Loews Corporation · NYSE:L
Loews — Q1 2023 Earnings Presentation
28 slides from Loews's earnings presentation, May 2023
Slide 1: Company Overview
COMPANY OVERVIEW May 2023 2023 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. $8.7 billion Property & Net Earned Premiums Publicly 90% Casualty Traded Ownership Insurance $10.5 billion Market Cap Long-term view, Natural Gas & NGL Midstrea
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. $9.5 billion Market Trades at earnings and Value of Loews’s Stake BV discount to peers + Net Cash1 -- $800 million $
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 nearly 39% 300 312 of our common 291 shares outstanding 269 250 248 236 228 200 2014 2015 2016 2017 2018 2019 2020 2021 2022 3/31/23 Shares Repurchased 15 33 3 5 20 22 2
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 Numbers1 Financial lines, ma
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 • $8.7 billion of GAAP equity, $2.8 billion of debt, $14.8 billion of GAAP capital ex AOCI, and statutory surplus of $10.4 billion as of March 31, 2023 • Financial strength rating of
Slide 15: 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 16: 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 17: Boardwalk – Growth Projects
Boardwalk – Growth Projects Percentage of Revenue of End-Use Markets (For the year ended 12/31, except projected revenues) 9% 21% 19% 9% 11% 19% 14% 18% 29% 9% 16% 4% 8% 3% 2010 2015 2020 Total Projected Revenues from 1 Backlog Table Power Generator Industrial LNG Exports LDCs 1. As of March 31, 202
Slide 18: Loews Hotels & Co
Loews Hotels & Co Company Snapshot System-wide Guest Rooms as of March 2023 3 • Owned, joint venture and managed hotels With an additional 2,888 rooms currently under development in the U.S. and Canada • Exclusive, local experiences • Focused on developing hotels with built-in 5,188 10,927 16,115 de
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 unique position as an owner and operator of hotels with a growth strategy that rests on two pillars: • Core Loews Hotels – focused on excellenc
Slide 20: Loews Hotels & Co – Portfolio
Loews Hotels & Co – Portfolio Ownership - Ops Commenced / As of March 31, 2023 Location Rooms Ownership %1 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 Kansas Ci
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 73 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 12% of Sales 17% of Sales 21% 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 fragmen
Slide 24: Appendix – Loews Corp. Debt Maturity Profile
Appendix – Loews Corp. Debt Maturity Profile Staggered debt maturities $500 ($ millions) $500 $500 $500 $300 2.63% 3.75% 3.20% 6.00% 4.13% Notes 2.63% 2.63% Notes 3.75% 3.75% 3.20% Notes Notes 6.00% 6.00% 4.13% 4.13% Notes Senior Senior Senior Senior Senior Senior Senior Senior Senior Notes Notes No
Slide 25: Appendix – CNA Core Income
Appendix – CNA Core Income December 31 Years Ended ($ millions) 2022 2021 Net income attributable to Loews $ 612 $ 1,061 Investment (gains) losses 154 (96) Consolidating adjustments including noncontrolling interests 70 123 Core income $ 836 $ 1,088 Note: As of January 1, 2023, Loews Corporation ado
Slide 26: Appendix – Boardwalk EBITDA
Appendix – Boardwalk EBITDA December 31 Years Ended ($ millions) 2022 2021 Net income attributable to Loews $ 247 $ 235 Interest expense 166 161 Income tax expense 83 68 Depreciation and amortization 396 370 EBITDA $ 892 $ 834 Loews Corporation │ CNA │Boardwalk │ Hotels │ Altium 26
Slide 27: Appendix – Loews Hotels & Co Adjusted EBITDA
Appendix – Loews Hotels & Co Adjusted EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA December 31 Years Ended ($ millions) 2022 2021 Loews Hotels & Co net income (loss) attributable to Loews Corporation $ 117 $ (14) Interest 11 36 Income tax expense 44 2 Depreciation and amortization 6
Slide 28: Appendix – Loews Hotels & Co Adjusted Mortgage Debt
Appendix – Loews Hotels & Co Adjusted Mortgage Debt (In millions) December 31, 2022 December 31, 2021 Short term debt of Loews Hotels $ 111 $ 93 Long term debt of Loews Hotels 613 594 Total debt of Loews Hotels $ 724 $ 687 Deferred financing fees and original issue discount 8 5 Total debt attributab