NEW YORK, Feb. 7, 2022
/PRNewswire/ -- Loews Corporation (NYSE:L) today reported
fourth quarter net income of $343
million, or $1.37 per share,
compared to net income of $397
million, or $1.45 per share,
for the fourth quarter of 2020. For the full year, Loews reported
net income of $1.58 billion, or
$6.07 per share, compared to a net
loss of $931 million, or $3.32 per share, in 2020.
Excluding the 2021 investment gain for Altium Packaging, the
2020 investment loss for Diamond Offshore, and the 2020 operating
loss for Diamond Offshore, as detailed on page 4 of this release,
full year net income was $1.1 billion
and $502 million in 2021 and
2020.
"Loews had a very strong fourth quarter and year, with each of
our consolidated subsidiaries making solid progress in 2021. These
results are doubly gratifying having been achieved in a period
marred by the persistence of the COVID-19 pandemic, global supply
chain disruptions, and the return of inflation," said James S. Tisch, CEO of Loews Corporation. "CNA
continues to be a success story with its core income reaching a new
record of $1.1 billion for full year
2021. Additionally, Boardwalk favorably contributed to our growth
and Loews Hotels continued to rebound from the pandemic's worst
effects."
Loews Corporation posted solid earnings in the quarter as CNA
Financial Corporation, Boardwalk Pipelines, and Loews Hotels &
Co all generated strong operating results. Quarterly net income
declined year-over-year, however, as CNA had lower net investment
gains, lower results from the Life & Group business, and higher
net catastrophe losses, all of which were partially offset by
higher Property & Casualty non-catastrophe underwriting
results. Loews Hotels posted significantly improved year-over-year
fourth quarter results largely due to the continuing rebound in
leisure travel, especially at resort destinations. Boardwalk
Pipelines' earnings for the quarter decreased compared to the prior
year period due to the absence of a bankruptcy settlement received
in 2020. The parent company investment portfolio experienced lower
net investment income in the quarter compared to the prior year
period.
Book value per share was $71.84 at
December 31, 2021 compared to $66.34 at December 31, 2020. Book value per
share excluding accumulated other comprehensive income (AOCI)
increased to $71.09 at
December 31, 2021 from $64.18 at
December 31, 2020.
CONSOLIDATED
HIGHLIGHTS
|
December
31,
|
|
Three
Months
|
Years
Ended
|
(In millions, except
per share data)
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Income (loss) before
net investment gains (losses)
|
$
341
|
$
352
|
$
1,066
|
$
53
|
Net investment gains
(losses):
|
|
|
|
|
CNA
|
2
|
45
|
86
|
(27)
|
Corporate
|
|
|
426
|
(957)
|
Total net investment
gains (losses)
|
2
|
45
|
512
|
(984)
|
Net income (loss)
attributable to Loews Corporation
|
$
343
|
$
397
|
$
1,578
|
$
(931)
|
Net income (loss) per
share
|
$
1.37
|
$
1.45
|
$
6.07
|
$
(3.32)
|
|
|
|
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
Book value per
share
|
$
71.84
|
|
$
66.34
|
|
Book value per share
excluding AOCI
|
71.09
|
|
64.18
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2021 Compared to Three
Months Ended December 31, 2020
CNA's results decreased primarily due to lower net investment
gains, lower results from the Life & Group business driven by
unfavorable morbidity, and higher net catastrophe losses, all of
which were partially offset by higher Property & Casualty
non-catastrophe underwriting results. CNA's results were also
negatively impacted by adverse development in legacy mass tort
exposures and a higher non-economic charge related to the 2010 loss
portfolio transfer covering legacy asbestos & environmental
pollution liabilities.
Boardwalk Pipelines' earnings decreased mainly due to the
absence of $34 million ($26 million after tax) of proceeds received in
2020 related to a contract cancellation due to a customer
bankruptcy. Excluding these proceeds, earnings increased due to
higher revenues from growth projects recently placed into service
and higher system utilization, partially offset by higher
maintenance project costs.
