NEW YORK, Aug. 5, 2019 /PRNewswire/ -- Loews Corporation
(NYSE: L) today reported net income of $249
million, or $0.82 per share,
for the three months ended June 30,
2019, compared to $230
million, or $0.72 per share,
in the prior year period. Net income for the six months ended
June 30, 2019 was $643 million, or $2.09 per share, compared to $523 million, or $1.61 per share, in the prior year period.
Net income for the three months ended June 30, 2019 increased as compared with the
prior year period due to higher earnings at CNA Financial
Corporation and Boardwalk Pipelines partially offset by lower
results at Diamond Offshore Drilling, Inc. and less parent company
net investment income. Net income for the six months ended
June 30, 2019 increased as compared
to the prior year period due to higher earnings at CNA and
Boardwalk Pipelines as well as higher parent company net investment
income, partially offset by lower results at Diamond Offshore.
Book value per share increased to $64.49 at June 30,
2019 from $59.34 at
December 31, 2018. Book value per
share excluding accumulated other comprehensive income (AOCI)
increased to $64.48 at June 30, 2019 from $62.16 at December 31,
2018.
CONSOLIDATED HIGHLIGHTS
(In millions, except
per share data)
|
June 30,
|
Three
Months
|
Six Months
|
2019
|
2018
|
2019
|
2018
|
Income before net
investment gains (losses)
|
$
248
|
$
231
|
$ 621
|
$ 517
|
Net investment gains
(losses)
|
1
|
(1)
|
22
|
6
|
Net income attributable
to Loews Corporation
|
$
249
|
$
230
|
$ 643
|
$ 523
|
Net income per
share
|
$ 0.82
|
$ 0.72
|
$ 2.09
|
$ 1.61
|
|
|
|
|
June 30,
2019
|
December 31,
2018
|
Book value per
share
|
$
64.49
|
$
59.34
|
Book value per
share excluding AOCI
|
64.48
|
62.16
|
Three Months Ended June 30,
2019 Compared to 2018
CNA's earnings increased primarily due to improved results in
its Life & Group business and the absence of IT infrastructure
transition costs incurred in 2018. Partially offsetting these
increases was lower favorable net prior year reserve development in
the Property & Casualty business. Results were also negatively
affected by a loss of $15 million
(after tax and noncontrolling interests) on the early redemption of
debt in 2019.
Diamond Offshore's results declined due to overall continuing
challenging market conditions, higher contract drilling expense
primarily due to incremental amortization of certain previously
deferred contract-related costs as well as drilling rig downtime.
These decreases were partially offset by a $7 million (after noncontrolling interests)
income tax benefit in 2019 from a favorable adjustment related to
an uncertain tax position recorded in 2017, a net gain of
$5 million (after tax and
noncontrolling interests) related to the disposition of assets in
2019 and a $12 million (after tax and
noncontrolling interests) impairment charge in 2018.
Boardwalk Pipelines' results were favorably impacted by higher
firm transportation revenues from growth projects recently placed
into service. Additionally, in 2019, proceeds received in
conjunction with a contract cancellation due to a customer
bankruptcy resulted in a $19 million
(after tax) benefit to net income. Partially offsetting these
favorable factors were contract restructurings and expirations. The
increase in net income contribution is substantially the result of
Loews owning 100% of the company as compared to 51% in the prior
year period.
Loews Hotels & Co's earnings decreased primarily due to
charges of $7 million (after tax)
related to pre-opening expenses incurred at hotels under
development and the write-off of capitalized development costs
related to a potential development site. Absent these charges,
results benefited primarily from higher earnings from its joint
venture properties at the Universal Orlando Resort.
Income generated by the parent company investment portfolio
decreased primarily due to lower income from limited partnership
investments as well as a lower level of invested assets.
Six Months Ended June 30, 2019
Compared to 2018
CNA's earnings increased primarily due to higher net investment
income driven by improved returns from limited partnership
investments and higher net investment gains. In addition, earnings
in 2019 increased due to a net retroactive reinsurance benefit
under the 2010 loss portfolio transfer with National Indemnity as
compared to a net retroactive reinsurance charge recorded in 2018.
Partially offsetting these increases were lower underwriting income
reflecting higher catastrophe losses and lower favorable prior year
reserve development, as well as a loss on the early redemption of
debt.
Diamond Offshore's results declined primarily due to the reasons
set forth in the three-month discussion above.
Boardwalk Pipelines' results improved primarily due to the
reasons set forth in the three-month discussion above.
