filings.toolsItem 1. Financial Statements.
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Item 1. Financial Statements.
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
| March 31, | December 31, | ||||||||||
| 2025 | 2024 | ||||||||||
| (Dollar amounts in millions, except per share data) | |||||||||||
| Assets: | |||||||||||
| Investments: | |||||||||||
| Fixed maturities, amortized cost of $44,741 and $44,196, less allowance for credit loss of $47 and $45 | $ | 42,723 | $ | 41,827 | |||||||
| Equity securities, cost of $1,150 and $969 | 1,189 | 1,064 | |||||||||
| Limited partnership investments | 2,572 | 2,520 | |||||||||
| Other invested assets, primarily mortgage loans, less allowance for credit loss of $35 and $35 | 1,155 | 1,113 | |||||||||
| Short-term investments | 4,354 | 4,606 | |||||||||
| Total investments | 51,993 | 51,130 | |||||||||
| Cash | 560 | 541 | |||||||||
| Receivables | 10,790 | 10,522 | |||||||||
| Property, plant and equipment | 10,674 | 10,738 | |||||||||
| Goodwill | 347 | 347 | |||||||||
| Deferred non-insurance warranty acquisition expenses | 3,493 | 3,525 | |||||||||
| Deferred acquisition costs of insurance subsidiaries | 999 | 959 | |||||||||
| Other assets | 4,286 | 4,181 | |||||||||
| Total assets | $ | 83,142 | $ | 81,943 | |||||||
| Liabilities and Equity: | |||||||||||
| Insurance reserves: | |||||||||||
| Claim and claim adjustment expense | $ | 25,581 | $ | 24,976 | |||||||
| Future policy benefits | 13,304 | 13,158 | |||||||||
| Unearned premiums | 7,504 | 7,346 | |||||||||
| Total insurance reserves | 46,389 | 45,480 | |||||||||
| Payable to brokers | 206 | 110 | |||||||||
| Short-term debt | 505 | 5 | |||||||||
| Long-term debt | 8,441 | 8,939 | |||||||||
| Deferred income taxes | 613 | 550 | |||||||||
| Deferred non-insurance warranty revenue | 4,488 | 4,530 | |||||||||
| Other liabilities | 4,466 | 4,392 | |||||||||
| Total liabilities | 65,108 | 64,006 | |||||||||
| 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 – 215,027,306 and 214,912,595 shares | 2 | 2 | |||||||||
| Additional paid-in capital | 2,451 | 2,490 | |||||||||
| Retained earnings | 16,821 | 16,459 | |||||||||
| Accumulated other comprehensive loss | (1,685) | (1,867) | |||||||||
| 17,589 | 17,084 | ||||||||||
| Less treasury stock, at cost (4,682,891 and 212,251 shares) | (398) | (18) | |||||||||
| Total shareholders’ equity | 17,191 | 17,066 | |||||||||
| Noncontrolling interests | 843 | 871 | |||||||||
| Total equity | 18,034 | 17,937 | |||||||||
| Total liabilities and equity | $ | 83,142 | $ | 81,943 |
See accompanying Notes to Consolidated Condensed Financial Statements.
| 3 |
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Insurance premiums | $ | 2,626 | $ | 2,441 | ||||||||||||||||||||||
| Net investment income | 608 | 669 | ||||||||||||||||||||||||
| Investment losses | (9) | (22) | ||||||||||||||||||||||||
| Non-insurance warranty revenue | 397 | 407 | ||||||||||||||||||||||||
| Operating revenues and other | 872 | 736 | ||||||||||||||||||||||||
| Total | 4,494 | 4,231 | ||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (re-measurement loss of $8 and $15) | 2,027 | 1,807 | ||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 471 | 444 | ||||||||||||||||||||||||
| Non-insurance warranty expense | 385 | 394 | ||||||||||||||||||||||||
| Operating expenses and other | 991 | 880 | ||||||||||||||||||||||||
| Equity method (income) loss | 1 | (26) | ||||||||||||||||||||||||
| Interest | 105 | 103 | ||||||||||||||||||||||||
| Total | 3,980 | 3,602 | ||||||||||||||||||||||||
| Income before income tax | 514 | 629 | ||||||||||||||||||||||||
| Income tax expense | (122) | (144) | ||||||||||||||||||||||||
| Net income | 392 | 485 | ||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (22) | (28) | ||||||||||||||||||||||||
| Net income attributable to Loews Corporation | $ | 370 | $ | 457 | ||||||||||||||||||||||
| Basic and diluted net income per share | $ | 1.74 | $ | 2.05 | ||||||||||||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||||
| Shares of common stock | 212.45 | 222.47 | ||||||||||||||||||||||||
| Dilutive potential shares of common stock | 0.15 | 0.31 | ||||||||||||||||||||||||
| Total weighted average shares outstanding assuming dilution | 212.60 | 222.78 |
See accompanying Notes to Consolidated Condensed Financial Statements.
| 4 |
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Net income | $ | 392 | $ | 485 | ||||||||||||||||||||||
| Other comprehensive income (loss), after tax | ||||||||||||||||||||||||||
| Changes in: | ||||||||||||||||||||||||||
| Net unrealized gains (losses) on investments with an allowance for credit losses | (3) | 2 | ||||||||||||||||||||||||
| Net unrealized gains (losses) on other investments | 282 | (217) | ||||||||||||||||||||||||
| Total unrealized gains (losses) on investments | 279 | (215) | ||||||||||||||||||||||||
| Impact of changes in discount rates used to measure long-duration contract liabilities | (114) | 341 | ||||||||||||||||||||||||
| Unrealized gains (losses) on cash flow hedges | (3) | 2 | ||||||||||||||||||||||||
| Pension and postretirement benefits | 1 | 6 | ||||||||||||||||||||||||
| Foreign currency translation | 37 | (33) | ||||||||||||||||||||||||
| Other comprehensive income | 200 | 101 | ||||||||||||||||||||||||
| Comprehensive income | 592 | 586 | ||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (39) | (36) | ||||||||||||||||||||||||
| Total comprehensive income attributable to Loews Corporation | $ | 553 | $ | 550 |
See accompanying Notes to Consolidated Condensed Financial Statements.
