What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-02-06 compared with 2023-02-07 · 543 added, 315 removed, 1965 unchanged (30% of the section changed)

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Summary of Significant Accounting Policies

Divestitures and Deconsolidation

Acquisitions, Divestitures, and Deconsolidation

Property, Plant and Equipment

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Claim and Claim Adjustment Expense Reserves and Future Policy Benefit Reserves

Future Policy Benefits Reserves

Shareholders’ Equity

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Commitments and Contingencies

Supplemental Quarterly Information (Unaudited)

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

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In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023 , based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023 , of the Company and our report dated February 6, 2024, expressed an unqualified opinion on those financial statements and included an explanatory paragraph regarding the Company’s change in its method of accounting for measurement and disclosure of long-duration contracts.

Basis for Opinion

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/s/ DELOITTE & TOUCHE LLP

New York, New York

February 6, 2024

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We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023 , based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 6, 2024 , expressed an unqualified opinion on the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the financial statements, the Company has changed its method of accounting for measurement and disclosure of long-duration contracts effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021, due to adoption of ASU 2018-12, Financial Services-Insurance (Topic 944):

Targeted Improvements to the Accounting For Long-Duration Contracts .

Basis for Opinion

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The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Claim and Claim adjustment expense reserves – Property & Casualty — Refer to Notes 1 and 8 to the consolidated financial statements.

Claim and claim adjustment expense reserves – Property & Casualty — Refer to Notes 1 and 8 to the financial statements

Critical Audit Matter Description

The estimation of property and casualty claim and claim adjustment expense reserves (“P&C claim and claim adjustment expense reserves”), including those claims that are incurred but not reported, requires significant judgment.

Estimating P&C claim and claim adjustment expense reserves is subject to a high degree of variability as it involves complex estimates that are generally derived using a variety of actuarial estimation techniques and numerous assumptions and expectations about future events, many of which are highly uncertain.

Modest changes in judgments and assumptions can materially impact the valuation of these liabilities, particularly for claims with longer-tailed exposures such as workers’ compensation, general liability and professional liability claims.

P&C claim and claim adjustment expense reserves is subject to a high degree of variability as it involves complex estimates that are generally derived using a variety of actuarial estimation techniques and numerous assumptions and expectations about future events, many of which are highly uncertain.

Given the significant judgments made by management in estimating P&C claim and claim adjustment expense reserves, auditing P&C claim and claim adjustment expense reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.

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• With the assistance of our actuarial specialists:

◦ We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared our estimates to the recorded reserves.

◦ We compared our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves.

Future policy benefit reserves – Long Term Care — Refer to Notes 1 and 8 to the consolidated financial statements

◦ We developed a range of independent estimates of P&C claim and claim adjustment expense reserves and compared the recorded reserves to our range of estimates.

◦ We performed a retrospective review which involved comparing our prior year estimates of expected incurred losses to actual experience during the most recent year to identify potential bias in the Company’s determination of P&C claim and claim adjustment expense reserves.

Future policy benefit reserves – Long Term Care — Refer to Notes 1 and 9 to the financial statements

Critical Audit Matter Description

The estimation of long term care future policy benefit reserves (“LTC future policy benefit reserves”) requires significant judgment in the selection of key assumptions, including morbidity, persistency (inclusive of mortality), discount rate and future premium rate increases.

A gross premium valuation (“GPV”) is performed annually to assess the adequacy of the LTC future policy benefit reserves.

The actuarial assumptions underlying the recorded LTC future policy benefit reserves are “locked-in” absent an indicated premium deficiency.

If the GPV indicates the recorded LTC future policy benefit reserves are not adequate (i.e.

a premium deficiency exists), the assumptions are “unlocked” and the LTC future policy benefit reserves are increased to eliminate the premium deficiency.

Estimating future experience for long term care policies is subject to significant estimation risk as the required projection period spans several decades.

Morbidity and persistency experience can be volatile while discount rates and premium rate increases can be difficult to predict.

Modest changes in each of these assumptions can materially impact the valuation of these liabilities.

Morbidity and persistency experience can be volatile and modest changes in each of these assumptions can materially impact the valuation of these liabilities.

Given the significant judgments made by management in estimating LTC future policy benefit reserves, auditing LTC future policy benefit reserves required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists.

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Our audit procedures related to LTC future policy benefit reserves included the following, among others:

• We tested the effectiveness of controls related to the determination of LTC future policy benefit reserves, including those controls related to the estimation of and management’s review of LTC future policy benefit reserves.

• We tested the underlying data, including demographic and historical claims data, that served as the basis for the actuarial analyses, to test that the inputs to the actuarial estimates were accurate and complete.

• With the assistance of our actuarial specialists:

◦ We independently recalculated a sample of LTC future policy benefit reserves and compared our estimates to the recorded reserves.

◦ We evaluated the key assumptions applied in the GPV analysis, including comparing those assumptions to the Company’s historical experience, underlying portfolio yield and market data.

◦ We assessed the Company’s projection of future cash flows to evaluate the adequacy of recorded reserves using “locked-in” assumptions.

◦ We independently recalculated cohort level LTC future policy benefit reserves and compared our estimates to the recorded reserves.

◦ We evaluated the judgments made by management in setting assumptions, including comparing those assumptions to the Company’s historical experience used as the basis for setting those assumptions.

◦ For a sample of policies, we evaluated management’s estimate of future cash flows.

This included confirming that assumptions were applied as intended.

/s/ DELOITTE & TOUCHE LLP

New York, New York

February 6, 2024

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Retained earnings 15,617 14,931

Accumulated other comprehensive income (loss) ( 3,284 ) 186

Accumulated other comprehensive loss ( 2,497 ) ( 3,320 )

15,711 14,361

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Total 15,901 14,044 14,657

Insurance claims and policyholders’ benefits 6,386 6,349 6,170

Insurance claims and policyholders’ benefits (re-measurement loss of $( 88 ), $( 214 ), and $( 8 )

7,068 6,653 6,371

Amortization of deferred acquisition costs 1,644 1,490 1,443

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Operating expenses and other 3,393 3,077 2,957

Equity method (income) loss ( 139 ) ( 26 ) 73

Equity method income ( 120 ) ( 139 ) ( 26 )

Interest 376 378 424

Total 13,905 12,930 12,497

Income (loss) before income tax 1,381 2,182 ( 1,464 )

Income tax (expense) benefit ( 278 ) ( 479 ) 173

Net income (loss) 1,103 1,703 ( 1,291 )

Income before income tax 1,996 1,114 2,160

Income tax expense ( 451 ) ( 223 ) ( 475 )

Net income 1,545 891 1,685

Amounts attributable to noncontrolling interests ( 111 ) ( 69 ) ( 123 )

Net income (loss) attributable to Loews Corporation $ 1,012 $ 1,578 $ ( 931 )

Basic net income (loss) per share $ 4.17 $ 6.08 $ ( 3.32 )

Diluted net income (loss) per share $ 4.16 $ 6.07 $ ( 3.32 )

Net income attributable to Loews Corporation $ 1,434 $ 822 $ 1,562

Basic net income per share $ 6.30 $ 3.39 $ 6.02

Diluted net income per share $ 6.29 $ 3.38 $ 6.00

Basic weighted average number of shares outstanding 227.48 242.83 259.67

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(In millions)

Net income (loss) $ 1,103 $ 1,703 $ ( 1,291 )

Net income $ 1,545 $ 891 $ 1,685

Other comprehensive income (loss), after tax

Net unrealized losses on investments with an allowance for credit losses

( 5 ) ( 5 ) ( 2 )

Net unrealized gains (losses) on other investments 1,125 ( 6,097 ) ( 987 )

Total unrealized gains (losses) on investments 1,120 ( 6,102 ) ( 989 )

Impact of changes in discount rates used to measure long-duration contract liabilities ( 318 ) 3,959 941

Unrealized gains (losses) on cash flow hedges ( 5 ) 20 17

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(In millions)

Balance, January 1, 2021, as reported

$ 19,181 $ 3 $ 3,133 $ 14,150 $ 581 $ ( 7 ) $ 1,321

Cumulative effect adjustments from changes in

accounting standard (Note 1) ( 2,346 ) ( 5 ) ( 2,097 ) ( 244 )

Balance, January 1, 2021, as adjusted

16,835 3 3,133 14,145 ( 1,516 ) ( 7 ) 1,077

Net loss ( 1,291 ) ( 931 ) ( 360 )

Net income 1,685 1,562 123

Other comprehensive income 215 196 19

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( 129 ) ( 65 ) ( 64 )

Deconsolidation of Diamond Offshore ( 1,087 ) ( 1,087 )

Purchase of subsidiary stock from noncontrolling interests ( 18 ) ( 18 )

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Stock-based compensation 15 ( 2 ) 17

Other — 1 ( 1 )

Balance, December 31, 2021

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Net income 1,545 1,434 111

Other comprehensive loss ( 3,858 ) ( 3,470 ) ( 388 )

Other comprehensive income 961 884 77

Dividends paid ($ 0.25 per share)

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Operating Activities:

Net income (loss) $ 1,103 $ 1,703 $ ( 1,291 )

Adjustments to reconcile net income (loss) to net cash provided (used)

by operating activities:

Net income $ 1,545 $ 891 $ 1,685

Adjustments to reconcile net income to net cash provided by

operating activities:

Investment (gains) losses 53 199 ( 660 )

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Depreciation and amortization 538 509 515

Asset impairments 33 10 810

Provision for deferred income taxes 127 ( 50 ) 209

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(Investment in) sale of interest in Altium Packaging ( 79 ) 417

Deconsolidation of Diamond Offshore ( 483 )

Change in short-term investments ( 80 ) ( 27 ) ( 141 )

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Its consolidated operating subsidiaries are engaged in the following lines of business:

commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90.0 % owned subsidiary);

commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an approximately 92 % owned subsidiary);

transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary) and the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary).

Unless the context otherwise requires, as used herein, the term “Company” means Loews Corporation including its consolidated subsidiaries, the term “Parent Company” means Loews Corporation excluding its subsidiaries, the term “Net income (loss) attributable to Loews Corporation” means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries.

On April 1, 2021, Loews Corporation sold 47 % of Altium Packaging LLC (“Altium Packaging”), previously a 99 % owned subsidiary.

In the second quarter of 2020, Diamond Offshore Drilling, Inc.

(“Diamond Offshore”), previously a 53 % owned subsidiary, was deconsolidated from the Company’s consolidated financial statements.

On April 1, 2021, Loews Corporation sold approximately 47 % of Altium Packaging LLC (“Altium Packaging”), previously an approximately 99 % owned subsidiary.

See Note 2 for further discussion.

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Changes in fair value of trading securities are reported within Net investment income on the Consolidated Statements of Operations.

Changes in fair value related to available-for-sale securities are reported as a component of Other comprehensive income.

Changes in fair value of available-for-sale securities are reported as a component of Other comprehensive income.

The cost of fixed maturity securities classified as available-for-sale is adjusted for amortization of premiums and accretion of discounts, which are included in Net investment income on the Consolidated Statements of Operations.

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When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments predominantly using the retrospective method.

To the extent that unrealized gains on fixed maturity securities supporting long term care reserves would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, after tax and noncontrolling interests, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss).

To the extent that unrealized gains or losses on fixed maturity securities supporting structured settlements not funded by annuities would impact the reserve balance if realized, a related increase or decrease in Insurance reserves is recorded, after tax and noncontrolling interests, as a reduction or increase of net unrealized gains (losses), through Other comprehensive income (“Shadow Adjustments”).

Shadow Adjustments decreased $ 2.2 billion (after tax and noncontrolling interests) and $ 265 million (after tax and noncontrolling interests) for the years ended December 31, 2022 and 2021.

As of December 31, 2022 and 2021, net unrealized gains on investments included in Accumulated other comprehensive income (“AOCI”) were correspondingly reduced by Shadow Adjustments of $ 55 million (after tax and noncontrolling interests) and $ 2.2 billion (after tax and noncontrolling interests).

Equity securities are carried at fair value.

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As such, the changes in the fair value of these securities are recorded through Investment gains (losses) on the Consolidated Statements of Operations.

The Company owns certain common stock with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income (loss).

The Company’s carrying value of investments in limited partnerships is its share of the net asset value of each partnership, as determined by the general partner.

Common stock is owned with the intention of holding the securities primarily for market appreciation and as such, the changes in the fair value of these securities are recorded through Net investment income (loss).

Carrying value of investments in limited partnerships is the owner’s share of the net asset value of each partnership, as determined by the general partner.

Certain partnerships for which results are not available on a timely basis are reported on a lag, primarily three months or less.

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Expected credit loss rates are applied by pool to the outstanding receivable balances.

Changes in the allowance for mortgage loans are presented as a component of Investment gains (losses) on the Consolidated Statements of Operations.

Changes in the allowance for mortgage loans are

presented as a component of Investment gains (losses) on the Consolidated Statements of Operations.

Mortgage loans are included in Other invested assets on the Consolidated Balance Sheets.

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Current and forecast economic conditions are considered, using a variety of economic metrics and forecast indices.

The sensitivity of expected credit

losses relative to changes to the forecast of economic conditions can vary by financial asset class.

