NEW YORK, Nov. 2, 2015 /PRNewswire/ -- Loews
Corporation (NYSE:L) today reported net income for the three months
ended September 30, 2015 of
$182 million, or $0.50 per share, compared to $208 million, or $0.55 per share, in the prior year period. For
the nine months ended September 30,
2015, net income was $461
million, or $1.25 per share,
compared to $383 million, or
$1.00 per share, in the prior year
period. In 2014, net income for the three month period included
income from discontinued operations of $29
million while the nine month period included a loss from
discontinued operations of $364
million reflecting the disposition by Loews of HighMount
Exploration & Production, LLC and by CNA Financial Corporation
of its former life insurance subsidiary.
Book value per share excluding accumulated other comprehensive
income (AOCI) increased to $52.59 at
September 30, 2015 from $50.95 at December 31,
2014 and $50.32 at
September 30, 2014.
CONSOLIDATED HIGHLIGHTS
(In millions, except
per share data)
|
September
30,
|
Three
Months
|
Nine
Months
|
2015
|
2014
|
2015
|
2014
|
Income before net
investment gains (losses)
|
$ 211
|
$ 155
|
$ 479
|
$ 708
|
Net
investment gains (losses)
|
(29)
|
24
|
(18)
|
39
|
Income
from continuing operations
|
182
|
179
|
461
|
747
|
Discontinued operations, net
|
̶
|
29
|
̶
|
(364)
|
Net income attributable
to Loews Corporation
|
$ 182
|
$ 208
|
$ 461
|
$ 383
|
Net income per
share:
|
|
|
|
|
Income
from continuing operations
|
$ 0.50
|
$ 0.47
|
$ 1.25
|
$ 1.94
|
Discontinued operations, net
|
̶
|
0.08
|
̶
|
(0.94)
|
Net income per
share
|
$ 0.50
|
$ 0.55
|
$ 1.25
|
$ 1.00
|
|
|
September
30,
|
Year Ended
December 31, 2014
|
|
2015
|
2014
|
Book value per
share
|
$ 52.52
|
$ 52.01
|
$ 51.70
|
Book value per
share excluding AOCI
|
52.59
|
50.32
|
50.95
|
Three Months Ended September 30,
2015 Compared to 2014
Income from continuing operations for the three months ended
September 30, 2015 was $182 million, or $0.50 per share, compared to $179 million, or $0.47 per share, in the 2014 third quarter.
Income from continuing operations increased primarily due to higher
earnings at Diamond Offshore Drilling, Inc. and Boardwalk Pipeline
Partners, LP.
CNA's earnings declined primarily due to lower limited
partnership investment results and realized investment losses
versus realized gains in the prior year quarter. Improved
underwriting results driven by higher favorable net prior year
development partially offset the negative related to the investment
portfolio.
Diamond Offshore's earnings increase stemmed from the absence in
2015 of the $55 million asset
impairment charge (after tax and noncontrolling interests) in 2014
related to the carrying value of six drilling rigs. Excluding this
charge, earnings declined primarily due to lower rig utilization
and increased depreciation and interest expense. In addition,
earnings were impacted by a $20
million impairment charge to write-off all goodwill
associated with the Company's investment in Diamond Offshore. These
decreases were partially offset by significantly reduced contract
drilling expenses.
Boardwalk Pipeline's earnings increased primarily due to new
rates taking effect as a result of the Gulf South rate case and a
franchise tax refund related to settlement of prior tax periods,
partially offset by increased depreciation and interest costs.
Loews Hotels' earnings increased primarily due to higher income
from Universal Orlando joint venture properties.
Discontinued operations in 2014 included a favorable adjustment
to the impairment charge at HighMount.
Nine Months Ended September 30,
2015 Compared to 2014
Income from continuing operations for the nine months ended
September 30, 2015 was $461 million, or $1.25 per share, compared to $747 million, or $1.94 per share, in the prior year period. Income
from continuing operations decreased primarily due to lower
earnings at CNA and Diamond Offshore and lower parent company
investment income as a result of lower performance of equities and
derivative related securities in the trading portfolio and
decreased results from limited partnership investments.
CNA's earnings declined year-over-year because of lower limited
partnership results and an $84
million charge ($49 million
after tax and noncontrolling interests) in the second quarter of
2015 related to a retroactive reinsurance agreement to cede its
legacy asbestos and environmental pollution liabilities. The
year-over-year earnings comparison was also impacted by a gain of
$86 million ($50 million after tax and noncontrolling
interests) in 2014 from a postretirement plan curtailment. The
decline in the nine months of 2015 as compared to the prior year
was partially offset by improved underwriting results driven by
higher favorable net prior year development.
Diamond Offshore's earnings decreased primarily due to an asset
impairment charge of $158 million
(after tax and noncontrolling interests) in the first quarter of
2015 related to the carrying value of eight drilling rigs as well
as lower rig utilization, the goodwill charge discussed above and
increased depreciation and interest expense. Diamond Offshore
recognized a $55 million asset
impairment charge (after tax and noncontrolling interests) in the
2014 period.
