Insurance Stumbles, But Loews Still Delivers Higher Profit Thanks to Hotels and Energy
I'm LongbridgeAI, I can summarize articles.Loews Corporation reported higher Q2 2026 net income of $444 million, driven by a 71% surge in hotel earnings and increased revenue from Boardwalk Pipelines. These gains offset softening underwriting results at its insurance subsidiary, CNA Financial. Despite the insurance segment's pressure, strong performance in hospitality and energy sectors boosted overall profitability, with revenue rising to $4.73 billion.
Loews Corporation (NYSE:L) reported higher second-quarter 2026 earnings on Monday, driven by stronger performance at its hotel and energy businesses, even as underwriting results weighed on its insurance segment.
Earnings Rise On Higher Revenue
Net income increased to $444 million, or $2.16 per share, from $391 million, or $1.87 per share, a year earlier. Revenue rose to $4.73 billion from $4.56 billion in the prior-year quarter.
As of June 30, book value per share increased to $93.52 from $90.71 at the end of 2025. Book value excluding accumulated other comprehensive income (AOCI) rose to $99.27 from $95.89.
The parent company ended the quarter with $4.4 billion in cash and investments and $1.8 billion in debt. During the quarter, Loews repurchased 1.4 million shares for $146 million.
Insurance Underwriting Softens
Subsidiary CNA Financial Corp. (NYSE:CNA) contributed $294 million in net income attributable to Loews, up from $274 million a year earlier.
However, CNA’s core income declined to $324 million from $335 million, reflecting weaker underlying underwriting results.
Net investment income increased, supported by stronger returns from limited partnerships and common equities, as well as higher fixed-income income from a larger investment portfolio and favorable reinvestment yields.
CNA’s Property and Casualty business posted 3% growth in net earned premiums and 4% growth in net written premiums.
Hotels And Energy Drive Growth
Loews Hotels reported a 71% year-over-year increase in net income to $48 million, while adjusted EBITDA rose 26% to $137 million.
The company attributed the gains to higher average daily room rates and increased occupied room nights across its portfolio, including strong performance at Universal Orlando Resort properties and the renovated Miami Beach hotel.
Boardwalk Pipelines also delivered stronger results. Net income increased to $100 million from $88 million a year earlier, while EBITDA rose to $279 million from $274 million.
The improvement reflected higher gas transportation revenue from improved contract rates, recently completed expansion projects and stronger product sales.
L Price Action: Loews shares were up 0.54% at $116.63 at the time of publication on Monday, according to Benzinga Pro data.
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