LOEWS CORPL
LOEWS CORP Income Taxes Disclosure
Income Taxes
Loews Corporation and its eligible subsidiaries file a consolidated federal income tax return. Loews Corporation has entered into a separate tax allocation agreement with CNA. The agreement provides that Loews Corporation will: (i) pay to CNA the amount, if any, by which Loews Corporation’s consolidated federal income tax is reduced by virtue of inclusion of CNA in Loews Corporation’s return or (ii) be paid by CNA an amount, if any, equal to the federal income tax that would have been payable by CNA if it had filed a separate consolidated return. The agreement may be canceled by either of the parties upon thirty days written notice.
For 2023 through 2025, the Company participates in the Internal Revenue Service (“IRS”) Compliance Assurance Process (“CAP”), which is a voluntary program for large corporations. Under CAP, the IRS conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. For 2023, the Company was selected to participate in the phase of CAP reserved for taxpayers whose risk of noncompliance did not support use of IRS resources. The Company believes that participation in CAP should reduce tax-related uncertainties, if any. Although the outcome of tax audits is always uncertain, the Company believes that any adjustments resulting from audits will not have a material impact on its results of operations, financial position or cash flows. The Company and/or its subsidiaries also file income tax returns in various state, local and foreign jurisdictions. These returns, with few exceptions, are no longer subject to examination by the various taxing authorities before 2021.
The components of U.S. and foreign income before income tax expense and the current and deferred components of income tax expense (benefit) are as follows:
Year Ended December 31 | 2025 | 2024 | 2023 | ||||||||||||||
| (In millions) | |||||||||||||||||
Income before income tax expense: | |||||||||||||||||
| U.S. | $ | 1,999 | $ | 1,672 | $ | 1,798 | |||||||||||
| Foreign | 284 | 202 | 198 | ||||||||||||||
| Total | $ | 2,283 | $ | 1,874 | $ | 1,996 | |||||||||||
| Current tax expense | |||||||||||||||||
Federal | $ | 314 | $ | 320 | $ | 267 | |||||||||||
State and local | 37 | 47 | 20 | ||||||||||||||
Foreign | 48 | 58 | 37 | ||||||||||||||
Total current tax expense | 399 | 425 | 324 | ||||||||||||||
Deferred tax expense (benefit) | |||||||||||||||||
Federal | 81 | (10) | 81 | ||||||||||||||
State and local | 10 | (40) | 31 | ||||||||||||||
Foreign | 21 | 5 | 15 | ||||||||||||||
| Total deferred tax expense (benefit) | 112 | (45) | 127 | ||||||||||||||
Total income tax expense | |||||||||||||||||
Federal | 395 | 310 | 348 | ||||||||||||||
State and local | 47 | 7 | 51 | ||||||||||||||
Foreign | 69 | 63 | 52 | ||||||||||||||
| Total income tax expense | $ | 511 | $ | 380 | $ | 451 | |||||||||||
A reconciliation of income tax expense at the federal statutory tax rate to income tax expense at the effective tax rate is as follows:
Year Ended December 31 | 2025 | 2024 | 2023 | |||||||||||||||||
(In millions, except %) | ||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||
Income tax expense at federal statutory tax rate | $ | 479 | 21.0 | % | $ | 393 | 21.0 | % | $ | 419 | 21.0 | % | ||||||||
| State and local income taxes, net of federal income tax effect (a) | 38 | 1.7 | % | 7 | 0.4 | % | 42 | 2.1 | % | |||||||||||
Foreign tax effects | ||||||||||||||||||||
Canada | 22 | 1.0 | % | 32 | 1.7 | % | 23 | 1.1 | % | |||||||||||
Other | 9 | 0.4 | % | 7 | 0.4 | % | 7 | 0.4 | % | |||||||||||
Tax credits | ||||||||||||||||||||
Foreign tax credits | (25) | (1.1) | % | (36) | (1.9) | % | (26) | (1.3) | % | |||||||||||
Other | (6) | (0.3) | % | (7) | (0.4) | % | (2) | (0.1) | % | |||||||||||
Nontaxable or nondeductible items | ||||||||||||||||||||
Nontaxable investment income | (30) | (1.3) | % | (26) | (1.4) | % | (31) | (1.6) | % | |||||||||||
Other | 14 | 0.6 | % | 13 | 0.7 | % | 12 | 0.6 | % | |||||||||||
Other adjustments | 10 | 0.4 | % | (3) | (0.2) | % | 7 | 0.4 | % | |||||||||||
Income tax expense | $ | 511 | 22.4 | % | $ | 380 | 20.3 | % | $ | 451 | 22.6 | % | ||||||||
| (a) | In 2025, state taxes in Florida, Illinois and Louisiana made up the majority of the tax effect in this category. In 2024, state taxes in Florida made up the majority of the tax effect in this category. In 2023, state taxes in Florida, Illinois, Louisiana and New York made up the majority of the tax effect in this category. | ||||
For the year ended December 31, 2024, state and local income taxes include a $36 million income tax benefit from an adjustment to deferred state income taxes for a rate reduction effective in 2025 resulting from legislation enacted during the fourth quarter of 2024.
