NEW
YORK, May 2, 2022 /PRNewswire/ -- Loews
Corporation (NYSE:L) today reported net income of $338 million, or $1.36 per share, for the first quarter of 2022
compared to net income of $261
million, or $0.97 per share,
in the first quarter of 2021.
Net income for the first quarter of 2022 increased compared to
the comparable prior year period as CNA Financial, Boardwalk
Pipelines, and Loews Hotels & Co all generated strong operating
results. CNA experienced higher property & casualty
non-catastrophe underwriting results and lower catastrophe losses,
offset by lower net investment income and net investment losses
compared to net investment gains in the comparable prior year
period. Loews Hotels' results improved significantly as the company
continues its recovery from reduced travel during the COVID-19
pandemic, and Boardwalk Pipelines' earnings increased due to higher
revenues from growth projects recently placed into service. The
parent company generated lower net investment income than in the
comparable prior year period.
"Loews is off to a tremendous start in 2022, with an almost 30%
increase in net income over the prior year's quarter. Each of our
consolidated subsidiaries -- CNA Financial, Boardwalk Pipelines,
and Loews Hotels -- produced excellent results in the first
quarter," said James S. Tisch,
President and CEO of Loews Corporation.
Book value per share as of March 31,
2022 was $67.27 compared to
$71.84 as of December 31, 2021, reflecting lower net
unrealized investment gains due to the rise in interest rates. Book
value per share excluding accumulated other comprehensive income
(AOCI) increased to $72.34 as of
March 31, 2022 from $71.09 as of December 31,
2021.
CONSOLIDATED HIGHLIGHTS
|
Three Months Ended
|
|
March 31,
|
(In millions, except
per share data)
|
2022
|
2021
|
|
|
|
Income before net
investment gains (losses)
|
$
341
|
$
217
|
Net investment gains
(losses)
|
(3)
|
44
|
Net income attributable
to Loews Corporation
|
$
338
|
$
261
|
|
|
|
Net income per
share
|
$ 1.36
|
$ 0.97
|
|
|
|
|
March 31, 2022
|
|
December 31, 2021
|
|
|
|
|
Book value per
share
|
$ 67.27
|
|
$ 71.84
|
Book value per share
excluding AOCI
|
72.34
|
|
71.09
|
Three Months Ended March 31,
2022 Compared to Three Months Ended March 31, 2021
CNA's earnings were consistent with the prior year. Property
& casualty underwriting results increased, with lower
catastrophe losses and higher non-catastrophe underwriting income.
Net investment income declined, driven by lower returns from
limited partnership and common stock investments. CNA swung from
net investment gains last year to net investment losses,
attributable to declines in the fair value of non-redeemable
preferred stock and lower gains on sales of fixed maturity
securities.
Boardwalk Pipelines' earnings increased due primarily to higher
revenues from growth projects recently placed into service,
partially offset by higher employee-related costs and higher
expenses due to an increased asset base from growth projects.
Loews Hotels' results improved significantly, driven by
increased occupancy rates due to the rebound in travel, especially
at resort destinations, and higher average daily room rates. The
hotel properties at the Universal Orlando Resort contributed
meaningfully to the period-over-period improvement, as all 9,000
rooms were open for the entire quarter. Although results were
significantly better in 2022 compared to 2021, occupancy levels
have not rebounded to pre-pandemic levels at some Loews Hotels
properties, particularly those located in city centers.
The parent company investment portfolio recorded a loss for the
quarter as compared to income in the comparable prior year period
primarily due to losses generated by investments in equity
securities.
The Corporate & other segment benefited from the absence of
unusual items recorded in 2021 related to the recapitalization and
sale of 47% of Altium Packaging, including a $35 million deferred tax liability and a
$14 million ($10 million after tax) debt extinguishment
charge. Additionally, overhead costs at the parent company were
lower in 2022 than in the comparable prior year period.
