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Mar 31, 2021
Loews Q1 2021 Earnings Report
Loews reported a net income of $261 million for Q1 2021, driven by strong performance from CNA Financial and Boardwalk Pipelines, while Loews Hotels & Co experienced a net loss due to the pandemic's impact on travel.
Key Takeaways
Loews Corporation reported a net income of $261 million for the first quarter of 2021, a significant improvement compared to the net loss of $632 million in the same quarter of the previous year. The positive results were primarily driven by CNA Financial's improved performance and contributions from Boardwalk Pipelines. Loews Hotels & Co faced challenges due to the ongoing impact of the COVID-19 pandemic on travel.
Loews Corporation reported net income of $261 million, a significant increase compared to the previous year's net loss of $632 million.
CNA Financial's strong performance, driven by improved net investment income and underwriting results, was a key contributor to the positive results.
Boardwalk Pipelines also contributed positively to Loews's quarterly results due to higher revenues from growth projects and improved system utilization.
Loews Hotels & Co experienced a net loss due to the continued negative impact of the COVID-19 pandemic on travel, though resort destinations showed more improvement than city centers.
Loews
Loews
Loews Revenue by Segment
Revenue by Segment
CNA Financial Revenue
CapyFin.comBoardwalk Pipelines Revenue
CapyFin.comLoews Hotels & Co Revenue
CapyFin.com Forward Guidance
Loews sold 47% of its interest in Altium Packaging for approximately $420 million in cash and expects to recognize a pretax gain of approximately $560 million in the second quarter of 2021.
Positive Outlook
- Sale of Altium Packaging interest for $420 million in cash.
- Expected pretax gain of approximately $560 million in Q2 2021 from the Altium Packaging transaction.
- CNA Financial's strong performance driving overall results.
- Boardwalk Pipelines contributing positively to quarterly results.
- Loews Hotels & Co showing signs of progress with resort destinations performing better.
Challenges Ahead
- Loews Hotels & Co experiencing a net loss due to the pandemic's impact on travel.
- Recognition of a $35 million deferred tax liability from the Altium Packaging transaction.
- Book value per share decreased due to lower unrealized gain position on investments.
- Continued uncertainty regarding the full impact of the COVID-19 pandemic.
- Dependence on market conditions for potential share repurchases.