NEW YORK, May 2, 2016 /PRNewswire/ -- Loews
Corporation (NYSE: L) today reported net income for the three
months ended March 31, 2016 of
$102 million, or $0.30 per share, compared to $109 million, or $0.29 per share, in the prior year period.
Net income declined by $7 million
as compared to the prior year due to lower earnings at CNA
Financial Corporation and reduced results from the parent company
investment portfolio, partially offset by higher earnings at
Diamond Offshore Drilling, Inc. because of the absence this quarter
of an asset impairment charge. Higher earnings at Boardwalk
Pipeline Partners, LP also served as a partial offset. The increase
in net income per share is due to treasury share purchases over the
past year.
Book value per share excluding accumulated other comprehensive
income (AOCI) increased to $52.98 at
March 31, 2016 from $52.72 at December 31,
2015.
CONSOLIDATED HIGHLIGHTS
|
Three Months Ended
March 31,
|
(In millions, except
per share data)
|
2016
|
2015
|
|
|
|
Income before net
investment gains (losses)
|
$ 119
|
$ 101
|
Net investment gains
(losses)
|
(17)
|
8
|
Net income attributable
to Loews Corporation
|
$ 102
|
$ 109
|
|
|
|
Net income per
share
|
$ 0.30
|
$ 0.29
|
|
|
|
|
March 31,
2016
|
December 31,
2015
|
Book value per
share
|
$ 52.60
|
$ 51.67
|
Book value per
share excluding AOCI
|
52.98
|
52.72
|
CNA's earnings decreased due to a $74
million (after tax and noncontrolling interests) charge
related to the 2010 retroactive reinsurance agreement to cede its
legacy asbestos and environmental pollution liabilities (Loss
Portfolio Transfer, or LPT). Under retroactive reinsurance
accounting, amounts ceded through the LPT in excess of the
consideration paid result in a deferred benefit that is recognized
in income in proportion to paid recoveries over future periods.
CNA's earnings were also impacted by a decline in net investment
income driven by limited partnership investment results, as well as
realized investment losses in 2016 as compared to gains in 2015.
These investment-related declines, which totaled $99 million (after tax and noncontrolling
interests), were partially offset by improved property &
casualty underwriting results and improved results in the Life
& Group segment.
Diamond Offshore's prior year earnings reflected a $158 million (after tax and noncontrolling
interests) asset impairment charge. Year-over-year earnings also
benefited from revenue earned by newbuild drillships,
demobilization fees, lower operating costs, lower depreciation
expense resulting mainly from the asset impairment charges taken in
2015, and a lower effective tax rate. These favorable items were
largely offset by a substantial reduction in the number of
operating rigs.
Boardwalk Pipeline's earnings increased as new rates took effect
following the Gulf South rate case. Additionally, the Evangeline
pipeline, which was placed into service in mid-2015, and new growth
projects contributed to earnings.
SHARE REPURCHASES
At March 31, 2016, there were
339.0 million shares of Loews common stock outstanding. During the
first quarter of 2016, the Company repurchased 0.9 million shares
of its common stock at an aggregate cost of $33 million. The Company also purchased 0.3
million shares of CNA common stock at an aggregate cost of
$8 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 first 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 85830677. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the first 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) 515-2880, or for international callers, (719)
325-2370.
A conference call to discuss the first 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 85747324.
A conference call to discuss the first 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
89517726.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(In
millions)
|
2016
|
2015
|
Revenues:
|
|
|
CNA
Financial
|
$
2,231
|
$
2,342
|
Diamond
Offshore
|
471
|
627
|
Boardwalk
Pipeline
|
347
|
330
|
Loews
Hotels
|
163
|
139
|
Investment
income (loss) and other
|
(11)
|
30
|
|
|
3,201
|
3,468
|
Investment
gains (losses) - CNA Financial
|
(28)
|
10
|
Total
|
$
3,173
|
$
3,478
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
CNA Financial
(a)
|
$
86
|
$
304
|
Diamond
Offshore (b)
|
83
|
(287)
|
Boardwalk
Pipeline
|
99
|
77
|
Loews
Hotels
|
9
|
10
|
Investment
income (loss), net
|
(13)
|
29
|
Other (c)
|
(41)
|
(38)
|
|
|
223
|
95
|
Investment
gains (losses) - CNA Financial
|
(28)
|
10
|
Total
|
$
195
|
$
105
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
CNA Financial
(a)
|
$
77
|
$
202
|
Diamond
Offshore (b)
|
43
|
(126)
|
Boardwalk
Pipeline
|
31
|
25
|
Loews
Hotels
|
3
|
5
|
Investment
income (loss), net
|
(8)
|
19
|
Other
(c)
|
(27)
|
(24)
|
|
|
119
|
101
|
Investment
gains (losses) - CNA Financial
|
(17)
|
8
|
Net income
attributable to Loews Corporation
|
$
102
|
$
109
|
|
|
|
|
(a)
|
Includes a charge of
$127 million ($74 million after tax and noncontrolling interests)
for the three
months ended March 31, 2016 related to retroactive reinsurance
accounting for the Loss Portfolio
Transfer.
|
(b)
|
Includes an asset
impairment charge of $359 million ($158 million after tax and
noncontrolling
interests) for the three months ended March 31, 2015 related to the
carrying value of eight drilling
rigs.
|
|
|
(c)
|
Consists primarily of
corporate interest expense and other unallocated
expenses.
|
|
|
|
|
|
|
Loews Corporation
and Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
(In millions, except
per share data)
|
2016
|
2015
|
|
Revenues:
|
|
|
|
Insurance
premiums
|
$
1,699
|
$
1,687
|
|
Net investment
income
|
422
|
588
|
|
Investment
gains (losses)
|
(28)
|
10
|
|
Contract
drilling revenues
|
444
|
600
|
|
Other
revenues
|
636
|
593
|
|
Total
|
3,173
|
3,478
|
|
|
|
|
|
|
Expenses:
|
|
|
|
Insurance
claims & policyholders' benefits (a)
|
1,408
|
1,339
|
|
Contract
drilling expenses
|
213
|
351
|
|
Other
operating expenses (b)
|
1,357
|
1,683
|
|
Total
|
2,978
|
3,373
|
|
|
|
|
|
|
Income before income
tax
|
195
|
105
|
|
Income tax (expense)
benefit
|
4
|
(56)
|
|
Net
income
|
199
|
49
|
|
Amounts attributable
to noncontrolling interests
|
(97)
|
60
|
|
Net income
attributable to Loews Corporation
|
$
102
|
$
109
|
|
|
|
|
|
|
Diluted income per
share attributable to Loews Corporation
|
$
0.30
|
$
0.29
|
|
|
|
|
|
|
Weighted average diluted
number of shares
|
339.25
|
373.19
|
|
|
|
(a)
|
Includes a charge of
$127 million ($74 million after tax and noncontrolling interests)
for the three
months ended March 31, 2016 related to retroactive reinsurance
accounting for the Loss Portfolio
Transfer.
|
|
(b)
|
Includes an asset
impairment charge of $359 million ($158 million after tax and
noncontrolling
interests) for the three months ended March 31, 2015 related to the
carrying value of eight drilling
rigs.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-102-million-for-the-first-quarter-of-2016-300260544.html
SOURCE Loews Corporation