Loews Corporation · NYSE:L
Loews — Q3 2022 Earnings Presentation
39 slides from Loews's earnings presentation, October 2022
Slide 1: Investor Presentation 2022 Q3
Investor Presentation October 2022 2022 Q3
Slide 2: Legal Disclaimers
Legal Disclaimers Forward Looking Statements and Risk Factors. The information presented herein is generally available from public sources, including our and our subsidiaries’ earnings releases and SEC filings. We urge you to read those documents, and we specifically direct you to the forward-lookin
Slide 3: Loews Corporation Overview
Loews Corporation Overview Loews is a diversified holding company operating in the insurance, energy, hospitality and packaging industries. $8.2 billion Property & Net Earned Premiums Publicly 90.0% Casualty Traded Ownership $11.4 billion Insurance Market Cap Long-term view, Natural Gas & NGL Midstr
Slide 4: Loews Investment Highlights
Loews Investment Highlights Long history of conservative financial management and shareholder value creation Strong and consistent dividends from subsidiaries Prudent capital allocation strategy Strong liquidity with a portfolio of cash and investments in excess of parent company debt Focu
Slide 5: Financial Performance 2022 Q3
Financial Performance 2022 Q3
Slide 6: 2022 Third Quarter – Key Highlights
2022 Third Quarter – Key Highlights September 30 Net income of $130 million, or $0.54 per share vs. $220 Three Months Nine Months million, or $0.85 per share last year (in millions, except per share data) 2022 2021 2022 2021 Higher underwriting income at CNA and improved Revenues 1 $ 3,461 $ 3,3
Slide 7: Net Income (Loss) by Segment
Net Income (Loss) by Segment Q3 Subsidiary Highlights September 30 CNA had higher underwriting income Three Months Nine Months and increased net investment ($ millions) 2022 2021 2022 2021 income from fixed income securities, offset by losses from LPs and common CNA $ 115 $ 229 $ 579 $ 838 stocks
Slide 8: Financial Trends
Financial Trends Parent company cash & investments Shares outstanding ($ billions as of period-end) (shares in millions as of period-end) $3.5 312 $3.3 $3.4 $3.2 291 $3.1 269 248 238 $1.3 $1.5 $1.2 $1.1 $0.9 2018 2019 2020 2021 9/30/22 2018 2019 2020 2021 9/30/22 Cash & Investments Net Cash Dividend
Slide 9: Loews's Cash & Investments
Loews’s Cash & Investments Current Cash Balance Year-to-Date Roll Forward ($ millions) Loews Cash & Investments September 30, ($ millions) 2022 * Portfolio Composition Cash & short-term investments $ 2,330 Equity securities 481 Limited partnership investments 80 Other 271 Total Cash & Investments $
Slide 10: CNA Financial – Financial Highlights
CNA Financial – Financial Highlights Financials1 September 30 Three Months Nine Months ($ millions, except per share data) 2022 2021 2022 2021 Core income 2 $ 213 $ 237 $ 774 $ 841 Net investment gains (losses) (after-tax) (85) 19 (128) 95 Net income 128 256 646 936 Loews accounting adjustments: Amo
Slide 11: Boardwalk Pipelines – Financial Highlights
Boardwalk Pipelines – Financial Highlights Financials September 30 Three Months Nine Months ($ millions) 2022 2021 2022 2021 Operating revenue1 $ 337 $ 305 $ 1,038 $ 985 Net income1 50 56 230 240 Loews accounting adjustments2 (16) (18) (66) (70) Net income attributable to Loews $ 34 $ 38 $ 164 $ 170
Slide 12: Loews Hotels & Co – Financial Highlights
Loews Hotels & Co – Financial Highlights Financials September 30 Three Months Nine Months ($ millions) 2022 2021 2022 2021 Operating revenue $ 149 $ 107 $ 440 $ 222 Revenues related to reimbursable expenses 31 27 92 67 Revenue 180 134 532 289 Pretax income (loss) excluding certain items1 42 17 142 (
Slide 13: Subsidiary Overviews
_ iz LO EWS | Subsidiary Overviews CORPORATION
Slide 14: CNA Financial
CNA Financial Company Snapshot • One of the largest U.S. commercial property and casualty insurance companies • Provides a broad range of standard and specialized property and casualty insurance products and services SPECIALTY COMMERCIAL INTERNATIONAL LIFE & GROUP Financial lines, Property & casualt
Slide 15: CNA – Strategic Direction
