On this page of StockholderLetter.com we present the latest annual shareholder letter from LOEWS CORP — ticker symbol L. Reading current and past L letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2024 Letter Continued (Full PDF)
 •  3/29/2023 L Stockholder Letter
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L Shareholder/Stockholder Letter Transcript:

2023 LETTER TO
SHAREHOLDERS
loews.com

FINANCIAL HIGHLIGHTS
Results of Operations
2023
2022 (a)
2021 (a)
$ 15,901
$ 14,044
$ 14,657
Income before income tax
1,996
1,114
2,160
Net income
1,545
891
1,685
(111)
(69)
(123)
$ in millions, except per share data; Year ended December 31
Revenues
Amounts attributable to noncontrolling interests
Net income attributable to Loews Corporation

1,434

822

1,562
Diluted net income per share

6.29

3.38

6.00
Financial Position
2023
2022 (a)
2021 (a)
Investments
$ 49,369
$ 46,768
$ 53,938
Total assets
79,197
75,567
82,079
1,782
2,280
2,278
Debt: Parent Company
Debt: Subsidiaries
Shareholders    equity
Cash dividends per share
7,221
6,739
6,801
15,704
14,349
16,318
0.25
0.25
0.25
Book value per share
70.69
60.81
65.69
Shares outstanding
222.17
235.96
248.42
(a) Amounts for 2022 and 2021 have been adjusted to reflect the adoption of Accounting Standards Update 2018-12,    Financial Services   Insurance (Topic 944):
Targeted Improvements to the Accounting for Long-Duration Contracts.    The new guidance, commonly referred to as LDTI, was adopted as of January 1, 2023, using
the modified retrospective method applied as of the transition date of January 1, 2021.
RESULTS OF OPERATIONS
Consolidated net income attributable to Loews Corporation
(NYSE: L) for 2023 was $1.4 billion, or $6.29 per share, compared
to $822 million, or $3.38 per share, in 2022.
term care reserves primarily driven by the unfavorable impact
of increased cost-of-care inflation offset by favorable premium
rate assumptions.
The increase in net income attributable to Loews Corporation
in 2023 compared to 2022 was driven by improved results
at CNA Financial and higher investment returns on equity
securities and short-term investments at the parent company.
Boardwalk Pipelines also contributed positively to Loews
Corporation   s year-over-year results. Additionally, net
income attributable to Loews Corporation for 2023 includes
a $37 million after-tax charge for the termination of a noncontributory defined benefit pension plan and a $36 million
after-tax gain for Loews Hotels & Co related to the acquisition
of an additional equity interest in, and the consolidation of, a
previously unconsolidated joint venture property.
Boardwalk Pipelines    2023 earnings improved due to higher
re-contracting rates on its natural gas pipelines, recently
completed growth projects, higher storage and parking
and lending revenues, and the impact of the Bayou Ethane
acquisition in the fourth quarter of 2023. Operating expenses,
including depreciation and amortization, rose primarily due to
maintenance projects associated with regulatory requirements,
an increased asset base from recently completed growth
projects, a change in the useful life of certain assets, and the
Bayou Ethan acquisition.
CNA   s earnings increased in 2023 primarily due to higher net
investment income from limited partnerships and fixed-income
securities, improved property and casualty underwriting income,
and lower investment losses driven by the favorable change in
fair value of non-redeemable preferred stock. CNA   s net income
for 2022 also included a $186 million ($131 million after tax and
noncontrolling interests) charge related to an increase to long-
2 02 3 A N N U A L R E P O R T
At December 31, 2023, excluding accumulated other comprehensive
income, the book value per share of Loews common stock was
$81.92 as compared to $74.88 at December 31, 2022.
At December 31, 2023, there were 222.2 million shares of Loews
common stock outstanding. In 2023, Loews purchased 14.0 million
shares of its common stock at an aggregate cost of $852 million.
Loews also purchased 4.5 million shares of CNA   s common stock
at an aggregate cost of $178 million in 2023.