The sensitivity of expected credit losses relative to changes to the forecast of economic conditions can vary by financial asset class.

A reasonable and supportable forecast period is up to 24 months from the balance sheet date.

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Interest received for assets that are on nonaccrual status is recognized as payment is received.

The asset is returned to accrual status when the principal and interest amounts contractually due are brought current, and future payments are expected.

The asset is returned to accrual status when the principal and interest amounts contractually due are brought

current, and future payments are expected.

Interest receivables are presented in Receivables on the Consolidated Balance Sheet.

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Loews Hotels & Co uses the equity method of accounting for these investments.

In addition, effective April 1, 2021, following Loews Corporation’s sale of 47 % of Altium Packaging to GIC, Singapore’s sovereign wealth fund, Loews Corporation’s investment in Altium Packaging is accounted for under the equity method of accounting.

In addition, effective April 1, 2021, following Loews Corporation’s sale of approximately 47 % of Altium Packaging, Loews Corporation’s investment in Altium Packaging is accounted for under the equity method of accounting.

See Note 2 for further discussion.

The Company’s total investment in entities accounted for under the equity method of accounting, excluding limited partnership investments, was $ 996 million and $ 880 million as of December 31, 2023 and 2022 and is reported in Other assets on the Consolidated Balance Sheets.

Equity method (income) loss for investments accounted for under the equity method of accounting, excluding limited partnerships, was $( 139 ) million, $( 26 ) million and $ 73 million for the years ended December 31, 2022, 2021 and 2020 and is reported separately in expenses on the Consolidated Statements of Operations.

Equity method income for investments accounted for under the equity method of accounting, excluding limited partnerships, was $ 120 million, $ 139 million and $ 26 million for the years ended December 31, 2023, 2022 and 2021 and is reported separately in expenses on the Consolidated Statements of Operations.

Equity method investments are reviewed for impairment when changes in circumstances indicate that the carrying value of the asset may not be recoverable.

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There was no collateral held at December 31, 2023 and 2022.

Revenue recognition – Premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are principally earned ratably over the term of the policies.

Revenue recognition – Premiums on property and casualty insurance contracts are recognized in proportion to the underlying risk insured and are primarily earned ratably over the term of the policies.

Premiums on long-term care contracts are earned ratably over the policy year in which they are due.

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For such contracts, CNA estimates the amount of ultimate premiums that it may earn upon completion of the coverage period and recognizes either an asset or a liability for the difference between the initial policy premium and the estimated ultimate premium.

CNA either adjusts such estimated ultimate premium amounts during the course of the coverage period based on actual results to date or by conducting premium audits after the policy has expired to determine

the final exposure to insured risks.

The resulting adjustment is recorded as either a reduction of or an increase to the earned premiums for the period.

Insurance receivables include balances due currently or in the future, including amounts due from insureds related to paid losses under high deductible policies, and are presented at unpaid balances, net of an allowance for doubtful accounts.

As of December 31, 2022, an allowance for doubtful accounts of $ 29 million for insurance receivables has been established using a loss rate methodology to determine expected credit losses for premium receivables.

As of December 31, 2023 and 2022, an allowance for doubtful accounts of $ 28 million and $ 29 million for insurance receivables has been established using a loss rate methodology to determine expected credit losses for premium receivables.

This methodology uses CNA’s historical annual credit losses relative to gross premium written to develop a range of credit loss rates for each dollar of gross written premium underwritten.

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Changes in the allowance are presented as a component of Other operating expenses on the Consolidated Statements of Operations.

Amounts are considered past due based on policy payment terms.

Amounts are considered past due

based on policy payment terms.

Insurance receivables and any related allowance are written off after collection efforts are exhausted or a negotiated settlement is reached.

CNA’s non-insurance warranty revenues are primarily generated from separately-priced service contracts that provide mechanical breakdown and other coverages to vehicle or consumer goods owners, which generally provide coverage from one month to ten years .

For warranty products where CNA acts as the principal in the transaction, Non-insurance warranty revenue is reported on a gross basis, with amounts paid by customers reported as Non-insurance warranty revenue and commissions paid to agents reported as Non-insurance warranty expense on the Consolidated Statements of Operations.

For warranty products where CNA acts as the principal in the transaction, Non-insurance warranty revenue is reported on a gross basis, with amounts paid by customers reported as Non-insurance warranty revenue and commissions paid to agents and dealers reported as Non-insurance warranty expense on the Consolidated Statements of Operations.

Additionally, CNA provides warranty administration services for dealer and manufacturer warranty products.

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Adjustments to deferred costs, if necessary, are recorded in the current period results of operations.

Diamond Offshore’s contract drilling revenues primarily resulted from providing a drilling rig and the crew and supplies necessary to operate the rig, mobilizing and demobilizing the rig to and from the drill site and performing rig preparation activities and/or modifications required for the contract.

Consideration received for performing these activities may have consisted of dayrate drilling revenue, mobilization and demobilization revenue, contract preparation revenue and reimbursement revenue for the purchase of supplies, equipment, personnel services and other services requested by the customer.

Diamond Offshore accounted for these integrated services provided within its drilling contracts as a single performance obligation satisfied over time and comprised of a series of distinct time increments in which drilling services are provided.

The total transaction price was determined for each individual contract by estimating both fixed and variable consideration expected to be earned over the term of the contract.

The standard contract term ranged from two to 60 months.

Boardwalk Pipelines primarily earns revenues by providing transportation and storage services for natural gas and natural gas liquids and hydrocarbons (referred to together as “NGLs”) on a firm and interruptible basis and provides interruptible natural gas parking and lending services.

Boardwalk Pipelines primarily earns revenues by providing transportation and storage services for natural gas and natural gas liquids and other hydrocarbons (referred to together as “NGLs”) on a firm and interruptible basis and providing ethane supply and transportation services for industrial customers in Louisiana and Texas.

Boardwalk Pipelines also provides interruptible natural gas parking and lending services.

The majority of Boardwalk Pipelines’ operating subsidiaries are subject to Federal Energy Regulatory Commission (“FERC”) regulations and certain revenues collected, under certain circumstances, may be subject to possible refunds to its customers.

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These service contracts can range in term from one to 20 years and are invoiced monthly.

For the ethane supply contracts, the purchases and sales are with different counterparties and control transfers at different receipt and delivery points, resulting in the purchases and sales being presented on a gross basis in the Consolidated Statements of Operations.

Loews Hotels & Co provides lodging and related goods and services as well as management and marketing services.

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Management and marketing services revenues are recognized as the services are provided and billed on a monthly basis.

addition, Loews Hotels & Co recognizes revenue for the reimbursement of payroll and other expenses as they are incurred on behalf of the owners of joint venture and managed hotel properties.

In addition, Loews Hotels & Co recognizes revenue for the reimbursement of payroll and other expenses as they are incurred on behalf of the owners of joint venture and managed hotel properties.

Altium Packaging is a packaging solutions provider and manufacturer in North America, serving a diverse customer base in the pharmaceutical, dairy, household chemicals, food/nutraceuticals, industrial/specialty chemicals, water and beverage/juice segments.

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This occurs at the time control is transferred to the customer, which generally occurs upon delivery or completion of the manufacturing process.

Claim and claim adjustment expense reserves – Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (“A&EP”), workers’ compensation lifetime claims and long term care claims, are not discounted and are based on (i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations;

Claim and claim adjustment expense reserves – Claim and claim adjustment expense reserves, except reserves for structured settlements not associated with asbestos and environmental pollution (“A&EP”) and workers’ compensation lifetime claims, are not discounted and are based on (i) case basis estimates for losses reported on direct business, adjusted in the aggregate for ultimate loss expectations;

(ii) estimates of incurred but not reported losses;

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Ceded claim and claim adjustment expense reserves are reported as a component of Receivables on the Consolidated Balance Sheets.

Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $ 1.1 billion as of December 31, 2022 and 2021.

Claim and claim adjustment expense reserves are presented net of anticipated amounts due from insureds related to losses under deductible policies of $ 1.2 billion and $ 1.1 billion as of December 31, 2023 and 2022.

A significant portion of these amounts are supported by collateral.

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CNA’s obligations for structured settlements not funded by annuities are included in claim and claim adjustment expense reserves and are discounted at a weighted average interest rate of 6.4 % as of December 31, 2023 and 2022.

This interest rate is based on the expected yield of the assets that support the reserves and reinvestment assumptions.

As of December 31, 2023 and 2022, the discounted reserves for unfunded structured settlements were $ 465 million and $ 485 million, net of discount of $ 559 million and $ 590 million.

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For the years ended December 31, 2023, 2022 and 2021, the amount of interest accretion recognized on the discounted reserves of workers’ compensation lifetime claim reserves was $ 9 million, $ 9 million and $ 12 million.

This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the Company’s disclosure of prior year loss reserve development.

Long term care claim reserves for policyholders that are currently receiving benefits are calculated using mortality and morbidity assumptions based on CNA and industry experience.

These long term care claim reserves are discounted at a weighted average interest rate of 5.9 % and 5.8 % as of December 31, 2022 and 2021.

As of December 31, 2022 and 2021, such discounted reserves totaled $ 2.8 billion and $ 2.7 billion, net of discounts of $ 450 million and $ 428 million.

Future policy benefit reserves – Future policy benefit reserves represent the active life reserves related to CNA’s long term care policies for policyholders that are not currently receiving benefits and are computed using the net level premium method, which incorporates actuarial assumptions as to morbidity, persistency, inclusive of mortality, discount rate, future premium rate adjustments and expenses.

Expense assumptions primarily relate to claim adjudication.

These assumptions are locked in over the life of the policy;

however if a premium deficiency emerges, the assumptions are unlocked, and the future policy benefit reserves are increased.

The September 30, 2022 gross premium valuation (“GPV”) indicated the recorded reserves included a margin of approximately $ 125 million.

Long term care active life reserves for policyholders not currently receiving benefits are discounted at a weighted average interest rate of 5.3 % as of December 31, 2022 and 2021.

In circumstances where the cash flow projections supporting future policy benefit reserves are expected to result in profits being recognized in early future years followed by losses in later future years, the future policy benefit reserves are increased by an amount necessary to offset losses that are projected to be recognized in later future years.

CNA has not recorded additional future policy benefit reserves for profits followed by losses.

This interest accretion is presented as a component of Insurance claims and policyholders’ benefits on the Consolidated Statements of Operations, but is excluded from the disclosure of prior year loss reserve development.

Future policy benefit reserves – Future policy benefit reserves are associated with CNA’s run-off long-term care business and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits.

The liability for future policyholder benefits (“LFPB”) is computed using the net level premium method, which incorporates cash flow and discount rate assumptions.

Under the net level premium method, the LFPB is equal to the present value of future benefits and claim settlement expenses less the present value of future net premiums.

Net premiums are equal to gross premiums multiplied by the Net Premium Ratio (“NPR”).

The NPR is generally the ratio of the present value of benefits and expense payments to the present value of gross premiums, expected over the lifetime of the policy.

As a result of the modified retrospective adoption of ASU 2018-12, CNA’s NPR calculation incorporates the original locked in discount rate and the reserve balance as of the transition date of January 1, 2021.

The key cash flow assumptions used to estimate the LFPB are morbidity, persistency (inclusive of mortality), anticipated future premium rate increases and expenses.

Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted.

Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death.

Future premium rate increases are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown.

Expense assumptions relate to claim adjudication.

The practical expedient was not elected that allows locking in the expense assumption.

The carried LFPB discount rate is determined using the upper-medium grade fixed income instrument yield curve.

CNA has elected to update the NPR and the LFPB for actual experience on a quarterly basis.

A quarterly assessment is also made as to whether evidence suggests that cash flow assumptions should be updated.

Annually, in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate increases and expense experience.

This analysis, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB.

Actuarial analysis includes predictive modeling, actual to expected experience comparisons and trend analysis.

Applicable industry research is also considered.

Quarterly, to derive the upper-medium grade fixed income instrument yield discount rate assumption, a published spot rate curve constructed from single-A rated U.S.

dollar denominated corporate bonds is used.

Linear interpolation to determine yield assumptions for tenors that fall between points for which observable rates are available is used.

For cash flows that are projected to occur beyond the tenor for which market-observable rates are available, CNA applies judgment to estimate a normative rate which it grades to over 10 years.

Quarterly, the updated NPR is used to derive an updated LFPB as of the beginning of the current quarter measured at the original locked in discount rate.

The updated LFPB is then compared to the existing carrying amount of the liability as of the same date (measured at the original locked in discount rate) to determine the re-measurement gain (loss), which is presented parenthetically within the Insurance claims and policyholders’ benefits line on the Consolidated Statements of Operations.

Insurance contracts are grouped into cohorts according to issue year.

Contracts assumed through reinsurance are generally included within the same cohorts as contracts issued directly, according to issue year.

The issue year for assumed contracts is defined according to the date that assumption of insurance risk incepted.

For assumed contracts that were reinsured concurrently with the issuance of the underlying direct contract, issue year is defined as the year that the underlying policy was issued.

For contracts that were already in-force when assumed, issue year is defined as the year in which the reinsurance agreement incepted.

