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Loews posts Q3 profit on higher investment income, insurance premium

Published 10/30/2023, 07:19 AM
Updated 10/30/2023, 07:20 AM
© 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

(Reuters) - Loews Corp (NYSE:L) on Monday reported a profit in the third quarter compared to a loss a year earlier, boosted by higher investments and insurance unit CNA Financial's strong performance.

Markets have regained some ground this year on expectations that the U.S. Federal Reserve is nearly done with its rate hiking cycle, helping Loews earn more from its investments.

Investment income for the New York-based company jumped to $592 million in the third quarter ended Sept. 30 from $404 million a year earlier.

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

CNA's quarterly insurance premiums rose to $2.41 billion from $2.22 billion a year earlier.

The company reported an underlying combined ratio of 90.4% in its property and casualty business, compared with 91.1% a year earlier. A ratio below 100% means an 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's larger peer, Travelers Companies (NYSE:TRV), reported a 14% fall in quarterly profit earlier this month.

The income attributable to Loews for the third quarter was $253 million, or $1.12 per share, compared with a loss of $22 million, or 9 cents, a year earlier.

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