Loews Hotels' results improved significantly as all hotel
properties owned and/or operated by Loews Hotels were open during
the fourth quarter and the rebound in leisure travel continued,
especially at resort destinations. Although results were
significantly better in 2021 compared to 2020, occupancy levels
have not reached pre-pandemic levels at many Loews Hotels
properties. Results for 2021 benefited from a one-time net gain of
$35 million ($26 million after tax) related to the
acceleration of government grant payments used to retire
outstanding debt.
The parent company investment portfolio produced lower returns
from equity investments in 2021.
Year Ended December 31, 2021 Compared to
2020
CNA's earnings increased primarily due to higher Property &
Casualty non-catastrophe underwriting results, lower net
catastrophe losses, higher net investment income, and net
investment gains as compared to losses in 2020. Life & Group
business results benefited from the reduction in long term care
claims reserves resulting from the 2021 annual claim reserve review
and the absence of the long term care active life premium
deficiency charge recorded in 2020.
The parent company investment portfolio posted improved results
primarily because limited partnership and equity investments
generated higher income in 2021 versus 2020.
The Corporate & other segment includes an investment gain of
$438 million (after tax) related to
the sale of 47% of Altium Packaging and its deconsolidation in 2021
as compared to an investment loss of $957
million (after tax) related to the bankruptcy filing and
deconsolidation of Diamond Offshore in 2020.
All other segment changes from 2020 to 2021 are primarily due to
the reasons discussed in the three-month comparison. In addition,
Loews's results for the year ended December 31, 2020 included
Diamond Offshore's operating results through its second quarter
deconsolidation, which comprised impairment charges totaling
$774 million ($408 million after tax and noncontrolling
interests) related to the carrying value of four drilling rigs and
operating losses of $160 million
($68 million after tax and
noncontrolling interests).
SHARE REPURCHASES
At December 31, 2021, there were 248.4 million shares of
Loews common stock outstanding. For the three months and year ended
December 31, 2021, the Company repurchased 5.4 million and
21.1 million shares of its common stock at an aggregate cost of
$306 million and $1.13 billion, respectively. From January 1, 2022 to February 4, 2022, the Company repurchased an
additional 0.2 million shares of its common stock at an aggregate
cost of $14 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, in privately negotiated transactions or otherwise.
CONFERENCE CALLS
A conference call to discuss the fourth quarter results of Loews
Corporation has been scheduled for today at 10:00 a.m. ET. A live webcast will be available
via the Investors/Media section of www.loews.com. Those interested
in participating should dial (866) 342-8591, or for international
callers, (203) 518-9713. The conference ID number is L4Q21. An
online replay will also be available at www.loews.com following the
call.
A conference call to discuss the fourth quarter results of CNA
has been scheduled for today at 9:00 a.m.
ET. A live webcast will be available via the Investor
Relations section of www.cna.com. Those interested in participating
should dial (800) 289-0571, or for international callers, (720)
543-0206.
