(Reuters) - Loews Corp on Monday reported a near 22% jump in first-quarter profit compared with the previous year, helped by higher premiums and strong returns on its investments.
The company earns most of its revenue from its insurance unit CNA in which it holds an about 90% stake.
WHY IT'S IMPORTANT
U.S. government bonds have rallied on rising hopes of the U.S. Federal Reserve successfully executing a soft landing as inflation cools down and that has induced confidence among market participants.
KEY QUOTE
"CNA continues to experience strong profitable growth, reporting its highest ever first-quarter core income," said James S. Tisch, President and CEO, Loews Corporation (NYSE:L).
BY THE NUMBERS
Investment income for the New York-based company rose to $669 million in the quarter ended March 31, from $569 million a year earlier.
The income attributable to Loews in the reported quarter was $457 million, or $2.05 per share, up from $375 million, or $1.61 per share, a year earlier.
MARKET REACTION
Shares in the company were flat in premarket trading.