| 5 |
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, 2024 | $ | 16,525 | $ | 2 | $ | 2,589 | $ | 15,617 | $ | (2,497) | $ | (7) | $ | 821 | ||||||||||||||||||||||||||||||||||||
| Net income | 485 | 457 | 28 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 101 | 93 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
| Dividends paid ($0.0625 per share) | (70) | (14) | (56) | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchases of Loews Corporation treasury stock | (17) | (17) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (14) | (33) | 19 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | (12) | (9) | 3 | (6) | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | $ | 16,998 | $ | 2 | $ | 2,547 | $ | 16,060 | $ | (2,401) | $ | (24) | $ | 814 | ||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024, as reported | $ | 17,937 | $ | 2 | $ | 2,490 | $ | 16,459 | $ | (1,867) | $ | (18) | $ | 871 | ||||||||||||||||||||||||||||||||||||
| Cumulative effect adjustments from changes in accounting standards (Note 1) | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2025, as adjusted | 17,942 | 2 | 2,490 | 16,464 | (1,867) | (18) | 871 | |||||||||||||||||||||||||||||||||||||||||||
| Net income | 392 | 370 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | 200 | 183 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||
| Dividends paid ($0.0625 per share) | (68) | (13) | (55) | |||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of subsidiary stock from noncontrolling interests | (34) | (3) | (1) | (30) | ||||||||||||||||||||||||||||||||||||||||||||||
| Purchases of Loews Corporation treasury stock | (380) | (380) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (16) | (34) | 18 | |||||||||||||||||||||||||||||||||||||||||||||||
| Other | (2) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | 18,034 | $ | 2 | $ | 2,451 | $ | 16,821 | $ | (1,685) | $ | (398) | $ | 843 |
See accompanying Notes to Consolidated Condensed Financial Statements.
| 6 |
Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended March 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Operating Activities: | |||||||||||
| Net income | $ | 392 | $ | 485 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities, net | 180 | 175 | |||||||||
| Changes in operating assets and liabilities, net: | |||||||||||
| Receivables | (246) | (113) | |||||||||
| Deferred acquisition costs | (37) | (34) | |||||||||
| Insurance reserves | 656 | 443 | |||||||||
| Other assets | (92) | (114) | |||||||||
| Other liabilities | 27 | (37) | |||||||||
| Trading securities | (144) | (607) | |||||||||
| Net cash flow provided by operating activities | 736 | 198 | |||||||||
| Investing Activities: | |||||||||||
| Purchases of fixed maturities | (1,775) | (1,621) | |||||||||
| Proceeds from sales of fixed maturities | 643 | 736 | |||||||||
| Proceeds from maturities of fixed maturities | 814 | 507 | |||||||||
| Purchases of equity securities | (124) | (169) | |||||||||
| Proceeds from sales of equity securities | 104 | 186 | |||||||||
| Purchases of limited partnership investments | (78) | (77) | |||||||||
| Proceeds from sales of limited partnership investments | 25 | 13 | |||||||||
| Purchases of property, plant and equipment | (98) | (159) | |||||||||
| Dispositions | 23 | ||||||||||
| Change in short-term investments | 330 | (455) | |||||||||
| Other, net | (45) | (10) | |||||||||
| Net cash flow used by investing activities | (204) | (1,026) | |||||||||
| Financing Activities: | |||||||||||
| Dividends paid | (13) | (14) | |||||||||
| Dividends paid to noncontrolling interests | (55) | (56) | |||||||||
| Purchases of Loews Corporation treasury stock | (394) | (24) | |||||||||
| Purchases of subsidiary stock from noncontrolling interests | (34) | ||||||||||
| Principal payments on debt | (1) | (201) | |||||||||
| Issuance of debt | 1,299 | ||||||||||
| Other, net | (23) | (17) | |||||||||
| Net cash flow provided by (used by) financing activities | (520) | 987 | |||||||||
| Effect of foreign exchange rate on cash | 7 | (2) | |||||||||
| Net change in cash | 19 | 157 | |||||||||
| Cash, beginning of period | 541 | 399 | |||||||||
| Cash, end of period | $ | 560 | $ | 556 |
See accompanying Notes to Consolidated Condensed Financial Statements.
| 7 |
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, olefins 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 subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders.
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 March 31, 2025 and December 31, 2024, and its results of operations, comprehensive income (loss), changes in shareholders’ equity and cash flows for the three months ended March 31, 2025 and 2024, 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, 2024.
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 months ended March 31, 2025 and 2024 there were 1.2 million and 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.
Accounting changes - In December of 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-08, “Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets.” The updated accounting guidance requires that an entity measure crypto assets at fair value in the statement of financial position each reporting period and recognize changes from remeasurement in net income. The guidance was effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The update required a cumulative-effect adjustment to the opening balance at the date of adoption. The Company adopted the guidance on January 1, 2025 and recorded an increase to Retained earnings of $5 million.
