UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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| Item 8.01 | Other Events. | ||||
A subsidiary of the Registrant’s subsidiary, CNA Financial Corporation (“CNA”), as sponsor of the CNA Employee Retirement Plan Trust (the “Plan”), is evaluating potential counterparties (each, an “Insurer”) in connection with the potential purchase of a group annuity contract, under which the Plan would transfer to the Insurer a portion of the Plan’s defined benefit pension obligations.
The potential purchase of a group annuity contract is anticipated to close in the fourth quarter of 2024 and is subject to the finalization of a commitment agreement with an Insurer and customary closing conditions. There can be no assurances that the potential purchase of a group annuity contract will occur or will occur on the terms described herein. The potential contract is expected to cover approximately 6,000 to 8,000 Plan participants and beneficiaries (the “Transferred Participants”) and approximately $800 million to $1 billion of the Plan’s obligations, representing approximately 50% to 60% of the Plan’s total obligations. Under a potential group annuity contract, the Insurer would make an irrevocable commitment, and would be solely responsible, to pay the pension benefits of each Transferred Participant that are due on and after January 1, 2025. Such potential transaction would result in no changes to the amount of benefits payable to the Transferred Participants.
The potential purchase of a group annuity contract is expected to be funded directly by assets of the Plan and would not require any cash or asset contributions from CNA. Upon completion of such potential transaction and based on anticipated closing timing, Registrant currently expects to recognize a one-time non-cash pretax pension settlement charge estimated between approximately $300 to $400 million ($215 to $290 million net of tax and noncontrolling interests) in the fourth quarter of 2024. This charge would be largely driven by the accelerated recognition of the actuarial pension loss from Accumulated other comprehensive income into Net income, which such acceleration would not impact Shareholders’ equity. The actual charge will depend on finalization of a group annuity contract and actuarial and other assumptions. This charge would not impact cash flow for the third quarter, fourth quarter or full year 2024.
Forward-Looking Statements
Statements contained in this Current Report on Form 8-K (“Form 8-K”) which are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the Registrant’s overall business and financial performance, can be found in the Registrant’s reports filed with the Securities and Exchange Commission and readers of this Form 8-K are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Registrant’s website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this Form 8-K. The Registrant expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Registrant’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LOEWS CORPORATION | ||||||||
| (Registrant) | ||||||||
Dated: September 18, 2024 | By: | /s/ Marc A. Alpert | ||||||
| Marc A. Alpert | ||||||||
| Senior Vice President, General Counsel | ||||||||
| and Secretary | ||||||||
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