NEW YORK, Aug. 1, 2016 /PRNewswire/ -- Loews
Corporation (NYSE:L) today reported a net loss for the three months
ended June 30, 2016 of $65 million, or $0.19 per share, compared to net income of
$170 million, or $0.46 per share, in the prior year period. Net
income for the six months ended June 30,
2016 was $37 million, or
$0.11 per share, compared to
$279 million, or $0.75 per share, in the prior year period.
Results include asset impairment charges at Diamond Offshore
Drilling, Inc. of $267 million (after
tax and noncontrolling interests) for the three and six months
ended June 30, 2016 and $158 million (after tax and noncontrolling
interests) for the six months ended June 30,
2015.
Book value per share excluding accumulated other comprehensive
income (AOCI) increased to $52.84 at
June 30, 2016 from $52.72 at December 31,
2015.
CONSOLIDATED HIGHLIGHTS
(In millions, except
per share data)
|
June 30,
|
Three
Months
|
Six Months
|
2016
|
2015
|
2016
|
2015
|
Income (loss) before
net investment gains (losses)
|
$
(67)
|
$
167
|
$
52
|
$ 268
|
Net investment gains
(losses)
|
2
|
3
|
(15)
|
11
|
Net income (loss)
attributable to Loews Corporation
|
$
(65)
|
$
170
|
$
37
|
$
279
|
Net income (loss) per
share
|
$ (0.19)
|
$ 0.46
|
$ 0.11
|
$ 0.75
|
|
|
|
|
June 30,
2016
|
December 31,
2015
|
Book value per
share
|
$
53.19
|
$
51.67
|
Book value per
share excluding AOCI
|
52.84
|
52.72
|
Three Months Ended June 30,
2016 Compared to 2015
Results for the three months ended June
30, 2016 decreased $235
million as compared to the prior year due to an asset
impairment charge at Diamond Offshore partially offset by higher
earnings at CNA Financial Corporation and improved results from the
parent company investment portfolio due to higher income from
equity securities.
CNA's earnings increased due to the impact of a $49 million charge (after tax and noncontrolling
interests) in 2015 related to the 2010 retroactive reinsurance
agreement to cede its legacy asbestos and environmental pollution
liabilities (loss portfolio transfer or LPT). CNA's earnings also
benefited from increased favorable net prior year development.
Diamond Offshore's earnings decreased due to an asset impairment
charge of $680 million ($267 million after tax and noncontrolling
interests) related to the carrying value of eight drilling rigs.
Absent this charge, Diamond Offshore's earnings declined due to a
substantial reduction in the number of rigs operating as compared
to the year ago period partially offset by lower depreciation
expense resulting mainly from the asset impairment charges recorded
in 2015.
Boardwalk Pipeline's earnings increased partially due to new
rates in effect following the Gulf South rate case and proceeds
received from a one-time legal settlement. Additionally, the
Evangeline pipeline, which was placed into service in mid-2015, and
new growth projects contributed to earnings.
Loews Hotels' earnings decreased due to an impairment charge
related to a joint venture property.
Six Months Ended June 30, 2016
Compared to 2015
Net income for the six months ended June
30, 2016 decreased primarily due to lower earnings at CNA
and Diamond Offshore partially offset by higher earnings at
Boardwalk Pipeline and improved results from the parent company
investment portfolio due to higher income from equity
securities.
CNA's earnings decreased due to lower net investment income
driven by limited partnership investment results, realized
investment losses in 2016 as compared to gains in 2015 and a higher
LPT charge in 2016 as compared to the prior year period. These
items were partially offset by increased favorable net prior year
development.
Diamond Offshore's earnings decreased 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 recorded in
2015.
The change in Boardwalk Pipeline's and Loews Hotels' results are
primarily due to the reasons discussed above in the three month
comparison.
SHARE REPURCHASES
At June 30, 2016, there were 337.4
million shares of Loews common stock outstanding. During the three
and six months ended June 30, 2016,
the Company repurchased 1.6 million and 2.6 million shares of its
common stock at an aggregate cost of $65
million and $98 million. For
the six months ended June 30, 2016,
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 second 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 40770811. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the second 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) 569-5033, or for international callers, (719)
325-2481.
A conference call to discuss the second 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 37711438.
