Why Insurance Company Loews' Shares Are Rising Premarket Monday

Zinger Key Points
  • Loews reports Q4 FY23 net income of $446 million, showcasing robust financial performance.
  • CNA Financial and Boardwalk Pipelines contribute to Loews' success, with increased revenues and net income in the quarter.

Loews Corp L shares are trading higher after it reported fourth-quarter FY23 results.

Net income stood at $446 million versus $355 million in the prior year quarter. EPS of $1.99 was higher than the year-ago figure of $1.49.

Revenues were $4.26 billion, higher than $3.79 billion a year ago.

CNA Financial Corp CNA revenue contribution increased to $3.51 billion from $3.11 billion a year ago, and net income rose to $336 million from $214 million a year ago.

CNA’s net income benefited from higher net investment income and increased underwriting income.

Boardwalk Pipelines segment’s revenues rose to $511 million from $401 million in the year-ago quarter, and net income rose to $92 million from $83 million the prior year. 

Broadway Pipelines benefitted from higher transportation revenues from re-contracting and recently completed growth projects, increased storage and parking and lending revenues, and the Bayou Ethane buyout.

Loews Hotels’ revenues rose to $210 million from $189 million a year ago, while net income declined to $32 million from $33 million a year ago owing to lower equity income from joint ventures on decreased overall occupancy rates and increased operating costs.

As of December 31, 2023, Loews had cash and investments of $2.6 billion.

Loews repurchased 2.1 million shares for $141 million in the quarter. As of the fourth quarter’s end, 222.2 million common shares remained outstanding.

Price Action: L shares are up 7.30% at $78.37 premarket on the last check Monday.

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