $0.01 par value:
Authorized – 1,800,000,000 shares
Issued – 222,456,544 and 222,268,150 shares	2		2
Additional paid-in capital	2,556		2,589
Retained earnings	16,415		15,617
Accumulated other comprehensive loss	(2,383)		(2,497)
	16,590		15,711
Less treasury stock, at cost (2,749,732 and 100,000 shares)	(206)		(7)
Total shareholders’ equity	16,384		15,704
Noncontrolling interests	817		821
Total equity	17,201		16,525
Total liabilities and equity	$	81,057	$	79,197

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions, except per share data)

Revenues:
Insurance premiums	$	2,498	$	2,347	$	4,939	$	4,595
Net investment income	639		592		1,308		1,161
Investment gains (losses)	(10)		14		(32)		(21)
Non-insurance warranty revenue	404		407		811		814
Operating revenues and other	736		574		1,472		1,168
Total	4,267		3,934		8,498		7,717

Expenses:
Insurance claims and policyholders’ benefits (re-measurement gain (loss) of $(25), $(33), $(40) and $(34))	1,882		1,779		3,689		3,432
Amortization of deferred acquisition costs	435		403		879		782
Non-insurance warranty expense	388		384		782		768
Operating expenses and other	968		808		1,848		1,589
Equity method income	(27)		(39)		(53)		(67)
Interest	114		91		217		186
Total	3,760		3,426		7,362		6,690
Income before income tax	507		508		1,136		1,027
Income tax expense	(112)		(120)		(256)		(235)
Net income	395		388		880		792
Amounts attributable to noncontrolling interests	(26)		(28)		(54)		(57)
Net income attributable to Loews Corporation	$	369	$	360	$	826	$	735

Basic and diluted net income per share	$	1.67	$	1.58	$	3.72	$	3.19


Weighted average shares outstanding:
Shares of common stock	221.35		227.69		221.91		230.48
Dilutive potential shares of common stock	0.25		0.28		0.27		0.30
Total weighted average shares outstanding assuming dilution	221.60		227.97		222.18		230.78

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Net income	$	395	$	388	$	880	$	792

Other comprehensive income (loss), after tax
Changes in:
Net unrealized gains (losses) on investments with an allowance for credit losses			(1)		2		(9)
Net unrealized gains (losses) on other investments	(244)		(413)		(461)		257
Total unrealized gains (losses) on investments	(244)		(414)		(459)		248
Impact of changes in discount rates used to measure long-duration contract liabilities	273		256		614		(140)
Unrealized gains (losses) on cash flow hedges	(1)		8		1		6
Pension and postretirement benefits	6		6		12		15
Foreign currency translation	(10)		35		(43)		51

Other comprehensive income (loss)	24		(109)		125		180

Comprehensive income	419		279		1,005		972

Amounts attributable to noncontrolling interests	(29)		(17)		(65)		(77)

Total comprehensive income attributable to Loews Corporation	$	390	$	262	$	940	$	895

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY

(Unaudited)


			Loews Corporation Shareholders
	Total		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Common Stock Held in Treasury		Noncontrolling Interests
(In millions)

Balance, April 1, 2023	$	15,314	$	2	$	2,716	$	15,293	$	(3,062)	$	(498)	$	863
Net income	388						360						28
Other comprehensive loss	(109)								(98)				(11)
Dividends paid ($0.0625 per share)	(25)						(14)						(11)
Purchase of subsidiary stock from noncontrolling interests	(2)												(2)
Purchases of Loews Corporation treasury stock	(107)										(107)

Stock-based compensation	9				9
Other	2				3		(2)				1
Balance, June 30, 2023	$	15,470	$	2	$	2,728	$	15,637	$	(3,160)	$	(604)	$	867

Balance, April 1, 2024	$	16,998	$	2	$	2,547	$	16,060	$	(2,401)	$	(24)	$	814
Net income	395						369						26
Other comprehensive income	24								21				3
Dividends paid ($0.0625 per share)	(23)						(14)						(9)
Purchase of subsidiary stock from noncontrolling interests	(20)												(20)
Purchases of Loews Corporation treasury stock	(182)										(182)

Stock-based compensation	11				11
Other	(2)				(2)				(3)				3
Balance, June 30, 2024	$	17,201	$	2	$	2,556	$	16,415	$	(2,383)	$	(206)	$	817

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF EQUITY

(Unaudited)


			Loews Corporation Shareholders
	Total		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Common Stock Held in Treasury		Noncontrolling Interests
(In millions)

Balance, January 1, 2023, as reported	$	15,478	$	2	$	2,748	$	15,144	$	(3,284)	$	(12)	$	880
Cumulative effect adjustments from changes in accounting standards	(277)						(213)		(36)				(28)
Balance, January 1, 2023, as adjusted	15,201		2		2,748		14,931		(3,320)		(12)		852
Net income	792						735						57
Other comprehensive income	180								160				20
Dividends paid ($0.125 per share)	(84)						(29)						(55)
Purchase of subsidiary stock from noncontrolling interests	(26)												(26)
Purchases of Loews Corporation treasury stock	(593)										(593)

Stock-based compensation	5				(17)								22
Other	(5)				(3)						1		(3)
Balance, June 30, 2023	$	15,470	$	2	$	2,728	$	15,637	$	(3,160)	$	(604)	$	867



Balance, January 1, 2024	$	16,525	$	2	$	2,589	$	15,617	$	(2,497)	$	(7)	$	821
Net income	880						826						54
Other comprehensive income	125								114				11
Dividends paid ($0.125 per share)	(93)						(28)						(65)
Purchase of subsidiary stock from noncontrolling interests	(20)												(20)
Purchases of Loews Corporation treasury stock	(199)										(199)

Stock-based compensation	(3)				(22)								19
Other	(14)				(11)								(3)
Balance, June 30, 2024	$	17,201	$	2	$	2,556	$	16,415	$	(2,383)	$	(206)	$	817

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


Six Months Ended June 30	2024		2023
(In millions)