Recently issued ASUs - 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
In November of 2024, the FASB issued ASU 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The updated accounting guidance requires disaggregated disclosure of specified expense categories. The guidance also requires disclosure of total selling expenses and how the Company defines selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027. 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.
| 8 |
2. Investments
Net investment income is as follows:
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Fixed maturity securities | $ | 521 | $ | 502 | ||||||||||||||||||||||
| Limited partnership investments | 56 | 54 | ||||||||||||||||||||||||
| Short-term investments | 19 | 29 | ||||||||||||||||||||||||
| Equity securities (a) | 6 | 22 | ||||||||||||||||||||||||
| Income from trading portfolio (a) | 4 | 58 | ||||||||||||||||||||||||
| Other | 26 | 28 | ||||||||||||||||||||||||
| Total investment income | 632 | 693 | ||||||||||||||||||||||||
| Investment expenses | (24) | (24) | ||||||||||||||||||||||||
| Net investment income | $ | 608 | $ | 669 | ||||||||||||||||||||||
| (a) Aggregate income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of March 31, 2025 and 2024 | $ | (49) | $ | 48 |
Investment gains (losses) are as follows:
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| Gross gains | $ | 13 | $ | 14 | ||||||||||||||||||||||
| Gross losses | (22) | (46) | ||||||||||||||||||||||||
| Investment losses on fixed maturity securities | (9) | (32) | ||||||||||||||||||||||||
| Equity securities (a) | 11 | |||||||||||||||||||||||||
| Short-term investments and other | (1) | |||||||||||||||||||||||||
| Investment losses | $ | (9) | $ | (22) | ||||||||||||||||||||||
| (a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of March 31, 2025 and 2024 | $ | (2) | $ | 11 |
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:
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Fixed maturity securities available-for-sale: | ||||||||||||||||||||||||||
| Corporate and other bonds | $ | 7 | $ | 9 | ||||||||||||||||||||||
| Asset-backed | 5 | |||||||||||||||||||||||||
| Impairment losses recognized in earnings | $ | 7 | $ | 14 |
There were no losses recognized on mortgage loans during the three months ended March 31, 2025 or 2024.
| 9 |
The following tables present a summary of fixed maturity securities:
| March 31, 2025 | 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 | $ | 26,388 | $ | 502 | $ | 1,149 | $ | 15 | $ | 25,726 | |||||||||||||||||||
| States, municipalities and political subdivisions | 7,246 | 227 | 829 | 6,644 | |||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 3,844 | 20 | 426 | 3,438 | |||||||||||||||||||||||||
| Commercial mortgage-backed | 1,738 | 14 | 119 | 18 | 1,615 | ||||||||||||||||||||||||
| Other asset-backed | 3,816 | 24 | 216 | 14 | 3,610 | ||||||||||||||||||||||||
| Total asset-backed | 9,398 | 58 | 761 | 32 | 8,663 | ||||||||||||||||||||||||
| U.S. Treasury and obligations of government sponsored enterprises | 219 | 1 | 2 | 218 | |||||||||||||||||||||||||
| Foreign government | 688 | 8 | 26 | 670 | |||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 43,939 | $ | 796 | $ | 2,767 | $ | 47 | $ | 41,921 | |||||||||||||||||||
| Fixed maturities trading | 802 | 802 | |||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 44,741 | $ | 796 | $ | 2,767 | $ | 47 | $ | 42,723 |
| December 31, 2024 | |||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| Corporate and other bonds | $ | 25,839 | $ | 423 | $ | 1,305 | $ | 13 | $ | 24,944 | |||||||||||||||||||
| States, municipalities and political subdivisions | 7,396 | 243 | 835 | 6,804 | |||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 3,725 | 7 | 488 | 3,244 | |||||||||||||||||||||||||
| Commercial mortgage-backed | 1,779 | 11 | 141 | 18 | 1,631 | ||||||||||||||||||||||||
| Other asset-backed | 3,770 | 24 | 239 | 14 | 3,541 | ||||||||||||||||||||||||
| Total asset-backed | 9,274 | 42 | 868 | 32 | 8,416 | ||||||||||||||||||||||||
| U.S. Treasury and obligations of government sponsored enterprises | 220 | 1 | 1 | 220 | |||||||||||||||||||||||||
| Foreign government | 701 | 6 | 30 | 677 | |||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 43,430 | $ | 715 | $ | 3,039 | $ | 45 | $ | 41,061 | |||||||||||||||||||
| Fixed maturities trading | 766 | 766 | |||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 44,196 | $ | 715 | $ | 3,039 | $ | 45 | $ | 41,827 |
| 10 |
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 | |||||||||||||||||||||||||||||||||
| March 31, 2025 | 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 | $ | 5,816 | $ | 141 | $ | 9,986 | $ | 1,008 | $ | 15,802 | $ | 1,149 | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 944 | 51 | 2,986 | 778 | 3,930 | 829 | |||||||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 413 | 9 | 2,016 | 417 | 2,429 | 426 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 58 | 1 | 969 | 118 | 1,027 | 119 | |||||||||||||||||||||||||||||
| Other asset-backed | 629 | 16 | 1,499 | 200 | 2,128 | 216 | |||||||||||||||||||||||||||||
| Total asset-backed | 1,100 | 26 | 4,484 | 735 | 5,584 | 761 | |||||||||||||||||||||||||||||
| U.S. Treasury and obligations of government-sponsored enterprises | 43 | 1 | 42 | 1 | 85 | 2 | |||||||||||||||||||||||||||||
| Foreign government | 105 | 2 | 300 | 24 | 405 | 26 | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 8,008 | $ | 221 | $ | 17,798 | $ | 2,546 | $ | 25,806 | $ | 2,767 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| Corporate and other bonds | $ | 5,846 | $ | 165 | $ | 10,388 | $ | 1,140 | $ | 16,234 | $ | 1,305 | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 1,247 | 52 | 2,967 | 783 | 4,214 | 835 | |||||||||||||||||||||||||||||
| Asset-backed: | |||||||||||||||||||||||||||||||||||
| Residential mortgage-backed | 849 | 22 | 2,010 | 466 | 2,859 | 488 | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 180 | 2 | 988 | 139 | 1,168 | 141 | |||||||||||||||||||||||||||||
| Other asset-backed | 680 | 21 | 1,557 | 218 | 2,237 | 239 | |||||||||||||||||||||||||||||
| Total asset-backed | 1,709 | 45 | 4,555 | 823 | 6,264 | 868 | |||||||||||||||||||||||||||||
| U.S. Treasury and obligations of government-sponsored enterprises | 49 | 1 | 41 | 90 | 1 | ||||||||||||||||||||||||||||||
| Foreign government | 118 | 3 | 368 | 27 | 486 | 30 | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 8,969 | $ | 266 | $ | 18,319 | $ | 2,773 | $ | 27,288 | $ | 3,039 |
| 11 |
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.
