Loews Corporation Q2 FY2024 earnings call

• CNA Financial: Dino Robusto, CEO of CNA, announced retirement effective December 31st, succeeded by Doug Worman; Dino to serve as Executive Chairman. • Loews Corporation: James Tisch to retire as President and CEO on December 31st, Ben Tisch to assume CEO role; James to become Chairman of the Board on January 1st, 2025. • Business evolution: Loews has evolved over 47 years with acquisitions, disposals, and now consists of CNA Financial, Boardwalk Pipelines, Loews Hotels, and majority interest in Altium Packaging. • CNA transformation: Transformed from 'problem child' to largest subsidiary and biggest cash flow source, focusing on core commercial property and casualty insurance. • Boardwalk development: Bought natural gas pipelines Texas Gas Transmission and Gulf South Pipelines, rebranded as Boardwalk Pipelines, a profitable business. • Lorillard divestment: Exited tobacco business via tracking stock and tax-free exchange, retiring shares. • Share repurchases: Long history of share repurchases, reduced outstanding share count by almost two-thirds over tenure.

CNA Financial: Contributed net income of $291 million to Loews in the second quarter, an increase of $36 million compared to Q2 2023. Net investment income increased 7% year-over-year due to favorable reinvestment rates on fixed income securities, larger invested asset base, and improved LP returns. Net earned and net written Property & Casualty premiums increased by 7% and 6% respectively. Combined ratio increased to 94.8% from 93.8% in Q2 2023. Boardwalk Pipelines: Second-quarter EBITDA increased by 13% year-over-year from $213 million to $240 million. Net income grew by 23% year-over-year from $57 million to $70 million, driven by re-contracting at higher rates for natural gas transportation and storage, contributions from growth projects, and acquisition of Bayou Ethane. Loews Hotels: Adjusted EBITDA was $98 million in Q2 2024 compared to $100 million in Q2 2023. Net income was $35 million in Q2 2024 versus $74 million in the prior year's Q2, impacted by lower occupancy and rate at Orlando hotels but offset by the Loews Arlington Hotel and Convention Center and improved city center hotel results. Parent company: Recorded after-tax investment income of $7 million in Q2 2024, a slight decrease from $9 million in Q2 2023, driven by lower returns on common stock portfolio partially offset by higher income from short-term investments and fixed maturity securities.

• In 2007, Loews purchased HighMount Exploration and Production Company, a natural gas E&P business, which was severely impacted by decline in natural gas prices due to shale gas production increase, and was sold at a loss in 2014.