Operating Activities:

Net income	$	880	$	792
Adjustments to reconcile net income to net cash provided by operating activities, net	250		300







Changes in operating assets and liabilities, net:
Receivables	(599)		(456)
Deferred acquisition costs	(55)		(74)
Insurance reserves	1,255		1,165
Other assets	(172)		(173)
Other liabilities	83		(139)
Trading securities	(492)		738
Net cash flow provided by operating activities	1,150		2,153

Investing Activities:

Purchases of fixed maturities	(3,338)		(3,506)
Proceeds from sales of fixed maturities	1,611		2,285
Proceeds from maturities of fixed maturities	1,109		613
Purchases of equity securities	(246)		(126)
Proceeds from sales of equity securities	288		121
Purchases of limited partnership investments	(140)		(245)
Proceeds from sales of limited partnership investments	30		132
Purchases of property, plant and equipment	(318)		(299)

Dispositions	23

Change in short-term investments	(338)		(322)
Other, net	43		(120)
Net cash flow used by investing activities	(1,276)		(1,467)

Financing Activities:

Dividends paid	(28)		(29)
Dividends paid to noncontrolling interests	(65)		(55)
Purchases of Loews Corporation treasury stock	(203)		(593)
Purchases of subsidiary stock from noncontrolling interests	(20)		(26)
Principal payments on debt	(762)		(502)
Issuance of debt	1,323		463
Other, net	(45)		(17)
Net cash flow provided by (used by) financing activities	200		(759)

Effect of foreign exchange rate on cash	(3)		4

Net change in cash	71		(69)
Cash, beginning of period	399		532
Cash, end of period	$	470	$	463

See accompanying Notes to Consolidated Condensed Financial Statements.


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Loews Corporation and Subsidiaries

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

Loews Corporation is a holding company. Its consolidated operating subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an approximately 92% owned subsidiary); transportation and storage of natural gas and natural gas liquids and other hydrocarbons (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary) and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary). Unless the context otherwise requires, as used herein, the term “Company” means Loews Corporation including its consolidated subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries, the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries.

In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of June 30, 2024 and December 31, 2023, results of operations, comprehensive income (loss) and changes in shareholders’ equity for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023, in each case in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Results for the interim periods are not necessarily indicative of results for the entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Operations. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three and six months ended June 30, 2024 and 2023 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive.

Recently issued Accounting Standards Updates (“ASUs”) - In November of 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker (“CODM”). The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Retrospective application is required and early adoption is permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures and expects to disclose additional quantitative and qualitative information related to segment expenses regularly provided to the CODM that are included in the segment measures of profit or loss.

In December of 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024. Prospective application is required, with retrospective application permitted. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.


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2. Investments

Net investment income is as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Fixed maturity securities	$	511	$	482	$	1,013	$	952
Limited partnership investments	74		55		128		82
Short-term investments	20		14		49		30
Equity securities (a)	13		21		35		33
Income from trading portfolio (a)	11		14		69		59
Other	34		29		62		49
Total investment income	663		615		1,356		1,205
Investment expenses	(24)		(23)		(48)		(44)
Net investment income	$	639	$	592	$	1,308	$	1,161
(a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of June 30, 2024 and 2023	$	(21)	$	15	$	19	$	20

Investment gains (losses) are as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Fixed maturity securities:
Gross gains	$	13	$	8	$	27	$	43
Gross losses	(25)		(35)		(71)		(92)
Investment losses on fixed maturity securities	(12)		(27)		(44)		(49)
Equity securities (a)	1		3		12		(11)

Short-term investments and other	1		(8)				(7)

Gain on acquisition of a joint venture			46				46
Investment gains (losses)	$	(10)	$	14	$	(32)	$	(21)
(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2024 and 2023	$	1	$	3	$	12	$	—

The available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:


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	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Fixed maturity securities available-for-sale:
Corporate and other bonds	$	6	$	9	$	15	$	17
Asset-backed			8		5		8
Impairment losses recognized in earnings	$	6	$	17	$	20	$	25

There were no losses recognized on mortgage loans during the three and six months ended June 30, 2024. There were $6 million of losses recognized on mortgage loans during the three and six months ended June 30, 2023.


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The following tables present a summary of fixed maturity securities:


June 30, 2024	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	25,463	$	401	$	1,496			$	24,368
States, municipalities and political subdivisions	7,560		269		800				7,029
Asset-backed:
Residential mortgage-backed	3,602		8		495				3,115
Commercial mortgage-backed	1,798		7		186		$	8	1,611
Other asset-backed	3,631		17		260		9		3,379
Total asset-backed	9,031		32		941		17		8,105
U.S. Treasury and obligations of government sponsored enterprises	193		1		3				191
Foreign government	742		2		38				706

Fixed maturities available-for-sale	$	42,989	$	705	$	3,278	$	17	$	40,399
Fixed maturities trading	480								480
Total fixed maturity securities	$	43,469	$	705	$	3,278	$	17	$	40,879


December 31, 2023


Fixed maturity securities:
Corporate and other bonds	$	25,020	$	597	$	1,345	$	4	$	24,268
States, municipalities and political subdivisions	7,713		382		703				7,392
Asset-backed:
Residential mortgage-backed	3,411		16		425				3,002
Commercial mortgage-backed	1,862		7		230		8		1,631
Other asset-backed	3,515		13		256		4		3,268
Total asset-backed	8,788		36		911		12		7,901
U.S. Treasury and obligations of government sponsored enterprises	152		1		2				151
Foreign government	741		6		34				713

Fixed maturities available-for-sale	$	42,414	$	1,022	$	2,995	$	16	$	40,425
Fixed maturities trading	201								201
Total fixed maturity securities	$	42,615	$	1,022	$	2,995	$	16	$	40,626


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The available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:


