Loews (L) 31 Oct 222022 Q3 Earnings call transcript

Good day, everyone, and welcome to today's Loews Corporation Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note this call is recorded. I will be standing by if you should need any assistance. And it's now my pleasure to turn the conference over to Mr. Nugent. Chris

found Good conference welcome our call. and presentation Shelby. third Loews earnings everyone, site, investor earnings Web quarter A maybe morning, you, to and Corporation's release loews.com. Thank our on copy of

On Chief Officer, the Officer, Wang. Jim our Financial Executive Chief call we and have morning, Jane this will Tisch;

with our shareholders. our this we morning, from Following will have questions prepared remarks a question-and-answer session

nature. that implied Actual those that begin, achieved this remind conference risks are including set however, forward-looking to include may made forward-looking and we company in Before the those of due you forth statements results from by wide filings. may in I call materially our range in a uncertainties, statements will differ any or SEC

they time filings the are update forward-looking only company's the at statements made. obligation company a the which disclaims This circumstances in SEC. reflect revise brief is statements or company's disclaimer expressly to statutory with disclaimer, forward-looking the any any statements. is of The summary Forward-looking included

During for the today, our Jim, investor like With turn Please I'd and measures. to security over the filings discuss refer presentation also the that, non-GAAP over we reconciliation comparable GAAP to to to to most measures. call Jim. you. call a financial may

morning. you, Chris, Thank and good

Hotel. a will Before some of and Hotels, also Tisch Loews having was assume the role the Beach X, January of to Jon particular, Loews be like iconic Loews of along In executive Alex Jon Universal In also Chairman years Miami of of Studios, Loews his long-standing our place President Corporation the and Orlando member Executive will and as Loews engineered expansion business. of I the Hotels' about in Loews instrumental the foresight Corp. discuss Tisch hotel leading Hotels. of of continue On next become to the to financial has Andrew Office of President CEO. tell changes will Tisch. taking Loews Jon you company's emergence results, Directors, the partnership the with and XX I'd Jon at Board that in building with are year, Co-Chairman Hotels, the the develop

As has now rooms Florida Hotels result, nearly in the market. sought-after a Loews XX,XXX

places results. empowering satisfying ever a now company's contributing successfully value most created outstanding guided in corporate team communities. high been company of turbulent than a COVID members, Jon Hotels on to the as is customers, the industry, culture the periods Jon that Loews pandemic. it the hospitality and through several financial by has recently the more Additionally, stronger evidenced has

deeply are Loews be his Alex to Jon's the to Tisch Hotels. after Corp. XXXX, for value XXXX. Loews since working and at contributions of We in grateful company continued of Hotels will joined June Loews presence tremendous

execution growth that the new and of this confident leader a the such welcome the instrumental Kansas Alex and was leadership role. a excited of company's last has strategy, been to Hotels' effective talented has years, in Alex creation City, growth executive. Over the property in Loews the a XXX-room development and dynamic and oversaw of hotel himself highly proven are five will course as Alex developing company's Texas. to for the partnership him to I'm Hotels, integral Arlington, at and with in partnerships into continue key Loews City we sustained chart be

consolidated well company. financial quarter, this Moving very results on our performed the quarter led to our for third subsidiaries good which results, to

our, during I'm displaced able feeling in approximately, who the to to Gables particular, the South report trying The Thank guys. its the very times. order were open XX,XXX guests has opened Hurricane Very the to benefit be who back I'd add formally convention past travel presence leisure who property into Hotels' and in adding give and almost hotel were resorts In thank impact you properties soon, from financials, storm. Universal group our company properties years. Hotels discuss Ian. continues much, Both our Orlando five the financial employees from like strength experienced to moved to shout-out dramatically on X,XXX residents help and and Ian, pandemic the few we'll Coral dedication November, Loews want acknowledge during for their a to impacted the minimum from levels, that these bounced we to and will I new list. Loews big employees Hurricane them that Loews Florida. that in and Before happy in campus, the by to to

epitomizes high-quality ending among XX,XXX this $XXX the the reported Loews nearly Gables, Coral space of third of Arlington EBITDA and venues in Hotel. of Loews of of Museum, higher $XXX million for the meeting XXX-room as this adjusted first the on is construction for $XX which the Slated pre-COVID of to to owning In million approximately to was September quarter event open that committed of million. have of be Arlington also Medal as and attractions. nine-months, compared The full-year walking quarter hospitality distance Loews strategy three property EBITDA, Honor area Hotels industry. Loews demand remain Hotels' company's addition operating Hotels' for quarter sports and within And the generators. will company have continues built-in in and $XX the of well rooms. million, on than will hotel schedule the professional XXXX, guest other the We Loews budget in performance hotels XXXX. XXXX With the adjusted growth XX, Texas, third adjusted EBITDA and with National up