TABLE of
CONTENTS
02 / Letter to Shareholders
07 / Our Portfolio of Businesses
12 / Board & Officers
1
LO E W S C O R P O R AT I O N

LETTER to
SHAREHOLDERS
Loews delivered strong growth in 2023, reflecting
broad-based momentum across our diverse range
of businesses. Consolidated revenues reached $15.9
billion and net income rose to $1.4 billion, or $6.29 per
share, compared with revenues of $14.0 billion and
net income of $822 million, or $3.38 per share, in 2022.
These results represented top-line growth of 13% and
an increase in net income of 74%.
2
2 02 3 A N N U A L R E P O R T

As our long-term investors know, Loews
has consistently maintained a practice of
repurchasing our shares when we believe
they are trading at a significant discount
to our view of the company   s intrinsic
value. Despite the strong performance of
Loews shares in 2023, we continued to
believe our stock price did not reflect the
true value of our businesses. Accordingly,
we repurchased 14 million of our own
shares during 2023 at a total cost of $852
million and an average cost of about $60
per share. These buybacks represented
nearly 6% of Loews   s outstanding shares
at the start of 2023.
In a similar vein, we believe the market
continued to undervalue CNA, despite
the company   s solid performance in
2023 and its track record of significant
improvements in the business. We
expressed a strong vote of confidence
in the value and prospects of CNA by
purchasing 4.5 million of its shares in
2023 for $178 million.
DIVERSE BUSINESS PORTFOLIO
DRIVES STRONG GROWTH
Each of our businesses experienced
significant growth over the past
five years and we congratulate
their management teams on these
outstanding results.
CNA Financial
CNA has continued to grow, while also
vastly improving the performance of its
underlying business. As a result of these
efforts, net written premiums have risen
by 38% since 2018 to reach $9.4 billion
in 2023. Profitability also has benefited
from management   s relentless focus on
underwriting, leading to a combined ratio
of 93.5% in 2023, which reflects a more
than three-point improvement since 2018.
CNA   s net income attributable to Loews
Corporation reached an all-time high of
$1.1 billion for 2023, up nearly 80% from
$612 million for 2022. Key contributors
to the strong 2023 profitability
included record property and casualty
underwriting income and improved net
3
LO E W S C O R P O R AT I O N
investment income partially due to higher
interest rates, which will continue to
benefit the company going forward.
We remain impressed by the CNA
management team   s strategies for delivering
greater profitability in the commercial
property and casualty sector. The
company continues to build productive
relationships with key distribution
partners, mitigate the long-tailed risk
of the company   s run-off long-term
care business, and pursue a disciplined
approach to capital management.
$1.1
billion
CNA net income
attributable to Loews
$929
million
Boardwalk EBITDA,
up ~$170MM from 2018
$328
million
In light of this strong performance, CNA
announced an increase in its regular
quarterly dividend from $0.42 per
share to $0.44 per share, and a special
dividend of $2.00 per share   both of
which will be paid in March of 2024.
Loews Hotels & Co
Adjusted EBITDA, up
~$100MM from 2018
Boardwalk Pipelines
Loews shares
repurchased in 2023, at
a cost of $852MM
Boardwalk has also grown significantly
over the past five years, largely due to
substantial investments in its business
during that period. Boardwalk delivered
EBITDA attributable to Loews of $929
million in 2023, which represents an
increase of over $170 million from
$756 million in 2018. While its recently
completed growth projects have
certainly been a significant factor in the
company   s stellar performance, these
results also reflect the company   s ability
to re-contract at higher rates, increased
transportation volumes, and favorable
market conditions that led to improved
storage and parking and lending revenues.
Boardwalk continued to invest in its
growth in late 2023 by acquiring Bayou
Ethane for $355 million from Williams
Companies. This 380-mile ethane
pipeline runs from Texas to Louisiana
and is an important strategic fit for
Boardwalk   s existing liquids business.
Inclusive of this latest acquisition,
Boardwalk   s EBITDA is expected to
approach $1 billion in 2024.
Boardwalk closed 2023 with a revenue
backlog of $9.7 billion, a significant
increase from $9.1 billion at the end of
14
million



 4/3/2024 Letter Continued (Full PDF)