CNA – Strategic Direction Continues to make significant progress towards its goal of growing P&C underwriting profits on a Underlying Combined Ratio1 sustained basis • An underwriting focused culture P&C Operations • Strong expertise across underwriting, risk control, claim and actuarial • Disciplin
Slide 16: CNA – Disciplined Capital Management
CNA – Disciplined Capital Management $15.5 $15.6 Excellent capitalization with prudent $16 leverage and modest corporate $1,200 $15.30 $14.70 $14 obligations $13.6 $1,000 • $8.1 billion of GAAP equity, $2.8 billion of debt, $10.9 $12 and statutory surplus of $10.4 billion as of September 30, 2022 $8
Slide 17: Boardwalk Pipelines
Boardwalk Pipelines Company Snapshot Boardwalk Strategy • Predominantly transports and stores natural gas and liquids with minimal exposure to commodity price volatility Maintain Strong Enhance Existing Identify Strategic Commit to Operating • Stable demand pull from predominantly high credit Financ
Slide 18: Boardwalk – Strong Financial Position
Boardwalk – Strong Financial Position Substantial Backlog Strong Liquidity • Approximately $8.9 billion of firm contract backlog • Boardwalk expects its resources, including its operating cash flows, revolving credit facility and cash on hand, • More than 70% of future contracted revenues are with t
Slide 19: Boardwalk – Growth Projects
Boardwalk – Growth Projects Power Plant in Indiana Collectively, Boardwalk’s natural gas growth projects Capacity: 220,000 MMBtu/d represent over 1,441,000 MMBtu/day of firm In service: Second Half 2024 transportation capacity. Percentage of Revenue of End-Use Markets (as of September 30) 8% Western
Slide 20: Boardwalk – Sustainability
Boardwalk – Sustainability Environmental Social Governance Boardwalk is working to provide safe, affordable Boardwalk is dedicated to creating a safe, Boardwalk values integrity, transparency and and reliable energy to its customers while engaging and inclusive work culture for its accountability as
Slide 21: Boardwalk – Carbon Footprint Reductions
Boardwalk – Carbon Footprint Reductions Over the past three decades, Boardwalk has been focused on reducing emissions associated with the transportation and storage of natural gas from its pipeline system. The company seeks to minimize emissions using a variety of strategies: • Evaluating replacing
Slide 22: Loews Hotels & Co
Loews Hotels & Co Company Snapshot System-wide Guest Rooms as of Sept. 2022 2 With an additional 1,130 rooms currently under development • Owned, joint venture and managed hotels in the U.S. and Canada • Unique, local experiences 4,946 11,274 16,220 • Focused on developing hotels with built-in deman
Slide 23: Loews Hotels & Co – Key Operating Metrics
Loews Hotels & Co – Key Operating Metrics Loews Hotels & Co is focused on profitable growth over the long term • Loews Hotels & Co and the travel and tourism industry were significantly impacted by the COVID-19 pandemic • Looking beyond the current recovery environment, the company's growth strategy
Slide 24: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio 1 Ownership - Ops Commenced / As of September 30, 2022 Location Rooms Ownership % Managed Only OWNED (10) Loews Chicago Hotel Chicago, IL 400 100% 2015 Loews Chicago O'Hare Hotel Chicago, IL 556 100% 2014 Loews Coronado Bay Resort* San Diego, CA 439 100% 2000 Loews Kans
Slide 25: Altium Packaging
Altium Packaging Packaging company that serves stable consumer-oriented end markets COMPANY SNAPSHOT • Altium Packaging’s experienced management team brings a A leading North American manufacturer of rigid plastic packaging with 75 facilities across strong track record of the U.S. and Canada operati
Slide 26: Altium Packaging – Protecting the Environment
Altium Packaging – Protecting the Environment The disposal of plastic and its effects on our environment is an important topic Altium offers several environmentally innovative solutions to help reduce the impact of plastic on the environment and promote a circular economy Altium’s EcoPrime® resin is
Slide 27: Altium Packaging – Rigid Packaging Overview
