NEW YORK, Oct. 31, 2016 /PRNewswire/ -- Loews
Corporation (NYSE: L) today reported net income for the three
months ended September 30, 2016 of
$327 million, or $0.97 per share, compared to $182 million, or $0.50 per share, in the prior year period. Net
income for the nine months ended September
30, 2016 was $364 million, or
$1.08 per share, compared to
$461 million, or $1.25 per share, in the prior year period.
Book value per share increased to $54.22 at September 30,
2016 from $51.67 at
December 31, 2015. Book value per
share excluding accumulated other comprehensive income (AOCI)
increased to $53.79 at September 30, 2016 from $52.72 at December 31,
2015.
CONSOLIDATED HIGHLIGHTS
(In millions, except
per share data)
|
September
30,
|
Three
Months
|
Nine
Months
|
2016
|
2015
|
2016
|
2015
|
Income before net
investment gains (losses)
|
$
300
|
$
211
|
$
352
|
$ 479
|
Net investment gains
(losses)
|
27
|
(29)
|
12
|
(18)
|
Net income attributable
to Loews Corporation
|
$
327
|
$
182
|
$
364
|
$
461
|
Net income per
share
|
$ 0.97
|
$ 0.50
|
$ 1.08
|
$ 1.25
|
|
|
|
|
September 30,
2016
|
December 31,
2015
|
Book value per
share
|
$
54.22
|
$
51.67
|
Book value per
share excluding AOCI
|
53.79
|
52.72
|
Three Months Ended September 30,
2016 Compared to 2015
Net income attributable to Loews Corporation for the three
months ended September 30, 2016
increased $145 million as compared to
the prior year period due to higher earnings at CNA Financial
Corporation and improved results from the parent company investment
portfolio. These increases were partially offset by lower earnings
at Diamond Offshore and Boardwalk Pipeline.
CNA's earnings increased due to higher net investment income
driven by limited partnership investments as well as realized
investment gains in the third quarter of 2016 compared to losses in
the prior year period. These increases were partially offset by
lower favorable net prior year reserve development and higher
underwriting expenses, which included certain non-recurring costs
related to information technology and employee termination
costs.
Diamond Offshore's earnings decreased due to a substantial
reduction in the number of rigs operating as compared to the year
ago period and significant unscheduled rig downtime, partially
offset by lower depreciation expense resulting mainly from the
asset impairment charges incurred in prior periods.
Boardwalk Pipeline's earnings were lower due to a non-recurring
franchise tax refund received in last year's third quarter.
Excluding the tax refund, Boardwalk Pipeline's earnings were higher
due to revenues from new growth projects recently placed in service
and an increase in storage and parking and lending revenues,
partially offset by an increase in interest expense.
Loews Hotels' earnings increased primarily due to higher
earnings from joint venture properties.
Income generated by the parent company investment portfolio
improved due to higher income from limited partnership investments
and equity securities.
Nine Months Ended September 30,
2016 Compared to 2015
Net income attributable to Loews Corporation for the nine months
ended September 30, 2016 decreased
primarily due to lower earnings at Diamond Offshore partially
offset by improved results at CNA, Boardwalk Pipeline and from the
parent company investment portfolio.
CNA's earnings increased due to higher net investment income
driven by limited partnership investments, realized investment
gains in 2016 as compared to losses in 2015, and higher favorable
net prior year reserve development, partially offset by higher
underwriting expenses.
Diamond Offshore's earnings decreased primarily due to increased
asset impairment charges. Excluding these impairment charges,
year-over-year earnings decreased as a result of a substantial
reduction in the number of operating rigs, partially offset by
revenue earned by newbuild drillships and lower depreciation
expense as a result of the asset impairment charges.
Boardwalk Pipeline's earnings increased due to new rates in
effect following the Gulf South rate case, the return to service of
the Evangeline pipeline, and growth projects recently placed in
service.
Loews Hotels' results decreased primarily due to an impairment
charge related to a joint venture property.
Income generated by the parent company investment portfolio
improved due to higher income from equity securities.
SHARE REPURCHASES
At September 30, 2016, there were
337.0 million shares of Loews common stock outstanding. During the
three and nine months ended September 30,
2016, the Company repurchased 0.4 million and 3.0 million
shares of its common stock at an aggregate cost of $17 million and $115
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 third 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 88205905. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the third quarter results of CNA
has been scheduled for today at 10:00 a.m.
ET. A live webcast will be available at www.cna.com. Those
interested in participating in the question and answer session
should dial (877) 675-4750, or for international callers, (719)
325-4785.
A conference call to discuss the third 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 90369196.
A conference call to discuss the third 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 (800) 247-9979, or for
international callers, (973) 321-1100. The conference ID number is
89455433.
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 one wholly owned subsidiary,
Loews Hotels & Resorts. 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.