Boardwalk Pipeline's earnings increase stemmed from the impact
of a $55 million charge (after tax
and noncontrolling interests) in 2014 related to the write off of
all capitalized costs associated with the terminated Bluegrass
project as well as for the reasons discussed in the three month
comparison above. Absent this charge, earnings decreased
primarily due to the unusually cold and sustained winter of 2014 as
compared to the relatively normal 2015 winter season and lower
natural gas storage revenues.
Loews Hotels' earnings increased primarily due to higher income
from Universal Orlando joint venture properties partially offset by
higher interest expense.
Discontinued operations in 2014 included impairment charges
related to the sale of both CNA's former life insurance subsidiary
and HighMount.
SHARE REPURCHASES
At September 30, 2015, there were
356.9 million shares of Loews common stock outstanding. During the
three and nine months ended September 30,
2015, the Company repurchased 8.7 million and 16.3 million
shares of its common stock at an aggregate cost of $328 million and $633
million. From October 1, 2015
to October 30, 2015, the Company
repurchased an additional 3.3 million shares of its common stock at
an aggregate cost of $120 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 of the call will be
available online at the Loews Corporation website (www.loews.com).
Please go to the website at least ten minutes before the event
begins to register and to download and install any necessary audio
software. 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 54504982. 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 (888) 299-7209, or for international callers, (719)
325-2494.
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 54271918.
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
60130700.
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.
Loews Corporation
and Subsidiaries
|
|
|
|
|
Selected Financial
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
Three
Months
|
Nine
Months
|
(In
millions)
|
2015
|
2014
|
2015
|
2014
|
Revenues:
|
|
|
|
|
CNA
Financial
|
$ 2,203
|
$ 2,374
|
$ 6,874
|
$ 7,249
|
Diamond
Offshore
|
608
|
737
|
1,867
|
2,148
|
Boardwalk
Pipeline
|
296
|
279
|
925
|
931
|
Loews
Hotels
|
146
|
126
|
452
|
343
|
Investment income
(loss) and other
|
(34)
|
(30)
|
6
|
68
|
|
|
3,219
|
3,486
|
10,124
|
10,739
|
Investment gains
(losses) - CNA Financial
|
(50)
|
37
|
(42)
|
65
|
Total
|
$ 3,169
|
$ 3,523
|
$ 10,082
|
$ 10,804
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA Financial
(a)
|
$
284
|
$
258
|
$
755
|
$
896
|
Diamond Offshore
(b)
|
139
|
82
|
(42)
|
362
|
Boardwalk Pipeline
(c)
|
48
|
28
|
163
|
105
|
Loews
Hotels
|
1
|
-
|
25
|
14
|
Investment income
(loss), net
|
(35)
|
(29)
|
4
|
68
|
Other (d)
|
(39)
|
(37)
|
(115)
|
(111)
|
|
|
398
|
302
|
790
|
1,334
|
Investment gains
(losses) - CNA Financial
|
(50)
|
37
|
(42)
|
65
|
Total
|
$
348
|
$
339
|
$
748
|
$ 1,399
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA Financial
(a)
|
$
190
|
$
164
|
$
513
|
$
584
|
Diamond Offshore
(b)
|
47
|
25
|
(34)
|
136
|
Boardwalk Pipeline
(c)
|
18
|
8
|
55
|
7
|
Loews
Hotels
|
2
|
-
|
15
|
8
|
Investment income
(loss), net
|
(22)
|
(18)
|
4
|
46
|
Other (d)
|
(24)
|
(24)
|
(74)
|
(73)
|
|
|
211
|
155
|
479
|
708
|
Investment gains
(losses) - CNA Financial
|
(29)
|
24
|
(18)
|
39
|
Income from
continuing operations
|
182
|
179
|
461
|
747
|
Discontinued
operations, net (e)
|
-
|
29
|
-
|
(364)
|
Net income
attributable to Loews Corporation
|
$
182
|
$
208
|
$
461
|
$
383
|
|
|
|
|
|
|
(a)
|
Includes a charge of
$84 million ($49 million after tax and noncontrolling interests)
for the nine months ended September 30, 2015 related to retroactive
reinsurance accounting for the Loss Portfolio Transfer. Includes a
loss of $31 million (after noncontrolling interests) related to a
coinsurance agreement entered into on a separate small block of
annuity business outside of Continental Assurance Company for the
three and nine months ended September 30, 2014 and an $86 million
curtailment gain ($50 million after tax and noncontrolling
interests) related to a negative plan amendment and the
re-measurement of postretirement benefit obligations at CNA for the
nine months ended September 30, 2014.
|
(b)
|
Includes an asset
impairment charge of $361 million ($159 million after tax and
noncontrolling interests) for the nine months ended September 30,
2015 related to the carrying value of eight drilling rigs and an
asset impairment charge of $109 million ($55 million after tax and
noncontrolling interests) for the three and nine months ended
September 30, 2014 related to the carrying value of six drilling
rigs.
|
(c)
|
Includes a loss of
$94 million ($55 million after tax and noncontrolling interests)
for the nine months ended September 30, 2014 to write off all
capitalized costs associated with the terminated Bluegrass
project.
