Loews' Third Quarter Profit Rises with Investment Income

Loews Corporation (NYSE:L), based in New York, reported a significant increase in third-quarter earnings. This increase was largely driven by a rise in investment income and strong results from insurance operations. The company's investment income rose to $776 million in the third quarter, representing a substantial increase compared to $592 million recorded in the same period last year.

For the quarter ended September 30, net income attributable to Loews was $401 million, or $1.82 per share, reflecting a significant increase from $253 million, or $1.12 per share, reported in the same quarter last year. According to London Stock Exchange Group data, a significant portion of Loews' revenue comes from its insurance unit, CNA Financial, in which it holds over 90% ownership.

CNA Financial's property and casualty insurance business reported a slightly higher combined ratio of 91.6%, compared to 90.4% a year ago. The combined ratio is a measure of profitability in the insurance industry, with a ratio below 100 indicating that the insurer has earned more in premiums than it has paid out in claims.

The insurance unit also saw an increase in quarterly insurance premiums, rising from $2.41 billion to $2.59 billion. This growth occurred despite significant catastrophe losses experienced across the industry.

James Tisch, CEO of Loews, who announced his retirement at the end of 2024, commented on the company's performance, stating, "CNA performed well despite the high catastrophe losses in the industry." This statement reflects the company's resilience against the challenging conditions affecting the insurance sector as a whole.

Analysts had previously forecasted in October that Hurricane Milton could lead to losses of up to $100 billion for the global insurance industry. This highlights the scale of recent catastrophic events and their impact on insurers.

Despite these challenges, Loews managed to achieve a stronger financial performance, underscoring the effectiveness of the company's investment strategy and the strength of its insurance operations.