Loews Q1 net income falls 9% as CNA results weaken

Overview

• U.S. diversified conglomerate's Q1 net income declined yr/yr, revenue rose slightly

• Net income fell due to lower CNA Financial results, partly offset by gains at Boardwalk and Hotels

• Company repurchased 0.3 mln shares for $31 mln in Q1

Outlook

• Loews did not provide specific guidance or forecasts for the current or future periods

Result Drivers

• CNA FINANCIAL WEAKNESS - Net income at CNA declined due to lower underlying underwriting results and unfavorable net prior year loss reserve development, partly offset by higher net investment income

• PIPELINES GROWTH - Boardwalk Pipelines' net income rose due to higher contracting rates and utilization-based revenues on gas transportation, as well as higher rates on storage, parking and lending

• HOTELS IMPROVEMENT - Loews Hotels' net income increased due to higher equity income from joint ventures, mainly from Universal Orlando Resort, driven by higher average daily rates and more available and occupied room nights

Company press release: ID:nPn41CH5Na

Key Details

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