SHARE REPURCHASES
At March 31, 2022, there were
246.4 million shares of Loews common stock outstanding. For the
three months ended March 31, 2022,
the Company repurchased 2.15 million shares of its common stock at
an aggregate cost of $129 million.
From April 1, 2022 to April 29, 2022, the Company repurchased an
additional 0.3 million shares of its common stock at an aggregate
cost of $19 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 first 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) 518-9797. The conference ID number is L1Q22. An
online replay will also be available at www.loews.com following the
call.
A conference call to discuss the first 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
|
|
|
|
|
Three Months Ended
March 31,
|
(In
millions)
|
2022
|
2021
|
Revenues:
|
|
|
CNA
Financial (a)
|
$
2,885
|
$
2,866
|
Boardwalk
Pipelines
|
381
|
372
|
Loews
Hotels & Co
|
152
|
57
|
Investment
income (loss) and other (b)
|
(16)
|
327
|
Total
|
$
3,402
|
$
3,622
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
CNA
Financial (a)
|
$ 378
|
$ 377
|
Boardwalk
Pipelines
|
122
|
114
|
Loews
Hotels & Co
|
22
|
(55)
|
Corporate:
(c)
|
|
|
Investment income
(loss), net
|
(16)
|
46
|
Other
|
(44)
|
(75)
|
Total
|
$ 462
|
$ 407
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
CNA
Financial (a)
|
$ 281
|
$ 279
|
Boardwalk
Pipelines
|
91
|
85
|
Loews
Hotels & Co
|
15
|
(43)
|
Corporate:
(c)
|
|
|
Investment income
(loss), net
|
(13)
|
36
|
Other (d)
|
(36)
|
(96)
|
Net income
attributable to Loews Corporation
|
$ 338
|
$ 261
|
|
|
|
(a)
|
Includes net investment
losses of $11 million and net investment gains of $57 million ($3
million net investment losses and $44 million net investment gains
after tax and noncontrolling interests) for the three months ended
March 31, 2022 and 2021.
|
(b)
|
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
subsequently recorded as an equity method investment.
|
(c)
|
The Corporate segment
consists of investment income (loss) from the parent company's cash
and investments, interest expense, other unallocated corporate
expenses, and the financial results of Altium Packaging.
|
(d)
|
The three months ended
March 31, 2021 includes the recognition of a $35 million deferred
tax liability resulting from the Altium Packaging
transaction.
|
Loews Corporation
and Subsidiaries
Consolidated
Financial Review
|
|
|
|
Three Months Ended
March 31,
|
(In millions, except
per share data)
|
2022
|
2021
|
Revenues:
|
|
|
Insurance
premiums
|
$
2,059
|
$
1,962
|
Net
investment income
|
432
|
550
|
Investment
gains (losses)
|
(11)
|
57
|
Operating
revenues and other (a)
|
922
|
1,053
|
Total
|
3,402
|
3,622
|
|
|
|
Expenses:
|
|
|
Insurance
claims and policyholders' benefits
|
1,455
|
1,506
|
Operating
expenses and other (a)
|
1,485
|
1,709
|
Total
|
2,940
|
3,215
|
|
|
|
Income before income
tax
|
462
|
407
|
Income tax expense
(b)
|
(92)
|
(114)
|
Net income
|
370
|
293
|
Amounts attributable to
noncontrolling interests
|
(32)
|
(32)
|
Net income attributable
to Loews Corporation
|
$ 338
|
$ 261
|
|
|
|
Net income per share
attributable to Loews Corporation
|
$ 1.36
|
$ 0.97
|
|
|
|
Weighted average number
of shares
|
248.48
|
267.76
|
|
|
(a)
|
On April 1, 2021, Loews
sold 47% of Altium Packaging, which was then deconsolidated and
subsequently recorded as an equity method investment.
|
(b)
|
The three months ended
March 31, 2021 includes the recognition of a $35 million deferred
tax liability resulting from the Altium Packaging
transaction.
|
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SOURCE Loews Corporation