Q1 2026 Quarterly Prepared Remarks

Loews Corporation First Quarter 2026 Earnings Remarks

Ben Tisch, CEO:

Loews reported net income of $337 million in the first quarter compared to $370 million a year

ago. It was a tale of two cities type of quarter, with Boardwalk and Loews Hotels posting

tremendous results, while CNA took a step back following a period of strong performance.

At CNA, there were two notable components to the quarter: a $106 million reserve charge and a

2.6-point increase in the underlying loss ratio. We view these as two sides of the same coin.

In several casualty lines, more recent accident years developed adversely, which led us to

reassess our prior estimates and strengthen reserves. At the same time, that experience

informed a more conservative view of the current accident year, resulting in higher loss picks. Of

the 2.6-point increase in the underlying loss ratio, a portion reflects CNA’s reassessment of prior

year loss picks, with the remainder driven by the realization that rate in certain casualty classes

is no longer outpacing underlying loss cost trends.

While we aim to be conservative in our initial estimates, in this instance our assumptions—

particularly around loss cost inflation and claim frequency—proved not conservative enough. In

response, we acted decisively to strengthen reserves and reset our expectations for the current

accident year.

We believe these actions position us appropriately to contain the issue going forward. Given the

more conservative loss assumptions embedded in the business today, along with moderating

rate trends, we would not expect growth to reaccelerate meaningfully in the near term as we

remain focused on maintaining underwriting discipline and protecting the balance sheet.

At Boardwalk, underlying fundamentals remain very strong. The business delivered another

quarter of growth, benefiting from higher re-contracting rates, increased utilization across the

system, and robust demand for natural gas transportation and storage. Just last week, Boardwalk

completed the acquisition of Spire Marketing for $215 million, now operating as Continuum, a

transaction that was self-funded and enhances the company’s commercial capabilities. We view

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this as a natural extension of Boardwalk’s platform and another example of its ability to deploy

capital in a disciplined, value-accretive manner.

At Loews Hotels, the quarter was exceptional. Adjusted EBITDA increased more than 50% year

over year, driven by strong performance across our Orlando portfolio, including contributions

from the three new hotels adjacent to Epic Universe, as well as higher occupancy and average

room rates across the campus. We are now seeing the earnings power of our recent investments

come through in a meaningful way. While there is still ramp ahead, the trajectory is clear, and

we are very optimistic about what lies ahead.

Lastly, I want to touch on capital allocation. As you can see, our cash balance has grown over the

past year ($4.5 billion), and share repurchase activity has been relatively muted, particularly in

the most recent quarter.

There are a few factors driving that. First, while we continue to believe the stock trades at a

discount to intrinsic value, it has appreciated meaningfully over the past two years. All else equal,

I’m more comfortable deploying capital at lower prices than higher ones.

Second, our capex backlog at Boardwalk has grown to approximately $3.2 billion. While the

business should be able to largely self-fund this investment, it is prudent for us to maintain a

larger-than-normal cash balance at the parent as we enter a period of elevated capital spending.

As I’ve mentioned previously, we expect that backlog to grow before it begins to decline.

Third, I remain mindful of the cyclical nature of our businesses. We’ve had a strong run, but cycles

do turn—as we were reminded this quarter at CNA—and I would prefer to see how conditions

evolve, particularly in our insurance and hotel segments, before becoming more aggressive.

Finally, the Boardwalk litigation remains an outstanding risk. While I am confident in our position,

recent experience has reinforced the importance of maintaining a margin of safety, particularly

given the potential magnitude of the exposure.

None of this changes my core view that Loews continues to trade at a meaningful discount to

intrinsic value, nor my view that over time we will continue to shrink the share count

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meaningfully, but with all these balls in the air, some incremental cash certainly won’t burn a

hole in my pocket.