| March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| U.S. Government, Government agencies and Government-sponsored enterprises | $ | 2,212 | $ | 322 | $ | 2,567 | $ | 373 | |||||||||||||||
| AAA | 1,423 | 265 | 1,800 | 282 | |||||||||||||||||||
| AA | 3,971 | 701 | 4,247 | 730 | |||||||||||||||||||
| A | 6,254 | 527 | 6,330 | 582 | |||||||||||||||||||
| BBB | 10,922 | 849 | 11,548 | 980 | |||||||||||||||||||
| Non-investment grade | 1,024 | 103 | 796 | 92 | |||||||||||||||||||
| Total | $ | 25,806 | $ | 2,767 | $ | 27,288 | $ | 3,039 |
Based on current facts and circumstances, the unrealized losses presented in the March 31, 2025 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 March 31, 2025.
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 $456 million, $442 million and $437 million as of March 31, 2025, December 31, 2024 and March 31, 2024 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.
| Three months ended March 31, 2025 | Corporate and Other Bonds | Asset-backed | Total | ||||||||||||||
| (In millions) | |||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||
| Balance as of January 1, 2025 | $ | 13 | $ | 32 | $ | 45 | |||||||||||
| Additions to the allowance for credit losses: | |||||||||||||||||
| Available-for-sale securities accounted for as PCD assets | — | ||||||||||||||||
| Reductions to the allowance for credit losses: | |||||||||||||||||
| Securities sold during the period (realized) | — | ||||||||||||||||
| Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | ||||||||||||||||
| Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period | 2 | 2 | |||||||||||||||
| Total allowance for credit losses | $ | 15 | $ | 32 | $ | 47 |
| 12 |
| Three months ended March 31, 2024 | Corporate and Other Bonds | Asset-backed | Total | ||||||||||||||
| (In millions) | |||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||
| Balance as of January 1, 2024 | $ | 4 | $ | 12 | $ | 16 | |||||||||||
| Additions to the allowance for credit losses: | |||||||||||||||||
| Available-for-sale securities accounted for as PCD assets | — | ||||||||||||||||
| Reductions to the allowance for credit losses: | |||||||||||||||||
| Securities sold during the period (realized) | — | ||||||||||||||||
| 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 | 5 | 5 | |||||||||||||||
| Total allowance for credit losses | $ | 3 | $ | 17 | $ | 20 |
Contractual Maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
| March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Cost or Amortized Cost | Estimated Fair Value | Cost or Amortized Cost | Estimated Fair Value | ||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Due in one year or less | $ | 1,842 | $ | 1,826 | $ | 1,761 | $ | 1,753 | |||||||||||||||
| Due after one year through five years | 11,606 | 11,371 | 11,678 | 11,403 | |||||||||||||||||||
| Due after five years through ten years | 13,227 | 12,692 | 13,083 | 12,365 | |||||||||||||||||||
| Due after ten years | 17,264 | 16,032 | 16,908 | 15,540 | |||||||||||||||||||
| Total | $ | 43,939 | $ | 41,921 | $ | 43,430 | $ | 41,061 |
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.
| 13 |
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 March 31, 2025 | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | ||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||
| DSCR ≥1.6x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | $ | 33 | $ | 9 | $ | 209 | $ | 251 | |||||||||||||||||||||||||||||||||
| LTV 55% to 65% | 15 | $ | 11 | 16 | 42 | ||||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 12 | 31 | 12 | 55 | |||||||||||||||||||||||||||||||||||||
| DSCR 1.2x - 1.6x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | $ | 60 | 28 | 5 | 2 | 137 | 232 | ||||||||||||||||||||||||||||||||||
| LTV 55% to 65% | 41 | 31 | 20 | 30 | 58 | 180 | |||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 46 | 46 | |||||||||||||||||||||||||||||||||||||||
| DSCR ≤1.2x | |||||||||||||||||||||||||||||||||||||||||
| LTV less than 55% | 21 | 21 | |||||||||||||||||||||||||||||||||||||||
| LTV 55% to 65% | $ | 37 | 23 | 73 | 20 | 153 | |||||||||||||||||||||||||||||||||||
| LTV greater than 65% | 35 | 21 | 48 | 104 | |||||||||||||||||||||||||||||||||||||
| Total | $ | 37 | $ | 101 | $ | 127 | $ | 234 | $ | 76 | $ | 509 | $ | 1,084 |
| (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 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.
| March 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 234 | $ | 3 | $ | 268 | $ | 2 | |||||||||||||||||||||||||||
| Futures – short | 167 | 1 | |||||||||||||||||||||||||||||||||
| Warrants | 1 | 1 | 1 | 1 | |||||||||||||||||||||||||||||||
| Interest rate swaps | 300 | 2 | 300 | 4 | |||||||||||||||||||||||||||||||
| Currency forwards | |||||||||||||||||||||||||||||||||||
| Credit default swap index - purchased | 2,200 | 2,000 | |||||||||||||||||||||||||||||||||
| 14 |
In the fourth quarter of 2024, the Company entered into credit default swap index transactions that potentially benefit from widening investment grade credit spreads associated with the underlying securities that comprise the index. As of March 31, 2025 and December 31, 2024, the notional value of the credit default swap index is $2.2 billion and $2 billion and the fair value is less than $1 million, which is recognized in Payable to brokers in the Consolidated Balance Sheets. The fair value of the position is measured using observable market inputs, including credit spreads. For the three months ended March 31, 2025, Net investment income related to the position was $3 million.
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 March 31, 2025, commitments to purchase or fund were approximately $1.6 billion and to sell were approximately $95 million under the terms of these investments.
