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Loews: Risk Confirmed In 1Q26
Wolf Report · 2026-05-05 · via All Articles on Seeking Alpha

Summary

  • Loews remains a "Hold," with a raised price target of $84/share, reflecting persistent overvaluation and heightened risk in its core insurance subsidiary CNA.
  • CNA's deteriorating underwriting, evidenced by a combined ratio above 102%, signals structural challenges and justifies a continued valuation discount for L.
  • Despite solid performance in non-insurance segments, L's low yield (<0.25%) and reliance on buybacks limit total return appeal versus peers.
  • The Loews discount is warranted given muted growth, weak dividend policy, and historical underperformance relative to market benchmarks.
  • I do much more than just articles at Wolf of Value: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
A Loews Hotel in Chicago, Illinois, USA.

JHVEPhoto/iStock Editorial via Getty Images

Loews (L) is one of those companies that I have covered for some time. My latest coverage on the company can be found here, and in this coverage, I reiterate a "Hold" rating. The company has, based on my targets, at certain times, been an attractive investment. Unfortunately, that time

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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