Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Loews profit more than doubles as market rebound boosts investment returns

Published 31/07/2023, 09:08 pm
© Reuters. FILE PHOTO: James Tisch, President and Chief Executive of Loews Corporation, speaks during The Economist's Buttonwood Gathering in New York October 25, 2012. REUTERS/Carlo Allegri/File Photo
TRV
-
NG
-
L
-

(Reuters) - Loews Corp (NYSE:L) said on Monday its second-quarter profit more than doubled as a jump in investment income cushioned a hit from higher catastrophe losses in its insurance unit, CNA Financial.

Markets have staged a comeback this year on rising bets that the Federal Reserve was done with the bulk of its tightening cycle that had taken the economy on the edge of a recession.

Loews reported a higher return on investments, helped by a broader market rally.

Investment income for New York-based Loews jumped to $592 million in the second quarter ended June 30 from $366 million a year earlier.

The company earns most of its revenue from CNA, in which it holds about 90% stake. It also operates a natural gas transportation pipeline business and a chain of hotels.

Catastrophe losses in CNA's property and casualty operations rose to $68 million from $37 million.

The U.S. Midwest and South were hit by violent storms in the quarter that knocked over houses and led to loss of life, adding to a series of weather-related events that have hurt insurers' profitability.

CNA's peer Travelers (NYSE:TRV) Companies, earlier this month, reported about a 98% rise in catastrophe losses due to extreme weather.

Meanwhile, CNA reported an underlying combined ratio of 91.1%, compared with 90.8% a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.

© Reuters. FILE PHOTO: James Tisch, President and Chief Executive of Loews Corporation, speaks during The Economist's Buttonwood Gathering in New York October 25, 2012. REUTERS/Carlo Allegri/File Photo

"CNA reported stellar results, despite high industry catastrophe losses," President and CEO James Tisch said in a statement.

The income attributable to Loews for the second quarter was $360 million, or $1.58 per share, compared with $167 million, or 68 cents a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.