Loews Corporation · NYSE:L
Loews — Q1 2024 Earnings Presentation
28 slides from Loews's earnings presentation, May 2024
Slide 1: Company Overview May 2024 Q1
COMPANY OVERVIEW May 2024 2024 Q1
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. $9.0 billion Property & Net Earned Premiums Publicly ~92% Casualty Traded Ownership $12.0 billion Insurance Market Cap Long-term view, Natural Gas & 100% $929 m
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: Parent Company Overview
_ L LOEWS Parent Company CORPORATION Overview
Slide 6: 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 Loews Corporation │ CN
Slide 7: 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. $11.0 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash1 – $1.4 billion $
Slide 8: Long History of Share Repurchases
Long History of Share Repurchases 400 Total Shares Outstanding 373 350 Since year-end 340 337 332 2014, we have (millions) retired 40% of our 300 312 common shares 291 outstanding 269 250 248 236 222 222 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 3/31/24 Shares Repurchased 15 33 3 5 20 22
Slide 9: 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 Loews Corporation │
Slide 10: Strong and Consistent Cash Flow
Strong and Consistent Cash Flow n Dividends from Subsidiaries1 n Corporate Net Investment Income (Loss)2 1. All dividends are subject to declaration by the respective Boards of Directors. 2. Parent company pretax net investment income (loss). Loews Corporation │ CNA │Boardwalk │ Hotels │ Altium 10
Slide 11: Subsidiary Overviews
_ L LO EWS | Subsidiary Overviews CORPORATION
Slide 12: 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 By the Numbers Financial lines, man
Slide 13: CNA – Strategic Direction
CNA – Strategic Direction Continues to make significant progress Underlying Combined Ratio1 towards its goal of growing P&C P&C Operations underwriting profits on a sustained basis • An underwriting focused culture • Strong expertise across underwriting, risk control, claims and actuarial • Discipli
Slide 14: CNA – Disciplined Capital Management
CNA – Disciplined Capital Management Excellent capitalization with prudent leverage and modest corporate obligations • $9.7 billion of GAAP equity, $3.5 billion of debt, $15.8 billion of GAAP capital ex AOCI, and statutory surplus of $11.0 billion as of March 31, 2024 • Financial strength rating of
Slide 15: Boardwalk Pipelines
Boardwalk Pipelines Company Snapshot Boardwalk Strategy • Transports and stores natural gas and liquids and provides ethane supply services with minimal exposure to commodity price volatility Maintain Strong Enhance Existing Identify Strategic Commit to Operating • Stable demand pull from predominan
Slide 16: Boardwalk – Strong Financial Position
Boardwalk – Strong Financial Position Substantial Backlog Strong Liquidity • Approximately $10.6 billion of firm contract backlog • Boardwalk expects its resources, including its operating cash flows, revolving credit facility, short-term • More than 75% of future contracted revenues are with invest
Slide 17: Boardwalk – Growth Projects
Boardwalk – Growth Projects Percentage of Revenue from End-Use Markets (For the year ended 12/31, except projected revenues) 6% 19% 17% 9% 13% 19% 14% 18% 9% 26% 16% 4% 8% 3% 2010 2015 2020 Total Projected Revenues from Backlog Table1 Power Generator Industrial LNG Exports LDCs 1. As of March 31, 20
Slide 18: Loews Hotels & Co
Loews Hotels & Co Company Snapshot System-wide Guest Rooms as of March 31, 2024 3 • Owned, joint venture and managed hotels With an additional 2,000 rooms currently under development in the U.S. and Canada • Exclusive, local experiences • Focused on developing hotels with built-in 4,936 11,816 16,75
Slide 19: 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 continues to leverage its position as an owner and operator of hotels with a growth strategy that rests on two pillars: • Core Loews Hotels – focused on excellence in th
Slide 20: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio Ownership - Ops Commenced / As of March 31, 2024 Location Rooms Ownership %1 Managed Only OWNED (11)2 Live! by Loews Arlington, TX* Arlington, TX 300 75% 2019 Loews Arlington Hotel and Convention Center* Arlington, TX 888 95% 2024 Loews Chicago Hotel Chicago, IL 400 100
Slide 21: 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 69 facilities across strong track record of the U.S. and Canada operati
Slide 22: 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 10% of Sales 21% of Sales 22% of Sales Industrial / Specialty Chemical Pharma Water /
Slide 23: Altium Packaging – Acquisitions with Attractive Post-Synergy Multiples
Altium Packaging – Acquisitions with Attractive Post-Synergy Multiples Diversification through acquisition Investment Outlook • Loews recouped initial equity investment in (2022) 2021 through a partial sale and dividend (2022) recap; Loews still owns ~53% of the company • Altium operates in a fragme
Slide 24: Appendix – Loews Corp. Debt Maturity Profile
Appendix – Loews Corp. Debt Maturity Profile Staggered debt maturities ($ millions) Total Parent Company Debt as of 3/31/24 - $1.8 billion Loews Corporation │ CNA │Boardwalk │ Hotels │ Altium 24
Slide 25: Appendix – CNA Core Income
Appendix – CNA Core Income1 December 31 Years Ended ($ millions) 2023 2022 Net income attributable to Loews $ 1,094 $ 612 Investment (gains) losses 79 154 Consolidation adjustments, including noncontrolling interests 111 70 Core income $ 1,284 $ 836 1. Core income is calculated by excluding from CNA
Slide 26: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA1 December 31 Years Ended 2023 2022 ($ millions) Net income attributable to Loews $ 283 $ 247 Interest, net 144 166 Income tax expense 90 83 Depreciation and amortization 412 396 EBITDA $ 929 $ 892 1. EBITDA is defined as earnings before interest, income tax expense, depre
Slide 27: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA1 Reconciliation of Net Income to Adjusted EBITDA December 31 Years Ended ($ millions) 2023 2022 Loews Hotels & Co net income attributable to Loews $ 147 $ 117 Interest, net 9 11 Income tax expense 53 44 Depreciation and amortization 69 64 EBITDA $ 278 $ 2
Slide 28: Appendix – Loews Hotels & Co Adjusted Mortgage Debt
Appendix – Loews Hotels & Co Adjusted Mortgage Debt1 (In millions) December 31, 2023 December 31, 2022 Short term debt of Loews Hotels $ 533 $ 111 Long term debt of Loews Hotels 394 613 Total debt of Loews Hotels $ 927 $ 724 Deferred financing fees and original issue discount 7 8 Total debt attribut