	Less than 12 Months				12 Months or Longer				Total
June 30, 2024	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	3,388	$	84	$	13,395	$	1,412	$	16,783	$	1,496
States, municipalities and political subdivisions	899		23		3,257		777		4,156		800
Asset-backed:
Residential mortgage-backed	556		9		2,227		486		2,783		495
Commercial mortgage-backed	170		1		1,153		185		1,323		186
Other asset-backed	372		9		1,904		251		2,276		260
Total asset-backed	1,098		19		5,284		922		6,382		941
U.S. Treasury and obligations of government-sponsored enterprises	117		1		51		2		168		3
Foreign government	160		3		442		35		602		38
Total fixed maturity securities	$	5,662	$	130	$	22,429	$	3,148	$	28,091	$	3,278

December 31, 2023

Fixed maturity securities:
Corporate and other bonds	$	1,943	$	37	$	13,406	$	1,308	$	15,349	$	1,345
States, municipalities and political subdivisions	598		18		3,104		685		3,702		703
Asset-backed:
Residential mortgage-backed	233		4		2,212		421		2,445		425
Commercial mortgage-backed	200		5		1,184		225		1,384		230
Other asset-backed	392		8		1,869		248		2,261		256
Total asset-backed	825		17		5,265		894		6,090		911
U.S. Treasury and obligations of government-sponsored enterprises	65		1		23		1		88		2
Foreign government	52		1		450		33		502		34
Total fixed maturity securities	$	3,483	$	74	$	22,248	$	2,921	$	25,731	$	2,995


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The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	June 30, 2024				December 31, 2023
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	2,599	$	378	$	2,273	$	309
AAA	1,841		288		1,524		261
AA	4,371		730		3,817		658
A	6,587		629		5,652		517
BBB	11,813		1,119		11,523		1,095
Non-investment grade	880		134		942		155
Total	$	28,091	$	3,278	$	25,731	$	2,995

Based on current facts and circumstances, the unrealized losses presented in the June 30, 2024 securities in the gross unrealized loss position table above are not indicative of the ultimate collectability of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates. In reaching this determination, the volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded as of June 30, 2024.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $444 million, $435 million and $413 million as of June 30, 2024, December 31, 2023 and June 30, 2023 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.


Three months ended June 30, 2024	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of April 1, 2024	$	3	$	17	$	20




Reductions to the allowance for credit losses:
Securities sold during the period (realized)	3		1		4



Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period			1		1
Total allowance for credit losses	$	—	$	17	$	17


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Three months ended June 30, 2023	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of April 1, 2023	$	1	$	1	$	2
Additions to the allowance for credit losses:

Securities for which credit losses were not previously recorded	1		7		8
Available-for-sale securities accounted for as PCD assets	11				11





Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period			1		1
Total allowance for credit losses	$	13	$	9	$	22


Six months ended June 30, 2024	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of January 1, 2024	$	4	$	12	$	16




Reductions to the allowance for credit losses:
Securities sold during the period (realized)	3		1		4
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	1				1


Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period			6		6
Total allowance for credit losses	$	—	$	17	$	17


Six months ended June 30, 2023	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of January 1, 2023	$	—	$	1	$	1
Additions to the allowance for credit losses:

Securities for which credit losses were not previously recorded	1		7		8
Available-for-sale securities accounted for as PCD assets	20				20

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6				6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	3				3

Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		1		2
Total allowance for credit losses	$	13	$	9	$	22


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Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


	June 30, 2024				December 31, 2023
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	1,528	$	1,493	$	1,121	$	1,091
Due after one year through five years	11,521		11,129		11,563		11,180
Due after five years through ten years	13,115		12,225		13,359		12,573
Due after ten years	16,825		15,552		16,371		15,581
Total	$	42,989	$	40,399	$	42,414	$	40,425

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

Mortgage Loans

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios.


	Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of June 30, 2024	2024		2023		2022		2021		2020		Prior		Total
(In millions)

DSCR ≥1.6x
LTV less than 55%			$	33	$	10	$	2	$	96	$	241	$	382
LTV 55% to 65%							5						5
LTV greater than 65%					30		12						42
DSCR 1.2x - 1.6x
LTV less than 55%			28		5				13		63		109
LTV 55% to 65%	$	12	21		36		36		4		31		140
LTV greater than 65%			12		64				21				97
DSCR ≤1.2x
LTV less than 55%													—
LTV 55% to 65%			32		75						42		149
LTV greater than 65%					28		21				48		97
Total	$	12	$	126	$	248	$	76	$	134	$	425	$	1,021


(a)			The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index.

Derivative Financial Instruments

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these


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instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.


	June 30, 2024						December 31, 2023
	Contractual/Notional Amount			Estimated Fair Value			Contractual/Notional Amount		Estimated Fair Value
			Asset			(Liability)	Asset		(Liability)
(In millions)

Without hedge designation:
Equity markets:
Options – purchased	$	288		$	2		$	202	$	1
Futures – short	133			1			116
Warrants	76			1			84		3
Interest rate swaps	300			10			300		13

Currency forwards							13				$	(1)

Investment Commitments

As part of the overall investment strategy, investments are made in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications and obligations related to private placement securities. As of June 30, 2024, commitments to purchase or fund were approximately $1.8 billion and to sell were approximately $145 million under the terms of these investments.


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3. Fair Value

Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables. Corporate bonds and other includes obligations of the United States of America (“U.S.”) Treasury, government-sponsored enterprises, foreign governments and redeemable preferred stock.