For group long-term care business, issue year is defined as the year the individual insurance certificate was issued.

Long-term care is CNA’s only long-duration product line, therefore, cohorts are not further disaggregated by product.

Insurance-related assessments – Liabilities for insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated and when the event obligating the entity to pay an imposed or probable assessment has occurred.

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The ceding of insurance does not discharge the primary liability of CNA.

As of December 31, 2022, an allowance for doubtful accounts of $ 22 million for reinsurance receivables has been established which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future.

As of December 31, 2023 and 2022, an allowance for doubtful accounts of $ 22 million has been established for each year for reinsurance receivables, which relates to both amounts already billed on ceded paid losses as well as ceded reserves that will be billed when losses are paid in the future.

For assessing expected credit losses, CNA separates reinsurance receivables into two pools:

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The principal credit quality indicator used in the valuation of the allowance on voluntary reinsurance receivables is the financial strength rating of the reinsurer sourced from major rating agencies.

If the reinsurer is unrated, an internal financial strength rating is assigned based on CNA’s historical loss experience and the assessment of reinsurance counterparty risk profile, which generally corresponds with a B rating.

If the reinsurer is unrated, an internal financial strength rating is assigned based on CNA’s historical loss experience and the assessment of the reinsurance counterparty’s risk profile, which generally corresponds with a B rating.

Reinsurer financial strength ratings are updated and reviewed on an annual basis or sooner if CNA becomes aware of significant changes related to a reinsurer.

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Restricted Stock Units are valued using the grant-date fair value of Loews Corporation’s stock.

Net income per share – Basic net income per share excludes dilution and is computed by dividing net income attributable to common stock by the weighted average number of Loews Corporation common shares outstanding for the

Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue Loews Corporation common stock were exercised or converted into common stock.

For the years ended December 31, 2022 and 2021, approximately 0.4 million and 0.5 million potential shares attributable to issuances and exercises under the Loews Corporation 2016 Incentive Compensation Plan and the prior plan were included in the calculation of diluted net income per share, and there were no shares attributable to employee stock-based compensation awards excluded from the calculation of diluted net income per share because the effect would have been antidilutive.

For the year ended December 31, 2020, 0.1 million potential shares attributable to issuances and exercises under the Loews Corporation 2016 Incentive Compensation Plan and the prior plan were excluded from the calculation of diluted net income per share because the effect would have been antidilutive due to the net loss position of the Company.

In addition, there were 0.2 million shares attributable to employee stock-based compensation awards excluded from the calculation of diluted net income per share because the effect would have been antidilutive due to the exercise price being higher than the market price.

For the years ended December 31, 2023, 2022 and 2021, approximately 0.3 million, 0.4 million and 0.5 million potential shares attributable to issuances and exercises under the Loews Corporation 2016 Incentive Compensation Plan and the prior plan were included in the calculation of diluted net income per share, and there were no shares attributable to employee stock-based compensation awards excluded from the calculation of diluted net income per share because the effect would have been antidilutive.

Foreign currency – Foreign currency translation gains and losses are reflected in Shareholders’ equity as a component of AOCI.

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Cash payments for federal, foreign, state and local income taxes amounted to $ 304 million, $ 376 million and $ 256 million for the years ended December 31, 2023, 2022 and 2021.

Investing activities exclude $ 33 million and $ 5 million of accrued capital expenditures for the years ended December 31, 2022 and 2021 and include $ 63 million of previously accrued capital expenditures for the year ended December 31, 2020.

Recently issued Accounting Standards Updates (“ASUs”) – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-12, “Financial Services – Insurance (Topic 944):

Targeted Improvements to the Accounting for Long-Duration Contracts.” The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts.

For the Company, this includes CNA’s l ong term care business.

Entities will be required to review, and update if there is a change, cash flow assumptions (including morbidity and persistency) at least annually and to update quarterly discount rate assumptions using an upper-medium grade fixed-income instrument yield.

The effect of changes in cash flow assumptions will be recorded in Net income and the effect of changes in discount rate assumptions will be recorded in Other comprehensive income.

The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted, and may be applied using either a modified retrospective transition method or a full retrospective transition method.

Financial statements for prior periods presented will be adjusted to reflect the effects of applying the new accounting guidance.

The Company will adopt the new guidance effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021.

A published spot rate curve constructed from A+, A and A- rated U.S.

dollar denominated corporate bonds matched to the duration of the corresponding insurance liabilities will be used to calculate discount rates.

Long-duration contracts will be grouped into calendar year cohorts based on the contract issue date.

The most significant impact at the transition date will be the effect of updating the discount rate assumption to reflect an upper-medium grade fixed-income instrument yield, which will be partially offset by the de-recognition of Shadow Adjustments associated with long-duration contracts.

It is expected that the net impact of these changes will be a decrease

of approximately $ 2.1 billion (after tax and noncontrolling interests) in AOCI as of the transition date of January 1, 2021.

There is a minimal transition impact expected to retained earnings.

The requirement to review, and update if there is a change, cash flow assumptions at least annually is expected to change the pattern of earnings being recognized.

Adoption will also significantly expand the Company’s disclosures, and will impact systems, processes and controls.

While the requirements of the new guidance represent a material change from existing accounting guidance, the new guidance will not impact capital and surplus under statutory accounting practices, cash flows, or the underlying economics of the business.

In December 2022, the FASB issued ASU 2022-05, “Financial Services - Insurance (Topic 944):

Transition for Sold Contracts.” This guidance permits companies to make an election to exclude from the scope of ASU 2018-12 any insurance contracts that have been de-recognized prior to the effective date of ASU 2018-12, assuming there is no significant continuing involvement with the de-recognized contracts.

Investing activities exclude $ 9 million, $ 33 million, and $ 5 million of accrued capital expenditures for the years ended December 31, 2023, 2022, and 2021.

Accounting changes – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-12, “Financial Services – Insurance (Topic 944):

Targeted Improvements to the Accounting for Long-Duration Contracts” (“ASU 2018-12”).

The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts.

Entities are required to review, and update if there is a change, cash flow assumptions (including morbidity and persistency) used to measure the liability for future policyholder benefits (“LFPB”) at least annually.

The LFPB must also be updated for actual experience at least annually.

The LFPB is reflected as Insurance reserves:

Future policy benefits on the Consolidated Balance Sheets.

The discount rate assumption used to measure the LFPB must be updated quarterly using an upper-medium grade (low credit risk) fixed-income instrument yield, commonly interpreted as a single-A rate.

The effect of changes in cash flow assumptions and actual variances from expected experience are recorded in results of operations within Insurance claims and policyholders’ benefits.

The effect of changes in discount rate assumptions are recorded in Other comprehensive income (loss) (“OCI”).

In contrast, under legacy accounting guidance, cash flow and discount rate assumptions were locked in unless a premium deficiency emerged.

The discount rate assumption under legacy accounting guidance was determined using CNA’s internal investment portfolio yield, which was generally higher than a single-A yield.

The new guidance eliminates the need to hold shadow reserves associated with long-term care reserves.

Under legacy accounting guidance, to the extent that unrealized gains on fixed maturity securities supporting long-term care reserves would have resulted in a premium deficiency if realized, a related increase to Insurance reserves was recorded, net of tax, as a reduction of net unrealized gains (losses), through Other comprehensive income (loss) (shadow reserves).

The unit of account is the level at which reserves are measured.

Under the new guidance, the unit of account used to measure the LFPB is the cohort.

Cohorts are comprised of insurance contracts issued no more than one year apart, and must be further disaggregated according to policy benefit and insurance risk characteristics.

Under legacy accounting guidance, the LFPB was generally measured at the individual policy level.

Under the new guidance, the net premium ratio (“NPR”) is capped at 100%.

To the extent that NPR would otherwise exceed 100%, the LFPB is increased, and a loss is recognized immediately in the results of operations.

The NPR cap is applied at the cohort level each quarter when the NPR is updated.

In contrast, under legacy accounting guidance, premium deficiency testing was performed annually at the product level.

See Note 9 to the Consolidated Financial Statements for further explanation of the NPR and LFPB calculations.

The new guidance was adopted effective January 1, 2023, using the modified retrospective method applied as of the transition date of January 1, 2021.

CNA’s run-off long-term care business is in scope of the new guidance.

All prior periods presented in the financial statements have been adjusted to reflect application of the new guidance.

The original locked in discount rate, utilized for purposes of calculating the NPR under the new guidance, was based on the discount rate assumption used to calculate the LFPB immediately prior to the transition date.

While the requirements of the new guidance represent a material change from legacy accounting, the new guidance does not impact capital and surplus under statutory accounting practices, cash flows or the underlying economics of the business.

In December of 2022, the FASB issued ASU 2022-05, “Financial Services-Insurance (Topic 944):

Transition for Sold Contracts” (“ASU 2022-05”).

This guidance permits companies to make an election to exclude from the scope of ASU 2018-12 any insurance contracts that have been de-recognized prior to the effective date of ASU 2018-12, assuming that the company has no significant continuing involvement with the de-recognized contracts.

In the fourth quarter of 2022, CNA novated its block of legacy annuity business, which was fully-ceded prior to novation.

The Company plans to elect the ASU 2022-05 transition relief, and will exclude the novated legacy annuity business from the scope of ASU 2018-12.

Progress continues to be made on implementation activities, including reviewing restated results and finalizing updates to internal controls associated with adoption of the new guidance.

Divestitures and Deconsolidations

The ASU 2022-05 transition relief was elected and the novated legacy annuity business has been excluded from the scope of ASU 2018-12.

Explanation of ASU 2018-12 Transition Impacts:

The following table presents a roll-forward of the pre-transition LFPB balance as of January 1, 2021:

(In millions)

Balance as of December 31, 2020, as reported $ 13,318

Reclassification of reserves for policyholders currently receiving benefits to Future policy benefits (a)

De-recognition of shadow reserves ( 3,293 )

Re-measurement using an upper-medium grade fixed income instrument yield discount rate 6,255

Other adjustments

Balance as of January 1, 2021, as adjusted $ 19,132

(a) In conjunction with the adoption of ASU 2018-12 , at January 1, 2023, the long-term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits.

This change was applied retrospectively as of January 1, 2021.

Shadow reserves associated with the long-term care business were de-recognized as of the transition date in Accumulated other comprehensive income (“AOCI”).

The effect of re-measuring the LFPB at the single-A discount rate as of the transition date was similarly recorded in AOCI.

There are no cohorts for which the NPR exceeded 100% at the transition date.

CNA’s practice under legacy accounting guidance was to calculate and record premium deficiency reserves at the policy level.

Accordingly, an allocation methodology was not required to assign historical premium deficiency reserves to cohorts upon transition to ASU 2018-12.

The following table presents after tax adjustments to the opening balance of Shareholders’ equity and Noncontrolling interests resulting from adoption of ASU 2018-12:

Accumulated other comprehensive income (loss) Retained earnings Noncontrolling interests

(In millions)

Balance as of December 31, 2020, as reported $ 581 $ 14,150 $ 1,321

De-recognition of shadow reserves 2,331 270

Re-measurement of LFPB using an upper-medium grade fixed

income instrument yield discount rate ( 4,428 ) ( 513 )

Other adjustments ( 5 ) ( 1 )

Balance as of January 1, 2021, as adjusted $ ( 1,516 ) $ 14,145 $ 1,077

The effects of adoption of ASU 2018-12 on the Consolidated Statement of Operations were as follows:

Year Ended December 31, 2022 As Reported Effect of Adoption As Adjusted

(In millions)

Insurance claims and policyholders’ benefits (a) $ 6,386 $ 267 $ 6,653

Income before income tax 1,381 ( 267 ) 1,114

Income tax expense ( 278 ) 55 ( 223 )

Net income 1,103 ( 212 ) 891

Amounts attributable to noncontrolling interests ( 91 ) 22 ( 69 )

Net income attributable to Loews Corporation 1,012 ( 190 ) 822

Basic net income per share 4.17 ( 0.78 ) 3.39

Diluted net income per share 4.16 ( 0.78 ) 3.38

(a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement loss of $( 214 ), which is presented parenthetically on the Consolidated Statement of Operations.

Year Ended December 31, 2021 As Reported Effect of Adoption As Adjusted

(In millions)

Insurance claims and policyholders’ benefits (a) $ 6,349 $ 22 $ 6,371

Income before income tax 2,182 ( 22 ) 2,160

Income tax expense ( 479 ) 4 ( 475 )

Net income 1,703 ( 18 ) 1,685

Amounts attributable to noncontrolling interests ( 125 ) 2 ( 123 )

Net income attributable to Loews Corporation 1,578 ( 16 ) 1,562

Basic net income per share 6.08 ( 0.06 ) 6.02

Diluted net income per share 6.07 ( 0.07 ) 6.00

(a) The effect of adopting ASU 2018-12 on Insurance claims and policyholders’ benefits is inclusive of the re-measurement loss of $( 8 ), which is presented parenthetically on the Consolidated Statement of Operations.