Loews Hotels & Co's earnings decreased primarily due to the
reasons set forth in the three-month discussion above and a charge
related to the disposition of a property in 2019.
Income generated by the parent company investment portfolio
increased primarily due to improved performance from equity
securities, partially offset by lower returns from limited
partnership investments as well as a lower level of invested
assets.
SHARE REPURCHASES
At June 30, 2019, there were 302.6
million shares of Loews common stock outstanding. For the three and
six months ended June 30, 2019, the
Company repurchased 3.0 million and 9.8 million shares of its
common stock at an aggregate cost of $151
million and $474 million. From
July 1, 2019 to August 2, 2019, the Company repurchased an
additional 0.4 million shares of its common stock at an aggregate
cost of $23 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 second 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 7991787. An
online replay will also be available at www.loews.com following the
call.
A conference call to discuss the second quarter results of CNA
has been scheduled for today at 10:00 a.m.
ET. A live webcast will be available via the Investor
Relations section of www.cna.com. Those interested in participating
in the question and answer session should dial (800) 289-0571, or
for international callers, (720) 543-0206.
A conference call to discuss the second quarter results of
Diamond Offshore has been scheduled for today at 9:00 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
2482667.
ABOUT LOEWS CORPORATION
Loews Corporation is a diversified company with businesses in
the insurance, energy, hospitality and packaging industries. Our
subsidiaries are: CNA Financial Corporation (NYSE: CNA), Diamond
Offshore Drilling, Inc. (NYSE: DO), Boardwalk Pipelines, Loews
Hotels & Co and Consolidated Container Company. Investors are
encouraged to view the subsidiary virtual investor presentations
found in the 'Events & Presentations' section of ir.loews.com
for an in-depth strategic review of Loews's subsidiaries. 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
Three
Months
|
Six Months
|
|
|
(In
millions)
|
2019
|
2018
|
2019
|
2018
|
|
|
Revenues:
|
|
|
|
|
|
|
CNA Financial
(a)
|
$
2,630
|
$
2,574
|
$
5,325
|
$
5,109
|
|
|
Diamond
Offshore
|
224
|
271
|
460
|
570
|
|
|
Boardwalk Pipelines
(b)
|
327
|
285
|
673
|
622
|
|
|
Loews Hotels &
Co
|
186
|
201
|
366
|
384
|
|
|
Investment income and
other (c)
|
256
|
259
|
556
|
486
|
|
|
Total
|
$
3,623
|
$
3,590
|
$
7,380
|
$
7,171
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
|
CNA Financial (a) (d)
(e)
|
$
343
|
$
329
|
$
761
|
$
676
|
|
|
Diamond Offshore
(f)
|
(142)
|
(79)
|
(219)
|
(104)
|
|
|
Boardwalk Pipelines
(b)
|
72
|
39
|
178
|
134
|
|
|
Loews Hotels &
Co
|
18
|
24
|
37
|
44
|
|
|
Corporate:
(g)
|
|
|
|
|
|
|
Investment income,
net
|
33
|
42
|
117
|
56
|
|
|
Other
|
(49)
|
(48)
|
(91)
|
(94)
|
|
|
Total
|
$
275
|
$
307
|
$
783
|
$
712
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
|
CNA Financial (a) (d)
(e)
|
$
249
|
$
240
|
$
554
|
$
501
|
|
|
Diamond Offshore (f)
(h)
|
(52)
|
(37)
|
(89)
|
(27)
|
|
|
Boardwalk Pipelines
(b)
|
53
|
16
|
132
|
52
|
|
|
Loews Hotels &
Co
|
12
|
17
|
25
|
30
|
|
|
Corporate:
(g)
|
|
|
|
|
|
|
Investment income,
net
|
26
|
34
|
93
|
45
|
|
|
Other
|
(39)
|
(40)
|
(72)
|
(78)
|
|
|
Net income
attributable to Loews Corporation
|
$
249
|
$
230
|
$
643
|
$
523
|
|
|
|
|
|
|
|
|
|
(a)
|
Includes net
investment gains of $2 million ($1 million after tax and
noncontrolling interests) and net investment losses of $3 million
($1 million after tax and noncontrolling interests) for the three
months ended June 30, 2019 and 2018. Includes net investment gains
of $33 million ($22 million after tax and noncontrolling interests)
and $6 million ($6 million after tax and noncontrolling interests)
for the six months ended June 30, 2019 and 2018.