June 30, 2024	Level 1		Level 2		Level 3		Total
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	194	$	23,942	$	1,129	$	25,265
States, municipalities and political subdivisions			6,986		43		7,029
Asset-backed			7,218		887		8,105
Fixed maturities available-for-sale	194		38,146		2,059		40,399
Fixed maturities trading	476		4				480
Total fixed maturities	$	670	$	38,150	$	2,059	$	40,879

Equity securities	$	661	$	442	$	14	$	1,117
Short-term and other	4,723		25				4,748
Receivables			10				10

Payable to brokers	(57)						(57)

December 31, 2023


Fixed maturity securities:
Corporate bonds and other	$	161	$	23,926	$	1,045	$	25,132
States, municipalities and political subdivisions			7,348		44		7,392
Asset-backed			7,000		901		7,901
Fixed maturities available-for-sale	161		38,274		1,990		40,425
Fixed maturities trading	201						201
Total fixed maturities	$	362	$	38,274	$	1,990	$	40,626

Equity securities	$	586	$	440	$	24	$	1,050
Short-term and other	4,215		32				4,247
Receivables			13				13
Payable to brokers	(62)						(62)


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The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2024 and 2023:


			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2024	Balance, April 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	1,082			$	(8)	$	72			$	(17)					$	1,129			$	(8)
States, municipalities and political
subdivisions	43																43
Asset-backed	871		$	2	(11)		55		$	(5)	(25)						887				(11)
Fixed maturities available-for-sale	$	1,996	$	2	$	(19)	$	127	$	(5)	$	(42)	$	—	$	—	$	2,059	$	—	$	(19)



Equity securities	$	11					$	3									$	14


			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2023	Balance, April 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	912			$	(15)	$	68			$	(5)	$	11			$	971			$	(15)
States, municipalities and political
subdivisions	44				(1)												43				(1)
Asset-backed	859		$	4	(7)		87				(17)				$	(43)	883				(7)
Fixed maturities available-for-sale	$	1,815	$	4	$	(23)	$	155	$	—	$	(22)	$	11	$	(43)	$	1,897	$	—	$	(23)



Equity securities	$	29	$	(1)					$	(2)							$	26	$	(1)


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			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2024	Balance, January 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	1,045			$	(20)	$	146			$	(53)	$	11			$	1,129			$	(22)
States, municipalities and political
subdivisions	44				(1)												43				(1)
Asset-backed	901		$	4	(16)		73		$	(14)	(42)				$	(19)	887				(16)
Fixed maturities available-for-sale	$	1,990	$	4	$	(37)	$	219	$	(14)	$	(95)	$	11	$	(19)	$	2,059	$	—	$	(39)



Equity securities	$	24	$	6			$	3	$	(19)							$	14	$	2


			Net Realized Investment Gains (Losses) and Net Change in Unrealized Investment Gains (Losses)																Unrealized Gains (Losses) Recognized in Net Income (Loss) on Level 3 Assets and Liabilities Held at June 30		Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at June 30
2023	Balance, January 1		Included in Net Income		Included in OCI		Purchases		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Balance, June 30
(In millions)

Fixed maturity securities:
Corporate bonds and other	$	810			$	9	$	149			$	(8)	$	11			$	971			$	9
States, municipalities and political
subdivisions	43																43
Asset-backed	788		$	9			142				(26)		23		$	(53)	883				(1)
Fixed maturities available-for-sale	$	1,641	$	9	$	9	$	291	$	—	$	(34)	$	34	$	(53)	$	1,897	$	—	$	8



Equity securities	$	35	$	(7)					$	(2)							$	26	$	(7)


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Net investment gains and losses are reported in Net income as follows:


Major Category of Assets and Liabilities			Consolidated Condensed Statements of Operations Line Items

Fixed maturity securities available-for-sale			Investment gains (losses)
Fixed maturity securities trading			Net investment income
Equity securities			Investment gains (losses) and Net investment income
Other invested assets			Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio			Net investment income
Derivative financial instruments, other			Investment gains (losses) and Operating revenues and other


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Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs utilized in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available. The weighted average rate is calculated based on fair value.


June 30, 2024	Estimated Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(In millions)

Fixed maturity securities	$	1,571	Discounted cash flow	Credit spread	1	%	—	6	%	(2	%)

December 31, 2023

Fixed maturity securities	$	1,495	Discounted cash flow	Credit spread	1	%	—	7	%	(2	%)

For fixed maturity securities, an increase to the credit spread assumptions would result in a lower fair value measurement.

Financial Assets and Liabilities Not Measured at Fair Value

The carrying amount, estimated fair value and the level of the fair value hierarchy of the financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short-term debt and long-term debt exclude finance lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short-term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short-term nature of these items.


	Carrying Amount			Estimated Fair Value
June 30, 2024			Level 1		Level 2			Level 3			Total
(In millions)

Assets:
Other invested assets, primarily mortgage loans	$	986							$	944		$	944

Liabilities:
Short-term debt	1,013					$	598		404			1,002
Long-term debt	8,555					7,611			566			8,177

December 31, 2023

Assets:
Other invested assets, primarily mortgage loans	$	1,035							$	997		$	997

Liabilities:
Short-term debt	1,083					$	546		520			1,066
Long-term debt	7,915					7,255			385			7,640


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4. Claim and Claim Adjustment Expense Reserves

Claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date. Reserve projections are based primarily on detailed analysis of the facts in each case, experience with similar cases and various historical development patterns. Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, economic, medical and social inflation, and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves.

Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Claim and claim adjustment expense reserves are also maintained for structured settlement obligations. In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, actuaries review mortality experience on an annual basis. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that the ultimate cost for insurance losses will not exceed current estimates.

Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Company’s results of operations and/or equity. Catastrophe losses, net of reinsurance, of $82 million and $68 million for the three months ended June 30, 2024 and 2023 and $170 million and $120 million for the six months ended June 30, 2024 and 2023 were recorded primarily related to severe weather related events.


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Liability for Unpaid Claim and Claim Adjustment Expenses

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.


Six Months Ended June 30	2024		2023
(In millions)

Reserves, beginning of year:
Gross	$	23,304	$	22,120
Ceded	5,141		5,191
Net reserves, beginning of year	18,163		16,929



Net incurred claim and claim adjustment expenses:
Provision for insured events of current year	3,039		2,746
Increase (decrease) in provision for insured events of prior years	19		37
Amortization of discount	20		22
Total net incurred (a)	3,078		2,805

Net payments attributable to:
Current year events	(308)		(287)
Prior year events	(2,259)		(2,014)
Total net payments	(2,567)		(2,301)

Foreign currency translation adjustment and other	(58)		57

Net reserves, end of period	18,616		17,490
Ceded reserves, end of period	5,358		5,312
Gross reserves, end of period	$	23,974	$	22,802


(a)			Total net incurred does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Condensed Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, uncollectible reinsurance, benefit expenses related to future policy benefits and policyholders’ dividends, which are not reflected in the table above.

