Loews management commentary: CNA reserve charge drives Q3 2026 net income decline
L•Loews said third-quarter 2026 net income fell to $306 million from $504 million, primarily because of CNA’s reserve review, which reduced net income by $125 million. Hotels’ adjusted EBITDA rose 25% to $86 million.
1. CNA reserve review weighs
Loews attributed its third-quarter net income decline primarily to CNA’s reserve review, which reduced net income by $125 million, mainly reflecting higher expected care-cost inflation and unfavorable morbidity. Management expects higher investment yields to substantially offset the reserve changes economically, with benefits recognized over time. CNA’s combined ratio increased 4.2 percentage points to 97% as underwriting income fell, reflecting higher underlying losses and catastrophe costs. Hotels’ adjusted EBITDA rose 25% to $86 million, supported by stronger performance in Miami and Arlington.
