NEW YORK, April 30, 2018 /PRNewswire/ -- Loews
Corporation (NYSE: L) today reported net income of $293 million, or $0.89 per share, for the three months ended
March 31, 2018, compared to
$295 million, or $0.87 per share, in the prior year period.
Net income for the three months ended March 31, 2018 decreased slightly as compared
with the prior year period as lower earnings at Diamond Offshore
Drilling, Inc. and Boardwalk Pipeline Partners, LP and lower parent
company net investment income were mostly offset by higher earnings
at CNA Financial Corporation and Loews Hotels & Co. The
increased earnings per share reflects share repurchase activity in
2017 and 2018.
Book value per share decreased to $57.48 at March 31,
2018 from $57.83 at
December 31, 2017. Book value per
share excluding accumulated other comprehensive income (AOCI)
increased to $58.78 at March 31, 2018 from $57.91 at December 31,
2017.
CONSOLIDATED HIGHLIGHTS
|
Three Months Ended
March 31,
|
(In millions, except
per share data)
|
2018
|
2017
|
|
|
|
Income before net
investment gains
|
$
286
|
|
$
275
|
|
Net investment
gains
|
7
|
|
20
|
|
Net income attributable
to Loews Corporation
|
$
293
|
|
$
295
|
|
|
|
|
Net income per
share
|
$
0.89
|
|
$
0.87
|
|
|
|
|
|
March 31,
2018
|
December 31,
2017
|
Book value per
share
|
$
57.48
|
|
$
57.83
|
|
Book value per
share excluding AOCI
|
58.78
|
|
57.91
|
|
CNA's earnings increased mainly due to improved P&C
underwriting results and a reduction in the corporate tax rate due
to the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). These
improvements were partially offset by the decline in limited
partnership investment results, higher adverse reserve development
under the 2010 asbestos and environmental pollution loss portfolio
transfer, and lower realized investment results.
Diamond Offshore's results declined due to continuing depressed
market conditions, partially offset by lower depreciation expense
resulting mainly from asset impairment charges taken in prior
years. In 2018, net earnings benefited from a favorable adjustment
to an uncertain tax position recorded at year-end 2017 related to
the Tax Act.
Boardwalk Pipeline's earnings declined due to the revenue impact
stemming from the restructuring of a firm transportation contract
in 2017 as well as lower storage and parking and lending revenues.
At the Loews level, these decreases were offset by a lower
corporate tax rate as a result of the Tax Act.
Loews Hotels & Co's earnings increased due to improved
operating performance at joint venture properties. Earnings also
benefited from improved results at several owned hotels, primarily
the Loews Miami Beach Hotel, and a lower corporate tax rate as a
result of the Tax Act. Results in 2017 included a $10 million net pretax gain on the sale of a
joint venture property and the impairment of an investment in
another joint venture property.
Income generated by the parent company investment portfolio
decreased primarily due to lower performance from equity
securities, partially offset by a lower corporate tax rate as a
result of the Tax Act.
Corporate and other results improved before income tax in 2018
due mainly to income generated by Consolidated Container Company
and the absence of transaction-related expenses incurred in 2017
related to the acquisition of Consolidated Container. The lowering
of the corporate tax rate resulted in a slight deterioration in
Corporate and other after-tax results in 2018.
SHARE REPURCHASES
At March 31, 2018, there were
322.4 million shares of Loews common stock outstanding. For the
three months ended March 31, 2018,
the Company repurchased 9.9 million shares of its common stock at
an aggregate cost of $497 million.
From April 1, 2018 to April 27, 2018, the Company repurchased an
additional 4.0 million shares of its common stock at an aggregate
cost of $207 million. Depending on
market conditions, the Company may from time to time purchase
shares of its and its subsidiaries' outstanding common stock in the
open market or otherwise.
CONFERENCE CALLS
A conference call to discuss the first quarter results of Loews
Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast will be available
at www.loews.com. Those interested in participating in the question
and answer session should dial (877) 692-2592, or for international
callers, (973) 582-2757. The conference ID number is 9592446. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the first quarter results of CNA
has been scheduled for today at 10:00 a.m.
ET. A live webcast will be available at
http://investor.cna.com. Those interested in participating in the
question and answer session should dial (888) 572-7025, or for
international callers, (719) 325-2420.
A conference call to discuss the first quarter results of
Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at
www.bwpmlp.com. Those interested in participating in the question
and answer session should dial (855) 793-3255 or for international
callers, (631) 485-4925. The conference ID number is 4269513.
A conference call to discuss the first quarter results of
Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at
www.diamondoffshore.com. Those interested in participating in the
question and answer session should dial (844) 492-6043, or for
international callers, (478) 219-0839. The conference ID number is
3058315.
ABOUT LOEWS CORPORATION
Loews Corporation is a diversified company with three
publicly-traded subsidiaries – CNA Financial Corporation (NYSE:
CNA), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk
Pipeline Partners, LP (NYSE: BWP) – and two non-public operating
subsidiaries – Loews Hotels & Co and Consolidated Container
Company LLC. For more information, please visit www.loews.com.
