Loews Corporation (NYSE:L) reported third-quarter 2026 EPS of $1.50, down from $2.43 a year earlier, as net income declined partly due to a reserve charge at CNA Financial Corp (NYSE:CNA). Revenue increased to $4.759 billion from $4.671 billion in the prior-year quarter.
Net income fell to $306 million from $504 million, partly reflecting a $125 million after-tax long-term care reserve charge at CNA.
The parent company held $4.4 billion in cash and investments and repurchased 1.6 million shares for $167 million during the quarter.
Book value per share was $90.24 as of Sept. 30, compared with $90.71 at Dec. 31, 2025. Excluding accumulated other comprehensive income (AOCI), book value per share increased to $100.67 from $95.89.
CNA Financial
Net income attributable to Loews from CNA fell to $180 million from $371 million in the year-ago quarter, while core income declined to $203 million from $409 million.
The decrease reflected higher long-term care reserves following the annual review, weaker property and casualty underwriting results and increased catastrophe losses. The $125 million after-tax reserve charge is expected to be largely offset over time by higher investment yields.
Property and casualty net earned premiums grew 2%, while net written premiums increased 3%. The combined ratio rose to 97.0% from 92.8%, while the underlying combined ratio increased to 94.2% from 91.3%.
The underlying loss ratio was 64.1%, unchanged from the second quarter of 2026 but up 2.2 percentage points year over year. This reflected higher claims costs and lower-than-expected rate increases in certain lines.
Net investment income was largely flat, as stronger returns from fixed-income securities and common stocks offset weaker limited partnership performance.
Boardwalk Pipelines
Net income declined to $85 million from $94 million in the year-ago quarter, while EBITDA fell to $262 million from $267 million.
Results included $10 million in net unrealized Continuum losses ($7 million after tax) and a $9 million office relocation impairment ($7 million after tax). Excluding these items, net income increased by $5 million and EBITDA rose by $14 million, supported by higher gas transportation rates and utilization.
Loews Hotels
Net income improved to $16 million from a $3 million loss in the prior-year quarter, while adjusted EBITDA increased 25% year over year to $86 million.
Growth was driven by higher average daily rates and more occupied room nights, particularly at Loews Miami Beach Hotel following the completion of its renovation in late 2025 and at the Loews Hotels & Co Arlington properties.
Lower joint venture income partly offset the gains, mainly due to weaker average daily rates and higher operating expenses at Universal Orlando Resort.
L Stock Price Activity: Loews shares are trading lower by 0.47% at $110.80 at the time of publication on Monday, according to Benzinga Pro data.
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