A conference call to discuss the second 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
47948706.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
Three
Months
|
Six Months
|
(In
millions)
|
2016
|
2015
|
2016
|
2015
|
Revenues:
|
|
|
|
|
CNA
Financial
|
$
2,335
|
$
2,329
|
$
4,566
|
$
4,671
|
Diamond
Offshore
|
390
|
632
|
861
|
1,259
|
Boardwalk
Pipeline
|
308
|
299
|
655
|
629
|
Loews
Hotels
|
189
|
167
|
352
|
306
|
Investment
income and other
|
84
|
10
|
73
|
40
|
|
|
3,306
|
3,437
|
6,507
|
6,905
|
Investment gains
(losses):
|
|
|
|
|
CNA
Financial
|
13
|
(2)
|
(15)
|
8
|
Corporate and
other
|
(12)
|
|
(12)
|
|
|
|
1
|
(2)
|
(27)
|
8
|
Total
|
$
3,307
|
$
3,435
|
$
6,480
|
$
6,913
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA Financial
(a)
|
$
277
|
$
167
|
$
363
|
$
471
|
Diamond
Offshore (b)
|
(657)
|
106
|
(574)
|
(181)
|
Boardwalk
Pipeline
|
65
|
38
|
164
|
115
|
Loews
Hotels
|
4
|
14
|
13
|
24
|
Investment
income, net
|
85
|
10
|
72
|
39
|
Other
(c)
|
(51)
|
(38)
|
(92)
|
(76)
|
|
|
(277)
|
297
|
(54)
|
392
|
Investment gains
(losses):
|
|
|
|
|
CNA
Financial
|
13
|
(2)
|
(15)
|
8
|
Corporate and
other
|
(12)
|
|
(12)
|
|
|
|
1
|
(2)
|
(27)
|
8
|
Total
|
$
(276)
|
$
295
|
$
(81)
|
$
400
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA Financial
(a)
|
$
183
|
$
121
|
$
260
|
$
323
|
Diamond
Offshore (b)
|
(290)
|
45
|
(247)
|
(81)
|
Boardwalk
Pipeline
|
17
|
12
|
48
|
37
|
Loews
Hotels
|
1
|
8
|
4
|
13
|
Investment
income, net
|
56
|
7
|
48
|
26
|
Other
(c)
|
(34)
|
(26)
|
(61)
|
(50)
|
|
|
(67)
|
167
|
52
|
268
|
Investment gains
(losses):
|
|
|
|
|
CNA
Financial
|
6
|
3
|
(11)
|
11
|
Corporate and
other
|
(4)
|
|
(4)
|
|
|
|
2
|
3
|
(15)
|
11
|
Net income (loss)
attributable to Loews Corporation
|
$
(65)
|
$
170
|
$
37
|
$
279
|
(a)
|
Includes a charge of
$127 million ($74 million after tax and noncontrolling interests)
for the six months ended June 30, 2016 and a charge of $84 million
($49 million after tax and noncontrolling interests) for the three
and six months ended June 30, 2015 related to retroactive
reinsurance accounting for the Loss Portfolio Transfer.
|
(b)
|
Includes asset
impairment charges of $680 million ($267 million after tax and
noncontrolling interests) for the three and six months ended June
30, 2016 and $359 million ($158 million after tax and
noncontrolling interests) for the six months ended June 30,
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
Three
Months
|
Six Months
|
(In millions, except
per share data)
|
2016
|
2015
|
2016
|
2015
|
Revenues:
|
|
|
|
|
Insurance
premiums
|
$
1,730
|
$
1,735
|
$
3,429
|
$
3,422
|
Net investment
income
|
587
|
510
|
1,009
|
1,098
|
Investment
gains (losses)
|
1
|
(2)
|
(27)
|
8
|
Contract
drilling revenues
|
357
|
617
|
801
|
1,217
|
Other
revenues
|
632
|
575
|
1,268
|
1,168
|
Total
|
3,307
|
3,435
|
6,480
|
6,913
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance
claims & policyholders' benefits (a)
|
1,339
|
1,469
|
2,747
|
2,808
|
Contract
drilling expenses
|
198
|
344
|
411
|
695
|
Other
operating expenses (b)
|
2,046
|
1,327
|
3,403
|
3,010
|
Total
|
3,583
|
3,140
|
6,561
|
6,513
|
|
|
|
|
|
|
Income (loss) before
income tax
|
(276)
|
295
|
(81)
|
400
|
Income tax
expense
|
(12)
|
(48)
|
(8)
|
(104)
|
Net income
(loss)
|
(288)
|
247
|
(89)
|
296
|
Amounts attributable
to noncontrolling interests
|
223
|
(77)
|
126
|
(17)
|
Net income (loss)
attributable to Loews Corporation
|
$
(65)
|
$
170
|
$
37
|
$
279
|
|
|
|
|
|
|
Income (loss) per
share attributable to Loews Corporation
|
$
(0.19)
|
$
0.46
|
$
0.11
|
$
0.75
|
|
|
|
|
|
|
Weighted average
number of shares
|
338.72
|
369.97
|
339.10
|
371.57
|
(a)
|
Includes a charge of
$127 million ($74 million after tax and noncontrolling interests)
for the six months ended June 30, 2016 and a charge of $84 million
($49 million after tax and noncontrolling interests) for the three
and six months ended June 30, 2015 related to retroactive
reinsurance accounting for the Loss Portfolio Transfer.
|
(b)
|
Includes asset
impairment charges of $680 million ($267 million after tax and
noncontrolling interests) for the three and six months ended June
30, 2016 and $359 million ($158 million after tax and
noncontrolling interests) for the six months ended June 30, 2015
related to the carrying value of Diamond Offshore's drilling
rigs.
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-results-for-the-second-quarter-of-2016-300306462.html
SOURCE Loews Corporation