Loews : 2022 Letter to Shareholders

20 22

LETTER TO SHAREHOLDERS

www.loews.com

FINANCIAL HIGHLIGHTS

RESULTS OF OPERATIONS

$ in millions, except per share data

Year ended December 31

Revenues

Income (loss) before income tax Net income (loss)

Amounts attributable to noncontrolling interests

Net income (loss) attributable to Loews Corporation Diluted net income (loss) per share

FINANCIAL POSITION

Investments

Total assets

Debt: Parent Company Debt: Subsidiaries Shareholders' equity Cash dividends per share Book value per share Shares outstanding

RESULTS OF OPERATIONS

Consolidated net income attributable to Loews Corporation (NYSE:L) for 2022 was $1.0 billion, or $4.16 per share compared to $1.6 billion, or $6.07 per share, in 2021.

Please note that net income for 2021 included an investment gain of $555 million ($438 million after tax) related to the sale of 47% of Altium Packaging and its deconsolidation. Excluding this gain, net income was $1.1 billion in 2021.

The strong operating performance of our consolidated subsidiaries in 2022 was offset by lower investment income at CNA and the parent company. CNA's core property & casualty business experienced record high results as their underlying combined ratio, which excludes catastrophes and prior year development, was at a record low of 91.2% in 2022. The all-in combined ratio improved 3 points to 93.2%, also a record low, due to increased premiums and lower catastrophe losses. Loews Hotels & Co's results substantially improved in 2022 as travel rebounded from the effects of the COVID-19 pandemic. Boardwalk Pipelines also contributed positively to Loews's results as net income and EBITDA improved year-over-year.

CNA's earnings decreased in 2022, primarily due to lower net investment income and investment losses compared to investment gains in 2021. Lower net investment income was driven by unfavorable limited partnership and common stock results, and investment losses were driven by net losses on fixed-income securities and the unfavorable change in fair value of non-redeemable preferred stock. These decreases were partially offset by improved underwriting results and higher net investment income from fixed-income securities.

2022

$
$	1,381	$
$	1,103	$
$	(91)	$
$	1,012	$
$	4.16	$
2022

$ 14,044

2021

2020

• 14,657 $ 12,583

  2,182 1,703

  • $ (1,464)

  • $ (1,291)

• (125) $ 360

2019

2018

• $ 14,931

  • $ 14,066

• $ 1,119

  • $ 834

• $ 871

  • $ 706

• $ 61

• $ (70)

1,578 6.07

$ (931)

$

932

$ 636

$ (3.32)

$ 3.07

$ 1.99

2021

2020

2019 2018

$ 46,768

$ 53,938

$ 53,844

$ 51,250

$ 48,186

75,494

2,280

6,739

14,598

0.25

61.86

235.96

81,626

2,278

6,801

17,846

0.25

71.84

248.42

80,236

2,276

7,833

17,860

0.25

66.34

269.21

82,243 78,316

1,779 1,778

9,754 9,598

19,119 18,518

0.25 0.25

65.71 59.34

290.97 312.07

Boardwalk Pipelines reported higher earnings as net operating revenues increased due to growth projects recently placed in service, re-contracting at higher rates, and higher utilization-based revenues. Operating expenses, including depreciation and amortization, rose primarily due to an increase in maintenance projects associated with regulatory requirements, a change in the useful lives of certain assets, and an increased asset base from recently completed growth projects.

Loews Hotels & Co's improved results in 2022 were primarily due to considerably higher overall occupancy rates and increased overall average daily room rates. Operating expenses also increased, largely due to the higher staffing levels needed to support the uptick in business. Additionally, all 9,000 rooms at Universal Orlando Resorts were available for the full year in 2022, whereas certain rooms were not available during a portion of 2021.

Parent company investment results decreased in 2022 primarily due to the decline in fair value of equity securities, partially offset by improved results from short-term investments.

At December 31, 2022, excluding accumulated other comprehensive income, the book value per share of Loews common stock was $75.78 as compared to $71.09 at December 31, 2021.

At December 31, 2022, there were 236.0 million shares of Loews common stock outstanding. In 2022, the company purchased 12.7 million shares of its common stock at an aggregate cost of $738 million.

Table of Contents

LETTER TO SHAREHOLDERS 02

OUR PORTFOLIO OF BUSINESSES 07

BOARD & OFFICERS 12

LOEWS CORPORATION 1

Letter to Shareholders

We are pleased to report that in 2022 Loews continued to drive value creation for our shareholders during a year of many changes. Loews's solid results reflect our long-established enterprise focus on prudently allocating capital and investing in diverse businesses led by highly capable management teams. The company demonstrated great strength and resiliency in the face of unrelenting global challenges, including inflationary pressures, recession fears, volatile financial markets, climate events and the ongoing war in Ukraine.