in with during property of over CNA, Results business. third by the retention income Moving premiums all-in Ian. believe combined to company catastrophe million catastrophe the including of losses XX.X still several losses, to and new the third discount related peers. due strong, X% the improvement ratio trades at core past quarter. underlying its Net the industry Hurricane to reporting ratio, quarter believe million casualty XX.X, the pre-tax of X.X CNA's to years, written during we CNA's $XXX performance points undervalued includes continue grew be insurance over market. to by was is and the an a $XX combined on Furthermore, substantial prior stellar CNA CNA's year. improved I Despite an

the million. third a common While its about its XXX in XX and earnings, for trades at the XXX,XXX around CNA, insurance S&P of times P&C share Loews double in XXXX In of trades support team, stock approximately $XX brought strategy, industry management the quarter, for commercial digits. CNA the low show

continues appeal in is and litigation, was to on heard Supreme the Court. of whose currently our the well That resolution September As company grow Delaware look forward Pipelines, pending for to perform Boardwalk revenue. the case XX. We

positively be will We every hope continue this to year. by this of end that the have case resolved

of to first like remarks more call quarter my earnings our from to year. you'd If thoughts about on know you the Boardwalk refer the I this litigation,

reported nine are stock $XXX purchased that was is Our Plastic funded shares $XX lower repurchases, the times approximately and approximately after $XXX have of $XXX XX, synergies common New share manufacturer company, EBITDA, bought completed until Concerning X.X and multiple Loews we've Altium, $XXX Industries, share million realized. with several that repurchased Year-to-date, day we packaging million we our Nashua, of plastic a equity, packaging headquartered be from second debt. million million company Loews repurchases, including July the quarter, times blow of the anticipate acquisition Altium of shares $XXX back was which Plastic Hampshire. operational from for we Industries in molding outstanding of in the today, that X.X% million. for will last for million million.

we levels. view at shares very a are believe of intrinsic as Loews So, these significant enthusiastic to discount value, that trades its at we purchasing our about our

pending, activity the moderate until prudent it's our case believe we Boardwalk the fully repurchase litigation resolved. to with However, is share

broadcast. transcript to call, that you Finally, are listening the a this opposed reading we understand live to of of most as

For considering hand our and in posting more stay for I'd this feedback Thank simply you, to We details. the discontinuing future. And Jane this CFO, and like reason, option. tuned the your are call to the over on call a Wang. now, welcome we transcript

Thank and morning, everyone. you, good Jim,

For per last million reported of driven was to losses. share, of CNA's the per net XXXX, in of income This by compared year's third Loews third decrease quarter. $X.XX $XXX mainly net income investment higher income or net $X.XX lower year-over-year $XXX investment or share million quarter the and

and impacted both performance, and capital Book $XX.XX posted Ian equity year-end of interest income CNA's the growth. from Hurricane market at Boardwalk company hotels, markets. the CNA volatile to investments. third at XXXX, lowering value of quarter profitable share consistent companies its higher While to navigated due fixed $XX.XX of parent value through effect strong, the the another declined robust quarter continues end rates per Loews of

loss year's unrealized and September value this was actually to on from This XXth. at $XX.XX other Excluding share earnings income share where accumulated comprehensive yearend by driven book per increase current our repurchases. sits, $XX.XX accretive increased

Turning largest portfolio. $XXX by CNA partially million $XX Loews earnings to and Loews $XXX in The compared common investment income last the subsidiary, a income contribute attributable of to reflects from million offset by million a net quarter decline this lower to LPs income higher stocks, decrease year-over-year to income primarily our year. fixed net net driven from investment

common last third and LPs quarter, negative LPs year's a stock the negative had in X.X% returned the return. comparison together which a quarter, During positive XXX versus returned X.X% stocks and X.X%. S&P common In third

part in bonds, losses driven higher by declined short-dated losses of buy and gains from rates. realized dated strategically investment addition, sale longer bonds at In the

Loews. another by side, million driven underwriting income to of quarter grew of contributing Net incremental factors. again growth profitable posted written premiums underwriting the $XX X% On several CNA strong

business First, by new grew XX%.