FORWARD-LOOKING STATEMENTS
Statements contained in this press release 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 of the Company. A discussion of the important risk
factors and other considerations that could materially impact these
matters as well as the Company's overall business and financial
performance can be found in the Company's reports filed with the
Securities and Exchange Commission and readers of this release are
urged to review those reports carefully when considering these
forward-looking statements. Copies of these reports are available
through the Company'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 press release. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in the Company's expectations with regard
thereto or any change in events, conditions or circumstances on
which any forward-looking statement is based.
Loews Corporation
and Subsidiaries
|
|
|
|
Selected Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(In
millions)
|
2018
|
2017
|
|
Revenues:
|
|
|
CNA
Financial (a) (b)
|
$
2,535
|
$
2,329
|
Diamond
Offshore
|
299
|
377
|
Boardwalk Pipeline
|
337
|
368
|
Loews
Hotels & Co
|
183
|
167
|
Investment income and other (c)
|
227
|
59
|
Total
|
$
3,581
|
$
3,300
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
CNA
Financial (a) (d)
|
$
347
|
$
345
|
Diamond
Offshore
|
(25)
|
25
|
Boardwalk Pipeline
|
95
|
118
|
Loews
Hotels & Co
|
20
|
19
|
Investment income, net
|
14
|
59
|
Corporate and other (c)
|
(46)
|
(56)
|
Total
|
$
405
|
$
510
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
CNA
Financial (a) (d)
|
$
261
|
$
234
|
Diamond
Offshore (e)
|
10
|
12
|
Boardwalk Pipeline
|
36
|
37
|
Loews
Hotels & Co
|
13
|
10
|
Investment income, net
|
11
|
38
|
Corporate and other (c)
|
(38)
|
(36)
|
Net
income attributable to Loews Corporation
|
$
293
|
$
295
|
|
|
|
|
|
(a)
|
Includes realized
investment gains of $9 million ($7 million after tax and
noncontrolling interests) and $34 million ($20 million after tax
and noncontrolling interests) for the three months ended March 31,
2018 and 2017.
|
(b)
|
Includes an increase
of $137 million for the three months ended March 31, 2018 due to
the implementation of a new accounting standard for revenue
recognition (Accounting Standard Update 2014-09) on January 1,
2018. The new standard increases revenues and expenses to reflect
the gross amounts paid by consumers for CNA's non-insurance
warranty products.
|
(c)
|
Includes the
financial results of Consolidated Container Company for the three
months ended March 31, 2018 subsequent to its acquisition on May
22, 2017, corporate interest expense and other unallocated
corporate expenses.
|
(d)
|
Includes charges of
$40 million ($28 million after tax and noncontrolling interests)
and $20 million ($12 million after tax and noncontrolling
interests) for the three months ended March 31, 2018 and 2017
related to the 2010 retroactive reinsurance agreement to cede CNAʼs
legacy asbestos and environmental pollution liabilities.
|
(e)
|
Includes a $43
million ($23 million after noncontrolling interests) favorable
adjustment to an uncertain tax position recorded by Diamond
Offshore at year-end 2017 related to the Tax Act for the three
months ended March 31, 2018.
|
Loews Corporation
and Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(In millions, except
per share data)
|
2018
|
2017
|
|
Revenues:
|
|
|
Insurance premiums
|
$
1,785
|
$
1,645
|
Net
investment income
|
506
|
604
|
Investment gains
|
9
|
34
|
Operating revenues and other (a) (b)
|
1,281
|
1,017
|
Total
|
3,581
|
3,300
|
|
|
|
|
Expenses:
|
|
|
Insurance claims and policyholders' benefits (c)
|
1,339
|
1,293
|
Operating expenses and other (a) (b)
|
1,837
|
1,497
|
Total
|
3,176
|
2,790
|
|
|
|
|
Income before income
tax
|
405
|
510
|
Income tax expense
(d)
|
(25)
|
(119)
|
Net income
|
380
|
391
|
Amounts attributable
to noncontrolling interests
|
(87)
|
(96)
|
Net income
attributable to Loews Corporation
|
$
293
|
$
295
|
|
|
|
|
Net income per share
attributable to Loews Corporation
|
$
0.89
|
$
0.87
|
|
|
|
|
Weighted average
number of shares
|
328.72
|
337.68
|
|
|
|
|
(a)
|
Includes the
financial results of Consolidated Container Company for the three
months ended March 31, 2018 subsequent to its acquisition on May
22, 2017.
|
(b)
|
Includes an increase
of $137 million for the three months ended March 31, 2018 due to
the implementation of a new accounting standard for revenue
recognition (Accounting Standard Update 2014-09) on January 1,
2018. The new standard increases revenues and expenses to reflect
the gross amounts paid by consumers for CNA's non-insurance
warranty products.
|
(c)
|
Includes charges of
$40 million ($28 million after tax and noncontrolling interests)
and $20 million ($12 million after tax and noncontrolling
interests) for the three months ended March 31, 2018 and 2017
related to the 2010 retroactive reinsurance agreement to cede CNAʼs
legacy asbestos and environmental pollution liabilities.
|
(d)
|
Includes a $43
million ($23 million after noncontrolling interests) favorable
adjustment to an uncertain tax position recorded by Diamond
Offshore at year-end 2017 related to the Tax Act for the three
months ended March 31, 2018.
|
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SOURCE Loews Corporation