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.
| March 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
| (In millions) | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate bonds and other | $ | 222 | $ | 25,041 | $ | 1,351 | $ | 26,614 | |||||||||||||||
| States, municipalities and political subdivisions | 6,600 | 44 | 6,644 | ||||||||||||||||||||
| Asset-backed | 7,774 | 889 | 8,663 | ||||||||||||||||||||
| Fixed maturities available-for-sale | 222 | 39,415 | 2,284 | 41,921 | |||||||||||||||||||
| Fixed maturities trading | 800 | 2 | 802 | ||||||||||||||||||||
| Total fixed maturities | $ | 1,022 | $ | 39,417 | $ | 2,284 | $ | 42,723 | |||||||||||||||
| Equity securities | $ | 694 | $ | 478 | $ | 17 | $ | 1,189 | |||||||||||||||
| Short-term and other | 4,150 | 43 | 4,193 | ||||||||||||||||||||
| Receivables | 3 | 3 | |||||||||||||||||||||
| Payable to brokers | (61) | (61) | |||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||
| Corporate bonds and other | $ | 223 | $ | 24,340 | $ | 1,278 | $ | 25,841 | |||||||||||||||
| States, municipalities and political subdivisions | 6,762 | 42 | 6,804 | ||||||||||||||||||||
| Asset-backed | 7,540 | 876 | 8,416 | ||||||||||||||||||||
| Fixed maturities available-for-sale | 223 | 38,642 | 2,196 | 41,061 | |||||||||||||||||||
| Fixed maturities trading | 766 | 766 | |||||||||||||||||||||
| Total fixed maturities | $ | 989 | $ | 38,642 | $ | 2,196 | $ | 41,827 | |||||||||||||||
| Equity securities | $ | 603 | $ | 441 | $ | 20 | $ | 1,064 | |||||||||||||||
| Short-term and other | 4,383 | 70 | 4,453 | ||||||||||||||||||||
| Receivables | 5 | 5 | |||||||||||||||||||||
| Payable to brokers | (88) | (88) |
| 15 |
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 months ended March 31, 2025 and 2024:
| 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 March 31 | Unrealized Gains (Losses) Recognized in Other Comprehensive Income (Loss) on Level 3 Assets and Liabilities Held at March 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | Balance, January 1 | Included in Net Income | Included in OCI | Purchases | Sales | Settlements | Transfers into Level 3 | Transfers out of Level 3 | Balance, March 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds and other | $ | 1,278 | $ | 21 | $ | 55 | $ | (18) | $ | 15 | $ | 1,351 | $ | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| States, municipalities and political subdivisions | 42 | 2 | 44 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 876 | $ | 4 | 1 | 27 | (19) | 889 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 2,196 | $ | 4 | $ | 24 | $ | 82 | $ | — | $ | (37) | $ | 15 | $ | — | $ | 2,284 | $ | — | $ | 24 | |||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | 20 | $ | 1 | $ | (4) | $ | 17 | $ | (1) |
| 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate bonds and other | $ | 1,045 | $ | (12) | $ | 74 | $ | (36) | $ | 11 | $ | 1,082 | $ | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||
| States, municipalities and political subdivisions | 44 | (1) | 43 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | 901 | $ | 2 | (5) | 18 | $ | (9) | (17) | $ | (19) | 871 | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed maturities available-for-sale | $ | 1,990 | $ | 2 | $ | (18) | $ | 92 | $ | (9) | $ | (53) | $ | 11 | $ | (19) | $ | 1,996 | $ | — | $ | (20) | |||||||||||||||||||||||||||||||||||||||||||
| Equity securities | $ | 24 | $ | 6 | $ | (19) | $ | 11 | $ | 1 |
| 16 |
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 |
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.
| March 31, 2025 | Estimated Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||||||
| Fixed maturity securities | $ | 1,805 | Discounted cash flow | Credit spread | 1 | % | — | 7 | % | (2 | %) | |||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| Fixed maturity securities | $ | 1,724 | Discounted cash flow | Credit spread | 1 | % | — | 6 | % | (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.
| 17 |
| Carrying Amount | Estimated Fair Value | ||||||||||||||||||||||||||||
| March 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Other invested assets, primarily mortgage loans | $ | 1,049 | $ | 1,035 | $ | 1,035 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Short-term debt | 504 | $ | 499 | 5 | 504 | ||||||||||||||||||||||||
| Long-term debt | 8,438 | 7,275 | 966 | 8,241 | |||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||
| Other invested assets, primarily mortgage loans | $ | 1,019 | $ | 987 | $ | 987 | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||
| Short-term debt | 4 | 5 | 5 | ||||||||||||||||||||||||||
| Long-term debt | 8,936 | $ | 7,702 | 966 | 8,668 |
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 $97 million and $88 million were recorded for the three months ended March 31, 2025 and 2024, driven by severe weather related events, including $53 million for the California wildfires in 2025.
| 18 |
Liability for Unpaid Claim and Claim Adjustment Expenses
The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.
| Three Months Ended March 31 | 2025 | 2024 | |||||||||||||||
| (In millions) | |||||||||||||||||
| Reserves, beginning of year: | |||||||||||||||||
| Gross | $ | 24,976 | $ | 23,304 | |||||||||||||
| Ceded | 5,713 | 5,141 | |||||||||||||||
| Net reserves, beginning of year | 19,263 | 18,163 | |||||||||||||||
| Net incurred claim and claim adjustment expenses: | |||||||||||||||||
| Provision for insured events of current year | 1,650 | 1,502 | |||||||||||||||
| Increase (decrease) in provision for insured events of prior years | 80 | (6) | |||||||||||||||
| Amortization of discount | 10 | 10 | |||||||||||||||
| Total net incurred (a) | 1,740 | 1,506 | |||||||||||||||
| Net payments attributable to: | |||||||||||||||||
| Current year events | (80) | (113) | |||||||||||||||
| Prior year events | (1,212) | (1,168) | |||||||||||||||
| Total net payments | (1,292) | (1,281) | |||||||||||||||
| Foreign currency translation adjustment and other | 53 | (41) | |||||||||||||||
| Net reserves, end of period | 19,764 | 18,347 | |||||||||||||||
| Ceded reserves, end of period | 5,817 | 5,241 | |||||||||||||||
| Gross reserves, end of period | $ | 25,581 | $ | 23,588 |
| (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.
