Loews Q3 2026 Earnings: CNA Reserve Charge Weighs on Profit

Loews (NYSE: L) reported Q3 2026 revenue of $4.759 billion, up about 1.9% from $4.671 billion a year earlier, while EPS fell to $1.50 from $2.43. Net income attributable to Loews declined 39% to $306 million as CNA’s long-term care reserve update, weaker property-and-casualty underwriting and higher catastrophe losses outweighed improvements at Loews Hotels and in Boardwalk’s underlying operations.

Core Financial Results

For the quarter ended September 30, 2026, Loews generated modest revenue growth, but expenses rose considerably faster. Total expenses increased 9.3% to $4.353 billion, including a $315 million increase in insurance claims and policyholder benefits, contributing to a 41% decline in pretax income.

The following figures are for the three months ended September 30.

EPS declined slightly less than net income because weighted-average shares decreased to 204.57 million from 207.71 million.

Business and Segment Performance

CNA accounted for most of the consolidated profit decline. Boardwalk’s reported earnings were affected by unrealized losses and an impairment charge, while Loews Hotels benefited from higher room rates and occupied room nights.

CNA core income, Boardwalk EBITDA and Loews Hotels adjusted EBITDA are non-GAAP measures.

CNA Financial

CNA’s property-and-casualty net earned premiums rose 2%, while net written premiums increased 3%. However, the combined ratio deteriorated by 4.2 percentage points to 97.0%, and the underlying combined ratio increased to 94.2% from 91.3%.

The underlying loss ratio rose 2.2 points to 64.1%, reflecting higher loss-cost trends and lower-than-expected pricing in certain lines in recent quarters. CNA also recorded an unfavorable $125 million impact, after tax and noncontrolling interests, from its annual long-term care reserve assumption update. Net investment income was relatively flat as lower limited-partnership returns offset higher fixed-income and common-stock income.

Boardwalk Pipelines

Boardwalk’s revenue increased on higher gas transportation contracting rates and utilization, but reported earnings declined. The quarter included $10 million of net unrealized losses at Continuum and a $9 million impairment charge associated with relocating Boardwalk’s corporate office, representing a combined $14 million after-tax impact.

Excluding those two items, Boardwalk’s net income increased by $5 million and EBITDA rose by $14 million year over year.

Loews Hotels

Loews Hotels returned to profitability and increased adjusted EBITDA by 25%. Results benefited from higher overall average daily rates and more occupied room nights across most of the portfolio, particularly at the Loews Miami Beach Hotel following the completion of its renovation and at the Arlington hotel properties.

The improvement was partially offset by lower equity income from joint ventures. At Universal Orlando Resort, lower average daily rates and higher operating expenses weighed on equity income.

Corporate

Corporate segment net income declined to $25 million from $42 million, primarily because of lower investment income from the parent company’s trading portfolio.

CNA’s Reserve Charge and Underwriting Deterioration Overwhelmed Other Gains

CNA contributed $191 million of Loews’ total $198 million year-over-year decline in attributable net income. At the consolidated level, revenue increased by $88 million, but insurance claims and policyholder benefits rose by $315 million, demonstrating why modest top-line growth did not translate into higher earnings.

Loews said the $125 million unfavorable impact from CNA’s long-term care reserve update should be almost entirely offset by higher investment yields resulting from recent portfolio actions. The reserve impact was recognized in the current quarter, while the anticipated investment-income benefit is expected to appear gradually over time.

Balance Sheet and Capital Allocation

Reported book value per share declined slightly from year-end, while book value excluding accumulated other comprehensive income, or AOCI, increased about 5%.

Loews repurchased 1.6 million shares for $167 million during Q3. It purchased another 0.6 million shares for $67 million between October 1 and October 30, after the quarter ended.

Risks Investors Should Watch

• CNA underwriting pressure: Higher loss-cost trends and lower-than-expected pricing in certain insurance lines pushed both the combined ratio and underlying combined ratio higher.
• Long-term care reserve exposure: The latest annual reserve review produced a substantial charge. The expected offset from higher investment yields will be recognized over time rather than immediately.
• Catastrophe losses: Higher catastrophe losses contributed to CNA’s weaker quarterly underwriting results.
• Boardwalk expense and charge volatility: Higher transportation revenue did not translate into reported earnings growth because of unrealized losses, an impairment and other operating expenses.
• Hotel joint-venture performance: Lower room rates and higher expenses at Universal Orlando Resort reduced equity income despite improvement across most of the owned hotel portfolio.

Summary

Loews’ Q3 2026 revenue increased modestly, but higher insurance costs and CNA’s long-term care reserve update drove a substantial earnings decline. Loews Hotels improved meaningfully, and Boardwalk’s underlying results benefited from transportation rates and utilization, but neither was large enough to offset CNA’s weakness. The main issues to monitor are CNA’s underwriting ratios, the timing of investment-income benefits from its portfolio actions and whether growth at Boardwalk and Loews Hotels continues to translate into reported profit.