Loews fourth-quarter profit falls on insurance unit woes
Business
Loews fourth-quarter profit falls on insurance unit woes
(Reuters) - Loews Corp on Monday reported a fall in fourth-quarter profit as higher catastrophe losses and a one-time pension settlement charge hurt its insurance business, CNA Financial.
Extreme weather events such as hurricanes, wildfires, and other natural disasters swept the United States last year, eroding underwriting margins for insurers.
Loews earns most of its revenue from CNA, in which it holds a nearly 92% stake, per LSEG data.
Net income attributable to Loews from the insurance unit dipped to $19 million for the three months ended Dec. 31, compared with $336 million last year. That included a pension-settlement charge of $265 million for CNA.
The losses were partially offset by a rise in the New York-based parent company's investment income to $696 million in the quarter, from $643 million a year earlier.
U.S. equity markets have rallied as the Federal Reserve started cutting interest rates last year and on hopes of a soft landing for the economy, helping companies such as Loews reap higher investment returns.
Net income attributable to Loews was $187 million, or 86 cents per share, compared with $446 million, or $1.99 a share, a year earlier.
Shares of the company had gained nearly 22% in 2024.
