Thursday, May 23, 2024

Loews’ Q4 Profit Soars due to Increased Investment Income


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.

Alexandra Bennett
Alexandra Bennett
Alexandra Bennett is a seasoned business journalist with over a decade of experience covering the global economy, finance, and corporate strategies. With a Bachelor's degree in Economics and a Master's in Business Journalism from Columbia University, Alexandra has built a reputation for her insightful analysis and ability to break down complex economic trends into understandable narratives. Prior to joining our team, she worked for major financial publications in New York and London. Alexandra specializes in mergers and acquisitions, market trends, and economic

Read more

Latest News