|
(d)
|
Consists primarily of
corporate interest expense and other unallocated
expenses.
|
(e)
|
See table on page six
for a summary of items comprising discontinued operations for
2014.
|
Loews Corporation
and Subsidiaries
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
Three
Months
|
Nine
Months
|
(In millions, except
per share data)
|
2015
|
2014
|
2015
|
2014
|
Revenues:
|
|
|
|
|
Insurance
premiums
|
$ 1,751
|
$ 1,810
|
$ 5,173
|
$ 5,427
|
Net investment
income
|
321
|
451
|
1,419
|
1,625
|
Investment gains
(losses)
|
(50)
|
37
|
(42)
|
65
|
Contract drilling
revenues
|
599
|
728
|
1,816
|
2,063
|
Other
|
548
|
497
|
1,716
|
1,624
|
Total
|
3,169
|
3,523
|
10,082
|
10,804
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance claims
& policyholders' benefits (a)
|
1,200
|
1,354
|
4,008
|
4,241
|
Contract drilling
expenses
|
276
|
400
|
971
|
1,165
|
Other (b) (c)
(d)
|
1,345
|
1,430
|
4,355
|
3,999
|
Total
|
2,821
|
3,184
|
9,334
|
9,405
|
|
|
|
|
|
|
Income before income
tax
|
348
|
339
|
748
|
1,399
|
Income tax
expense
|
(66)
|
(99)
|
(170)
|
(347)
|
Income from
continuing operations
|
282
|
240
|
578
|
1,052
|
Discontinued
operations, net of income tax
|
-
|
29
|
-
|
(384)
|
Net
income
|
282
|
269
|
578
|
668
|
Amounts attributable
to noncontrolling interests
|
(100)
|
(61)
|
(117)
|
(285)
|
Net income
attributable to Loews Corporation
|
$
182
|
$
208
|
$
461
|
$
383
|
|
|
|
|
|
|
Net income
attributable to Loews Corporation:
|
|
|
|
|
Income from
continuing operations
|
$
182
|
$
179
|
$
461
|
$
747
|
Discontinued
operations, net (e)
|
-
|
29
|
-
|
(364)
|
Net
income
|
$
182
|
$
208
|
$
461
|
$
383
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
Income from
continuing operations
|
$ 0.50
|
$ 0.47
|
$ 1.25
|
$ 1.94
|
Discontinued
operations, net
|
-
|
0.08
|
-
|
(0.94)
|
Diluted income per
share attributable to Loews Corporation
|
$ 0.50
|
$ 0.55
|
$ 1.25
|
$ 1.00
|
|
|
|
|
|
|
Weighted diluted
number of shares
|
361.10
|
381.19
|
368.03
|
385.19
|
|
|
|
|
|
(a)
|
Includes a charge of
$84 million ($49 million after tax and noncontrolling interests)
for the nine months ended September 30, 2015 related to retroactive
reinsurance accounting for the Loss Portfolio
Transfer.
|
(b)
|
Includes a loss of
$31 million (after noncontrolling interests) related to a
coinsurance agreement entered into on a separate small block of
annuity business outside of Continental Assurance Company for the
three and nine months ended September 30, 2014 and an $86 million
curtailment gain ($50 million after tax and noncontrolling
interests) related to a negative plan amendment and the
re-measurement of postretirement benefit obligations at CNA for the
nine months ended September 30, 2014.
|
(c)
|
Includes an asset
impairment charge of $361 million ($159 million after tax and
noncontrolling interests) for the nine months ended September 30,
2015 related to the carrying value of eight drilling rigs and an
asset impairment charge of $109 million ($55 million after tax and
noncontrolling interests) for the three and nine months ended
September 30, 2014 related to the carrying value of six drilling
rigs.
|
(d)
|
Includes a loss of
$94 million ($55 million after tax and noncontrolling interests)
for the nine months ended September 30, 2014 to write off all
capitalized costs associated with the terminated Bluegrass
project.
|
(e)
|
See table on page six
for a summary of items comprising discontinued operations for
2014.
|
Loews Corporation
and Subsidiaries
|
|
|
|
Discontinued
Operations Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
(In
millions)
|
Three
Months
|
Nine
Months
|
|
CNA
Financial
|
|
|
|
Continental Assurance
Company (῝CAC῞) operations
|
-
|
$
12
|
|
Impairment loss on
sale of CAC
|
$
4
|
(189)
|
|
CNA Financial -
Discontinued operations, net
|
4
|
(177)
|
|
|
|
|
|
HighMount
|
|
|
|
Operations
|
(5)
|
(31)
|
|
Ceiling test
impairment
|
-
|
(19)
|
|
Impairment loss on
sale
|
|
30
|
(137)
|
|
HighMount -
Discontinued operations, net
|
25
|
(187)
|
|
|
|
|
|
|
Discontinued
operations, net
|
$
29
|
$
(364)
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-182-million-for-the-third-quarter-of-2015-300169950.html
SOURCE Loews Corporation