ABOUT LOEWS CORPORATION
Loews Corporation is a diversified company with businesses in
the insurance, energy, hospitality, and packaging industries. 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
|
|
|
December
31,
|
|
Three
Months
|
Years
Ended
|
(In
millions)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
CNA Financial
(a)
|
$
3,054
|
$
2,930
|
$
11,908
|
$
10,827
|
Boardwalk Pipelines
(b)
|
358
|
376
|
1,349
|
1,302
|
Loews Hotels & Co
(c)
|
191
|
42
|
480
|
278
|
Investment income
(loss) and other (d) (e)
|
58
|
361
|
920
|
(129)
|
Diamond Offshore
(f)
|
|
|
|
305
|
Total
|
$
3,661
|
$
3,709
|
$
14,657
|
$
12,583
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA Financial (a)
(g)
|
$
330
|
$
477
|
$
1,484
|
$
821
|
Boardwalk Pipelines
(b)
|
74
|
111
|
303
|
277
|
Loews Hotels & Co
(c) (h)
|
52
|
(82)
|
(12)
|
(274)
|
Corporate:
(i)
|
|
|
|
|
Investment income
(loss), net
|
59
|
92
|
99
|
59
|
Other (d)
(e)
|
(56)
|
(50)
|
308
|
(1,413)
|
Diamond Offshore (f)
(j)
|
|
|
|
(934)
|
Total
|
$
459
|
$
548
|
$
2,182
|
$
(1,464)
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA Financial (a)
(g)
|
$
239
|
$
346
|
$
1,077
|
$
618
|
Boardwalk Pipelines
(b)
|
65
|
83
|
235
|
206
|
Loews Hotels & Co
(c) (h)
|
37
|
(68)
|
(14)
|
(212)
|
Corporate:
(i)
|
|
|
|
|
Investment income
(loss), net
|
46
|
73
|
78
|
47
|
Other (d)
(e)
|
(44)
|
(37)
|
202
|
(1,114)
|
Diamond Offshore (f)
(j)
|
|
|
|
(476)
|
Net income (loss)
attributable to Loews Corporation
|
$
343
|
$
397
|
$
1,578
|
$
(931)
|
|
|
(a)
|
Includes net
investment gains of $3 million and $66 million ($2 million and $45
million after tax and noncontrolling interests) for the three
months ended December 31, 2021 and 2020. Includes net
investment gains of $120 million and net investment losses of $35
million ($86 million and $(27) million after tax and noncontrolling
interests) for the years ended December 31, 2021 and
2020.
|
(b)
|
Includes settlement
proceeds of $34 million ($26 million after tax) for the three
months and year ended December 31, 2020 related to a customer
bankruptcy.
|
(c)
|
Includes $35 million
($26 million after tax) related to the acceleration of government
grant payments used to retire outstanding debt for the three months
and year ended December 31, 2021.
|
(d)
|
Includes parent
company investment income (loss) and the financial results of
Altium Packaging. On April 1, 2021, Loews sold 47% of Altium
Packaging, which was then deconsolidated and is now recorded as an
equity method investment.
|
(e)
|
Includes an
investment gain of $555 million ($438 million after tax) for the
year ended December 31, 2021 related to the sale of 47% of
Altium Packaging and its deconsolidation on April 1, 2021, and an
investment loss of $1.2 billion ($957 million after tax) for the
year ended December 31, 2020 as a result of Diamond Offshore's
bankruptcy filing and deconsolidation on April 26, 2020.
|
(f)
|
On April 26, 2020,
Diamond Offshore filed for bankruptcy and ceased being a
consolidated subsidiary.
|
(g)
|
Includes net
catastrophe losses of $41 million and $14 million ($28 million and
$10 million after tax and noncontrolling interests) for the three
months ended December 31, 2021 and 2020, and $397 million and
$550 million ($280 million and $388 million after tax and
noncontrolling interests) for the years ended December 31,
2021 and 2020.
|
(h)
|
Includes asset
impairment charges of $10 million and $6 million ($7 million and $4
million after tax) for the three months ended December 31,
2021 and 2020 and gains on the sale of assets of $9 million ($7
million after tax) for the three months ended December 31, 2021.
Includes asset impairment charges of $10 million and $36 million
($7 million and $26 million after tax) and gains on the sale of
assets of $9 million and $37 million ($7 million and $24 million
after tax) for the years ended December 31, 2021 and
2020.
|
(i)
|
The Corporate segment
consists of investment income (loss) from the parent company's cash
and investments, interest expense, other unallocated corporate
expenses, the financial results of Altium Packaging through its
deconsolidation on April 1, 2021, and the gain (loss) related to
the deconsolidation of subsidiaries.
|
(j)
|
The year ended
December 31, 2020 included impairment charges of $774 million
($408 million after tax and noncontrolling interests) at Diamond
Offshore related to the carrying value of four drilling
rigs.
