Business Analysis of Loews

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Loews

Business Overview

Loews Corporation, through its subsidiaries, provides commercial property and casualty insurance in the United States, Canada, the United Kingdom, Continental Europe, and Singapore. The company offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages; commercial surety and fidelity bonds; and warranty and alternative risk services primarily for vehicles and portable electronic communication devices. Its commercial property insurance products include standard and excess property, marine, and boiler and machinery coverages; and casualty insurance products comprise workers' compensation, general and product liability, commercial auto, and umbrella coverages. The company also provides loss-sensitive insurance programs; and risk management, information, and claims administration services; and long term care and life settlement contracts. It markets its insurance products and services primarily through independent agents, brokers, and managing general underwriters to various customers. In addition, the company owns and operates 24 offshore drilling rigs consisting of 4 drillships, 19 semisubmersible rigs, and 1 jack-ups for companies engaged in the exploration and production of hydrocarbons. Further, it is involved in the transportation and storage of natural gas and natural gas liquids (NGLs), and gathering and processing of natural gas. It owns and operates natural gas pipelines covering approximately 13,930 miles of interconnected pipelines; approximately 435 miles of NGL pipelines in Louisiana and Texas; and underground storage fields with aggregate working gas capacity of approximately 205.0 billion cubic feet of natural gas. Additionally, it operates 24 hotels in the United States and 1 hotel in Canada. The company was founded in 1954 and is headquartered in New York, New York.

Loews

Loews


R&P Rank: 217
Sector: Insurance
Industry:Property & Casualty Insurance
H.Q Location:New York
Website: www.loews.com
Company Address:
667 MADISON AVE, NEW YORK NY 10065-8087
Ph:212-521-2000

Business Analysis of Loews

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Loews compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Loews to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Loews with an interactive chart.

  1. Revenue Growth: Loews reported a revenue growth of -2.3% year-on-year during 2016. Property & Casualty Insurance Industry grew at 6.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Loews spent 55.6% of its total revenues on COGS. Property & Casualty Insurance industry average (COGS share of revenue) in the same period was 65.6%
  3. R&D share of Revenues: Loews R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Loews spent 33.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Property & Casualty Insurance industry average SG&A spending in the same period was 14.9%
  5. Inventory share of Revenues: Loews Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Loews invested 1.1% of its total revenues on Accounts Payable (A/P) Property & Casualty Insurance industry average Accounts Payable investment in the same period was 18.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Loews invested 58.3% of its total revenues on Accounts Receivable (A/R). Property & Casualty Insurance industry average Accounts Receivable investment in the same period was 33.0%
  8. PP&E share of Revenues: As a percentage of revenue, Loews invested 116.2% of its total revenues on Property, Plants, and Equipments (PP&E). Property & Casualty Insurance industry average PPE investment in the same period was 30.9%
  9. Intangibles share of Revenues: As a percentage of revenue, Loews invested 2.6% of its total revenues on Intangibles. Property & Casualty Insurance industry average Intangibles investment in the same period was 29.7%
  10. Net Margins: Loews Net Margins in the year 2016 were 5.0%. Property & Casualty Insurance industry average Net Margins in the same period were 8.2%

Sector and Industry Association of Loews

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Loews is associated with Financials Sector Group, Insurance Sector, and Property & Casualty Insurance Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of Loews

With $13.1 billion revenues, Loews ranked number 8 of all the companies in the US Property & Casualty Insurance industry. There were a total of 66 public companies in the US Property & Casualty Insurance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Property & Casualty Insurance industry by revenues during 2016 were:

  1. Berkshire Hathaway ($223.6 billion)
  2. AIG ($52.4 billion)
  3. Allstate ($36.5 billion)
  4. Chubb ($31.5 billion)
  5. Travelers Companies ($27.6 billion)
  6. Progressive ($23.4 billion)
  7. Hartford Financial Services Group ($18.3 billion)
  8. Loews ($13.1 billion)
  9. XL Group ($10.5 billion)
  10. CNA Financial ($9.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Loewsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of loews

Travelers Companies (TRV) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Travelers Companies, Inc. with $28 billion revenues in the year 2016 was the number 5 Property & Casualty Insurance company. Read this report to know the top competitors of Travelers Companies and identify growth and cost optimization opportunities of Travelers Companies

Progressive (PGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Progressive Corp with $23 billion revenues in the year 2016 was the number 6 Property & Casualty Insurance company. Read this report to know the top competitors of Progressive and identify growth and cost optimization opportunities of Progressive

Hartford Financial Services Group (HIG) Business Analysis – Analyze Historical Performance,...

Hartford Financial Services Group Inc with $18 billion revenues in the year 2016 was the number 7 Property & Casualty Insurance company. Read this report to know the top competitors of Hartford Financial Services Group and identify growth and cost optimization opportunities of Hartford Financial Services Group

XL Group (XL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

XL Group Ltd with $11 billion revenues in the year 2016 was the number 9 Property & Casualty Insurance company. Read this report to know the top competitors of XL Group and identify growth and cost optimization opportunities of XL Group

CNA Financial (CNA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Cna Financial Corp with $9 billion revenues in the year 2016 was the number 10 Property & Casualty Insurance company. Read this report to know the top competitors of CNA Financial and identify growth and cost optimization opportunities of CNA Financial

Willis Towers Watson (WLTW) Business Analysis – Analyze Historical Performance, Strategic...

Willis Towers Watson Plc with $8 billion revenues in the year 2016 was the number 11 Property & Casualty Insurance company. Read this report to know the top competitors of Willis Towers Watson and identify growth and cost optimization opportunities of Willis Towers Watson

Revenues Analysis

Loews (L) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Loews Corp (L) from 2012 to 2016. Loews generated a total of $13.1 billion revenues during 2016. Loews reported a revenue growth of -2.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Loews (L) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Loews Corp (L) from 2002 to 2016. Loews generated a total of $13.1 billion revenues during 2016. Loews reported a revenue growth of -2.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Loews (L) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Loews Corp (L) revenue growth with Property & Casualty Insurance industry growth during the last five years from 2012 to 2016. Loews reported a revenue growth of -2.3% year-over-year during 2016. The Property & Casualty Insurance industry growth was 6.6% year-over-year during 2016. Loews growth was slower than the industry during 2016.

Profit Analysis

Loews (L) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Loews Corp (L) from 2012 to 2016. Loews reported a total net income of $654 million during 2016. Loews generated a total of $13.1 billion revenues during 2016. Loews net profit margin was 5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.