New York, November 2nd / PRNewswire / —— Lois Company ( NYSE : L) announced its financial results for the third quarter of 2026 today.

Key Points of the Third Quarter of 2026:

Lois Company reported that its net profit for the third quarter of 2026 was $306 million, equivalent to $1.50 per share; in the same period last year, it was $504 million, equivalent to $2.43 per share. The key points of the company's third-quarter performance are listed as follows:

• CNA Financial Corporation ( NYSE : CNA ) The net profit attributable to Lois Company decreased year-on-year, mainly due to the adverse impact of $125 million resulting from the update of the long-term care reserve assumptions for the year 2026 (after tax and excluding non-controlling interests), as well as weaker underwriting results in the property and casualty insurance business and higher disaster losses. This adverse impact from the long-term care reserve will almost be completely offset by the higher investment returns brought about by recent portfolio adjustments. This expected return will be reflected in investment income over time.
• Boardwalk Pipelines's net profit decreased year-on-year, mainly due to rising operating expenses, which included after-tax expenses of $14 million related to the unrealized net loss of Continuum, as well as impairment losses related to the relocation of the company's offices in Boardwalk. Excluding these items, performance improved year-on-year, benefiting from increased natural gas transportation revenue.
• Loews Hotels Net profit increased year-on-year, mainly due to higher average daily housing prices and an increase in the number of nights occupied by rooms in most asset portfolios, which was partially offset by a decline in equity earnings from joint ventures.
• The net profit of the company's departments decreased year-on-year, mainly due to a reduction in investment income from the trading portfolio of the parent company.
• As of September 30, 2026, the book value per share was $90.24, which is lower than the $90.71 on December 31, 2025.
• As of September 30, 2026, the book value per share, excluding AOCI, was $100.67, which is higher than the $95.89 on December 31, 2025.
• As of September 30, 2026, the parent company held $4.4 billion in cash and investments, as well as $1.8 billion in debt.
• In the third quarter of 2026, Lois Company repurchased 1.6 million common shares at a total cost of 167 million US dollars.

Key points of consolidated performance:

Comparison of the three months ending September 30, 2026, with the same period in 2025

CNA:

• The net profit attributable to Loews Corporation was 180 million US dollars, compared to 371 million US dollars in the same period last year.
• Core profit dropped to $203 million, compared to $409 million in the same period last year, mainly due to an increase in long-term care reserves resulting from the 2026 annual reserve review, as well as weaker underwriting results in the property and casualty insurance business and higher disaster losses.
• The adverse impact of $125 million resulting from the provision for long-term care reserves of CNA (after tax and excluding non-controlling interests) will almost be completely offset by the higher investment returns brought about by recent portfolio adjustments. This expected return will be reflected in investment income over time.
• CNA The net premium income from property and accident insurance business increased by 2%, and the net signed premium income increased by 3%.
• The comprehensive cost ratio for property and accident insurance business increased by 4.2 percentage points to 97.0%, compared to 92.8% in the same period last year, mainly due to an increase in the basic payout ratio and higher disaster losses. The basic comprehensive cost ratio rose from 91.3% to 94.2%.
• The basic payout rate for property and accident insurance business is 64.1%, which is the same as in the second quarter of 2026, but it has increased by 2.2 percentage points compared to the third quarter of last year. This is mainly due to the recent upward trend in payout costs for several business lines and rates that were lower than expected.
• Net investment income remained relatively stable, due to a decline in returns on limited partnership investments, which was partially offset by increased income from fixed-income securities; the latter was driven by a larger investment asset base and favorable reinvestment yields, and common stock returns were also higher.

Boardwalk:

• The net profit was 85 million US dollars, compared to 94 million US dollars in the same period last year.
• EBITDA dropped to $262 million, compared to $267 million in the same period last year.
• The decrease in net profit and EBITDA was mainly due to an unrealized net loss of $10 million (7 million after tax) from Continuum and an impairment loss of $9 million (7 million after tax) related to the relocation of the office of Boardwalk.
• After removing these two items, net profit and EBITDA increased by $5 million and $14 million respectively, due to higher contracted rates and utilization rates in natural gas transportation revenue.