Altium Packaging – Rigid Packaging Overview • Focuses on short- and mid-run volumes • Covers a variety of attractive, recession-resistant, consumer-oriented focus segments Household Chemical Food / Nutrition Dairy 16% of Sales 15% of Sales 22% of Sales Industrial / Specialty Chemical Pharma Water /
Slide 28: Altium Packaging – The Loews View
Altium Packaging – The Loews View Acquisition End Market Products Diversification through acquisition Food/beverage, household, and (2022) Investment Outlook industrial Food/beverage (2022) • Fragmented industry with highly-synergistic Agricultural & Industrial tuck-in opportunities Chemical, Food,
Slide 29: Plastic Industries Acquisition (August 2022)
Plastic Industries Acquisition (August 2022) • Headquartered in Nashua, NH, Plastic Industries was established in 1999 as Carr Management and acquired by Behrman Capital in 2014 • Diversified customer base serving multiple end-segments including Food & Food Services, Beverage, Household/ Industrials
Slide 30: Loews Corporate Overview
_ iz LOEWS Loews Corporate CORPORATION Overview
Slide 31: Loews Capital Allocation Approach
Loews Capital Allocation Approach • Maintain a strong balance sheet • Evaluate capital deployment opportunities based on risk-adjusted returns • Continually balance the uses of Loews capital 1 2 3 Repurchase Invest in existing Acquire a new Loews shares subsidiaries subsidiary Quarterly Results │ CN
Slide 32: The Loews Discount
The Loews Discount Loews’s market cap is less than its sum-of-the-parts. CNA trades at a discount to its peers and the market seems to assign little value to the private subsidiaries. $10.3 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash1 -- $900 million
Slide 33: Long History of Share Repurchases
Long History of Share Repurchases Total Shares Outstanding 400 387 373 350 Since year-end 2013, we have 340 337 332 retired over 38% (millions) of our common 300 312 shares 291 outstanding 269 250 238 248 200 2013 2014 2015 2016 2017 2018 2019 2020 2021 9/30/22 Shares Repurchased 5 15 33 3 5 20 22 2
Slide 34: Loews is a Long-Term Partner
Working with Our Subsidiaries While each subsidiary’s experienced management team guides day-to-day operations, Loews provides advice in several areas: Major capital Mid- to long-term Hiring of senior allocation decisions strategic planning management Loews is a Long-Term Partner Quarterly Results │
Slide 35: Strong and Consistent Cash Flow
Strong and Consistent Cash Flow Dividends $1,200 $1,156 from 229 Subsidiaries1 $1,006 $1,000 $950 $952 $926 59 $877 $876 $868 99 $838 146 Corporate 146 $800 141 94 22 $678 Net Investment Income (Loss)2 ($ millions) $600 927 947 878 853 $400 782 816 780 804 778 736 $200 $0 (10) (100) 2013 2014 20
Slide 36: Appendix – Loews Consolidating Condensed Balance Sheet
Appendix – Loews Consolidating Condensed Balance Sheet CNA Boardwalk Loews September 30, 2022 Financial Pipelines Hotels & Co Corporate1 Total ($ millions) Assets: Cash and investments $ 42,640 $ 608 $ 207 $ 3,428 $ 46,883 Receivables 9,174 140 47 97 9,458 Property, plant and equipment 229 8,525 1,1
Slide 37: Appendix – Debt Maturity Profile
Appendix – Debt Maturity Profile Staggered debt maturities $500 ($ millions) $500 $500 $500 $300 2.63% 3.75% 3.20% 6.00% 4.13% Notes 2.63% 2.63% Notes 3.75% 3.75% 3.20% Notes Notes 6.00% 6.00% 4.13% 4.13% Notes Senior Senior Senior Senior Senior Senior Senior Senior Senior Notes Notes Notes Notes No
Slide 38: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA September 30 Years Ended December 31 Three Months Nine Months ($ millions) 2022 2021 2022 2021 2021 2020 2019 Pretax income $ 47 $ 52 $ 221 $ 229 $ 303 $ 277 $ 281 Depreciation and amortization 103 92 297 277 370 363 350 Interest 42 40 126 121 161 170 179 EBITDA $ 192 $ 1
Slide 39: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA September 30 Years Ended December 31 Three Months Nine Months ($ millions) 2022 2021 2022 2021 2021 2020 2019 Consolidated GAAP pretax income (loss) $ 34 $ 17 $ 120 $ (64) $ (12) $ (274) $ (28) Certain selected items1 8 - 22 1 (36) 13 110 Pretax income (l