The effects of adoption of ASU 2018-12 on the Consolidated Balance Sheet were as follows:

December 31, 2022 As Reported Effect of Adoption As Adjusted

(In millions)

Other assets $ 3,941 $ 73 $ 4,014

Total assets 75,494 73 75,567

Claim and claim adjustment expenses (a) 25,099 ( 2,979 ) 22,120

Future policy benefits (a) 10,151 3,329 13,480

Total liabilities 60,016 350 60,366

Retained earnings 15,144 ( 213 ) 14,931

Accumulated other comprehensive loss ( 3,284 ) ( 36 ) ( 3,320 )

Noncontrolling interests 880 ( 28 ) 852

Total equity 15,478 ( 277 ) 15,201

(a) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, the long-term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expense to Future policy benefits.

This change was applied retrospectively as of January 1, 2021.

The effects of adoption of ASU 2018-12 on the Consolidated Statement of Comprehensive Income (Loss) were as follows:

Year Ended December 31, 2022 As Reported Effect of Adoption As Adjusted

(In millions)

Net unrealized losses on other investments $ ( 3,777 ) $ ( 2,320 ) $ ( 6,097 )

Total unrealized losses on investments ( 3,782 ) ( 2,320 ) ( 6,102 )

Impact of changes in discount rates used to measure long-duration

contract liabilities 3,959 3,959

Other comprehensive loss ( 3,858 ) 1,639 ( 2,219 )

Comprehensive loss ( 2,755 ) 1,427 ( 1,328 )

Amounts attributable to noncontrolling interests 297 ( 147 ) 150

Total comprehensive loss attributable to Loews Corporation ( 2,458 ) 1,280 ( 1,178 )

Year Ended December 31, 2021 As Reported Effect of Adoption As Adjusted

(In millions)

Net unrealized losses on other investments $ ( 706 ) $ ( 281 ) $ ( 987 )

Total unrealized losses on investments ( 708 ) ( 281 ) ( 989 )

Impact of changes in discount rates used to measure long-duration

contract liabilities 941 941

Other comprehensive income (loss) ( 445 ) 660 215

Comprehensive income 1,258 642 1,900

Amounts attributable to noncontrolling interests ( 75 ) ( 67 ) ( 142 )

Total comprehensive income attributable to Loews Corporation 1,183 575 1,758

The effects of adoption of ASU 2018-12 on the Consolidated Statements of Cash Flows were as follows:

Year Ended December 31, 2022 As Reported Effect of Adoption As Adjusted

(In millions)

Net income $ 1,103 $ ( 212 ) $ 891

Provision for deferred income taxes 5 ( 55 ) ( 50 )

Insurance reserves 1,791 267 2,058

Year Ended December 31, 2021 As Reported Effect of Adoption As Adjusted

(In millions)

Net income $ 1,703 $ ( 18 ) $ 1,685

Provision for deferred income taxes 213 ( 4 ) 209

Insurance reserves 2,463 22 2,485

The effects of adoption of ASU 2018-12 on segment results of operations of CNA were as follows:

Year Ended December 31, 2022 As Reported Effect of Adoption As Adjusted

(In millions)

Insurance claims and policyholders’ benefits (a) $ 6,386 $ 267 $ 6,653

Income before income tax 1,081 ( 267 ) 814

Income tax expense ( 188 ) 55 ( 133 )

Net income 893 ( 212 ) 681

Amounts attributable to noncontrolling interests ( 91 ) 22 ( 69 )

Net income attributable to Loews Corporation 802 ( 190 ) 612

Year Ended December 31, 2021 As Reported Effect of Adoption As Adjusted

(In millions)

Insurance claims and policyholders’ benefits (a) $ 6,349 $ 22 $ 6,371

Income before income tax 1,484 ( 22 ) 1,462

Income tax expense ( 282 ) 4 ( 278 )

Net income 1,202 ( 18 ) 1,184

Amounts attributable to noncontrolling interests ( 125 ) 2 ( 123 )

Net income attributable to Loews Corporation 1,077 ( 16 ) 1,061

Recently issued ASUs - In November of 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.” The updated accounting guidance requires enhanced reportable segment disclosures, primarily related to significant segment expenses which are regularly provided to the chief operating decision maker.

The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

Retrospective application is required and early adoption is permitted.

The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

In December of 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.” The updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the effective tax rate reconciliation and income taxes paid.

The guidance is effective for fiscal years beginning after December 15, 2024.

Prospective application is required, with retrospective application permitted.

The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures.

Acquisitions, Divestitures and Deconsolidations

Boardwalk Pipelines

On September 29, 2023, Boardwalk Pipelines acquired 100 % of the equity interests of Williams Olefins Pipeline Holdco LLC (“Bayou Ethane”) from Williams Field Services Group, LLC for $ 355 million in cash, including working capital.

Bayou Ethane owns an approximately 380-mile pipeline system that transports ethane from Mont Belvieu, Texas, to the Mississippi River corridor in Louisiana and two 15-mile pipelines in the Houston Ship Channel area that carry ammonia and hydrogen chloride.

Bayou Ethane provides ethane supply and transportation services for industrial customers in Louisiana and Texas.

The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition.

The final fair values of the assets acquired and liabilities assumed as of September 29, 2023, were $ 382 million of assets and $ 27 million of liabilities, which included $ 296 million of property, plant and equipment and $ 34 million of finite lived intangible assets.

Loews Hotels & Co

During 2023, Loews Hotels & Co paid $ 46 million to acquire an additional equity interest in a previously unconsolidated joint venture property.

The acquisition resulted in Loews Hotels & Co consolidating the joint venture property and recording a gain of $ 46 million ($ 36 million after tax) .

Upon acquisition, $ 232 million in assets and $ 120 million in liabilities were consolidated at fair value .

Loews Hotels & Co received aggregate proceeds of $ 77 million in 2021 for the sales of owned hotels and other assets.

Altium Packaging

On April 1, 2021, Loews Corporation sold 47 % of Altium Packaging to GIC, Singapore’s sovereign wealth fund, for $ 420 million in cash consideration.

On April 1, 2021, Loews Corporation sold approximately 47 % of Altium Packaging to GIC, Singapore’s sovereign wealth fund, for $ 420 million in cash consideration.

Loews Corporation shares certain participating rights with GIC related to capital allocation and other decisions by Altium Packaging.

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Loews Corporation’s retained investment in Altium Packaging was recorded at an estimated fair value of $ 473 million.

Diamond Offshore

As a result of the April 26, 2020 (“the Filing Date”) bankruptcy filing of Diamond Offshore and certain of its subsidiaries, Diamond Offshore was deconsolidated from Loews Corporation’s consolidated financial statements in the second quarter of 2020.

Through the Filing Date, Diamond Offshore’s results were included in Loews Corporation’s consolidated financial statements and Loews Corporation recognized in its earnings its proportionate share of Diamond Offshore’s losses through such date.

The deconsolidation resulted in the recognition of a loss of $ 1.2 billion ($ 957 million after tax) during the year ended December 31, 2020, which is reported within Investment gains (losses) on the Consolidated Statements of Operations.

Loews Hotels & Co

Loews Hotels & Co received aggregate proceeds of $ 77 million and $ 57 million in 2021 and 2020 for the sales of owned hotels and other assets.

Net investment income is as follows:

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(a) Net investment income recognized due to the change in fair value of equity and trading portfolio securities held as of December 31, 2023 , 2022 and 2021

$ 38 $ 3 $ 23

As of December 31, 2023 and 2022, no investments in a single issuer exceeded 10% of shareholders’ equity, other than investments in securities issued by the U.S.

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Short-term investments and other ( 11 ) ( 6 ) ( 1 )

Gain on acquisition of a joint venture (see Note 2)

Altium Packaging (see Note 2)

Diamond Offshore (see Note 2) ( 15 ) ( 1,211 )

Investment gains (losses) $ ( 53 ) $ ( 199 ) $ 660

(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of December 31, 2023, 2022, and 2021

$ 14 $ ( 75 ) $ 2

Investment gains (losses) for the year ended December 31, 2022 in the table above include an $ 18 million net gain related to the novation of a coinsurance agreement on CNA’s legacy annuity business, which was transacted on a funds withheld basis and gave rise to an embedded derivative.

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Taken together, this net gain is the final recognition of changes in the valuation of the funds held assets and offsets previously recognized investment losses on the associated embedded derivative.

The components of available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table.

The coinsurance agreement was novated in the fourth quarter of 2022.

The available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table.

The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:

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Impairment losses recognized in earnings $ 44 $ 62 $ 31

Losses of $ 8 million, gains of $ 10 million and losses of $ 21 million were recognized for the years ended December 31, 2022, 2021 and 2020 related to mortgage loans primarily due to changes in expected credit losses.

The net change in unrealized gains (losses) on investments, which consists solely of the change in unrealized gains on fixed maturity securities, was $( 7.9 ) billion, $( 1.3 ) billion and $ 1.6 billion for the years ended December 31, 2022, 2021 and 2020.

Losses of $ 11 million, $ 8 million and a gain of $ 10 million were recognized for the years ended December 31, 2023, 2022 and 2021 related to mortgage loans primarily due to changes in expected credit losses.

The net change in unrealized gains (losses) on fixed maturity securities, was $ 1.4 billion, $( 7.9 ) billion and $( 1.3 ) billion for the years ended December 31, 2023, 2022 and 2021.

The amortized cost and fair values of fixed maturity securities are as follows:

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Foreign government 741 6 34 713

Redeemable preferred stock 3 3

Fixed maturities available-for-sale 42,414 1,022 2,995 16 40,425

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Foreign government 617 1 43 575

Redeemable preferred stock 3 3

Fixed maturities available-for-sale 41,032 652 4,056 1 37,627

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Total fixed maturity securities $ 41,102 $ 652 $ 4,056 $ 1 $ 37,697

The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:

The available-for-sale fixed maturities securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:

Less than 12 Months 12 Months or Longer Total

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Total fixed maturity securities $ 25,234 $ 2,946 $ 4,277 $ 1,110 $ 29,511 $ 4,056

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.

December 31, 2023 December 31, 2022

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Total $ 25,731 $ 2,995 $ 29,511 $ 4,056

Base d on current facts and circumstances, the unrealized losses presented in the December 31, 2022 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates and a general market widening of credit spreads.

In reaching this determination, the recent volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered.

Base d on current facts and circumstances, the unrealized losses presented in the December 31, 2023 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates.

In reaching this determination, the volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered.

Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost;

accordingly, it was determined that there are no additional impairment losses to be recorded at December 31, 2023.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets.

Accrued interest receivables on available-for-sale fixed maturity securities totaled $ 435 million and $ 394 million as of December 31, 2023 and 2022 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.

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Balance as of January 1, 2023

$ 11 $ 7 $ 18

Additions to the allowance for credit losses:

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Securities sold during the period (realized) 6 6

Intent to sell or more likely than not will be required to sell the

security before recovery of its amortized cost basis

Write-offs charged against the allowance 15 15

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losses on securities that had an allowance recorded in a previous period

1 ( 9 ) ( 8 )

Total allowance for credit losses $ 4 $ 12 $ 16

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The ten largest limited partnership positions held totaled $ 622 million and $ 633 million as of December 31, 2023 and 2022.

Based on the most recent information available regarding percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 1 % of the aggregate partnership equity at December 31, 2022 and 2021, and the related income reflected on the Consolidated Statements of Operations represents approximately 2 % of the changes in aggregate partnership equity for the years ended December 31, 2022, 2021 and 2020.

Based on the most recent information available regarding percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 1 % of the aggregate partnership equity at December 31, 2023 and 2022, and the related income reflected on the Consolidated Statements of Operations represents approximately 1 %, 2 %, and 2 % of the changes in aggregate partnership equity for the years ended December 31, 2023, 2022 and 2021.

There are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices.

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Equity markets:

Options - purchased $ 202 $ 1

Futures - short 116 $ 169

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Currency forwards 13 $ ( 1 ) 12 $ ( 1 )

Embedded derivative on funds withheld liability 270 $ ( 12 )

As of December 31, 2021, CNA held an embedded derivative on a funds withheld liability related to a coinsurance agreement on its legacy annuity business.

During the year ended December 31, 2022, CNA novated the coinsurance agreement, resulting in the settlement of the embedded derivative.

Investment Commitments

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Securities with carrying values of approximately $ 3.1 billion and $ 2.8 billion were deposited by CNA’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2023 and 2022.

Cash and securities with carrying values of approximately $ 0.9 billion and $ 1.2 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2022 and 2021.

Cash and securities with carrying values of approximately $ 0.9 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2023 and 2022.