X.X favorable points rate Second, X to third, points ratio was increases retention to This exposure included points X.X XX.X% net has development. X%, of X.X%. combine better quarter And of XXXX. of all-in increased The than growth increased decelerated X.X of points written to third and catastrophe while the XX%.

the and flat year segment, Uri. net valuation to resulted proactively quarter combined by review year's was third reserve Storm well. ratio Group $XX Underwriting with this also $XX growth The increase incremental CNA was Ian, incremental at catastrophe million in has margin impacted to underlying in The release were year's manage from year-over-year Winter quarter premium Hurricane the million. from reinsurance performed third Hurricane steady continues pre-tax business. long-term $XX XX.X%. reserve So, last expense year. CNA served The at quarter. an the of In impact ratio as resulted Even was losses losses the claim & last long-term in actions to care from XX.X%; million and reserve $XXX lower million reserve runoff life Ida a Life its annual active care last

as quarter in prudent $X.X and We to the active unrealized this billion block. of profile in market higher risk to investments. loss spreads billion CNA's rates management highly the increased interest CNA's are from value income continue lower reserving $X.X reduce confident last to CNA's has philosophy further fixed of position wider

As last deterioration the quality of we credit any quarter, in this not discussed does decline portfolio. the imply

rate is quarter. while fact, portfolio. to increase Life reinvesting are These favorable In CNA's as & also of site able Web refer highlights the CNA rates this CNA's in duration for extending the quarter. Group Relations the higher more to Please details at the their is continue performance Investor of on

an natural rates, pipeline has EBITDA business, net higher of largely pipeline safety impairment quarter and gas income growth expense year's cost our $XXX due by increased revenue and $X revised its That due million due The million re-contracting was last of year. million requirements. projects to completed from offset in $XXX this been this to from driven $XX quarter old by Moving compared storage $XX to the million last utilization third recently higher from million contributed depreciation growth decrease higher recently quarter Boardwalk maintenance to asset. of completed assets. in retirement Revenues higher to and project pipeline projects,

Loews company end quarter year's to year's $XX $XX adjusted facing had another growing third quarter third the million at despite the strong Hurricane Turning million in quarter. last to Hotels, EBITDA September, from Ian this of in

Loews Corporate business share reconciled continued The segment, by loss in driven board has of to under XX.X% to this year's our the in method. of by year's in impact quarter return equity quarter site. million up performance losses minimal. of strong Occupancy third quarter, year, accounted group EBITDA the million in XX.X% company also demand, an from for the Both travel. and proportionate in portfolio. includes a versus after-tax $XX presentation our financial quarter. million significant adjusted last $XX income contributed last prior million were a Hurricane earnings, quarter, investor pickup the third was from Wrapping posted equity Altium's due to $XX the robust Corporate across in is increased compared quarter. to in leisure driven segment very travel, declines the in Web recorded net is The reminder, a Ian the to our loss As of this with The Loews $XX impairment which the

lag this Altium's our resin a per repurchased volume total versus share Our income quarter, consisting cost million offset cost year-to-date year-to-date, favorable $X.XX pressures in million Friday, to of of through resin dividends regular last an where to of in of we $XXX three year's unfavorable perspective, million of flow million. total an lag. prices a through last XX, X.X inflationary this shares in Pricing improved $XX quarter, prices, That a a a and dividend passing driven of brings lower resulted Since helped lower per by in resin we from dividends CNA initiatives incremental increasing cash million $XXX repurchases, received special cost demand. From at and of have $X.XX quarterly at XX.X share, shares $XXX million. Loews share share. June quarter

we short-term call to held investments. equities are less will of Loews million. $XX Jim the $X.X XX% in majority of bills, are mentioned, a and and total back ended also of and limited with The purchased CNA billion these I cash the than Chris. partnerships. in As held for quarter now hand funds in treasury XXX,XXX

you, Thank Jane.

us earnings the questions questions shareholders. call, that shareholders the on they to our encourage to on send us quarter, answer a number Q&A advance our to call. Moving we like of in we of have from would Every portion

earlier first for this us on able Are Jim provided the referred Our update in an us you updates question Jane, is the further comments year. litigation litigation? give to his Boardwalk Jane. and on prior to any

them, the the Jim released decision XX. hopeful be end appreciate mentioned, team of our our by the as of Court, advisors. case on before we're argued Supreme We Well, And that support with a September we of legal Delaware really along year. the will

Jane. Thanks,

Jim. and President Our is Loews to Loews CEO promotion for Hotels' next shift question strategy? Alex's any signal of Jim, in does Hotels

company's change Hotels' change is the No, Loews there The strategy. will hotel current seamless support no strategy. is and in growth leadership

on Let me repeat, two that based core pillars. strategy is

to immersive at catering First, group hotels and destinations, second, developing and travel destinations. high-quality operating

will transient and and offer unique ample first meeting XXX-plus that The attract with pillar experience focuses space on to hotels keys a group also customers alike.

