LOEWS CORP Q2 FY2023 earnings call

• CNA's strong performance due to steadfast underwriting focus, with renewal premium growth from rates and exposure. - Boardwalk saw EBITDA increase driven by strong volumes and higher rates. - Loews Hotels benefited from travel demand but faced higher expenses, with new hotel construction in Arlington and developments at Universal Orlando. - Share repurchases remain primary capital allocation lever, with 10.6 million shares bought back year-to-date.

CNA: Contributed net income of $255 million in Q2 2023, with net written premiums increasing 10% excluding currency fluctuations. Catastrophe losses were 3.1 points, significantly below industry average. Boardwalk: Contributed net income of $57 million, an increase from $39 million in Q2 2022, driven by higher recontracting rates, etc. Loews Hotels: Contributed $74 million of net income, up from $44 million in Q2 2022, but adjusted EBITDA declined due to higher operating expenses, though new hotel construction and developments are ongoing.

• Continue share repurchases as long as shares trade at discount to intrinsic value. - Loews Hotels' new Arlington hotel slated for completion in Q1 2024 and developments at Universal Orlando expected in 2025.

• Hard reinsurance market impacts CNA with higher reinsurance pricing, though mitigated by premium rate increases. - Loews Hotels faces higher operating expenses due to normalized staffing. - Boardwalk has higher operation and maintenance expenses related to pipeline safety compliance.

Q: Do you anticipate making a sizable investment in Loews Hotels this year to support its growth projects?

A: Loews Hotels anticipates a nearly $200 million equity investment in Orlando projects, self-funding majority with internal cash flow. Parent company made $33 million equity contribution last year and anticipates similar this year.

Q: Why is Loews not covered by Wall Street analysts? Do you want coverage? Does this impact valuation?

A: Lost coverage as analysts retired/changed firms. Encouraged firms to initiate coverage, but multi-industry structure doesn't fit sector models. Lack of coverage may contribute to discount, encourage investors to urge coverage.

Q: How does a hard reinsurance market impact CNA?

A: CNA's catastrophe losses below industry, but felt higher reinsurance pricing at renewal, though rate increases less severe than industry, mitigated by premium hikes.

Q: Any comments or predictions on the state of the economy now and going forward?

A: Discussed long-term view on interest rates, stating return to real interest rates, impact of Fed's ZIRP/QE, and expectation of higher rates continuing for foreseeable future