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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Short-term and other 4,539 167 4,706

Receivables 19 19

Payable to brokers ( 82 ) ( 82 )

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Corporate bonds and other $ 810 $ 38 $ 219 $ ( 33 ) $ 11 $ 1,045 $ 38

States, municipalities and political subdivisions 56 ( 13 ) 43 ( 13 )

States, municipalities and political

subdivisions 43 1 44 1

Asset-backed 788 $ 16 9 248 ( 64 ) 23 $ ( 119 ) 901 9

Fixed maturities available-for-sale $ 1,641 $ 16 $ 48 $ 467 $ — $ ( 97 ) $ 34 $ ( 119 ) $ 1,990 $ — $ 48

Fixed maturities trading — —

Total fixed maturities $ 1,549 $ 24 $ ( 323 ) $ 561 $ ( 7 ) $ ( 154 ) $ 85 $ ( 94 ) $ 1,641 $ — $ ( 321 )

Equity securities $ 35 $ ( 7 ) $ ( 4 ) $ 24 $ ( 7 )

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Corporate bonds and other $ 937 $ ( 1 ) $ ( 184 ) $ 137 $ ( 5 ) $ ( 84 ) $ 10 $ 810 $ ( 183 )

States, municipalities and political subdivisions 46 ( 1 ) 12 ( 1 ) 56 ( 1 )

States, municipalities and political

subdivisions 56 ( 13 ) 43 ( 13 )

Asset-backed 556 25 ( 126 ) 424 ( 2 ) ( 70 ) 75 $ ( 94 ) 788 ( 125 )

Fixed maturities available-for-sale $ 1,549 $ 24 $ ( 323 ) $ 561 $ ( 7 ) $ ( 154 ) $ 85 $ ( 94 ) $ 1,641 $ — $ ( 321 )

Fixed maturities trading 8 ( 6 ) ( 2 ) —

Total fixed maturities $ 1,132 $ ( 9 ) $ ( 43 ) $ 611 $ ( 12 ) $ ( 132 ) $ 129 $ ( 127 ) $ 1,549 $ — $ ( 44 )

Equity securities $ 29 $ ( 9 ) $ 19 $ ( 3 ) $ 9 $ ( 10 ) $ 35 $ ( 4 )

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Reinsurance (Note 17)

$ 5,434 $ 5,438

Insurance 3,470 3,187

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Corporate 1 12 2 9 21 23

Diamond Offshore (a)

Total $ 534 $ 693 $ 509 $ 675 $ 503 $ 489

(a) Amounts presented for Diamond Offshore reflect the period prior to deconsolidation.

See Note 2 for further discussion.

Capitalized interest related to the construction and upgrade of qualifying assets amounted to approximately $ 32 million, $ 17 million and $ 12 million for the years ended December 31, 2023, 2022 and 2021.

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Loews Hotels & Co evaluates properties with indications that their carrying amounts may not be recoverable.

It was determined that the carrying values of two properties in 2022 and one property and capitalized costs related to a potential development project in 2020 were impaired.

It was determined that the carrying values of two properties in 2023 and two properties in 2022 were impaired.

Loews Hotels & Co recorded aggregate impairment charges of $ 12 million ($ 9 million after tax) and $ 25 million ($ 19 million after tax) for the years ended December 31, 2023 and 2022, which are reported within Operating expenses and other on the Consolidated Statements of Operations.

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These calculations, at times, utilize significant unobservable inputs, including estimating the growth in the asset’s revenue and cost structure and are therefore considered Level 3 fair value measurements.

During the first quarter of 2020, five Diamond Offshore drilling rigs that had indicators of impairment were evaluated.

Based on the assumptions and analysis at that time, it was determined that the carrying values of four of these rigs were impaired.

The fair values of these rigs were estimated using multiple probability-weighted cash flow analyses, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows.

These calculations utilized significant unobservable inputs, including utilization and dayrate scenarios, as well as management’s assumptions related to future oil and gas prices.

These fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used.

An aggregate asset impairment charge of $ 774 million ($ 408 million after tax and noncontrolling interests) was recorded for the year ended December 31, 2020 and is reported within Operating expenses and other on the Consolidated Statements of Operations.

Goodwill and Other Intangible Assets

A summary of the changes in the carrying amount of goodwill is as follows:

CNA Financial Boardwalk Pipelines Corporate Total

CNA Financial Boardwalk Pipelines Total

(In millions)

1 unchanged sentence

$ 112 $ 237 $ 349

Deconsolidation of Altium Packaging (see Note 2) ( 436 ) ( 436 )

Other adjustments ( 3 ) ( 3 )

Balance, December 31, 2022

112 237 — 349

Other adjustments 1 1

13 unchanged sentences

Total other intangible assets $ 181 $ 30 $ 144 $ 33

Amortization expense for the years ended December 31, 2022, 2021 and 2020 of $ 3 million, $ 3 million and $ 61 million is reported in Operating expenses and other on the Consolidated Statements of Operations.

Amortization expense for each of the years ended December 31, 2023, 2022 and 2021 of $ 3 million is reported in Operating expenses and other on the Consolidated Statements of Operations.

At December 31, 2023, estimated amortization expense in each of the next five years is approximately $ 4 million.

Claim and Claim Adjustment Expense Reserves and Future Policy Benefit Reserves

Property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date.

Claim and Claim Adjustment Expense Reserves

Claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including incurred but not reported (“IBNR”) claims as of the reporting date.

Reserve projections are based primarily on detailed analysis of the facts in each case, experience with similar cases and various historical development patterns.

Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions and economic conditions including inflation, social inflation and public attitudes.

Consideration is given to historical patterns such as claim reserving trends and settlement practices, loss payments, pending levels of unpaid claims and product mix, economic, medical and social inflation, and public attitudes.

All of these factors can affect the estimation of claim and claim adjustment expense reserves.

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In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be.

Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as long term care, workers’ compensation, general liability and professional liability claims.

Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims.

Claim and claim adjustment expense reserves are also maintained for structured settlement obligations.

In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, actuaries review mortality experience on an annual basis.

Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined.

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Total gross liability for unpaid claims and claims adjustment expenses $ 23,304

(a) Other Insurance Operations amounts are primarily related to long term care claim reserves for policyholders on claim, which are long duration insurance contracts, but also include amounts related to unfunded structured settlements arising from short duration insurance contracts.

(a) Other Insurance Operations amounts are related to unfunded structured settlements arising from short duration contracts.

(b) Reinsurance receivables presented are gross of the allowance for uncollectible reinsurance and do not include reinsurance receivables related to paid losses.

(c) The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the loss portfolio transfer (“LPT”).

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of Other Insurance Operations.

(c) The Other Insurance Operations reinsurance receivables are primarily related to A&EP claims covered under the A&EP loss portfolio transfer (“LPT”).

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves.

Year Ended December 31

2022 2021 2020

2023 2022 (a) 2021 (a)

(In millions)

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Provision for insured events of current year 5,667 5,181 5,021

Decrease in provision for insured events of prior years ( 187 ) ( 104 ) ( 119 )

Increase (decrease) in provision for insured events of prior years 48 ( 32 ) 15

Amortization of discount 44 44 48

Total net incurred (a)

Total net incurred (b)

5,759 5,193 5,084

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Gross reserves, end of year $ 23,304 $ 22,120 $ 21,269

(a) Total net incurred above does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer, uncollectible reinsurance and benefit expenses related to future policy benefits, which are not reflected in the table above.

(a) In conjunction with the adoption of ASU 2018-12, at January 1, 2023, long-term care reserves for policyholders currently receiving benefits were reclassified from Claim and claim adjustment expenses into Future policy benefits and this change was applied retrospectively as of January 1, 2021.

For additional information see Note 1.

(b) Total net incurred does not agree to Insurance claims and policyholders’ benefits as reflected on the Consolidated Statements of Operations due to amounts related to retroactive reinsurance deferred gain accounting, the loss on the excess workers’ compensation loss portfolio transfer and uncollectible reinsurance, which are not reflected in the table above.

Reserving Methodology

In developing claim and claim adjustment expense (“loss” or “losses”) reserve estimates, CNA’s actuaries perform detailed reserve analyses that are staggered throughout the year.

In developing claim and claim adjustment expense reserve estimates, CNA’s actuaries perform detailed reserve analyses that are staggered throughout the year.

The data is organized at a reserve group level.

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In developing the loss reserve estimates for property and casualty contracts, CNA generally projects ultimate losses using several common actuarial methods as listed below.

CNA reviews the various indications from the various methods and applies judgment to select an actuarial point estimate.

The carried reserve may differ from the actuarial point estimate as a result of CNA’s consideration of the factors noted above as well as the potential volatility of the projections associated with

the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis.

CNA reviews the indications from the various methods and applies

judgment to select an actuarial point estimate.

The carried reserve may differ from the actuarial point estimate as a result of CNA’s consideration of the factors noted above as well as the potential volatility of the projections associated with the specific product being analyzed and other factors affecting claims costs that may not be quantifiable through traditional actuarial analysis.

The indicated required reserve is the difference between the selected ultimate loss and the inception-to-date paid losses.

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• Stochastic modeling :

The stochastic modeling produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.

The stochastic modeling method produces a range of possible outcomes based on varying assumptions related to the particular product being modeled.

For many exposures, especially those that can be considered long-tail, a particular accident or policy year may not have a sufficient volume of paid losses to produce a statistically reliable estimate of ultimate losses.

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The following tables present the gross and net carried reserves:

December 31, 2022 Property and Casualty Operations Other Insurance Operations Total

December 31, 2023 Property and Casualty Operations Other Insurance Operations (a) Total

(In millions)

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Total Net Carried Claim and Claim Adjustment Expense Reserves $ 15,996 $ 933 $ 16,929

For additional information see Note 1.

Net Prior Year Development

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Surety ( 43 ) ( 83 ) ( 73 )

Warranty ( 11 ) ( 21 ) ( 14 )

Commercial auto 33 49 53

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Workers’ compensation ( 203 ) ( 152 ) ( 82 )

Property and other ( 45 ) ( 9 ) 27

Other property and casualty operations 10 ( 24 ) 5

Other insurance operations 71 64 60

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Changes in the cumulative amount across time are the result of CNA’s expanded awareness of additional facts and circumstances that pertain to the unsettled claims.

The Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims in each accident year as of the end of the stated calendar year.

The Cumulative Net Paid Claim and Allocated Claim Adjustment Expenses tables, reading across, show the cumulative amount paid for claims for each accident year as of the end of the stated calendar year.

The Net Strengthening or (Releases) of Prior Accident Year Reserves tables, reading across, show the net increase or decrease in the cumulative net incurred accident year claim and allocated claim adjustment expenses during each stated calendar year and indicates whether the reserves for that accident year were strengthened or released.

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CNA does not establish case reserves for allocated loss adjusted expenses (“ALAE”), therefore ALAE reserves are also included in the estimate of IBNR.

Unfavorable development in other professional liability and management liability was primarily due to higher than expected claim severity and frequency in CNA’s professional errors and omissions (“E&O”) businesses in multiple accident years.

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in multiple accident years.

Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s construction business in a recent accident year.

Unfavorable development in general liability was due to higher than expected claim severity in the CNA’s construction and middle market businesses across multiple accident years.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.

Unfavorable development in medical professional liability was due to higher than expected large loss activity in multiple accident years.

Unfavorable development in other professional liability and management liability was due to higher than expected claim severity and frequency in CNA’s cyber and professional errors and omissions (“E&O”) businesses in multiple accident years.

Favorable development in surety was primarily due to lower than expected frequency and lack of systemic activity in recent accident years.

Favorable development in warranty was due to lower than expected loss emergence in a recent accident year.

Unfavorable development in commercial auto and general liability was due to higher than expected claim severity across multiple accident years.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Favorable development in property and other was primarily due to lower than expected loss emergence in recent accident years.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims, including the Diocese of Rochester proposed settlement.

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Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Unfavorable development in other insurance operations was due to legacy mass tort exposures, primarily related to abuse.

Unfavorable development in medical professional liability was primarily due to higher than expected frequency of large losses in recent accident years and unfavorable outcomes on specific claims in older accident years.

Favorable development in other professional liability and management liability was primarily due to lower than expected loss emergence in accident year 2017 and accident years prior to 2010.

Favorable development in surety was due to lower than expected frequency and lack of systemic loss activity for accident years 2019 and prior.

Unfavorable development in commercial auto was due to higher than expected claim severity in CNA’s middle market and construction businesses in recent accident years.

Unfavorable development in general liability was driven by increased bodily injury severities in accident years 2012 through 2016 and higher than expected frequency and severity in CNA’s umbrella business in accident years 2015 through 2019.

Favorable development in workers’ compensation was due to favorable medical trends driving lower than expected severity in multiple accident years.

Unfavorable development in property and other was primarily due to higher than expected large loss activity in accident year 2019 in CNA’s middle market, national accounts and marine business units.

Unfavorable development in other insurance operations was due to legacy mass tort exposures, primarily related to abuse.

Unfavorable development in other insurance operations was largely associated with legacy mass tort abuse claims.

