Loews profit more than doubles as market rebound boosts investment returns

Loews

31/07/2023 12:01

July 31 (Reuters) - Loews Corp  L.N  said on Monday its
second-quarter profit more than doubled as a jump in investment
income cushioned a hit from higher catastrophe losses in its
insurance unit, CNA Financial  CNA.N .
    Markets have staged a comeback this year on rising bets that
the Federal Reserve was done with the bulk of its tightening
cycle that had taken the economy on the edge of a recession.  
    Loews reported a higher return on investments, helped by a
broader market rally. 
    Investment income for New York-based Loews jumped to $592
million in the second quarter ended June 30 from $366 million a
year earlier. 
    The company earns most of its revenue from CNA, in which it
holds about 90% stake. It also operates a natural gas
transportation pipeline business and a chain of hotels.
    Catastrophe losses in CNA's property and casualty operations
rose to $68 million from $37 million. 
     The U.S. Midwest and South were hit by violent storms in
the quarter that knocked over houses and led to loss of life,
adding to a series of weather-related events that have hurt
insurers' profitability.  
    CNA's peer Travelers Companies  TRV.N , earlier this month,
reported about a 98% rise in catastrophe losses due to extreme
weather. 
    Meanwhile, CNA reported an underlying combined ratio of
91.1%, compared with 90.8% a year earlier. A ratio below 100%
means the insurer earned more in premiums than it paid out in
claims.
    "CNA reported stellar results, despite high industry
catastrophe losses," President and CEO James Tisch said in a
statement.
     The income attributable to Loews for the second quarter was
$360 million, or $1.58 per share, compared with $167 million, or
68 cents a year earlier. 
    

 (Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini
Ganguli)
 ((Pritam.Biswas@thomsonreuters.com;))