|
Loews Corporation
and Subsidiaries Consolidated Financial
Review
|
|
|
December
31,
|
|
Three
Months
|
Years
Ended
|
(In millions, except
per share data)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
Insurance
premiums
|
$
2,119
|
$
1,977
|
$
8,175
|
$
7,649
|
Net investment
income
|
610
|
648
|
2,259
|
1,995
|
Investment gains
(losses) (a)
|
3
|
66
|
660
|
(1,246)
|
Operating revenues and
other (b)
|
929
|
1,018
|
3,563
|
4,185
|
Total
|
3,661
|
3,709
|
14,657
|
12,583
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance claims and
policyholders' benefits (c)
|
1,665
|
1,487
|
6,349
|
6,170
|
Operating expenses and
other (b) (d)
|
1,537
|
1,674
|
6,126
|
7,877
|
Total
|
3,202
|
3,161
|
12,475
|
14,047
|
|
|
|
|
|
Income (loss) before
income tax
|
459
|
548
|
2,182
|
(1,464)
|
Income tax (expense)
benefit
|
(88)
|
(111)
|
(479)
|
173
|
Net income
(loss)
|
371
|
437
|
1,703
|
(1,291)
|
Amounts attributable
to noncontrolling interests
|
(28)
|
(40)
|
(125)
|
360
|
Net income (loss)
attributable to Loews Corporation
|
$
343
|
$
397
|
$
1,578
|
$
(931)
|
|
|
|
|
|
Net income (loss) per
share attributable to Loews Corporation
|
$
1.37
|
$
1.45
|
$
6.07
|
$
(3.32)
|
|
|
|
|
|
Weighted average
number of shares
|
252.52
|
273.62
|
260.20
|
280.32
|
|
|
(a)
|
Includes an
investment gain of $555 million ($438 million after tax) for the
year ended December 31, 2021 related to the sale of 47% of
Altium Packaging and its deconsolidation on April 1, 2021 and an
investment loss of $1.2 billion ($957 million after tax) for the
year ended December 31, 2020 as a result of Diamond Offshore's
bankruptcy filing and deconsolidation on April 26, 2020.
|
(b)
|
On April 1, 2021,
Loews sold 47% of Altium Packaging, which was then deconsolidated
and is now recorded as an equity method investment. On April 26,
2020, Diamond Offshore filed for bankruptcy and ceased being a
consolidated subsidiary.
|
(c)
|
Includes net
catastrophe losses of $41 million and $14 million ($28 million and
$10 million after tax and noncontrolling interests) for the three
months ended December 31, 2021 and 2020, and $397 million and
$550 million ($280 million and $388 million after tax and
noncontrolling interests) for the years ended December 31,
2021 and 2020.
|
(d)
|
The year ended
December 31, 2020, included impairment charges of $774 million
($408 million after tax and noncontrolling interests) at Diamond
Offshore related to the carrying value of four drilling
rigs.
|
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
This press release contains a financial measure that is not in
accordance with accounting principles generally accepted in
the United States of America
("GAAP"). The company believes the presentation of this measure
provides investors with a better understanding of the significant
factors that comprise the Company's operating performance.
Reconciliation of this measure to the most comparable GAAP measures
follow below.
|
December
31,
|
|
Three
Months
|
Years
Ended
|
(In
millions)
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Net income (loss)
attributable to Loews Corporation
|
$
343
|
$
397
|
$
1,578
|
$
(931)
|
Less: Investment gain
on Altium Packaging
|
|
|
438
|
|
Less: Investment loss
on Diamond Offshore
|
|
|
|
(957)
|
Less: Operating net
loss of Diamond Offshore
|
|
|
|
(476)
|
Net income
attributable to Loews Corporation excluding these items
|
$
343
|
$
397
|
$
1,140
|
$
502
|
Core income is a non-GAAP measure CNA utilizes to assess
performance. See CNA's fourth quarter financial results press
release dated today for more information regarding core income.
View original
content:https://www.prnewswire.com/news-releases/loews-corporation-reports-2021-net-income-of-343-million-for-the-fourth-quarter-and-1-6-billion-for-the-full-year-301476134.html
SOURCE Loews Corporation