Property & Casualty Operations – Line of Business Composition

7 unchanged sentences

Workers’ compensation 3,645

Property and other 2,828

Other property and casualty operations 3,009

Total net liability for unpaid claim and claim adjustment expenses $ 17,213

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Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative Number of Claims

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative Number of Claims

(In millions, except reported claims data)

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2020 11 61 139 201

2021 11 49 118

Total $ 3,030

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2020 ( 1 ) ( 21 ) ( 8 ) ( 30 )

2021 ( 1 ) ( 2 ) ( 3 )

Total net development for the accident years presented above 14 16 9

Total net development for accident years prior to 2014

2 ( 3 ) ( 4 )

Total unallocated claim adjustment expense development 7 5 —

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Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative Number of Claims

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative Number of Claims

(In millions, except reported claims data)

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2020 67 248 400 523

2021 58 217 356

Total $ 5,716

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2019 8 11 20 63 102

2020 14 7 ( 6 ) 15

2021 1 ( 29 ) ( 28 )

2022 ( 8 ) ( 8 )

Total net development for the accident years presented above 49 45 43

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Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative Number of Claims

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative Number of Claims

(In millions, except reported claims data)

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2019 12 34 44 59 70

2020 4 20 28 33

Net liability for unpaid claim and allocated claim adjustment expenses for the accident years presented $ 434

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Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative

Number of Claims

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2020 71 134 197 246

2021 83 168 240

Total $ 2,197

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2020 ( 7 ) 1 ( 6 ) ( 12 )

2021 ( 9 ) 2 ( 7 )

Total net development for the accident years presented above 53 45 28

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Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative Number of Claims

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative Number of Claims

(In millions, except reported claims data)

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2020 23 99 192 280

2021 26 140 262

Total $ 4,085

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2019 2 — 9 29 40

2020 ( 1 ) 4 10 13

2022 ( 1 ) ( 1 )

Total net development for the accident years presented above 13 74 151

6 unchanged sentences

Cumulative Net Incurred Claim and Allocated Claim Adjustment Expenses December 31, 2023

December 31 2013 (a) 2014 (a) 2015 (a) 2016 (a) 2017 (a)

IBNR Cumulative Number of Claims

December 31 2014 (a) 2015 (a) 2016 (a) 2017 (a) 2018 (a) 2019 (a) 2020 (a) 2021 (a) 2022 (a) 2023 IBNR Cumulative Number of Claims

(In millions, except reported claims data)

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2020 65 147 200 228

2021 67 164 222

Total $ 2,418

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The unfavorable development in 2023, 2022 and 2021 was primarily driven by higher than anticipated defense and indemnity costs on known direct asbestos and environmental accounts and a reduction in estimated reinsurance recoverable.

Additionally, in 2022, 2021 and 2020, $ 5 million, $ 5 million and $ 25 million of the provision for uncollectible third-party reinsurance was released.

Additionally, in both 2022 and 2021, $ 5 million of the provision for uncollectible third-party reinsurance was released.

None of the provision for uncollectible third-party reinsurance was released in 2023.

As of December 31, 2023 and 2022, the cumulative amounts ceded under the LPT were $ 3.6 billion and $ 3.5 billion.

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The fair value of the collateral trust was $ 440 million as of December 31, 2023.

Life & Group Policyholder Reserves

CNA’s Life & Group business includes its run-off long term care business as well as structured settlement obligations not funded by annuities related to certain property and casualty claimants.

Long term care policies provide benefits for nursing homes, assisted living facilities and home health care subject to various daily and lifetime caps.

Generally, policyholders must continue to make periodic premium payments to keep the policy in force and CNA has the ability to increase policy premiums, subject to state regulatory approval.

CNA maintains both claim and claim adjustment expense reserves as well as future policy benefit reserves for policyholder benefits for its Life & Group business.

Claim and claim adjustment expense reserves consist of estimated reserves for long term care policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported.

In developing the claim and claim adjustment expense reserve estimates for long term care policies, CNA’s actuaries perform a detailed claim reserve review on an annual basis.

The review analyzes the sufficiency of existing reserves for policyholders currently on claim and includes an evaluation of expected benefit utilization and claim duration.

In addition, claim and claim adjustment expense reserves are also maintained for the structured settlement obligations.

In developing the claim and claim adjustment expense reserve estimates for structured settlement obligations, CNA’s actuaries review mortality experience on an annual basis.

CNA’s recorded claim and claim adjustment expense reserves reflect management’s best estimate after incorporating the results of the most recent reviews.

CNA’s most recent annual claim reserve reviews were completed in the third quarter of 2022.

The long term care claim reserve review resulted in a $ 25 million pretax reduction in reserves driven by a $ 107 million favorable impact from the release of all remaining IBNR reserves established during 2020 and 2021 in response to the COVID-19 pandemic partially offset by an $ 82 million unfavorable impact from higher claim severity, including utilization and cost of care inflation, than anticipated in the reserve estimates.

The structured settlement claim reserve review resulted in a $ 5 million pretax reduction in reserves due to discount rate assumption changes.

CNA’s 2021 annual claim reserve reviews were completed in the third quarter of 2021 resulting in a $ 40 million pretax reduction in long term care reserves primarily due to lower claim severity than anticipated in the reserve estimates and a $ 2 million pretax increase in the structured settlement claim reserves primarily due to lower discount rate assumptions and mortality assumption changes.

Future policy benefit reserves consist of active life reserves related to CNA’s long term care policies for policyholders that are not currently receiving benefits and represent the present value of expected future benefit payments and expenses less expected future premium.

The determination of these reserves requires management to make estimates and assumptions about expected investment and policyholder experience over the life of the contract.

Since many of these contracts may be in force for several decades, these assumptions are subject to significant estimation risk.

The actuarial assumptions that CNA believes are subject to the most variability are morbidity, persistency, discount rates and anticipated future premium rate increases.

Morbidity is the frequency and severity of injury, illness, sickness and diseases contracted.

Persistency is the percentage of policies remaining in force and can be affected by policy lapses, benefit reductions and death.

Discount rates are influenced by the investment yield on assets supporting long term care reserves which is subject to interest rate and market volatility and may also be affected by changes to the Internal Revenue Code.

Future premium rate increases are generally subject to regulatory approval, and therefore the exact timing and size of the approved rate increases are unknown.

As a result of this variability, CNA’s long term care reserves may be subject to material increases if actual experience develops adversely to CNA’s expectations.

Annually, in the third quarter, CNA assesses the adequacy of its long term care future policy benefit reserves by performing a gross premium valuation (“GPV”) to determine if there is a premium deficiency.

Under the GPV, management estimates required reserves using best estimate assumptions as of the date of the assessment without provisions for adverse deviation.

The GPV required reserves are then compared to the existing recorded reserves.

If the GPV required reserves are greater than the existing recorded reserves, the existing assumptions are unlocked and future policy benefit reserves are increased to the greater amount.

Any such increase is reflected in the Company’s results of operations in the period in which the need for such adjustment is determined.

If the GPV required reserves are less than the existing recorded reserves, assumptions remain locked in and no adjustment is made.

The GPV for the long term care future policy benefit reserves, performed in the third quarters of 2022 and 2021, indicated recorded reserves included a pretax margin of approximately $ 125 million and $ 72 million as of September 30, 2022 and 2021.

Future Policy Benefits Reserves

Future policy benefits reserves are associated with CNA’s run-off long-term care business, which is included in Other Insurance Operations, and relate to policyholders that are currently receiving benefits, including claims that have been incurred but are not yet reported, as well as policyholders that are not yet receiving benefits.

The determination of Future policy benefits reserves requires management to make estimates and assumptions about expected policyholder experience over the remaining life of the policy.

Since policies may be in force for several decades, these assumptions are subject to significant estimation risk.

As a result of this variability, CNA’s future policy benefits reserves may be subject to material increases if actual experience develops adversely to its expectations.

The LFPB is computed using the net level premium method, which incorporates cash flow assumptions and discount rate assumptions.

As a result of the modified retrospective adoption of ASU 2018-12, the NPR calculation incorporates the original locked in discount rate and the reserve balance as of the transition date of January 1, 2021.

The key cash flow assumptions used to estimate the LFPB are morbidity, persistency (inclusive of mortality), anticipated future premium rate increases and expenses.

The carried LFPB discount rate is determined using the upper-medium grade fixed income instrument yield curve.

CNA has elected to update the NPR and the LFPB for actual experience on a quarterly basis.

A quarterly assessment is also made as to whether evidence suggests that cash flow assumptions should be updated.

Annually in the third quarter, actuarial analysis is performed on policyholder morbidity, persistency, premium rate increases and expense experience, which, combined with judgment, informs the setting of updated cash flow assumptions used to estimate the LFPB.

The cash flow assumption updates completed in the third quarter of 2023 resulted in an $ 8 million pretax increase in the LFPB.

Persistency updates were unfavorable due to revisions to lapse rates.

Morbidity updates were favorable, driven by claim severity assumption updates, and there was a favorable impact from outperformance on premium rate assumptions.

Adjusted to reflect the application of ASU 2018-12, the cash flow assumption updates completed in the third quarter of 2022 resulted in a $ 186 million pretax increase to the LFPB, primarily driven by the unfavorable impact of increased cost of care inflation offset by favorable premium rate assumptions.

The following table summarizes balances and changes in the LFPB.

2023 2022 2021

(In millions)

Present value of future net premiums

Balance, January 1 $ 3,991 $ 4,735 $ 5,086

Effect of changes in discount rate ( 74 ) ( 880 ) ( 1,140 )

Balance, January 1, at original locked in discount rate 3,917 3,855 3,946

Effect of changes in cash flow assumptions (a) 28 352 173

Effect of actual variances from expected experience (a) ( 126 ) ( 49 ) ( 24 )

Adjusted balance, January 1 3,819 4,158 4,095

Interest accrual 202 216 219

Net premiums:

earned during period ( 436 ) ( 457 ) ( 459 )

Balance, end of period at original locked in discount rate 3,585 3,917 3,855

Effect of changes in discount rate 125 74 880

Balance, December 31

$ 3,710 $ 3,991 $ 4,735

Present value of future benefits & expenses

Balance, January 1 $ 17,471 $ 22,745 $ 23,955

Effect of changes in discount rate ( 125 ) ( 5,942 ) ( 7,395 )

Balance, January 1, at original locked in discount rate 17,346 16,803 16,560

Effect of changes in cash flow assumptions (a) 36 538 176

Effect of actual variances from expected experience (a) ( 46 ) ( 21 ) ( 19 )

Adjusted balance, January 1 17,336 17,320 16,717

Interest accrual 962 979 973

Benefit & expense payments ( 1,207 ) ( 953 ) ( 887 )

Balance, end of period at original locked in discount rate 17,091 17,346 16,803

Effect of changes in discount rate 578 125 5,942

Balance, December 31

$ 17,669 $ 17,471 $ 22,745

Net LFPB, December 31

$ 13,959 $ 13,480 $ 18,010

(a) As of December 31, 2023, 2022 and 2021 the re-measurement loss of $( 88 ), $( 214 ) and $( 8 ) presented parenthetically on the Consolidated Statement of Operations is comprised of the effect of changes in cash flow assumptions and the effect of actual variances from expected experience.

The following table presents earned premiums and interest expense associated with the long-term care business recognized on the Consolidated Statement of Operations.

Year Ended December 31

2023 2022 2021

(In millions)

Earned premiums $ 451 $ 473 $ 491

Interest expense 760 763 754

The following table presents undiscounted expected future benefit and expense payments and undiscounted expected future gross premiums.

(In millions)

Expected future benefit and expense payments $ 32,851 $ 34,261

Expected future gross premiums 5,414 5,910

Discounted expected future gross premiums at the upper-medium grade fixed income instrument yield discount rate were $ 3.8 billion and $ 4.1 billion as of December 31, 2023 and 2022 .

The weighted average effective duration of the LFPB calculated using the original locked in discount rate was 11 years and 12 years as of December 31, 2023 and 2022 .

The weighted average interest rates in the table below are calculated based on the rate used to discount all future cash flows.

Original locked in discount rate 5.22 % 5.27 %

Upper-medium grade fixed income instrument discount rate 4.94 5.23

For the years ended December 31, 2023 and 2022 , immediate charges to net income resulting from adverse development that caused the NPR to exceed 100% for certain cohorts were $ 164 million and $ 178 million.

For the years ended December 31, 2023 and 2022 , the portion of losses recognized in a prior period due to NPR exceeding 100% for certain cohorts which, due to favorable development, was reversed through net income were $ 42 million and $ 12 million.

Lease agreements primarily cover office facilities and machinery and equipment and expire at various dates.

2 unchanged sentences

Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term.

The discount rate used to determine the commencement date present value of lease payments is typically the secured borrowing rate, as most of the leases do not provide an implicit rate.

The discount rate used to determine the commencement date present value of lease payments is typically the applicable secured borrowing rate, as most of the leases do not provide an implicit rate.

The operating lease right of use asset was $ 302 million and $ 328 million and the operating lease liability was $ 384 million and $ 397 million at December 31, 2023 and 2022.

Total lease expense was $ 87 million, $ 89 million and $ 92 million for the years ended December 31, 2023, 2022 and 2021 which includes operating lease expense of $ 58 million, $ 60 million and $ 66 million, variable lease expense of $ 24 million, $ 26 million and $ 23 million and short-term lease expense of $ 5 million, $ 3 million and $ 3 million.

Cash paid for amounts included in operating lease liabilities was $ 64 million, $ 65 million and $ 86 million for year ended December 31, 2022, 2021 and 2020.

Cash paid for amounts included in operating lease liabilities was $ 60 million, $ 64 million and $ 65 million for year ended December 31,

2023, 2022 and 2021.

Operating lease right of use assets obtained in exchange for lease obligations was $ 39 million, $ 118 million and $ 35 million for the years ended December 31, 2023, 2022 and 2021.

