Loews Corp (NYSE:L) is a conglomerate with a substantial property/casualty insurance business in addition to some smaller subsidiaries involved in offshore drilling, natural gas transportation, and hotels. CNA Financial (NYSE:CNA) is the most important subsidiary for Loews in my view, and it gives the overall company a substantial presence in the insurance market. Loew's holds a 90% stake in the firm, and CNA accounted for roughly 2/3 of revenue for Loews last year. CNA has all the usual risks every insurer does - regulatory, litigation, etc - but it also has substantial catastrophe exposure through its large CAT book.
The CAT environment has been very benign over the last year with a low level of claims....
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