Net Prior Year Development

Changes in estimates of claim and claim adjustment expense reserves, net of reinsurance, for prior years are defined as net prior year loss reserve development. These changes can be favorable or unfavorable.

Favorable net prior year loss reserve development of $12 million and $17 million for the three months ended June 30, 2024 and 2023 and $19 million and $4 million for the six months ended June 30, 2024 and 2023 was recorded for CNA’s commercial property and casualty operations (“Property & Casualty Operations”). Unfavorable net prior year loss reserve development of $35 million was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”) for the three and six months ended June 30, 2024 and 2023.


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The following table and discussion present details of the net prior year loss reserve development in Property & Casualty Operations and Other Insurance Operations:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Medical professional liability	$	(2)			$	(2)	$	9
Other professional liability and management liability	17		$	(1)	17		(1)
Surety	(8)		(7)		(26)		(7)

Warranty					13		(9)
Commercial auto	21		11		21		11
General liability	19		70		19		70
Workers’ compensation	(47)		(96)		(49)		(98)
Other property and casualty operations	(12)		6		(12)		21
Other insurance operations	35		35		35		35
Total pretax (favorable) unfavorable development	$	23	$	18	$	16	$	31

Three Months

2024

Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in CNA’s professional errors and omissions (“E&O”) and cyber businesses.

Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2014 and prior.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Favorable development in other property and casualty operations was primarily due to favorable loss emergence in casualty coverages associated with healthcare products.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.

2023

Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in a recent accident year.

Unfavorable development in general liability was due to higher than expected claim severity in CNA’s construction and middle market businesses across multiple accident years.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.


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Six Months

2024

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.

Unfavorable development in warranty was primarily due to higher than expected frequency and severity in a recent accident year.

Unfavorable development in commercial auto was due to higher than expected claim severity in recent accident years.

Unfavorable development in general liability was due to higher than expected claim severity in multiple accident years going back to 2014 and prior.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Favorable development in other property and casualty operations was primarily due to favorable loss emergence in casualty coverages associated with healthcare products.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.

2023

Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in a recent accident year.

Unfavorable development in general liability was due to higher than expected claim severity in CNA’s construction and middle market businesses across multiple accident years.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Unfavorable development in other property and casualty operations was due to higher than expected large loss emergence in CNA’s professional liability business in accident year 2017.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.

Asbestos & Environmental Pollution (“A&EP”) Reserves

In 2010, Continental Casualty Company (“CCC”) together with several insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of their legacy A&EP liabilities were ceded to NICO through a loss portfolio transfer (“LPT”). At the effective date of the transaction, approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves were ceded to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. NICO was paid a reinsurance premium of $2.0 billion and billed third party reinsurance receivables related to A&EP claims with a net book value of $215 million were transferred to NICO, resulting in total consideration of $2.2 billion.

In years subsequent to the effective date of the LPT, adverse prior year development on A&EP reserves was recognized resulting in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT have exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring retroactive reinsurance accounting. Under retroactive reinsurance accounting, this gain is deferred and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which a change in the estimate of A&EP reserves is


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recognized that increases or decreases the amounts ceded under the LPT, the proportion of actual paid recoveries to total ceded losses is affected and the change in the deferred gain is recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits in the Consolidated Condensed Statements of Operations.

The impact of the LPT on the Consolidated Condensed Statements of Operations was the recognition of a retroactive reinsurance benefit of $13 million and $15 million for the three months ended June 30, 2024 and 2023 and $25 million and $23 million for the six months ended June 30, 2024 and 2023. As of June 30, 2024 and December 31, 2023, the cumulative amounts ceded under the LPT were $3.6 billion. The unrecognized deferred retroactive reinsurance benefit was $392 million and $417 million as of June 30, 2024 and December 31, 2023 and is included within Other liabilities on the Consolidated Condensed Balance Sheets.

NICO established a collateral trust account as security for its obligations under the LPT. The fair value of the collateral trust account was $2.2 billion as of June 30, 2024. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to A&EP claims.

Credit Risk for Ceded Reserves

The majority of CNA’s outstanding voluntary reinsurance receivables are due from reinsurers with financial strength ratings of A- or higher. Receivables due from reinsurers with lower financial strength ratings are primarily due from captive reinsurers and are backed by collateral arrangements.

5. Future Policy Benefits Reserves

Future policy benefits reserves are associated with CNA’s run-off long-term care business, included in Other Insurance Operations, and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits. Future policy benefits reserves are comprised of the liability for future policyholder benefits (“LFPB”) which is reflected as Insurance reserves: Future policy benefits on the Consolidated Condensed Balance Sheet.

The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy. Since policies may be in force for several decades, these assumptions are subject to significant estimation risk. As a result of this variability, CNA’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to its expectations.

For further information on the long-term care reserving process see Note 1 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.


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The following table summarizes balances and changes in the LFPB:


	2024		2023
(In millions)

Present value of future net premiums
Balance, January 1	$	3,710	$	3,993
Effect of changes in discount rate	(125)		(74)
Balance, January 1, at original locked in discount rate	3,585		3,919
Effect of changes in cash flow assumptions (a)
Effect of actual variances from expected experience (a)	(29)		(85)
Adjusted balance, January 1	3,556		3,834
Interest accrual	92		103
Net premiums: earned during period	(212)		(225)
Balance, end of period at original locked in discount rate	3,436		3,712
Effect of changes in discount rate	11		78
Balance, June 30	$	3,447	$	3,790

Present value of future benefits & expenses
Balance, January 1	$	17,669	$	17,472
Effect of changes in discount rate	(578)		(125)
Balance, January 1, at original locked in discount rate	17,091		17,347
Effect of changes in cash flow assumptions (a)
Effect of actual variances from expected experience (a)	11		(51)
Adjusted balance, January 1	17,102		17,296
Interest accrual	461		482
Benefit & expense payments	(592)		(629)
Balance, end of period at original locked in discount rate	16,971		17,149
Effect of changes in discount rate	(313)		307
Balance, June 30	$	16,658	$	17,456


Net LFPB, June 30	$	13,211	$	13,666


(a)			As of June 30, 2024 and 2023, the re-measurement gain (loss) of $(40) million and $(34) million presented parenthetically on the Consolidated Condensed Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience.