|
|
(b)
|
Includes settlement
proceeds of $26 million ($19 million after tax) related to a
customer bankruptcy for the three and six months ended June 30,
2019.
|
(c)
|
Includes parent
company investment income and the financial results of Consolidated
Container.
|
(d)
|
Includes a gain of
$14 million and $15 million (each $10 million after tax and
noncontrolling interests) for the three months ended June 30, 2019
and 2018 and a gain of $36 million ($26 million after tax and
noncontrolling interests) and a loss of $25 million ($18 million
after tax and noncontrolling interests) for the six months ended
June 30, 2019 and 2018 related to the 2010 retroactive reinsurance
agreement to cede CNA's legacy asbestos and environmental pollution
liabilities.
|
(e)
|
Includes a loss of
$21 million ($15 million after tax and noncontrolling interests) on
the early redemption of debt for the three and six months ended
June 30, 2019.
|
(f)
|
Includes asset
impairment charges of $27 million ($12 million after tax and
noncontrolling interests) for the three and six months ended June
30, 2018.
|
(g)
|
The Corporate segment
consists of investment income from the parent company's cash and
investments, interest expense, other unallocated expenses and the
financial results of Consolidated Container.
|
(h)
|
For the three and six
months ended June 30, 2019, includes a favorable adjustment of $14
million ($7 million after noncontrolling interests) and for the six
months ended June 30, 2018, includes a favorable adjustment of $43
million ($23 million after noncontrolling interests) each related
to an uncertain tax position recorded by Diamond Offshore at
year-end 2017.
|
|
Loews Corporation
and Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
Three
Months
|
Six Months
|
|
(In millions, except
per share data)
|
2019
|
2018
|
2019
|
2018
|
|
Revenues:
|
|
|
|
|
|
Insurance
premiums
|
$
1,824
|
$
1,815
|
$
3,627
|
$
3,600
|
|
Net investment
income
|
551
|
551
|
1,208
|
1,057
|
|
Investment gains
(losses)
|
2
|
(3)
|
33
|
6
|
|
Operating revenues and
other (a)
|
1,246
|
1,227
|
2,512
|
2,508
|
|
Total
|
3,623
|
3,590
|
7,380
|
7,171
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Insurance claims and
policyholders' benefits (b)
|
1,352
|
1,327
|
2,709
|
2,666
|
|
Operating expenses and
other (c) (d)
|
1,996
|
1,956
|
3,888
|
3,793
|
|
Total
|
3,348
|
3,283
|
6,597
|
6,459
|
|
|
|
|
|
|
|
|
Income before income
tax
|
275
|
307
|
783
|
712
|
|
Income tax expense
(e)
|
(50)
|
(59)
|
(162)
|
(84)
|
|
Net income
|
225
|
248
|
621
|
628
|
|
Amounts attributable
to noncontrolling interests
|
24
|
(18)
|
22
|
(105)
|
|
Net income
attributable to Loews Corporation
|
$
249
|
$
230
|
$
643
|
$
523
|
|
|
|
|
|
|
|
|
Net income per share
attributable to Loews Corporation
|
$
0.82
|
$
0.72
|
$
2.09
|
$
1.61
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
304.54
|
319.78
|
307.44
|
324.23
|
|
|
|
|
|
|
(a)
|
Includes settlement
proceeds of $26 million ($19 million after tax) related to a
customer bankruptcy for the three and six months ended June 30,
2019.
|
(b)
|
Includes a gain of
$14 million and $15 million (each $10 million after tax and
noncontrolling interests) for the three months ended June 30, 2019
and 2018 and a gain of $36 million ($26 million after tax and
noncontrolling interests) and a loss of $25 million ($18 million
after tax and noncontrolling interests) for the six months ended
June 30, 2019 and 2018 related to the 2010 retroactive reinsurance
agreement to cede CNA's legacy asbestos and environmental pollution
liabilities.
|
(c)
|
Includes a loss of
$21 million ($15 million after tax and noncontrolling interests) on
the early redemption of debt for the three and six months ended
June 30, 2019.
|
(d)
|
Includes asset
impairment charges of $27 million ($12 million after tax and
noncontrolling interests) for the three and six months ended June
30, 2018.
|
(e)
|
For the three and six
months ended June 30, 2019, includes a favorable adjustment of $14
million ($7 million after noncontrolling interests) and for the six
months ended June 30, 2018, includes a favorable adjustment of $43
million ($23 million after noncontrolling interests) each related
to an uncertain tax position recorded by Diamond Offshore at
year-end 2017.
|
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SOURCE Loews Corporation