Loews (L) risk factors, FY2024 10-K

Risks Related to Us and Our Subsidiary, CNA

1. 01If CNA determines that its recorded insurance reserves are insufficient to cover its estimated ultimate unpaid liability for claim and claim adjustment expenses, CNA may need to increase its insurance reserves which would result in a charge to CNA’s earnings
2. 02CNA’s actual experience could vary from the key assumptions used to determine future policy benefit reserves for long-term care policies
3. 03Morbidity and persistency experience can be volatile and may be negatively affected by many factors including policyholder behavior, judicial decisions regarding policy terms, socioeconomic factors, cost of care inflation, changes in health trends and advances in medical care
4. 04CNA is vulnerable to material losses from natural and man-made disasters
5. 05The COVID-19 pandemic, including new or emerging variants, other potential pandemics and related measures to mitigate the spread of the foregoing may continue to have adverse impacts on its business, results of operations and financial condition and could be material
6. 06recorded significant losses during 2020, a portion of which remain classified as incurred but not reported (“IBNR”) reserves, in these areas and may experience continued losses, which could be material
7. 07CNA has exposure related to A&EP claims, which could result in material losses
8. 08CNA faces intense competition in its industry; it may be adversely affected by the cyclical nature of the property and casualty business and by the evolving landscape of its distribution network
9. 09CNA’s underwriting strategies currently rely on the effectiveness of reinsurance arrangements and CNA accordingly faces risks relating to reinsurance, including obtaining reinsurance at a cost or on terms and conditions it deems acceptable, reinsurance counterparty risk and ineffective reinsurance coverage
10. 10CNA may be adversely affected by technological changes or disruptions in the insurance marketplace
11. 11CNA may incur significant realized and unrealized investment losses and volatility in net investment income arising from changes in the financial markets
12. 12CNA uses analytical models to assist its decision making in key areas such as pricing, reserving, catastrophe risks and capital modeling and may be adversely affected if actual results differ materially from the model outputs and related analyses
13. 13Any significant interruption in the operation of CNA’s business functions, facilities or systems or its vendors’ facilities or systems could result in a materially adverse effect on its operations
14. 14Any significant breach in CNA’s data security infrastructure or its vendors’ facilities or systems could disrupt business, cause financial losses and damage its reputation, and insurance coverage may not be available for claims related to a breach
15. 15Inability to detect and prevent significant employee or third party service provider misconduct, inadvertent errors and omissions, or exposure relating to functions performed on CNA’s behalf could result in a material adverse effect on CNA’s business, results of operations and financial condition
16. 16CNA is subject to capital adequacy requirements and, if it is unable to maintain or raise sufficient capital to meet these requirements, regulatory agencies may restrict or prohibit CNA from operating its business
17. 17CNA’s insurance subsidiaries, upon whom CNA depends for dividends in order to fund its corporate obligations, are limited by insurance regulators in their ability to pay dividends
18. 18Rating agencies may downgrade their ratings of CNA, adversely affecting its ability to write insurance at competitive rates or at all and increasing its cost of capital
19. 19For further discussion of CNA’s ratings, see the Subsidiaries portion of the Liquidity and Capital Resources section of MD&A in Item 7

Risks Related to Us and Our Subsidiary, Boardwalk Pipelines

1. 20Over time, the FERC may change, amend or announce that it will undertake a review of its existing policies. There were no major policy changes announced by the FERC during 2024
2. 21Boardwalk Pipelines’ operations, and those of Boardwalk Pipelines’ customers, are subject to a series of risks regarding climate change
3. 22Climatic conditions and events could adversely impact Boardwalk Pipelines’ operations, pipelines and facilities, or those of its customers or suppliers
4. 23Boardwalk Pipelines is subject to reputational risks and risks related to public opinion
5. 24Legislative and regulatory initiatives relating to new or more stringent pipeline safety requirements or substantial changes to existing integrity management programs or withdrawal of regulatory waivers could subject Boardwalk Pipelines to increased capital and operating costs and operational delays
6. 25Boardwalk Pipelines’ actual construction and development costs could exceed its forecasts; its anticipated cash flow from construction and development projects will not be immediate and can take several years; and its construction and development projects may not be completed on time or at all
7. 26Boardwalk Pipelines may face opposition to the operation of its pipelines and facilities, construction or expansion of facilities and new pipeline projects from various groups
8. 27Market conditions, including available supply, demand and the price differentials between natural gas supplies and market locations for natural gas, may affect the transportation rates that Boardwalk Pipelines can charge on certain portions of its pipeline systems
9. 28Changes in energy prices, including natural gas, oil and NGLs, impact the supply of and demand for those commodities, which impact Boardwalk Pipelines’ business
10. 29Boardwalk Pipelines is exposed to credit risk relating to default or bankruptcy by its customers
11. 30adjustment to the scope of the project occurs or Boardwalk Pipelines is unable to replace the defaulting customer with a customer willing to pay similar rates
12. 31Boardwalk Pipelines’ revolving credit facility contains operating and financial covenants that may restrict its business and financing activities
13. 32Boardwalk Pipelines’ indebtedness could affect its ability to meet its obligations and may otherwise restrict its activities
14. 33Changes in the debt markets and increases in interest rates could adversely affect Boardwalk Pipelines’ business
15. 34debt markets were not available, it is not certain if other adequate financing options would be available to Boardwalk Pipelines on terms and conditions that it would find acceptable
16. 35Pandemics or other outbreaks of contagious diseases and the measures to mitigate their spread could materially adversely affect Boardwalk Pipelines’ business, financial condition and results of operations and those of its customers, suppliers and other business partners
17. 36Boardwalk Pipelines does not own all of the land on which its pipelines and facilities are located, which could result in disruptions to its operations
18. 37Boardwalk Pipelines may not be successful in executing its strategy to grow and diversify its business
19. 38Boardwalk Pipelines’ ability to replace expiring gas storage contracts at attractive rates or on a long-term basis and to sell short-term services at attractive rates or at all are subject to market conditions
20. 39Boardwalk Pipelines’ operations are subject to catastrophic losses, operational hazards and unforeseen interruptions for which it may not be adequately insured