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The following table presents earned premiums and interest expense associated with the long-term care business recognized on the Condensed Consolidated Statement of Operations.


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Earned premiums	$	109	$	113	$	219	$	228
Interest expense	185		189		369		379

The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.


	June 30,
	2024		2023

(In millions)

Expected future benefit and expense payments	$	32,212	$	33,287
Expected future gross premiums	5,149		5,536

Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3.5 billion and $3.9 billion as of June 30, 2024 and 2023.

The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years and 12 years as of June 30, 2024 and 2023.

The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.


	June 30,				December 31,
	2024		2023		2023


Original locked in discount rate	5.21	%	5.25	%	5.22	%
Upper-medium grade fixed income instrument discount rate	5.43		5.10		4.94

For the three and six months ended June 30, 2024, immediate charges to net income resulting from adverse development that caused the net premium ratio (“NPR”) to exceed 100% for certain cohorts were $24 million and $44 million. For the three and six months ended June 30, 2023, immediate charges to net income resulting from adverse development that caused the NPR to exceed 100% were $29 million and $42 million.

For the three and six months ended June 30, 2024, the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $6 million and $8 million. For the three and six months ended June 30, 2023, the portion of losses recognized in a prior period due to NPR exceeding 100% which, due to favorable development, was reversed through net income was less than $1 million and $11 million.


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6. Shareholders’ Equity

Accumulated other comprehensive income (loss)

The tables below present the changes in Accumulated other comprehensive income (loss) (“AOCI”) by component for the three and six months ended June 30, 2023 and 2024:


	Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses		Net Unrealized Gains (Losses) on Other Investments		Cumulative impact of changes in discount rates used to measure long duration contracts		Unrealized Gains (Losses) on Cash Flow Hedges		Pension and Postretirement Benefits		Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)
(In millions)










Balance, April 1, 2023	$	(14)	$	(1,867)	$	(393)	$	12	$	(614)	$	(186)	$	(3,062)
Other comprehensive income (loss) before reclassifications, after tax of $2, $116, $(68), $0, $0 and $0	(8)		(427)		256		8				35		(136)
Reclassification of losses from accumulated other comprehensive loss, after tax of $(2), $(4), $0, $0, $(2) and $0	7		14						6				27
Other comprehensive income (loss)	(1)		(413)		256		8		6		35		(109)
Amounts attributable to noncontrolling interests	(1)		42		(26)				(1)		(3)		11
Balance, June 30, 2023	$	(16)	$	(2,238)	$	(163)	$	20	$	(609)	$	(154)	$	(3,160)



Balance, April 1, 2024	$	(9)	$	(1,676)	$	(17)	$	10	$	(530)	$	(179)	$	(2,401)
Other comprehensive income (loss) before reclassifications, after tax of $1, $67, $(72), $1, $0 and $0	(4)		(250)		273		(1)				(10)		8
Reclassification of losses from accumulated other comprehensive loss, after tax of $(1), $(1), $0, $0, $(1) and $0	4		6						6				16
Other comprehensive income (loss)	—		(244)		273		(1)		6		(10)		24
Amounts attributable to noncontrolling interests			19		(22)								(3)
Other	(1)		(2)				1		(1)				(3)
Balance, June 30, 2024	$	(10)	$	(1,903)	$	234	$	10	$	(525)	$	(189)	$	(2,383)


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	Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses		Net Unrealized Gains (Losses) on Other Investments		Cumulative impact of changes in discount rates used to measure long duration contracts		Unrealized Gains (Losses) on Cash Flow Hedges		Pension and Postretirement Benefits		Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)
(In millions)








Balance, January 1, 2023, as reported	$	(7)	$	(2,469)	$	—	$	14	$	(622)	$	(200)	$	(3,284)
Cumulative effect adjustments from changes in accounting standards, after tax of $0, $0, $11, $0, $0 and $0					(36)								(36)
Balance, January 1, 2023, as adjusted	(7)		(2,469)		(36)		14		(622)		(200)		(3,320)
Other comprehensive income (loss) before reclassifications, after tax of $4, $(60), $37, $1, $0 and $0	(16)		225		(140)		6				51		126
Reclassification of losses from accumulated other comprehensive loss, after tax of $(2), $(8), $0, $0, $(4) and $0	7		32						15				54
Other comprehensive income (loss)	(9)		257		(140)		6		15		51		180
Amounts attributable to noncontrolling interests			(26)		13				(2)		(5)		(20)
Balance, June 30, 2023	$	(16)	$	(2,238)	$	(163)	$	20	$	(609)	$	(154)	$	(3,160)



Balance, January 1, 2024	$	(12)	$	(1,483)	$	(329)	$	9	$	(533)	$	(149)	$	(2,497)
Other comprehensive income (loss) before reclassifications, after tax of $1, $131, $(163), $0, $0 and $0	(5)		(489)		614		1				(43)		78
Reclassification of losses from accumulated other comprehensive loss, after tax of $(2), $(7), $0, $0, $(2) and $0	7		28						12				47
Other comprehensive income (loss)	2		(461)		614		1		12		(43)		125
Amounts attributable to noncontrolling interests			38		(51)				(1)		3		(11)
Other			3						(3)				—
Balance, June 30, 2024	$	(10)	$	(1,903)	$	234	$	10	$	(525)	$	(189)	$	(2,383)

Amounts reclassified from AOCI shown above are reported in Net income (loss) as follows:


Major Category of AOCI			Affected Line Item

Net unrealized gains (losses) on investments with an allowance for credit losses and Net unrealized gains (losses) on other investments			Investment gains (losses)
Unrealized gains (losses) on cash flow hedges			Operating revenues and other, Interest expense and Operating expenses and other
Pension and postretirement benefits			Operating expenses and other


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Stock Purchases

Loews Corporation repurchased 2.6 million and 10.0 million shares of its common stock at aggregate costs of $199 million and $593 million during the six months ended June 30, 2024 and 2023.