Unfavorable net prior year loss reserve development of $61 million and favorable net prior year loss reserve development of $7 million for the three months ended March 31, 2025 and 2024 was recorded for CNA’s commercial property and casualty operations (“Property & Casualty Operations”). Unfavorable net prior year loss reserve development of $22 million and no net prior year loss reserve development for the three months ended March 31, 2025 and 2024 was recorded for CNA’s operations outside of Property & Casualty Operations (“Other Insurance Operations”).
| 19 |
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 March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Surety | $ | (18) | ||||||||||||||||||||||||
| Warranty | $ | 10 | 13 | |||||||||||||||||||||||
| Commercial auto | 50 | |||||||||||||||||||||||||
| Workers’ compensation | 1 | (2) | ||||||||||||||||||||||||
| Other insurance operations | 22 | |||||||||||||||||||||||||
| Total pretax (favorable) unfavorable development | $ | 83 | $ | (7) |
2025
Unfavorable development in warranty was primarily due to higher than expected frequency and severity in the most recent accident year for auto warranty.
Unfavorable development in commercial auto was due to higher than expected claim severity, largely in CNA’s construction business in the most recent accident year.
Unfavorable development in Other insurance operations was associated with legacy mass tort abuse claims.
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.
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 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 on 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 $17 million and $12 million for the three months ended March 31, 2025 and 2024. As of March 31, 2025 and December 31, 2024, the cumulative amounts ceded under the LPT were $3.7 billion. The unrecognized deferred
| 20 |
retroactive reinsurance benefit was $408 million and $425 million as of March 31, 2025 and December 31, 2024 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 $2.3 billion as of March 31, 2025. 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, which is 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 Sheets.
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, 2024.
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The following table summarizes balances and changes in the LFPB:
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Present value of future net premiums | |||||||||||
| Balance, January 1 | $ | 3,425 | $ | 3,710 | |||||||
| Effect of changes in discount rate | (7) | (125) | |||||||||
| Balance, January 1, at original locked in discount rate | 3,418 | 3,585 | |||||||||
| Effect of changes in cash flow assumptions (a) | |||||||||||
| Effect of actual variances from expected experience (a) | 5 | (28) | |||||||||
| Adjusted balance, January 1 | 3,423 | 3,557 | |||||||||
| Interest accrual | 44 | 47 | |||||||||
| Net premiums: earned during period | (101) | (107) | |||||||||
| Balance, end of period at original locked in discount rate | 3,366 | 3,497 | |||||||||
| Effect of changes in discount rate | 38 | 56 | |||||||||
| Balance, March 31 | $ | 3,404 | $ | 3,553 | |||||||
| Present value of future benefits & expenses | |||||||||||
| Balance, January 1 | $ | 16,583 | $ | 17,669 | |||||||
| Effect of changes in discount rate | 440 | (578) | |||||||||
| Balance, January 1, at original locked in discount rate | 17,023 | 17,091 | |||||||||
| Effect of changes in cash flow assumptions (a) | |||||||||||
| Effect of actual variances from expected experience (a) | 13 | (13) | |||||||||
| Adjusted balance, January 1 | 17,036 | 17,078 | |||||||||
| Interest accrual | 229 | 231 | |||||||||
| Benefit & expense payments | (293) | (321) | |||||||||
| Balance, end of period at original locked in discount rate | 16,972 | 16,988 | |||||||||
| Effect of changes in discount rate | (264) | 78 | |||||||||
| Balance, March 31 | $ | 16,708 | $ | 17,066 | |||||||
| Net LFPB, March 31 | $ | 13,304 | $ | 13,513 |
| (a) | As of March 31, 2025 and 2024, the re-measurement loss of $8 million and $15 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 accretion associated with the long-term care business recognized on the Condensed Consolidated Statement of Operations.
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Earned premiums | $ | 106 | $ | 110 | ||||||||||||||||
| Interest accretion | 185 | 184 |
The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.
| March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (In millions) | |||||||||||
| Expected future benefit and expense payments | $ | 31,433 | $ | 32,474 | |||||||
| Expected future gross premiums | 5,089 | 5,270 |
Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $3.6 billion and $3.7 billion as of March 31, 2025 and 2024.
The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years as of March 31, 2025 and 2024.
The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.
| March 31, | December 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | |||||||||||||||
| Original locked in discount rate | 5.19 | % | 5.22 | % | 5.20 | % | |||||||||||
| Upper-medium grade fixed income instrument discount rate | 5.40 | 5.20 | 5.51 |
For the three months ended March 31, 2025 and 2024, immediate charges to net income resulting from adverse development in certain cohorts where the net premium ratio (“NPR”) exceeded 100% were $14 million and $20 million. For the three months ended March 31, 2025 and 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 $2 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 months ended March 31, 2024 and 2025:
| 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, 2024 | $ | (12) | $ | (1,483) | $ | (329) | $ | 9 | $ | (533) | $ | (149) | $ | (2,497) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, after tax of $0, $64, $(91), $(1), $0 and $0 | (1) | (239) | 341 | 2 | (33) | 70 | |||||||||||||||||||||||||||||||||||
| Reclassification of losses from accumulated other comprehensive loss, after tax of $(1), $(6), $0, $0, $(1) and $0 | 3 | 22 | 6 | 31 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 2 | (217) | 341 | 2 | 6 | (33) | 101 | ||||||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | 19 | (29) | (1) | 3 | (8) | ||||||||||||||||||||||||||||||||||||
| Other | 1 | 5 | (1) | (2) | 3 | ||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2024 | $ | (9) | $ | (1,676) | $ | (17) | $ | 10 | $ | (530) | $ | (179) | $ | (2,401) | |||||||||||||||||||||||||||
| Balance, January 1, 2025 | $ | (13) | $ | (1,720) | $ | 324 | $ | 9 | $ | (224) | $ | (243) | $ | (1,867) | |||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications, after tax of $1, $(73), $31, $2, $0 and $0 | (5) | 276 | (114) | (3) | (1) | 37 | 190 | ||||||||||||||||||||||||||||||||||
| Reclassification of losses from accumulated other comprehensive loss, after tax of $0, $(1), $0, $0, $0 and $0 | 2 | 6 | 2 | 10 | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (3) | 282 | (114) | (3) | 1 | 37 | 200 | ||||||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | 1 | (24) | 9 | (3) | (17) | ||||||||||||||||||||||||||||||||||||
| Other | (1) | (1) | |||||||||||||||||||||||||||||||||||||||
| Balance, March 31, 2025 | $ | (15) | $ | (1,463) | $ | 219 | $ | 6 | $ | (223) | $ | (209) | $ | (1,685) |
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 4.5 million and 0.2 million shares of its common stock at aggregate costs of $380 million and $17 million during the three months ended March 31, 2025 and 2024.