Loews recent all the that our in by and at great including Universal significant rooms. built-in The highly has meeting strategy; of the encouraged The with with example second a X,XXX Orlando locations, of pillar than partnership spanning the immersive group very are travel We Loews hotels, locations two destinations and space. been eight more pickup are Hotels these Universal with Orlando with properties decades Hotels currently successful, partnership owns demand generators. in

analytics for our he his executing September is instrumental leadership, Alex, out, strong Loews leveraging Hotels last to and Regarding growth. of laid the in made that recognizes I results promotion and drive his just advances in strengthened growth. and contributions he's several the in our over with assumed driving many partnership reflects in has Universal, Hotels. Loews Loews the been and to years, President confidence the data position of lead XXXX, the future Hotels' made Under ability strategy His

Thank you, Jim.

quarter and like your head also on XXXX? Would Our the of the thoughts about you interest into inflation, is final for question to we as rates, update us you. economy final

the running low. X%. first rates CPI that my me, be tightening year-over-year Sure. very it was XX the economy Fed and When and monetary hot, months interest of to economy running inflation policy. I observations at ago, in At least started time, were was ridiculously very was obvious, should sharing at the about quarter over XXXX, the that

moved two the rate abandoned another recently, And increase almost far over and moved year, this year X%, at my funds a around first There's the have The the point in of And we higher, bond a more months, reduction doubt no and, inflation the increase have shrink will rates with home X.X% months. Fed than past this exemplified smartly XX months. moved X% buying from Fed rate. this the sheet. XXX gear. means doubled from new year, at likewise it's cost mind of year of of the from so running the the its word zero has steadily the started In quarter at the the year, This beginning and now. At to of the to by slower "Transitory," increases rate that to now. rates beginning than next XX-Year mortgage market, mortgage past in a seen balance in kicked economy, Note, more into finally X% in into X% has Home the X%. to that over have basis the in the past end Fed of funds Fed to in increase up, translate expectations more monthly as the the seven

the of cost home rates a GDP. to fall begin a interest we other of the number housing as increase of result economy accelerate, to a As see the in home higher will the ownership, Likewise, to of will starts leading well. the in reduction in weakening react and negatively continue prices, all to sectors significant will

tends a lag. haven't that end almost we the that that inflation, is guess us. rates upon far, in So to inflation my interest seen to of but increases in is And reduction you as lag respond know with

for by XX% easy see the not in to XXXX. The almost in weaker inflation the rates Fed's the the prices XX% will pause from will by I'm will is mind, short inflation has be their in lumber the They Fed are of means peak, XX%, short prices So, the the they trillion June. in it tightening prices has are Fed. of lags effective beginning along At the should In funds in whether enough quantitative by quell rate a securities year. measured my unknown of declining have that complete how the my highs be a in be of than In and down GDP number in whether I more raise slowing to part been. 'XX, term I from still mode, will credibility. even said are or to tightening numbers almost a X%, be quarters, meantime, are before, the feel Fed tightening wisest policy commodity CPI. rates inflation-fighting see as end the to be their result over year. increases and some coming to a point, expect the rate at March, the of as big which down the their Fed government tightening Fed will continue alone process selling their would with in will at will question of oil XXXX And clawed in of as everyone Copper prices economists. $X Fed back that the the the and opinion are

Additionally, much overtightening that Fed financial a recession a by worse. the cause calamity can makes

will slowing inflation continue. that prices. indicators rate I the will down would period, for to if reduction and unreasonable in see effects XXX their will They be rate hikes, short say, point rates. in the December come of basis assess meeting, that not they increase that after it we tightening begin their Fed be not So, But of FOMC to economic in increase months, a three a of does the in pausing to can for warn expect

have a happen will but forecast, and the rate the will below of will quarters, in whereby call be so a recession, think said the my 'XX. labor than don't like 'XX as earning be of of be few negative I unemployment that X%. economic I fearless can terms cataclysmic, for recession remain This growth less income will I I less because real inflation, will which workers, the collectively, what will cause be full previously, employment recession. In foresee

can because they years, recession we and cause ago, in serious has enormous year-and-a-half, my inflation. know Fed reduced the slowing extended deep I the path the of sector the And past that the fighting inflation. deep can past spending changed don't government extended private months the now While are that's in Fed a about and recession. but eight two cause have on excesses I a been and to have finally economy became view that a

for of won't XXXX I said, negative short-term necessary. were If have higher Fed to pausing appalled should hopefully, Fed ramifications my rates resuming they serious order excessive the for economy short months as could tightening economy. the the before I the in make beginning possibly As to clear warranted. And badgered in it evaluate to follow advice, tightening tightening move that feel rate into at few is if be the which the a

So I may tuned to that that's way see as quarter the ensuing events Stay reactions have. any for next things the now. I of changes or

Thank you, Jim.

questions. no have further We

So, that concludes our today. call for

me with replay As will always, out hours. to continued this again. our A site loews.com to available we two call reach feel interest. email is My cnugent@loews.com. approximately in you on Please questions. Thank appreciate of any Web free be your

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