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Loews Corporation
and Subsidiaries
|
|
|
|
|
|
|
Selected Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
September
30,
|
|
|
|
|
Three
Months
|
Nine
Months
|
|
|
(In
millions)
|
2016
|
2015
|
2016
|
2015
|
|
|
Revenues:
|
|
|
|
|
|
|
CNA
Financial
|
$
2,388
|
$
2,203
|
$
6,954
|
$
6,874
|
|
|
Diamond
Offshore
|
350
|
608
|
1,211
|
1,867
|
|
|
Boardwalk
Pipeline
|
306
|
296
|
961
|
925
|
|
|
Loews
Hotels
|
161
|
146
|
513
|
452
|
|
|
Investment
income (loss) and other
|
37
|
(34)
|
110
|
6
|
|
|
|
|
3,242
|
3,219
|
9,749
|
10,124
|
|
|
Investment gains
(losses):
|
|
|
|
|
|
|
CNA
Financial
|
45
|
(50)
|
30
|
(42)
|
|
|
Corporate and
other
|
|
|
(12)
|
|
|
|
|
|
45
|
(50)
|
18
|
(42)
|
|
|
Total
|
$
3,287
|
$
3,169
|
$
9,767
|
$
10,082
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
|
CNA Financial
(a)
|
$
431
|
$
284
|
$
794
|
$
755
|
|
|
Diamond
Offshore (b)
|
36
|
139
|
(538)
|
(42)
|
|
|
Boardwalk
Pipeline
|
46
|
48
|
210
|
163
|
|
|
Loews
Hotels
|
4
|
1
|
17
|
25
|
|
|
Investment
income (loss), net
|
36
|
(35)
|
108
|
4
|
|
|
Other
(c)
|
(42)
|
(39)
|
(134)
|
(115)
|
|
|
|
|
511
|
398
|
457
|
790
|
|
|
Investment gains
(losses):
|
|
|
|
|
|
|
CNA
Financial
|
45
|
(50)
|
30
|
(42)
|
|
|
Corporate and
other
|
|
|
(12)
|
|
|
|
|
|
45
|
(50)
|
18
|
(42)
|
|
|
Total
|
$
556
|
$
348
|
$
475
|
$
748
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
|
CNA Financial
(a)
|
$
281
|
$
190
|
$
541
|
$
513
|
|
|
Diamond
Offshore (b)
|
7
|
47
|
(240)
|
(34)
|
|
|
Boardwalk
Pipeline
|
14
|
18
|
62
|
55
|
|
|
Loews
Hotels
|
3
|
2
|
7
|
15
|
|
|
Investment
income (loss), net
|
24
|
(22)
|
72
|
4
|
|
|
Other
(c)
|
(29)
|
(24)
|
(90)
|
(74)
|
|
|
|
|
300
|
211
|
352
|
479
|
|
|
Investment gains
(losses):
|
|
|
|
|
|
|
CNA
Financial
|
27
|
(29)
|
16
|
(18)
|
|
|
Corporate and
other
|
|
|
(4)
|
|
|
|
|
|
27
|
(29)
|
12
|
(18)
|
|
|
Net income
attributable to Loews Corporation
|
$
327
|
$
182
|
$
364
|
$
461
|
|
|
|
|
|
|
|
|
|
|
(a)
Includes charges of $127 million ($74
million after tax and noncontrolling interests) and $84 million
($49 million
after tax and noncontrolling
interests) for the nine months ended September 30, 2016 and 2015
related to
retroactive reinsurance
accounting for the transaction in which CNA Financial ceded
substantially all of their
legacy asbestos and
environmental pollution reserve liabilities to a third party
through a loss portfolio transfer.
|
|
|
(b)
Includes asset impairment charges of $680
million ($267 million after tax and noncontrolling interests) and
$361
million ($159 million after tax
and noncontrolling interests) for the nine months ended September
30, 2016 and
2015 related to the
carrying value of Diamond Offshore's drilling rigs.
|
|
|
|
|
(c)
Consists primarily of corporate interest
expense and other unallocated expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loews Corporation
and Subsidiaries
|
|
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
Three
Months
|
Nine
Months
|
|
|
(In millions, except
per share data)
|
2016
|
2015
|
2016
|
2015
|
|
|
Revenues:
|
|
|
|
|
|
|
Insurance
premiums
|
$
1,767
|
$
1,751
|
$
5,196
|
$
5,173
|
|
|
Net investment
income
|
561
|
321
|
1,570
|
1,419
|
|
|
Investment
gains (losses)
|
45
|
(50)
|
18
|
(42)
|
|
|
Contract
drilling revenues
|
340
|
599
|
1,141
|
1,816
|
|
|
Other
revenues
|
574
|
548
|
1,842
|
1,716
|
|
|
Total
|
3,287
|
3,169
|
9,767
|
10,082
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Insurance
claims & policyholders' benefits (a)
|
1,202
|
1,200
|
3,949
|
4,008
|
|
|
Contract
drilling expenses
|
187
|
276
|
598
|
971
|
|
|
Other
operating expenses (b)
|
1,342
|
1,345
|
4,745
|
4,355
|
|
|
Total
|
2,731
|
2,821
|
9,292
|
9,334
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax
|
556
|
348
|
475
|
748
|
|
|
Income tax
expense
|
(163)
|
(66)
|
(171)
|
(170)
|
|
|
Net
income
|
393
|
282
|
304
|
578
|
|
|
Amounts attributable
to noncontrolling interests
|
(66)
|
(100)
|
60
|
(117)
|
|
|
Net income
attributable to Loews Corporation
|
$
327
|
$
182
|
$
364
|
$
461
|
|
|
|
|
|
|
|
|
|
|
Income per share
attributable to Loews Corporation
|
$
0.97
|
$
0.50
|
$
1.08
|
$
1.25
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
337.62
|
361.10
|
338.61
|
368.03
|
|
|
|
|
|
|
|
|
|
(a)
Includes charges of $127 million ($74
million after tax and noncontrolling interests) and $84 million
($49 million
after tax and noncontrolling
interests) for the nine months ended September 30, 2016 and 2015
related to
retroactive reinsurance accounting
for the transaction in which CNA Financial ceded substantially all
of their
legacy asbestos and
environmental pollution reserve liabilities to a third party
through a loss portfolio transfer.
|
|
|
(b)
Includes asset impairment charges of $680
million ($267 million after tax and noncontrolling interests) and
$361
million ($159 million after tax and
noncontrolling interests) for the nine months ended September 30,
2016 and
2015 related to the carrying value
of Diamond Offshore's drilling rigs.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-327-million-for-the-third-quarter-of-2016-300353827.html
SOURCE Loews Corporation