7. Debt

In February of 2024, CNA completed a public offering of $500 million aggregate principal amount of its 5.1% senior notes due February 15, 2034 and in May of 2024, CNA repaid at maturity the outstanding $550 million aggregate principal amount of its 4.0% senior notes.

In February of 2024, Boardwalk Pipelines completed a public offering of $600 million aggregate principal amount of its 5.6% senior notes due August 1, 2034. Boardwalk Pipelines intends to use the net proceeds to retire the outstanding $600 million aggregate principal amount of its 5.0% notes due December 2024.

8. Revenue from Contracts with Customers

Disaggregation of revenues – Revenue from contracts with customers, other than insurance premiums, is reported as Non-insurance warranty revenue and within Operating revenues and other on the Consolidated Condensed Statements of Operations. The following table presents revenues from contracts with customers disaggregated by revenue type along with the reportable segment and a reconciliation to Operating revenues and other as reported in Note 12:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023

(In millions)

Non-insurance warranty – CNA Financial	$	404	$	407	$	811	$	814

Transportation and storage of natural gas and NGLs and ethane supply and transportation services – Boardwalk Pipelines	$	467	$	350	$	968	$	736
Lodging and related services – Loews Hotels & Co	244		202		453		387


Total revenues from contracts with customers	711		552		1,421		1,123
Other revenues	25		22		51		45
Operating revenues and other	$	736	$	574	$	1,472	$	1,168

Receivables from contracts with customers – As of June 30, 2024 and December 31, 2023, receivables from contracts with customers were approximately $204 million and $228 million and are included within Receivables on the Consolidated Condensed Balance Sheets.

Deferred revenue – As of June 30, 2024 and December 31, 2023, deferred revenue resulting from contracts with customers were approximately $4.7 billion and $4.8 billion and are reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets. Approximately $786 million and $660 million of revenues recognized during the six months ended June 30, 2024 and 2023 were included in deferred revenue as of December 31, 2023 and 2022.

Performance obligations – As of June 30, 2024, approximately $15.1 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations. The balance relates primarily to revenues for transportation and storage services for natural gas and natural gas liquids and other hydrocarbons (“NGLs”) and certain ethane supply contracts at Boardwalk Pipelines and non-insurance warranty revenue at CNA. Approximately $1.5 billion will be recognized during the remaining six months of 2024, $2.6 billion in 2025 and the remainder in following years. The actual timing of recognition may vary due to factors outside of the Company’s control.


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9. Benefit Plans

The Company has several non-contributory defined benefit plans and postretirement benefit plans covering eligible employees and retirees.

The following tables present the components of net periodic (benefit) cost for the defined benefit plans:


	Pension Benefits
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
(In millions)

Service cost					$	1	$	1
Interest cost	$	25	$	28	49		56
Expected return on plan assets	(30)		(32)		(59)		(64)
Amortization of unrecognized net loss	8		9		15		18

Settlements			1				1

Net periodic cost	$	3	$	6	$	6	$	12


	Other Postretirement Benefits
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
(In millions)


Interest cost					$	1	$	1
Expected return on plan assets					(1)		(1)




Net periodic benefit	$	—	$	—	$	—	$	—

10. Legal Proceedings

Boardwalk Pipelines Litigation

On May 25, 2018, plaintiffs Tsemach Mishal and Paul Berger (on behalf of themselves and the purported class, “Plaintiffs”) initiated a purported class action in the Court of Chancery of the State of Delaware (the “Trial Court”) against the following defendants: Boardwalk Pipelines, Boardwalk GP, LP (“General Partner”), Boardwalk GP, LLC and Boardwalk Pipelines Holding Corp. (“BPHC”) (together, “Defendants”), regarding the potential exercise by the General Partner of its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates.

On June 25, 2018, Plaintiffs and Defendants entered into a Stipulation and Agreement of Compromise and Settlement, subject to the approval of the Trial Court (the “Proposed Settlement”). Under the terms of the Proposed Settlement, the lawsuit would be dismissed, and related claims against the Defendants would be released by the Plaintiffs, if BPHC, the sole member of the General Partner, elected to cause the General Partner to exercise its right to purchase the issued and outstanding common units of Boardwalk Pipelines pursuant to Boardwalk Pipelines’ Third Amended and Restated Agreement of Limited Partnership, as amended (“Limited Partnership Agreement”), within a period specified by the Proposed Settlement. On June 29, 2018, the General Partner elected to exercise its right to purchase all of the issued and outstanding common units representing limited partnership interests in Boardwalk Pipelines not already owned by the General Partner or its affiliates pursuant to the Limited Partnership Agreement within the period specified by the Proposed Settlement. The transaction was completed on July 18, 2018.


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On September 28, 2018, the Trial Court denied approval of the Proposed Settlement. On February 11, 2019, a substitute verified class action complaint was filed in this proceeding, which among other things, added the Parent Company as a Defendant. The Defendants filed a motion to dismiss, which was heard by the Trial Court in July of 2019. In October of 2019, the Trial Court ruled on the motion and granted a partial dismissal, with certain aspects of the case proceeding to trial. A trial was held the week of February 22, 2021 and post-trial oral arguments were held on July 14, 2021.

On November 12, 2021, the Trial Court issued a ruling in the case. The Trial Court held that the General Partner breached the Limited Partnership Agreement and awarded Plaintiffs approximately $690 million, plus pre-judgment interest (approximately $166 million), post-judgment interest and attorneys’ fees.