In the fourth quarter of 2023 , CNA committed to consolidate some of its offices, which resulted in a $ 24 million charge within Operating expenses and other on the Consolidated Statement of Operations.

The charge primarily relates to the abandonment of certain fixed assets and operating lease right of use assets that are no longer in use.

The table below presents the maturities of lease liabilities:

19 unchanged sentences

These returns, with few exceptions, are no longer subject to examination by the various taxing authorities before 2019.

The current and deferred components of income tax expense (benefit) are as follows:

The current and deferred components of income tax expense are as follows:

Year Ended December 31

10 unchanged sentences

The components of U.S.

and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense (benefit) is as follows:

and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense is as follows:

Year Ended December 31

1 unchanged sentence

(In millions)

Income (loss) before income tax:

Income before income tax:

$ 1,798 $ 973 $ 2,036

1 unchanged sentence

Total $ 1,996 $ 1,114 $ 2,160

Income tax expense (benefit) at statutory rate $ 290 $ 458 $ ( 307 )

Increase (decrease) in income tax expense (benefit) resulting from:

Income tax expense at statutory rate $ 419 $ 235 $ 454

Increase (decrease) in income tax expense resulting from:

Exempt investment income ( 28 ) ( 38 ) ( 48 )

2 unchanged sentences

Valuation allowance 2 1 1

Unrecognized tax positions, settlements and adjustments relating to prior years 68

State taxes 48 36 24

Other 4 6 ( 7 )

Income tax expense (benefit) $ 278 $ 479 $ ( 173 )

Income tax expense $ 451 $ 223 $ 475

As of December 31, 2023, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding tax carryforwards and interest and penalties, is as follows:

Year Ended December 31

2022 2021 2020

(In millions)

Balance at January 1 $ — $ 2 $ 121

Additions for tax positions related to the current year 68

Reduction due to deconsolidation of subsidiaries ( 2 ) ( 187 )

Balance at December 31

As of December 31, 2022, there were no unrecognized tax benefits or related accrued interest and penalties that would affect the effective tax rate if recognized.

Accrued interest related to unrecognized tax benefits and tax refund claims is recognized in Income tax expense (benefit) on the Consolidated Statements of Operations.

Penalties are recognized in Income tax expense (benefit) on the Consolidated Statements of Operations.

No interest expense (benefit) and no penalties were recorded for the years ended December 31, 2022 and 2021, and amounts recorded were insignificant for the year ended December 31, 2020.

As of December 31, 2023, 2022 and 2021, there were no unrecognized tax benefits.

Accrued interest related to unrecognized tax benefits and tax refund claims is recognized in Income tax expense on the Consolidated Statements of Operations.

Penalties are recognized in Income tax expense on the Consolidated Statements of Operations.

No interest expense and no penalties were recorded for the years ended December 31, 2023, 2022 and 2021.

The following table summarizes deferred tax assets and liabilities:

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Unearned premium reserves 213 198

Policyholder reserves 160 75

Deferred revenue 70 72

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Deferred acquisition costs ( 126 ) ( 113 )

Net unrealized gains ( 275 )

Property, plant and equipment ( 938 ) ( 810 )

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Total deferred tax liabilities ( 1,764 ) ( 1,574 )

Net deferred tax liabilities (a) $ ( 42 ) $ ( 1,034 )

Net deferred tax assets (liabilities) (a) $ ( 344 ) $ 31

(a) Includes deferred tax assets reflected in Other assets on the Consolidated Balance Sheets at December 31, 2023 and 2022

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Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized deferred tax assets will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies.

Due to the mix of state tax jurisdictions in which our subsidiaries operate, as of December 31, 2022, a valuation allowance of $ 16 million was recorded related primarily to state net operating losses.

As of December 31, 2023, a valuation allowance of $ 18 million was recorded related to state net operating losses and disallowed business interest expense from joint ventures.

December 31 2023 2022

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2.1 % notes due 2030 (effective interest rate of 2.1 %) (authorized, $ 500 )

Boardwalk Pipelines:

5.5 % notes due 2033 (effective interest rate of 5.7 %) (authorized, $ 500 )

3.4 % notes due 2023 (effective interest rate of 3.5 %) (authorized, $ 300 )

Boardwalk Pipelines:

Variable rate revolving credit facility due 2028 (effective interest rate of 6.7 %)

5.0 % notes due 2024 (effective interest rate of 5.2 %) (authorized, $ 600 )

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At December 31, 2023, the aggregate long-term debt maturing in each of the next five years is approximately as follows:

$ 855 million in 2023, $ 1.5 billion in 2024, $ 3 million in 2025, $ 1.6 billion in 2026, $ 1.1 billion in 2027 and $ 4.0 billion thereafter.

$ 1.7 billion in 2024, $ 0 in 2025, $ 1.8 billion in 2026, $ 1.1 billion in 2027, $ 83 million in 2028 and $ 4.4 billion thereafter.

Long-term debt is generally redeemable in whole or in part at the greater of the principal amount or the net present value of remaining scheduled payments discounted at the specified treasury rate plus a margin.

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As of December 31, 2023, CNA had no outstanding borrowings under the credit agreement and was in compliance with all covenants.

In February of 2022, Boardwalk Pipelines completed a public offering of $ 500 million aggregate principal amount of its 3.6 % senior notes due September 1, 2032.

Boardwalk Pipelines used the proceeds to retire the outstanding $ 300 million aggregate principal amount of its 4.0 % senior notes due June 2022 in March of 2022, to fund growth capital expenditures and for general corporate purposes.

In November of 2022, Boardwalk Pipelines retired the outstanding $ 300 million aggregate principal amount of its 3.4 % senior notes due February 1, 2023 at a redemption price of 100 % of the principal amount plus unpaid and accrued interest.

The retirement was funded from available cash.

Boardwalk Pipelines has a revolving credit facility that is evidenced by a credit agreement with a borrowing capacity of $ 1.0 billion through May 27, 2027.

In 2023, CNA issued $ 500 million of 5.5 % senior notes due June 15, 2033 and repaid at maturity the $ 243 million outstanding aggregate principal balance of its 7.3 % debenture.

Boardwalk Pipelines has a revolving credit facility with available borrowing capacity of $ 1 billion through May 27, 2027 and a borrowing capacity of $ 912 million from May 28, 2027 to May 26, 2028.

Interest rates are based on the term Secured Overnight Financing Rate (“SOFR”).

As of December 31, 2022, Boardwalk Pipelines had no outstanding borrowings and all of the $ 1.0 billion available borrowing capacity under its revolving credit facility.

As of December 31, 2023, Boardwalk Pipelines had $ 25 million of outstanding borrowings under its revolving credit facility.

As of December 31, 2023, Boardwalk Pipelines was in compliance with its covenants under the credit agreement.

Boardwalk Pipelines’ $ 600 million of 5.0 % senior notes due December 15, 2024 has been included as long-term debt as of December 31, 2023.

Boardwalk Pipelines has the intent and ability to refinance the notes near or at their maturity through available capital resources, including borrowing under its revolving credit facility or publicly issuing debt securities.

In 2023, Loews Corporation retired at maturity with available cash the outstanding $ 500 million aggregate principal amount of its 2.6 % senior notes.

Certain of the hotels wholly or partially owned by Loews Hotels & Co are financed by debt facilities, with a number of different lenders.

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The tables below present the changes in AOCI by component for the years ended December 31, 2021, 2022 and 2023:

Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss)

Net Unrealized Gains (Losses) on Investments with an Allowance for Credit Losses Net Unrealized Gains (Losses) on Other Investments Cumulative

rates used to

contracts Unrealized Gains (Losses) on Cash Flow Hedges Pension and Postretirement Benefits Foreign Currency Translation Total Accumulated Other Comprehensive Income (Loss)

(In millions)

Balance, January 1, 2020

Balance, January 1, 2021, as reported

$ — $ 1,563 $ — $ ( 23 ) $ ( 877 ) $ ( 82 ) $ 581

Cumulative effect adjustments from changes in accounting standards (Note 1), after tax of $ 0 , $( 691 ), $ 1,313 , $ 0 , $ 0 and $ 0

2,331 ( 4,428 ) ( 2,097 )

Balance, January 1, 2021, as adjusted

— 3,894 ( 4,428 ) ( 23 ) ( 877 ) ( 82 ) ( 1,516 )

Other comprehensive income (loss) before reclassifications, after tax of $ 2 , $ 242 , $( 250 ), $( 2 ), $( 59 ) and $ 0

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( 24 ) 1,072 ( 318 ) ( 5 ) 41 60 826

Reclassification of (gains) losses from accumulated other comprehensive loss, after tax of $ 1 , $( 21 ), $ 0 , $( 5 ) and $ 0

( 5 ) 126 18 139

Reclassification of losses from accumulated other comprehensive loss, after tax of $( 5 ), $( 14 ), $ 0 , $ 0 , $( 18 ) and $ 0

Other comprehensive income (loss) ( 5 ) 1,125 ( 318 ) ( 5 ) 104 60 961

Amounts attributable to noncontrolling interests ( 93 ) 26 ( 5 ) ( 5 ) ( 77 )

Purchase of CNA shares ( 46 ) ( 1 ) ( 10 ) ( 4 ) ( 61 )

Balance, December 31, 2023

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See Note 15 for a discussion of the regulatory restrictions on CNA’s availability to pay dividends.

Treasury Stock

Stock Purchases

Loews Corporation repurchased 14.0 million, 12.7 million and 21.1 million shares of its common stock at aggregate costs of $ 0.9 billion, $ 0.7 billion and $ 1.1 billion during the years ended December 31, 2023, 2022 and 2021.

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Non-insurance warranty – CNA Financial $ 1,624 $ 1,574 $ 1,430

Transportation and storage of natural gas and NGLs and other services – Boardwalk Pipelines $ 1,398 $ 1,306 $ 1,264

Transportation and storage of natural gas and NGLs and ethane supply and transportation services – Boardwalk Pipelines $ 1,582 $ 1,398 $ 1,306

Lodging and related services – Loews Hotels & Co 778 689 419

Rigid plastic packaging and recycled resin – Corporate (a) 280

Contract drilling – Diamond Offshore (b)

Total revenues from contracts with customers 2,360 2,087 2,005

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See Note 2 for further discussion.

(b) Revenues presented for Diamond Offshore reflects the period prior to deconsolidation.

See Note 2 for further discussion.

Receivables from contracts with customers – As of December 31, 2023 and 2022, receivables from contracts with customers were approximately $ 228 million and $ 168 million and are included within Receivables on the Consolidated Balance Sheets.

Deferred revenue – As of December 31, 2022 and 2021, deferred revenue resulting from contracts with customers was approximately $ 4.8 billion and $ 4.6 billion and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Balance Sheets.

Approximately $ 1.4 billion and $ 1.2 billion of revenues recognized during the year ended December 31, 2022 and 2021 were included in deferred revenue as of January 1, 2022 and 2021.

Contract costs – As of December 31, 2022 and 2021, the Company had approximately $ 3.7 billion and $ 3.5 billion of costs to obtain contracts with customers related to CNA for amounts paid to dealers and other agents to obtain non-insurance warranty contracts, which are reported as Deferred non-insurance warranty acquisition expenses on the Consolidated Balance Sheets.

For the year ended December 31, 2022 and 2021, amortization expense of $ 1.2 billion and $ 1.1 billion is reported as Non-insurance warranty expense on the Consolidated Statement of Income.

There were no adjustments to deferred costs recorded for the year ended December 31, 2022 and 2021.

Deferred revenue – As of December 31, 2023 and 2022, deferred revenue resulting from contracts with customers was approximately $ 4.8 billion for each year and is reported as Deferred non-insurance warranty revenue and within Other liabilities on the Consolidated Balance Sheets.

Approximately $ 1.4 billion of revenues recognized during each of the years ended December 31, 2023 and 2022 were included in deferred revenue as of January 1, 2023 and 2022.

Contract costs – As of each of December 31, 2023 and 2022, the Company had approximately $ 3.7 billion of costs to obtain contracts with customers related to CNA for amounts paid to dealers and other agents to obtain non-insurance warranty contracts, which are reported as Deferred non-insurance warranty acquisition expenses on the Consolidated Balance Sheets.

For each of the years ended December 31, 2023 and 2022, amortization expense of $ 1.2 billion is reported as Non-insurance warranty expense on the Consolidated Statement of Operations.

There were no adjustments to deferred costs recorded for the years ended December 31, 2023 and 2022.

Performance obligations – As of December 31, 2023, approximately $ 14.2 billion of estimated operating revenues is expected to be recognized in the future related to outstanding performance obligations.

The balance relates primarily to revenues for transportation and storage of natural gas and NGLs at Boardwalk Pipelines and non-insurance warranty revenue at CNA.

The balance relates primarily to revenues for transportation and storage services for natural gas and NGLs and certain ethane supply contracts at Boardwalk Pipelines and non-insurance warranty revenue at CNA.

Approximately $ 2.8 billion will be recognized during 2024, $ 2.4 billion in 2025 and the remainder in following years.

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The maximum allowable dividend CCC could pay during 2024 that would not be subject to the Department’s prior approval is $ 1.1 billion, less dividends paid during the preceding 12 months measured at that point in time.