Loews Hotels:

• Net profit increased to 16 million US dollars, compared to a net loss of 3 million US dollars in the same period last year.
• After adjustment, EBITDA increased by 25% to 86 million US dollars, compared to 69 million US dollars in the same period last year.
• Net profit and the improved EBITDA were mainly due to higher average daily room rates across the board, as well as an increase in the number of nights occupied by rooms in most of the asset portfolio. In particular, the performance of the Loews Miami Beach Hotel improved after its renovation was completed at the end of 2025, and the hotel assets of Loews Hotels & Co Arlington also performed more strongly.
• The equity earnings of the joint venture have declined, mainly due to the lower average daily room rates at the Universal Orlando Resort and the increase in operating costs.

Company Departments:

• The net profit was 25 million US dollars, compared to 42 million US dollars in the same period last year.
• The decline in net profit is mainly due to a reduction in investment income from the parent company's trading portfolio.

A comparison of the nine months ending September 30, 2026, with the same period in 2025

Lois Company reported that in the first nine months of 2026, the net profit was $1.087 billion, equivalent to $5.29 per share; in the same period of 2025, it was $1.265 billion, equivalent to $6.03 per share. The key performance points are as follows:

• The net profit attributable to Lois Company decreased, mainly due to an adverse impact of $125 million from the update of the long-term care reserve assumptions for the year 2026, as well as a weakening underwriting performance in property and accident insurance business, which was partially offset by higher net investment income.
• The comprehensive cost ratio for property and accident insurance business increased by 3.5 percentage points to 98.6%, compared to 95.1% in the same period last year, mainly due to an increase in the basic payout ratio and unfavorable development of net loss reserves from previous years. The basic comprehensive cost ratio was 94.4%, whereas it was 91.7% in the same period last year.
• The basic payout rate for property and accident insurance business increased by 2.5 percentage points, mainly due to the recent upward trend in payout costs across several business lines and rates falling below expectations.
• CNA Net investment income increased due to higher returns from fixed-income securities, benefiting from a larger investment asset base and favorable reinvestment yields, as well as higher returns on common stocks. However, this increase was partially offset by declining returns on limited partnership investments.
• Boardwalk The improvement in net profit is mainly due to the increase in natural gas transportation revenue, driven by higher contracted rates, increased revenue from utilization-based projects and growth projects, as well as increased revenue from gas storage, parking, and lending services. However, this improvement was partially offset by rising operating expenses, which include costs associated with growth projects.
• Loews Hotels The improvement in net profit is mainly due to higher average daily housing prices and an increase in the number of nights occupied by rooms in most asset portfolios. Additionally, there was an increase in equity earnings from joint ventures, driven by the Universal Orlando Resort area. However, this was partially offset by rising operating costs.
• The performance of the company's departments decreased year-on-year, mainly due to a reduction in investment income from the parent company's trading portfolio and an increase in interest expenses resulting from recent debt refinancing.

Share Repurchase:

• As of September 30, 2026, the number of outstanding shares of Lois common stock was 202.9 million shares.
• Within the three months ending September 30, 2026, Lois Corporation repurchased 1.6 million common shares at a total cost of 167 million US dollars.
• From October 1 to October 30, 2026, the company repurchased an additional 600,000 shares, costing $67 million.
• Depending on market conditions, Loews may occasionally purchase its own and its subsidiaries' outstanding common shares on the public market (in the case of Loews common shares, this includes public market transactions that may or may not meet all the conditions of the Rule 10b-18 Voluntary Safe Harbor), repurchase them through private negotiated transactions, or other methods.

Adjustment between the GAAP indicator and the GAAP indicator

This press release contains financial indicators that do not comply with Generally Accepted Accounting Principles (GAAP) in the United States. Management believes that some investors may find these indicators useful in assessing the financial performance of the company and its subsidiaries. CNA uses core profit, basic payout ratio, and basic comprehensive cost ratio. Boardwalk uses earnings before interest, taxes, depreciation, and amortization (EBITDA), while Loews Hotels uses adjusted EBITDA. Definitions of these non-GAAP indicators and the adjustments to the most comparable GAAP indicators are provided on pages 6 to 8 of this press release.