7. 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 11:
| Three Months Ended March 31 | 2025 | 2024 | ||||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||
| Non-insurance warranty – CNA Financial | $ | 397 | $ | 407 | ||||||||||||||||||||||
| Transportation and storage of natural gas and NGLs and ethane supply and transportation services – Boardwalk Pipelines | $ | 609 | $ | 501 | ||||||||||||||||||||||
| Lodging and related services – Loews Hotels & Co | 237 | 209 | ||||||||||||||||||||||||
| Total revenues from contracts with customers | 846 | 710 | ||||||||||||||||||||||||
| Other revenues | 26 | 26 | ||||||||||||||||||||||||
| Operating revenues and other | $ | 872 | $ | 736 |
Receivables from contracts with customers – As of March 31, 2025 and December 31, 2024, receivables from contracts with customers were approximately $252 million and $240 million and are included within Receivables on the Consolidated Condensed Balance Sheets.
Deferred revenue – As of March 31, 2025 and December 31, 2024, deferred revenue resulting from contracts with customers were approximately $4.6 billion and are reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Condensed Balance Sheets. Approximately $413 million and $410 million of revenues recognized during the three months ended March 31, 2025 and 2024 were included in deferred revenue as of December 31, 2024 and 2023.
Performance obligations – As of March 31, 2025, approximately $18.7 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 $2.3 billion will be recognized during the remaining nine months of 2025, $2.4 billion in 2026 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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8. Benefit Plans
The Company has several non-contributory defined benefit plans and postretirement benefit plans covering eligible employees and retirees.
The following table presents the components of net periodic (benefit) cost for the defined benefit plans:
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
| Three Months Ended March 31 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Service cost | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||||
| Interest cost | 11 | 24 | $ | 1 | $ | 1 | |||||||||||||||||||||||||||||
| Expected return on plan assets | (15) | (29) | (1) | (1) | |||||||||||||||||||||||||||||||
| Amortization of unrecognized net loss | 2 | 7 | |||||||||||||||||||||||||||||||||
| Net periodic (benefit) cost | $ | (1) | $ | 3 | $ | — | $ | — |
9. Legal Proceedings
Loews Hotels & Co
On February 20, 2024, Jeanette Portillo filed a putative class action against Loews Hotels Holdings Corporation and other defendants in the United States District Court for the Western District of Washington. On March 1, 2024, Ryan Segal filed a putative class action against Loews Hotels Holdings Corporation and other defendants in the United States District Court for the Northern District of Illinois. Both suits assert antitrust claims against defendants under the Sherman Act, 15 U.S.C. § 1. Defendants jointly filed motions to dismiss the complaints in Portillo and Segal on May 17, 2024 and June 24, 2024, respectively. The court has not issued a decision on the motion to dismiss in Portillo. On March 31, 2025, the court granted the defendants’ motion to dismiss in Segal, and granted plaintiff leave to amend the complaint by no later than April 28, 2025. On April 28, 2025, Segal filed a third amended complaint alleging that Loews Hotels Holdings Corporation and other defendants violated the Sherman Act.
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.
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.
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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. In September 2024, the Trial Court ruled in favor of the Defendants on all of the remanded issues.
On October 21, 2024, the Plaintiffs appealed the Trial Court’s ruling on the remanded issues to the Supreme Court. Briefing on this appeal was completed in March 2025 and a hearing on this appeal has been scheduled to occur in June 2025.
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 matters described above, will materially affect the Company’s results of operations or equity.
10. 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 March 31, 2025, 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.
Boardwalk Pipelines
Boardwalk Pipelines’ future capital commitments are comprised of binding commitments under purchase orders for materials ordered but not received and firm commitments under binding construction service agreements. As of March 31, 2025, the commitments were approximately $237 million, all of which are expected to be settled within the next twelve months.
