Net income fell to $306 million as CNA took a $125 million long-term care reserve charge and underwriting weakened 8-K. Management says higher investment yields will almost entirely offset the charge over time.
Loews Corporation · Q3 2026 · Reported 2 Nov 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Total | 4,759.00 | 4,671.00 | +1.9 % |
Net income | 306.00 | 504.00 | -39.3 % |
Diluted EPS | 1.50 USD/share | 2.43 USD/share | -38.3 % |
Net margin | 6.4 % | 10.8 % | -4.4 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
CNA accounts for most of the profit decline
Revenue rose 1.9% to $4.76 billion, but net income fell 39.3% to $306 million and net margin narrowed 4.4 points to 6.4% 8-K. CNA's contribution fell to $180 million from $371 million a year earlier, and its core income fell to $203 million from $409 million 8-K. Management attributes the drop to the annual long-term care reserve update ($125 million after tax and noncontrolling interest), lower Property and Casualty underlying underwriting results and higher catastrophe losses 8-K.
Property and Casualty's combined ratio rose to 97.0% from 92.8% a year earlier 8-K. The underlying combined ratio, a company-defined measure, rose to 94.2% from 91.3% 8-K. The underlying loss ratio of 64.1% compares with 61.9% a year earlier, which the company ties to higher loss cost trends and lower-than-expected rate in certain lines 8-K. The charge is a reserve action. The underwriting slippage is a separate and more operational issue.
Boardwalk and Hotels held up better than the headline
Boardwalk earned $85 million against $94 million, but $14 million after tax of Continuum unrealized losses and an office-relocation impairment sit in that figure 8-K. Excluding them, the company says results improved on higher gas transportation revenues 8-K. Loews Hotels earned $16 million against a $3 million loss, helped by higher daily rates and more occupied room nights 8-K. Its company-defined adjusted EBITDA was $86 million against $69 million 8-K.
Corporate net income fell to $25 million from $42 million on lower parent trading portfolio income 8-K.
Buybacks cushioned EPS and the parent balance sheet is liquid
Diluted EPS fell 38.3% to $1.50, slightly less than net income, as weighted average shares fell to 204.57 million from 207.71 million 8-K. Loews repurchased 1.6 million shares for $167 million in the quarter and a further 0.6 million for $67 million in October 8-K. The parent held $4.4 billion of cash and investments against $1.8 billion of debt 8-K. Book value per share was $90.24 against $90.71 at year-end 2025, while book value excluding AOCI rose to $100.67 from $95.89 8-K.
What to watch next
Whether CNA's higher investment yields flow through investment income as management expects to offset the long-term care charge. CNA's net investment income was relatively flat in the quarter 8-K.
Whether Property and Casualty's underlying loss ratio, 64.1% against 61.9% a year earlier, stabilises given management's reference to lower-than-expected rate in certain lines 8-K.
The release does not give operating cash flow or management outlook or guidance.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.