As of December 31, 2025, no deferred taxes are required on the undistributed earnings of subsidiaries subject to tax.
As of December 31, 2025, 2024 and 2023, there were no unrecognized tax benefits.
For the years ended December 31, 2025, 2024 and 2023, no interest expense or penalties were recorded in Income tax expense.
The following table summarizes deferred tax assets and liabilities:
| December 31 | 2025 | 2024 | |||||||||
| (In millions) | |||||||||||
| Deferred tax assets: | |||||||||||
| Insurance reserves: | |||||||||||
| Property and casualty claim and claim adjustment expense reserves | $ | 276 | $ | 234 | |||||||
| Unearned premium reserves | 227 | 225 | |||||||||
| Deferred revenue | 84 | 85 | |||||||||
| Employee benefits | 81 | 79 | |||||||||
| Deferred retroactive reinsurance benefit | 99 | 89 | |||||||||
| Net unrealized losses | 258 | 485 | |||||||||
| Other assets | 179 | 188 | |||||||||
| Total deferred tax assets | 1,204 | 1,385 | |||||||||
| Valuation allowance | (25) | (19) | |||||||||
| Net deferred tax assets | 1,179 | 1,366 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Deferred acquisition costs | (143) | (140) | |||||||||
| Policyholder reserves | (25) | (48) | |||||||||
| Property, plant and equipment | (1,056) | (963) | |||||||||
| Basis differential in investment in subsidiary | (473) | (481) | |||||||||
| Investment valuation differences | (218) | (176) | |||||||||
| Other liabilities | (87) | (69) | |||||||||
| Total deferred tax liabilities | (2,002) | (1,877) | |||||||||
| Net deferred tax liabilities (a) | $ | (823) | $ | (511) | |||||||
(a) Includes deferred tax assets reflected in Other assets on the Consolidated Balance Sheets at December 31, 2025 and 2024 | $ | 16 | $ | 39 | |||||||
As of December 31, 2025, the Company has a U.S. foreign tax credit carryforward of $6 million that expires in 2034. In addition, as of December 31, 2025, the Company has net operating loss carryforwards in foreign tax jurisdictions of $83 million and tax credit carryforwards in such jurisdictions of $13 million that do not expire.
Although realization of deferred tax assets is not assured, management believes it is more likely than not that the recognized deferred tax assets, net of valuation allowance, will be realized through recoupment of ordinary and capital taxes paid in prior carryback years and through future earnings, reversal of existing temporary differences and available tax planning strategies. As of December 31, 2025, a valuation allowance of $25 million has been recorded related to state net operating losses and disallowed business interest expense from joint ventures.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 10, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 8, 2022 | |
| 2020 | Feb 9, 2021 | |
| 2019 | Feb 12, 2020 | |
| 2018 | Feb 13, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 19, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.