11. 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 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
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 March 31, 2025 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Insurance premiums | $ | 2,626 | $ | 2,626 | |||||||||||||||||||||||||||||||
| Net investment income | 604 | $ | 1 | $ | 3 | 608 | |||||||||||||||||||||||||||||
| Investment losses | (9) | (9) | |||||||||||||||||||||||||||||||||
| Non-insurance warranty revenue | 397 | 397 | |||||||||||||||||||||||||||||||||
| Operating revenues and other | 9 | 621 | 242 | 872 | |||||||||||||||||||||||||||||||
| Total | 3,627 | 622 | 245 | $ | — | 4,494 | |||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (a) | 2,027 | 2,027 | |||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 471 | 471 | |||||||||||||||||||||||||||||||||
| Non-insurance warranty expense | 385 | 385 | |||||||||||||||||||||||||||||||||
| Operating expenses and other (b) | 363 | 381 | 231 | 16 | 991 | ||||||||||||||||||||||||||||||
| Equity method (income) loss | (6) | 7 | 1 | ||||||||||||||||||||||||||||||||
| Interest | 32 | 39 | 16 | 18 | 105 | ||||||||||||||||||||||||||||||
| Total | 3,278 | 420 | 241 | 41 | 3,980 | ||||||||||||||||||||||||||||||
| Income (loss) before income tax | 349 | 202 | 4 | (41) | 514 | ||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (75) | (50) | (4) | 7 | (122) | ||||||||||||||||||||||||||||||
| Net income (loss) | 274 | 152 | — | (34) | 392 | ||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (22) | (22) | |||||||||||||||||||||||||||||||||
| Net income (loss) attributable to Loews Corporation | $ | 252 | $ | 152 | $ | — | $ | (34) | $ | 370 | |||||||||||||||||||||||||
| March 31, 2025 | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 67,288 | $ | 9,919 | $ | 2,500 | $ | 3,435 | $ | 83,142 |
| (a) | Significant segment expenses within Insurance claims and policyholders’ benefits include catastrophe losses of $97 million and unfavorable net prior year loss reserve development of $83 million. Net prior year loss reserve development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance. |
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| (b) | Significant segment expenses included in Operating expenses and other: |
| Three Months Ended March 31, 2025 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| Insurance related administrative expenses | $ | 321 | $ | 321 | |||||||||||||||||||||||||||||||
| Operating expenses | $ | 192 | $ | 153 | 345 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 106 | 24 | $ | 1 | 131 | ||||||||||||||||||||||||||||||
| Other (c) | 42 | 83 | 54 | 15 | 194 | ||||||||||||||||||||||||||||||
| Operating expenses and other | $ | 363 | $ | 381 | $ | 231 | $ | 16 | $ | 991 |
| (c) | Other expenses for each reportable segment include: | ||||
| CNA Financial: reflects expenses not directly related to insurance operations, which includes certain expenses related to its non-insurance warranty business and claims services offerings, as well as foreign currency transaction gains and losses. | |||||
| Boardwalk Pipelines: general and administrative expenses | |||||
| Loews Hotels & Co: general and administrative and reimbursable expenses | |||||
| Corporate: general and administrative expenses |
| 29 |
| Three Months Ended March 31, 2024 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Insurance premiums | $ | 2,441 | $ | 2,441 | |||||||||||||||||||||||||||||||
| Net investment income | 609 | $ | 4 | $ | 2 | $ | 54 | 669 | |||||||||||||||||||||||||||
| Investment losses | (22) | (22) | |||||||||||||||||||||||||||||||||
| Non-insurance warranty revenue | 407 | 407 | |||||||||||||||||||||||||||||||||
| Operating revenues and other | 9 | 513 | 214 | 736 | |||||||||||||||||||||||||||||||
| Total | 3,444 | 517 | 216 | 54 | 4,231 | ||||||||||||||||||||||||||||||
| Expenses: | |||||||||||||||||||||||||||||||||||
| Insurance claims and policyholders’ benefits (a) | 1,807 | 1,807 | |||||||||||||||||||||||||||||||||
| Amortization of deferred acquisition costs | 444 | 444 | |||||||||||||||||||||||||||||||||
| Non-insurance warranty expense | 394 | 394 | |||||||||||||||||||||||||||||||||
| Operating expenses and other (b) | 337 | 312 | 209 | 22 | 880 | ||||||||||||||||||||||||||||||
| Equity method (income) loss | (27) | 1 | (26) | ||||||||||||||||||||||||||||||||
| Interest | 35 | 43 | 6 | 19 | 103 | ||||||||||||||||||||||||||||||
| Total | 3,017 | 355 | 188 | 42 | 3,602 | ||||||||||||||||||||||||||||||
| Income before income tax | 427 | 162 | 28 | 12 | 629 | ||||||||||||||||||||||||||||||
| Income tax expense | (89) | (41) | (12) | (2) | (144) | ||||||||||||||||||||||||||||||
| Net income | 338 | 121 | 16 | 10 | 485 | ||||||||||||||||||||||||||||||
| Amounts attributable to noncontrolling interests | (28) | (28) | |||||||||||||||||||||||||||||||||
| Net income attributable to Loews Corporation | $ | 310 | $ | 121 | $ | 16 | $ | 10 | $ | 457 | |||||||||||||||||||||||||
| March 31, 2024 | |||||||||||||||||||||||||||||||||||
| Total assets | $ | 65,038 | $ | 10,415 | $ | 2,441 | $ | 3,012 | $ | 80,906 |
| (a) | Significant segment expenses within Insurance claims and policyholders’ benefits include catastrophe losses of $88 million and favorable net prior year loss reserve development of $7 million. Net prior year loss reserve development does not include the effects of interest accretion and change in allowance for uncollectible reinsurance and deductible amounts. |
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| (b) | Significant segment expenses included in Operating expenses and other: |
| Three Months Ended March 31, 2024 | CNA Financial | Boardwalk Pipelines | Loews Hotels & Co | Corporate | Total | ||||||||||||||||||||||||||||||
| Insurance related administrative expenses | $ | 287 | $ | 287 | |||||||||||||||||||||||||||||||
| Operating expenses | $ | 122 | $ | 138 | 260 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 106 | 21 | 127 | ||||||||||||||||||||||||||||||||
| Other (c) | 50 | 84 | 50 | $ | 22 | 206 | |||||||||||||||||||||||||||||
| Operating expenses and other | $ | 337 | $ | 312 | $ | 209 | $ | 22 | $ | 880 |
| (c) | Other expenses for each reportable segment include: | ||||
| CNA Financial: reflects expenses not directly related to insurance operations, which includes certain expenses related to its non-insurance warranty business and claims services offerings, as well as foreign currency transaction gains and losses. | |||||
| Boardwalk Pipelines: general and administrative expenses | |||||
| Loews Hotels & Co: general and administrative and reimbursable expenses | |||||
| Corporate: general and administrative expenses |
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Previous: Cover and table of contents · Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.