CCC paid dividends of $ 990 million in 2022 .

CCC paid dividends of $ 1.1 billion in 2023 .

The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.

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Year that the rate reaches the ultimate trend rate 2024 - 2028

During 2023, the Parent Company completed the termination of a non-contributory defined benefit plan.

In total, the plan paid $ 66 million to settle its obligations to retirees and certain participants through the purchase of group annuity contracts from a third party insurance company and $ 34 million in lump sum payments to certain other participants.

The Company recorded a settlement expense of $ 47 million ($ 37 million after-tax) to recognize unrealized losses which were previously included in AOCI.

In 2023, the CNA Retirement Plan paid $ 80 million to settle its obligation to certain retirees through the purchase of a group annuity contract from a third party insurance company, which reduced the plan's projected benefit obligation by $ 86 million.

Net periodic (benefit) cost components:

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Amortization of unrecognized net loss 35 32 49 1

Settlements and curtailments 5 3 10 ( 1 )

Settlements 48 5 3

Regulatory asset decrease 3

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Benefit obligation at January 1 $ 2,220 $ 2,916 $ 33 $ 44

Deconsolidation ( 98 )

Service cost 2 2

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Benefits paid from plan assets ( 181 ) ( 181 ) ( 10 ) ( 9 )

Settlements and curtailments ( 23 ) ( 19 )

Settlements ( 194 ) ( 23 )

Foreign exchange 3 ( 13 )

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Fair value of plan assets at January 1 $ 2,212 $ 2,816 $ 81 $ 93

Deconsolidation ( 85 )

Actual return on plan assets 206 ( 405 ) 5 ( 9 )

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Amounts recognized in Accumulated other comprehensive income (loss), not yet recognized in net periodic (benefit) cost:

Prior service credit $ 1

Net actuarial loss 672 $ 811 $ 3

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The benefit obligation for all defined benefit pension plans was $ 2.0 billion and $ 2.2 billion at December 31, 2023 and 2022.

Changes for the years ended December 31, 2022 and 2021 include actuarial gains of $ 557 million and $ 89 million primarily driven by changes in the discount rate used to determine the benefit obligations.

Changes for the years ended December 31, 2023 and 2022 include actuarial (losses) gains of $( 31 ) million and $ 557 million primarily driven by changes in the discount rate used to determine the benefit obligations.

A total return approach is employed whereby a mix of equity, limited partnerships and fixed maturity securities are used to maximize the long-term return of plan assets for a prudent level of risk and to manage cash flows according to plan requirements.

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Fixed income mutual funds 26 26

Other assets (a) 2 12 57 71

Other assets 11 11

Total plan assets at fair value $ 304 $ 1,346 $ 14 $ 1,664

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Fixed income mutual funds 42 42

Other assets 2 8 10

Other assets (b) 2 12 57 71

Total plan assets at fair value $ 474 $ 1,091 $ 73 $ 1,638

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Total plan assets $ 474 $ 1,091 $ 73 $ 2,212

(a) In November 2022, the Company elected to de-risk a portion of the pension assets and purchased an annuity contract.

(b) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(a) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

The fair value amounts presented in this table for these investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

(b) In November 2022, a portion of the pension assets was de-risked through the purchase of an annuity contract.

The limited partnership investments held within the plans are recorded at fair value, which represents the plans’ shares of the net asset value of each partnership, as determined by the general partner.

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Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments.

Within hedge fund strategies, approximately 64 % were equity related, 24 % pursued a multi-strategy approach and 12 % were focused on distressed investments at December 31, 2022.

Within hedge fund strategies, approximately 8 % were equity related, 92 % pursued a multi-strategy approach and none were focused on distressed investments at December 31, 2023.

For a discussion of the valuation methodologies used to measure fixed maturity securities, equities and short-term investments, see Note 4.

21 unchanged sentences

Total $ 4 $ 90 $ — $ 94

Other liabilities $ 13 $ 13

There were no Level 3 assets at December 31, 2023 and 2022.

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In accordance with the 2016 Loews Plan and the prior equity plan, Loews Corporation stock-based compensation consists of the following:

SARs were granted under the prior equity plan.

Stock appreciation rights (“SARs”) were granted under the prior equity plan.

The exercise price per share may not be less than the fair market value of the common stock on the date of grant.

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In 2023, Loews Corporation granted an aggregate of 186,169 RSUs and PSUs at a weighted average grant-date fair value of $ 60.40 per unit.

12,289 RSUs were forfeited during the year.

No RSUs were forfeited during the year.

531,500 SARs were outstanding at December 31, 2023 with a weighted average exercise price of $ 40.43 .

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Ceded claim and claim adjustment expenses $ 5,141 $ 5,191

Ceded future policy benefits 288

Reinsurance receivables related to paid losses 293 247

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Such collateral, limited by the balance of open recoverables, was approximately $ 3.6 billion and $ 3.7 billion at December 31, 2023 and 2022.

CNA’s largest recoverables from a single reinsurer, including ceded unearned premium reserves as of December 31, 2022 were approximately $ 1.9 billion from subsidiaries of the Berkshire Hathaway Insurance Group, $ 598 million from Cavello Bay Reinsurance Limited and $ 446 million from the Gateway Rivers Insurance Company.

CNA’s largest recoverables from a single reinsurer, including ceded unearned premium reserves as of December 31, 2023 were approximately $ 1.8 billion from subsidiaries of the Berkshire Hathaway Insurance Group, $ 576 million from Cavello Bay Reinsurance Limited and $ 410 million from the Swiss Reinsurance Group.

These amounts are substantially collateralized or otherwise secured.

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Oral arguments were held on September 14, 2022, and on December 19, 2022, the Supreme Court reversed the Trial Court’s ruling and remanded the case to the Trial Court for further proceedings related to claims not decided by the Trial Court’s ruling.

Briefing by the parties at the Trial Court on the remanded issues was completed in September 2023.

A hearing on the remanded issues is scheduled at the Trial Court in April 2024.

The Company is from time to time party to other litigation arising in the ordinary course of business.

5 unchanged sentences

CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.

Loews Hotels & Co

Loews Hotels & Co contributed $ 41 million to two joint venture development projects expected to open in 2025.

These projects are currently estimated to require an aggregate additional investment of approximately $ 160 million in capital contributions from Loews Hotels & Co.

Supplemental Quarterly Information (Unaudited)

The following table presents the effect of adoption of ASU 2018-12 on selected 2022 financial data.

Q1 Q2 Q3 Q4 Full Year

(In millions, except per share data)

Components of Income (Loss)

Net income (loss) attributable to Loews Corporation

As reported $ 338 $ 180 $ 130 $ 364 $ 1,012

Effect of adoption ( 16 ) ( 13 ) ( 152 ) ( 9 ) ( 190 )

As adjusted $ 322 $ 167 $ ( 22 ) $ 355 $ 822

Other comprehensive income (loss)

As reported $ ( 1,605 ) $ ( 1,405 ) $ ( 1,425 ) $ 577 $ ( 3,858 )

Effect of adoption 603 627 586 ( 177 ) 1,639

As adjusted $ ( 1,002 ) $ ( 778 ) $ ( 839 ) $ 400 $ ( 2,219 )

Diluted Net Income (Loss) Per Share

Net income (loss) attributable to Loews Corporation

As reported $ 1.36 $ 0.73 $ 0.54 $ 1.53 $ 4.16

Effect of adoption ( 0.07 ) ( 0.05 ) ( 0.63 ) ( 0.04 ) ( 0.78 )

As adjusted $ 1.29 $ 0.68 $ ( 0.09 ) $ 1.49 $ 3.38

The sum of the quarterly per share amounts may not equal per share amounts reported for year-to-date periods.

This is due to changes in the number of weighted average shares outstanding and the effects of rounding for each period.

As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021.

Prior period amounts in the financial statements have been adjusted to reflect application of the new standard.

For additional information see Note 1.

Net income (loss) attributable to Loews Corporation for 2022 decreased from what was previously reported under legacy accounting guidance generally driven by the cumulative effect of assumption differences and differences in reserving methodologies between legacy accounting guidance and ASU 2018-12.

Net income (loss) attributable to Loews Corporation for the third quarter of 2022 decreased $ 152 million from what was previously reported under legacy accounting guidance, primarily related to CNA’s third quarter 2022 annual review of cash flow reserving assumptions.

Under legacy accounting guidance, the third quarter 2022 gross premium valuation assessment indicated a pretax margin of $ 125 million and no unlocking event occurred.

Under ASU 2018-12 favorable changes to the upper-medium grade fixed income instrument discount rate were recorded through AOCI, while the net unfavorable impact of increased cost of care inflation offset by favorable premium rate action assumptions was recorded in income.

Other comprehensive income (loss) for 2022 decreased from what was previously reported under legacy accounting guidance driven by increases in the upper-medium grade fixed income instrument yield, which was used as the discount rate to re-measure the LFPB.

Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co;

and the Corporate segment.

In the first quarter of 2020, Diamond Offshore was a reportable segment;

Diamond Offshore was deconsolidated during the second quarter of 2020.

The Corporate segment is primarily comprised of Loews Corporation, excluding its subsidiaries, the consolidated operations of Altium Packaging through March 31, 2021 and the equity method of accounting for Altium Packaging subsequent to its deconsolidation on April 1, 2021.

For further information on the deconsolidations of Diamond Offshore and Altium Packaging see Note 2.

Each of the operating subsidiaries is headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position.

For further information on the deconsolidation of Altium Packaging see Note 2.

Each of the operating subsidiaries is

headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position.

CNA’s business is the sale of property and casualty insurance products and services, including surety, primarily through a network of independent agents, brokers and managing general underwriters.

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Boardwalk Pipelines operates in the midstream portion of the natural gas and NGLs industry, providing transportation and storage for those commodities.

It also provides ethane supply and transportation services for industrial customers in Louisiana and Texas.

Boardwalk Pipelines owns approximately 14,310 miles of natural gas and NGL pipelines and underground storage caverns.

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Insurance premiums $ 9,480 $ 9,480

Net investment income (loss) 1,805 $ 3 $ 1 $ ( 7 ) 1,802

Investment losses ( 199 ) ( 199 )

Net investment income 2,264 $ 11 $ 6 $ 114 2,395

Investment gains (losses) ( 99 ) 46 ( 53 )

Non-insurance warranty revenue 1,624 1,624

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Year Ended December 31, 2022

CNA Financial Boardwalk Pipelines Loews Hotels & Co Corporate (a) Total

Financial (a) Boardwalk Pipelines Loews Hotels & Co Corporate Total (a)

(In millions)

Insurance premiums $ 8,667 $ 8,667

Net investment income 2,159 $ 1 $ 99 2,259

Investment gains 120 540 660

Net investment income (loss) 1,805 $ 3 $ 1 $ ( 7 ) 1,802

Investment losses ( 199 ) ( 199 )

Non-insurance warranty revenue 1,574 1,574

9 unchanged sentences

Income (loss) before income tax 814 330 161 ( 191 ) 1,114

Income tax expense ( 282 ) ( 68 ) ( 2 ) ( 127 ) ( 479 )

Income tax (expense) benefit ( 133 ) ( 83 ) ( 44 ) 37 ( 223 )

Net income (loss) 681 247 117 ( 154 ) 891

3 unchanged sentences

Total assets $ 60,945 $ 9,640 $ 1,935 $ 3,047 $ 75,567

(a) Amounts include the consolidated results of Altium Packaging through March 31, 2021.

Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment.

CNA Boardwalk Loews Diamond

(a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021.

Prior period amounts in the financial statements have been adjusted to reflect application of the new standard.

For additional information see Note 1.

Year Ended December 31, 2021

Financial Pipelines Hotels & Co Corporate (a) Offshore (b) Total

Financial (a) Boardwalk Pipelines Loews Hotels & Co Corporate (b) Total (a)

(In millions)

1 unchanged sentence

Net investment income 2,159 $ 1 $ 99 2,259

Investment losses ( 35 ) ( 1,211 ) ( 1,246 )

Investment gains 120 540 660

Non-insurance warranty revenue 1,430 1,430

5 unchanged sentences

Operating expenses and other 1,191 885 503 378 2,957

Equity method loss 73 73

Equity method (income) loss ( 47 ) 21 ( 26 )

Interest 113 161 36 114 424

1 unchanged sentence

Income (loss) before income tax 1,462 303 ( 12 ) 407 2,160

Income tax (expense) benefit ( 131 ) ( 71 ) 62 287 26 173

Income tax expense ( 278 ) ( 68 ) ( 2 ) ( 127 ) ( 475 )

Net income (loss) 1,184 235 ( 14 ) 280 1,685

1 unchanged sentence

Net income (loss) attributable to Loews Corporation $ 1,061 $ 235 $ ( 14 ) $ 280 $ 1,562

(b) Amounts presented for Diamond Offshore reflects the period prior to its deconsolidation.

(a) As of January 1, 2023, ASU 2018-12 was adopted using the modified retrospective method applied as of the transition date of January 1, 2021.

Prior period amounts in the financial statements have been adjusted to reflect application of the new standard.

For additional information see Note 1.

(b) Amounts include the consolidated results of Altium Packaging through March 31, 2021.

Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data