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.
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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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