$802MM	$892MM	$345MM	12.7MM
CNA net income	Boardwalk EBITDA,	Loews Hotels & Co Adjusted	Loews shares repurchased in
attributable to Loews	up $58MM from 2021	EBITDA, up $210MM from 2021	2022, at a cost of $738MM

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2022 ANNUAL REPORT

Despite these conditions, Loews delivered consolidated revenues of $14.0 billion and net income of $1.0 billion, or $4.16 per share for the year. These results compared with revenues of $14.7 billion and net income of $1.6 billion, or $6.07 per share in 2021, a year in which Loews benefitted from an after-tax investment gain of $438 million from the sale of a minority interest in our Altium Packaging subsidiary. Putting aside lower investment income at both CNA and Loews, all of our subsidiaries posted strong growth in operating performance.

In regard to the ongoing litigation in Delaware, we were gratified by the Delaware Supreme Court's December 2022 ruling in our favor. The Delaware Supreme Court reversed the lower court's ruling that had awarded former minority unitholders of Boardwalk approximately $690 million, plus interest-or just over $900 million in total. The Delaware Supreme Court remanded the case back to the Chancery Court to resolve three previously undecided issues. Proceedings in the Chancery Court will continue in 2023 and, if necessary, Loews will have the opportunity to appeal the Chancery Court's new decision to the Delaware Supreme Court.

DIVERSE BUSINESSES, SOLID PERFORMANCE

Loews Corporation owns-in sum or in part-four very different businesses, each of which delivered strong operating results in 2022.

CNA FINANCIAL

CNA contributed net income to Loews of $802 million, compared with $1.1 billion in 2021, as higher underwriting income was largely offset by lower investment results. CNA reported an underlying combined ratio of 91.2%, in line with 2021's stellar performance. Net written premiums grew by over 9% due to significant new business and improved retention. Net catastrophe losses decreased substantially to $247 million in 2022 from $397 million in 2021, despite severe climate events, such as Winter Storm Elliott and Hurricane Ian.

BOARDWALK PIPELINES

Our natural gas pipeline business generated $892 million of EBITDA attributable to Loews, compared to $834 million in 2021. Boardwalk's revenue increased due to recently completed growth projects, higher recontracting rates, and higher utilization of its pipeline and storage assets. This increase was partially offset by higher costs for maintenance projects due to compliance with pipeline safety requirements. Over the course of the year, Boardwalk grew its revenue backlog by $65 million to $9.1 billion, more than 70% of which is with investment grade customers.

Boardwalk's pipeline assets are well positioned to take advantage of the ongoing expected demand for natural gas, which is an essential part of our nation's energy future due to its ability to fuel dispatchable electricity.

LOEWS HOTELS & CO

Our hotel company had a phenomenal year. Adjusted EBITDA was $345 million for 2022, a more than $200 million increase from 2021. Loews Hotels & Co's full year Adjusted EBITDA also far exceeded its pre-COVID 2019 results. As leisure and group travel recovered dramatically from the pandemic, Loews Hotels was prepared to take advantage of pent-up demand.

The hotel company's growth strategy is based on two pillars: first, catering to group business; and second, developing and operating hotels in immersive destinations. The first pillar focuses on hotels with 300-plus keys and ample meeting space that also offer local experiences which attract group and leisure customers alike. The properties that Loews Hotels owns in partnership with Universal Orlando are a great example of the second pillar of the company's strategy: immersive destinations with built-in demand generators. The Universal Orlando partnership has been highly successful, spanning more than two decades and currently encompassing eight hotels with 9,000 rooms. The company continues to expand its footprint, opening the Loews Coral Gables Hotel in November of 2022 and looking forward to the expected opening of the Loews Arlington (Texas) Hotel & Convention Center in the first quarter of 2024.

We continue to have a high degree of confidence in CNA, along with the commercial property and casualty sector in general. Known for its disciplined underwriting culture, the company is benefitting from its initiatives to drive premium growth in selected lines, to strengthen underwriting margins, and to foster strong relationships with key distribution partners.

Succession planning is critically important to any organization. In October of 2022, Loews announced that Alex Tisch would assume the role of President and CEO of Loews Hotels as of January 1, 2023. Alex succeeds Jonathan Tisch, who became Executive Chairman of Loews Hotels and will continue to serve Loews Corporation as a member of the Office of the

LOEWS CORPORATION

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