The Company believed that the Trial Court ruling included factual and legal errors. Therefore, on January 3, 2022, the Defendants appealed the Trial Court’s ruling to the Supreme Court of the State of Delaware (the “Supreme Court”). On January 17, 2022, the Plaintiffs filed a cross-appeal to the Supreme Court contesting the calculation of damages by the Trial Court. Oral arguments were held on September 14, 2022, and on December 19, 2022, the Supreme Court reversed the Trial Court’s ruling and remanded the case to the Trial Court for further proceedings related to claims not decided by the Trial Court’s ruling. Briefing by the parties at the Trial Court on the remanded issues was completed in September 2023. A hearing on the remanded issues was held at the Trial Court in April 2024.

Other Litigation

The Company is from time to time party to other litigation arising in the ordinary course of business. While it is difficult to predict the outcome or effect of any litigation, management does not believe that the outcome of any pending litigation, including the Boardwalk Pipelines matter described above, will materially affect the Company’s results of operations or equity.

11. Commitments and Contingencies

CNA Guarantees

CNA has provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities issued by a previously owned subsidiary. As of June 30, 2024, the potential amount of future payments CNA could be required to pay under these guarantees was approximately $1.4 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.

12. Segments

Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co; and the Corporate segment. The Corporate segment is primarily comprised of Loews Corporation, excluding its subsidiaries, and the equity method of accounting for Altium Packaging LLC. Each of the operating subsidiaries is headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. For additional disclosures regarding the composition of Loews Corporation’s segments, see Note 21 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The following tables present the reportable segments and their contribution to the Consolidated Condensed Statements of Operations. Amounts presented will not necessarily be the same as those in the individual financial statements of the subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.


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Statements of Operations by segment are presented in the following tables.


Three Months Ended June 30, 2024	CNA Financial		Boardwalk Pipelines		Loews Hotels & Co		Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	2,498							$	2,498
Net investment income	618		$	9	$	3	$	9	639
Investment losses	(10)								(10)
Non-insurance warranty revenue	404								404
Operating revenues and other	9		479		248				736
Total	3,519		488		251		9		4,267

Expenses:

Insurance claims and policyholders’ benefits	1,882								1,882
Amortization of deferred acquisition costs	435								435
Non-insurance warranty expense	388								388
Operating expenses and other	378		347		225		18		968
Equity method (income) loss					(32)		5		(27)
Interest	34		47		14		19		114
Total	3,117		394		207		42		3,760
Income (loss) before income tax	402		94		44		(33)		507
Income tax (expense) benefit	(85)		(24)		(9)		6		(112)
Net income (loss)	317		70		35		(27)		395
Amounts attributable to noncontrolling interests	(26)								(26)
Net income (loss) attributable to Loews Corporation	$	291	$	70	$	35	$	(27)	$	369


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Three Months Ended June 30, 2023	CNA Financial		Boardwalk Pipelines		Loews Hotels & Co		Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	2,347							$	2,347
Net investment income	575		$	5	$	1	$	11	592
Investment gains (losses)	(32)				46				14
Non-insurance warranty revenue	407								407
Operating revenues and other	7		360		207				574
Total	3,304		365		254		11		3,934

Expenses:

Insurance claims and policyholders’ benefits	1,779								1,779
Amortization of deferred acquisition costs	403								403
Non-insurance warranty expense	384								384
Operating expenses and other	346		250		194		18		808
Equity method (income) loss					(41)		2		(39)
Interest	31		39				21		91
Total	2,943		289		153		41		3,426
Income (loss) before income tax	361		76		101		(30)		508
Income tax (expense) benefit	(78)		(19)		(27)		4		(120)
Net income (loss)	283		57		74		(26)		388
Amounts attributable to noncontrolling interests	(28)								(28)
Net income (loss) attributable to Loews Corporation	$	255	$	57	$	74	$	(26)	$	360


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Six Months Ended June 30, 2024	CNA Financial		Boardwalk Pipelines		Loews Hotels & Co		Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	4,939							$	4,939
Net investment income	1,227		$	13	$	5	$	63	1,308
Investment losses	(32)								(32)
Non-insurance warranty revenue	811								811
Operating revenues and other	18		992		462				1,472
Total	6,963		1,005		467		63		8,498

Expenses:

Insurance claims and policyholders’ benefits	3,689								3,689
Amortization of deferred acquisition costs	879								879
Non-insurance warranty expense	782								782
Operating expenses and other	715		659		434		40		1,848
Equity method (income) loss					(59)		6		(53)
Interest	69		90		20		38		217
Total	6,134		749		395		84		7,362
Income (loss) before income tax	829		256		72		(21)		1,136
Income tax (expense) benefit	(174)		(65)		(21)		4		(256)
Net income (loss)	655		191		51		(17)		880
Amounts attributable to noncontrolling interests	(54)								(54)
Net income (loss) attributable to Loews Corporation	$	601	$	191	$	51	$	(17)	$	826


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Six Months Ended June 30, 2023	CNA Financial		Boardwalk Pipelines		Loews Hotels & Co		Corporate		Total
(In millions)

Revenues:

Insurance premiums	$	4,595							$	4,595
Net investment income	1,100		$	6	$	2	$	53	1,161
Investment gains (losses)	(67)				46				(21)
Non-insurance warranty revenue	814								814
Operating revenues and other	14		756		398				1,168
Total	6,456		762		446		53		7,717

Expenses:

Insurance claims and policyholders’ benefits	3,432								3,432
Amortization of deferred acquisition costs	782								782
Non-insurance warranty expense	768								768
Operating expenses and other	683		492		377		37		1,589
Equity method (income) loss					(72)		5		(67)
Interest	59		78		6		43		186
Total	5,724		570		311		85		6,690
Income (loss) before income tax	732		192		135		(32)		1,027
Income tax (expense) benefit	(152)		(49)		(37)		3		(235)
Net income (loss)	580		143		98		(29)		792
Amounts attributable to noncontrolling interests	(57)								(57)
Net income (loss) attributable to Loews Corporation	$	523	$	143	$	98	$	(29)	$	735


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