Loews fourth-quarter profit jumps on investment income gains
Loews Corporation announced a significant 26% increase in its fourth-quarter profit, bolstered by rising premiums and a beneficial market rally towards the end of the previous year, enhancing the insurer’s investment returns.
The surge in U.S. government bonds, driven by anticipations of the Federal Reserve reducing interest rates in 2024 amidst cooling inflation and a decelerating economy, played a pivotal role in this financial uplift.
The New York-based conglomerate reported its investment income soaring to $643 million in the quarter ending December 31, an improvement from $600 million in the same period the year before.
Loews, which primarily generates its revenue through its insurance unit CNA Financial Corporation—holding roughly a 90% stake—witnessed CNA posting an underlying combined ratio of 91.4% in its property and casualty segment. This is a slight increase from the 91.2% recorded a year earlier, indicating the insurer collected more in premiums than it disbursed in claims.
The reported quarter saw Loews accruing a net income of $446 million, or $1.99 per share, a notable rise from $355 million, or $1.49 per share, in the corresponding quarter of the previous year.
