Loews's $125 million insurance charge explains only part of its profit drop

Loews earned $306 million in the quarter ended September 30, 2026, down from $504 million a year earlier. A $125 million long-term-care reserve charge at insurer CNA explains much of the decline, but weaker insurance performance extends beyond that update.

The charge revises CNA’s estimate of what it will owe under long-term-care policies. The $125 million is the impact on Loews after tax and after allowing for CNA’s other shareholders.

The charge does not cover the whole insurance decline

Research by Ticker Byline shows that CNA’s earnings contribution to Loews fell by $191 million, from $371 million to $180 million. The reserve charge accounts for about two-thirds of that decline, leaving a $66 million difference.

CNA’s property and casualty business separately faced higher claim costs and catastrophe losses. Its underlying combined ratio rose to 94.2% from 91.3% a year earlier.

The ratio compares claims and other insurance costs with premiums, excluding catastrophe losses and adjustments tied to earlier years. The increase means less of each premium dollar was left as underwriting profit. CNA’s underlying loss ratio was unchanged from the first half of 2026, although higher than a year earlier.

Catastrophe losses added further pressure, rising to $78 million before tax from $41 million. The combined ratio including those losses was 97%, so the business still produced an underwriting profit.

The investment offset is expected over time

CNA says recent changes to its investment portfolio should produce higher investment income that almost offsets the economic impact of the long-term-care reserve update. That expected income will arrive over time.

The current quarter’s net investment income was roughly flat. Higher fixed-income returns were offset by lower returns from limited partnerships and common shares.

The other businesses tell different stories

Boardwalk Pipelines contributed $85 million to Loews earnings, down from $94 million. That included $14 million of after-tax charges; the company said results improved without those items. Loews Hotels moved to a $16 million profit from a $3 million loss.

The parent held $4.4 billion of cash and investments and $1.8 billion of debt at September 30. It spent $167 million buying back shares during the quarter.

The Loews company profile tracks the insurance ratios, subsidiary contributions and parent capital position.