To Our Shareholders:
Our commitment to creating long-term value for shareholders defines Loews. While we share this commitment with other public companies, our approach — a diversified portfolio of subsidiaries, both public and wholly owned — stands apart from the pack. We firmly believe that this diversification best positions Loews to deliver superior long-term returns to our shareholders. Operating in diverse industries, however, does mean that at any given time our subsidiaries can face vastly different market environments — some challenging, some more hospitable.
2013 was such a time for Loews, with one of our subsidiaries experiencing favorable tailwinds and another facing a brisk headwind. CNA Financial had a very good year as the company continued to improve its underwriting margins and generated its highest income since 2006. Boardwalk Pipeline, however, saw a continuation of the challenges posed by the sweeping changes reshaping the U.S. energy market.
While the road was not uniformly smooth in 2013 — in fact, it was quite bumpy — our optimism about the fundamental strength of our subsidiaries remains strong. At Loews, we keep our eye on the long term; and the strategies, capital investments, and operational initiatives underway across our portfolio reflect our commitment to seizing the opportunities that exist for each subsidiary.
In shareholder letter, we report on the performance and market dynamics for each of our five subsidiaries. We highlight the significant investments that have been made — and continue to be made — in each business. We also take a step back to provide answers to the questions that investors ask us most frequently.
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