Jane Wang, CFO:

For the first quarter of 2026, Loews reported net income of $337 million or $1.63 per share,

compared with $370 million or $1.74 per share in the prior-year quarter. The 9% year-over-year

decline in net income was driven by lower contributions from CNA and the parent company,

partially offset by stronger earnings from Boardwalk Pipelines and Loews Hotels.

Book value per share excluding AOCI rose from $95.89 at year-end 2025 to $97.20 at the end of

the first quarter of 2026. Including AOCI, book value per share grew more modestly from $90.71

to $90.90, as higher interest rates widened unrealized losses in CNA’s fixed income portfolio.

CNA contributed net income of $194 million to Loews in the first quarter of 2026 compared with

$252 million in the first quarter of 2025. The 23% year-over-year decline was driven by lower P&C

underwriting income as a result of a higher underlying loss ratio and unfavorable net prior year

loss reserve development, partially offset by higher net investment income.

CNA’s combined ratio increased by 3.8 points to 102.2% compared with 98.4% in the first quarter

of 2025. The higher underlying loss ratio accounted for 2.6 points of that increase, driven by

aggregate loss cost trends exceeding rate in recent quarters. The higher loss picks are primarily

related to certain longer-tail lines, including excess casualty and workers’ compensation. CNA’s

management is also taking an increased level of conservatism in response to industry dynamics.

2.5 points in the prior-year quarter. The prior year loss development in the current quarter was

driven by excess casualty and affinity professional errors & omissions businesses in recent

accident years.

Growth in net written premiums in the quarter slowed to 1%, which reflects rate increases of 2%,

exposure growth of 1%, and retention of 83%. Management continues to exercise underwriting

discipline as the insurance industry continues to face a softer rate environment.

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CNA’s net investment income was higher year-over-year as fixed income returns more than offset

declines in common stock returns. Fixed income benefited from a $1.1 billion increase in the

invested asset base, along with an approximately 10 basis-point increase in pre-tax yields to 4.9%.

Investment losses were $7 million higher year-over-year due to impairment losses and mark-to-

market losses on non-redeemable preferred stock.

Please refer to CNA’s Investor Relations website for more details on its results.

Boardwalk Pipelines continues to benefit from strong natural gas demand. EBITDA increased 4%

to $360 million in the first quarter of 2026 compared with $346 million in the first quarter of

2025. Boardwalk contributed net income of $159 million in the first quarter of 2026, a 5%

increase over $152 million in the prior-year quarter. The growth was driven by higher contracting

rates and utilization on natural gas pipelines as well as higher rates on storage and park and loan

services. This was partially offset by lower product sales and higher operating expenses.

As Ben mentioned in his remarks, Boardwalk signed an agreement to acquire Spire Marketing for

$215 million during the first quarter. This transaction closed last Thursday, April 30th, and was

self-financed by Boardwalk from cash on hand.

In our hospitality business, Loews Hotels reported adjusted EBITDA of $124 million in the first

quarter of 2026, an increase of 53% compared to $81 million in the first quarter of 2025. On a

net income basis, Loews Hotels contributed $26 million in the first quarter of 2026, compared

with break-even results in the prior-year quarter. Overall occupancy increased 7 points year over

year to 81% in the first quarter of 2026. This significant growth was primarily driven by the

performance of the Orlando joint venture properties. In addition to the three new properties in

Orlando which were not open for the full first quarter last year, the company’s existing Orlando

hotels benefited from higher average daily rates and occupancy.

Finally, at the parent company, Loews recorded an investment loss of $3 million in the first

quarter of 2026, compared with break-even results in the prior-year quarter. Results in both

periods reflected the impact of weak equity market performance. The increase in corporate

expenses was driven by the refinancing of maturing bonds during the first quarter.

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From a cash flow perspective, Loews received $616 million in dividends from CNA and $75 million

of distributions from Boardwalk in the first quarter of 2026. Since the end of 2025, we

repurchased almost 300,000 shares of our common stock at a cost of $31 million. Loews ended

2026’s first quarter with $4.5 billion in cash and investments and $1.8 billion of holding company

debt.