Risks Related to Us and Our Subsidiary, Loews Hotels & Co

1. 40Loews Hotels & Co’s business may be materially adversely affected by various operating risks common to the hospitality industry, many of which are beyond Loews Hotels & Co’s control
2. 41In addition to materially affecting the business of Loews Hotels & Co generally, these factors, and the reputational repercussions of these factors, could materially adversely affect, and from time to time have materially adversely affected, individual hotels and hotels in particular regions
3. 42The hospitality industry is subject to seasonal and cyclical volatility
4. 43Loews Hotels & Co operates in a highly competitive industry, both for customers and for the acquisition and/or development of new properties
5. 44Any deterioration in the quality or reputation of Loews Hotels & Co’s brands, including brands used in its joint ventures and those it licenses, could have a material adverse effect on its reputation and business
6. 45Loews Hotels & Co’s efforts to develop new properties and renovate existing properties could be delayed or become more expensive
7. 46Investing in hotel properties through ownership interests in partnerships and joint ventures is subject to inherent risks, including due to Loews Hotels & Co’s lack of unilateral control over the investment
8. 47Loews Hotels & Co’s properties are geographically concentrated, which exposes its business to the effects of regional events and occurrences
9. 48Pandemics or other outbreaks of contagious diseases and efforts to mitigate their spread have had, and could in the future have, material adverse impacts on Loews Hotels & Co’s results of operations, financial condition and cash flows
10. 49The growth and use of third-party reservation channels adversely affects Loews Hotels & Co’s business
11. 50Loews Hotels & Co’s insurance coverage may not cover all possible losses, and it may not be able to renew its insurance policies on favorable terms, or at all
12. 51Labor shortages could restrict Loews Hotels & Co’s ability to operate its properties or grow its business or result in increased labor costs that could reduce its results of operations
13. 52A portion of Loews Hotels & Co’s labor force is covered by collective bargaining agreements

Risks Related to Us and Our Unconsolidated Subsidiary, Altium Packaging

1. 53Altium Packaging’s substantial indebtedness could affect its ability to meet its obligations and may otherwise restrict its activities
2. 54Altium Packaging is exposed to changes in consumer preferences
3. 55Fluctuations in raw material prices and raw material availability may materially affect Altium Packaging’s results of operations
4. 56Altium Packaging’s customers may increase their self-manufacturing

Risks Related to Us and Our Subsidiaries Generally

1. 57In addition to the specific risks and uncertainties faced by our subsidiaries, as discussed above, we and all of our subsidiaries face additional risks and uncertainties described below
2. 58Failures or interruptions in or breaches to our or our subsidiaries’ computer systems or information technology or communication infrastructure or those of certain third parties could materially and adversely affect our or our subsidiaries’ operations
3. 59significant damage to our or their assets and surrounding areas, cause loss of life or serious bodily injury, impact our or their data framework or cause a failure to protect personal information of customers, employees or others
4. 60From time to time we and our subsidiaries may be subject to litigation, for which we and they may be unable to accurately assess the level of exposure and which if adversely determined, may have a significant adverse effect on our or their financial condition or results of operations
5. 61Acts of terrorism could harm us and our subsidiaries
6. 62Our subsidiaries face significant risks related to compliance with environmental laws
7. 63Loss of key vendor relationships or issues relating to the transitioning of vendor relationships could result in a materially adverse effect on our and our subsidiaries’ operations
8. 64We could incur impairment charges related to the carrying value of the long-lived assets and goodwill of our subsidiaries and our equity method investments
9. 65Pandemics or other outbreaks of contagious diseases and efforts to mitigate their spread have had, and could in the future have, widespread impacts on the way we and our subsidiaries operate
10. 66We are a holding company and derive substantially all of our income and cash flow from our subsidiaries
11. 67We and our subsidiaries face competition for senior executives and qualified specialized talent
12. 68Increasing scrutiny and changing expectations from stakeholders with respect to ESG practices may impose additional costs on us and our subsidiaries or expose us and our subsidiaries to new or additional risks
13. 69or to not commit capital as a result of their assessment of a company’s ESG practices. In addition, other stakeholders, including customers, employees, suppliers, regulators and ratings agencies, have also been focused on ESG matters