Performance Explanation

About Lois Company

Lois Company is a diversified enterprise with operations covering insurance, energy, hospitality, and packaging industries. For more information, please visit www.loews.com.

Forward-looking Statements

Statements in this press release that are not historical facts constitute “forward-looking statements” within the meaning of the Federal Securities Laws. Forward-looking statements are inherently uncertain and subject to various risks, and actual results may differ significantly from the company’s expectations. For important risk factors and other considerations that may have a material impact on these matters as well as the company’s overall business and financial performance, please refer to the reports submitted by the company to the U.S. Securities and Exchange Commission. Readers are advised to carefully read these reports when considering these forward-looking statements. The relevant reports are available through the company’s website ( www.loews.com ). In light of these risk factors, investors and analysts should not rely excessively on forward-looking statements. Any such forward-looking statements are only valid as of the date of issuance of this press release. The company hereby declares that it has no obligation to publicly update or revise any forward-looking statements, whether due to expected changes or changes in relevant events, conditions, or circumstances.

Definition of non-GAAP indicators and adjustment of GAAP and non-GAAP indicators:

CNA Financial Corporation

The method for calculating core profit is to take the net profit attributable to Lois Company as indicated by CNA, and then deduct the after-tax impact of investment gains and losses as well as the gains and losses arising from pension settlement transactions. In addition, core profit also excludes the influence of non-controlling interests. Investment gains and losses are excluded because they are usually driven by economic factors and do not necessarily reflect Lois Company's main insurance business, which is indicated by CNA. The gains and losses from pension settlement transactions are also excluded because they stem from decisions related to the establishment of pension payment plans, which are unrelated to the main insurance business, as indicated by CNA.

The following table shows the adjustment between the net profit and core profit attributable to CNA of Lois Company:

When evaluating the results of property and accident insurance business, CNA uses the payout ratio, basic payout ratio, expense ratio, dividend ratio, comprehensive cost ratio, and basic comprehensive cost ratio. These ratios are all calculated based on GAAP's financial results. The payout ratio is the proportion of net claims paid and claim settlement adjustment expenses to net premium income. The basic payout ratio excludes the impact of disaster-related renewal premiums, disaster losses, and development-related items. Development-related items include net prior-year loss reserves and premium development, as well as the impact of changes in interest accumulation and reinsurance receivable impairment provisions. The expense ratio is the proportion of insurance underwriting and customer acquisition costs (including amortization of deferred customer acquisition costs) to net premium income. The dividend ratio is the proportion of dividends paid to policyholders to net premium income. The comprehensive cost ratio is the sum of the payout ratio, expense ratio, and dividend ratio. The basic comprehensive cost ratio is the sum of the basic payout ratio, expense ratio, and dividend ratio. The basic payout ratio and basic comprehensive cost ratio are considered non-GAAP financial indicators. Management believes that some investors may find these ratios helpful in assessing CNA's underwriting performance, as they exclude the impact of disasters, which are unpredictable in terms of timing and amount, and they also exclude development-related items, as these items do not reflect the current period's underwriting performance.

The following table shows the adjustments between the CNA payout rate and the base payout rate, as well as between the comprehensive cost rate and the base comprehensive cost rate:

Boardwalk Pipelines

EBITDA is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA). The following table shows the adjustment between the net profit attributable to Lois Company under Boardwalk and its EBITDA.

Loews Hotels & Co

After adjustment, the calculation method for EBITDA is based on Loews Hotels & Co and EBITDA. It involves deducting the portion attributable to non-controlling interests, such as EBITDA adjustments, gains and losses from asset acquisitions and disposals, asset impairments, and income under the equity method. These deductions are then included in the proportionate share of adjusted EBITDA from Loews Hotels & Co. The proportionate adjustment of the equity investment, represented by EBITDA, is achieved by applying the holding percentages of Loews Hotels & Co to each component of the adjusted EBITDA of that equity investment, while excluding any distributions that exceed the book value.

The following table shows the adjustments between the net profit (loss) attributable to Lois Company for Loews Hotels and Co, and their adjusted EBITDA:

The following table shows the adjustment between the equity method income of Loews Hotels and Co, and the adjusted amount of EBITDA based on their equity method investments: