NEW YORK, Feb. 6, 2017 /PRNewswire/ -- Loews Corporation
(NYSE:L) today reported net income of $632
million, or $1.87 per share,
for the year ended December 31, 2016,
compared to $260 million, or
$0.72 per share, in the prior year.
Net income for the three months ended December 31, 2016 was $268
million, or $0.79 per share,
compared to a net loss of $201
million, or $0.58 per share,
in the prior year period.
Net income for the year ended December
31, 2016 included asset impairment charges of $267 million (after tax and noncontrolling
interests) at Diamond Offshore Drilling, Inc. In 2015, net income
for the three months and year ended December
31, 2015 included asset impairment charges at Diamond
Offshore of $182 million and
$341 million (after tax and
noncontrolling interests) and a reserve charge of $177 million (after tax and noncontrolling
interests) related to the long term care business at CNA Financial
Corporation.
Book value per share increased to $53.89 at December 31,
2016 from $51.67 at
December 31, 2015. Book value per
share excluding accumulated other comprehensive income (AOCI)
increased to $54.56 at December 31, 2016 from $52.72 at December 31,
2015.
CONSOLIDATED HIGHLIGHTS
|
December
31,
|
|
Three
Months
|
Years
Ended
|
(In millions, except
per share data)
|
2016
|
2015
|
2016
|
2015
|
Income (loss) before
net investment gains (losses)
|
$
245
|
$
(185)
|
$
597
|
$ 294
|
Net investment gains
(losses)
|
23
|
(16)
|
35
|
(34)
|
Net income (loss)
attributable to Loews Corporation
|
$
268
|
$
(201)
|
$
632
|
$
260
|
Net income (loss) per
share
|
$ 0.79
|
$ (0.58)
|
$ 1.87
|
$ 0.72
|
|
December
31,
|
|
2016
|
2015
|
Book value per
share
|
$ 53.89
|
$ 51.67
|
Book value per share
excluding AOCI
|
$ 54.56
|
$ 52.72
|
Three Months Ended December 31,
2016 Compared to 2015
Net income attributable to Loews Corporation for the three
months ended December 31, 2016
improved compared to the prior year period primarily due to the
impact of the reserve charge at CNA and the asset impairment charge
at Diamond Offshore in 2015. Absent these charges, net income
increased $110 million due to higher
earnings at CNA and Boardwalk Pipeline Partners, LP and improved
results from the parent company investment portfolio. These
increases were partially offset by lower earnings at Diamond
Offshore.
Excluding the reserve charge of $177
million (after tax and noncontrolling interests) related to
the long term care business in the fourth quarter of 2015, CNA's
earnings increased due to higher net investment income driven by
limited partnership investments and realized investment gains in
the fourth quarter of 2016 compared to losses in the prior year
period.
Excluding Diamond Offshore's asset impairment charge of
$182 million (after tax and
noncontrolling interests) in the fourth quarter of 2015, earnings
decreased 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 incurred in prior periods.
Boardwalk Pipeline's earnings were higher due to revenues from
new growth projects recently placed in service.
Income generated by the parent company investment portfolio
increased due to higher income from limited partnership
investments.
Year Ended December 31, 2016
Compared to 2015
Net income attributable to Loews Corporation for the year ended
December 31, 2016 increased compared
to the prior year period primarily due to the impact of the reserve
charge at CNA in 2015 and the asset impairment charges at Diamond
Offshore, which were lower in 2016 compared to 2015. Absent these
charges, net income increased $121
million due to higher earnings at CNA and Boardwalk Pipeline
and improved results from the parent company investment portfolio.
These increases were partially offset by lower earnings at Diamond
Offshore.
Excluding the reserve charge in 2015, CNA's earnings increased
due to higher net investment income driven by limited partnership
investments, higher favorable net prior year reserve development
and realized investment gains in 2016 compared to losses in the
prior year. These increases were partially offset by an increase in
the current accident year loss ratio and higher underwriting
expenses.
Excluding asset impairment charges in 2015 and 2016, Diamond
Offshore's 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 growth projects
recently placed in service, new rates in effect following the Gulf
South rate case, higher parking and lending and storage revenues
and the return to service of the Evangeline pipeline.
Income generated by the parent company investment portfolio
improved due to higher income from fixed income and equity
securities.
SHARE REPURCHASES
At December 31, 2016, there were
336.6 million shares of Loews common stock outstanding. During the
three months and year ended December 31,
2016, the Company repurchased 0.4 million and 3.4 million
shares of its common stock at an aggregate cost of $19 million and $134
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 fourth 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 48192306. An
online replay will also be available on the Loews Corporation's
website following the call.
A conference call to discuss the fourth quarter results of CNA
has been scheduled for today at 10:00 a.m.
ET. A live webcast will be available at
http://investor.cna.com. Those interested in participating in the
question and answer session should dial (877) 723-9517, or for
international callers, (719) 325-4925.
A conference call to discuss the fourth 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 48343899.
A conference call to discuss the fourth 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 (844) 492-6043, or for
international callers, (478) 219-0839. The conference ID number is
54377143.
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
(In
millions)
|
2016
|
2015
|
2016
|
2015
|
Revenues:
|
|
|
|
|
CNA
Financial (a)
|
$
2,400
|
$
2,269
|
$
9,384
|
$
9,101
|
Diamond
Offshore (b)
|
390
|
561
|
1,589
|
2,428
|
Boardwalk Pipeline
|
355
|
329
|
1,316
|
1,254
|
Loews
Hotels
|
154
|
152
|
667
|
604
|
Investment income and other
|
39
|
22
|
149
|
28
|
Total
|
$
3,338
|
$
3,333
|
$
13,105
|
$
13,415
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA
Financial (a) (c) (d)
|
$
317
|
$
(160)
|
$
1,141
|
$
553
|
Diamond
Offshore (b) (e)
|
79
|
(360)
|
(471)
|
(402)
|
Boardwalk Pipeline
|
88
|
64
|
298
|
227
|
Loews
Hotels
|
5
|
3
|
22
|
28
|
Investment income, net
|
38
|
18
|
146
|
22
|
Other
(f)
|
(66)
|
(69)
|
(200)
|
(184)
|
Total
|
$
461
|
$
(504)
|
$
936
|
$
244
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA
Financial (a) (c) (d)
|
$
217
|
$
(62)
|
$
774
|
$
433
|
Diamond
Offshore (b) (e)
|
36
|
(122)
|
(208)
|
(156)
|
Boardwalk Pipeline
|
27
|
19
|
89
|
74
|
Loews
Hotels
|
5
|
(3)
|
12
|
12
|
Investment income, net
|
25
|
12
|
97
|
16
|
Other
(f)
|
(42)
|
(45)
|
(132)
|
(119)
|
Net
income (loss) attributable to Loews Corporation
|
$
268
|
$
(201)
|
$
632
|
$
260
|
|
|
|
|
|
|
(a)
|
Includes investment
gains of $32 million ($23 million after tax and noncontrolling
interests) and losses of $29 million ($16 million after tax and
noncontrolling interests) for the three months ended December 31,
2016 and 2015 and investment gains of $62 million ($39 million
after tax and noncontrolling interests) and losses of $71 million
($34 million after tax and noncontrolling interests) for the years
ended December 31, 2016 and 2015.
|
(b)
|
Includes investment
losses of $12 million ($4 million after tax and noncontrolling
interests) for the year ended December 31, 2016.
|
(c)
|
Includes charges of
$93 million ($54 million after tax and noncontrolling interests)
and $65 million ($38 million after tax and noncontrolling
interests) for the years ended December 31, 2016 and 2015 related
to retroactive reinsurance accounting for the transaction in which
CNA ceded substantially all of their legacy asbestos and
environmental pollution reserve liabilities to a third party
through a loss portfolio transfer.
|
(d)
|
Includes a charge of
$305 million ($177 million after tax and noncontrolling interests)
for the three months and year ended December 31, 2015 related to an
increase in long term care insurance reserves.
|
(e)
|
Includes asset
impairment charges of $499 million ($182 million after tax and
noncontrolling interests) for the three months ended December 31,
2015 and charges of $680 million and $861 million ($267 million and
$341 million after tax and noncontrolling interests) for the years
ended December 31, 2016 and 2015 related to the carrying
value of Diamond Offshore's drilling rigs.
|
|
(f)
|
Consists primarily of
corporate interest expense and other unallocated
expenses.
|
Loews Corporation
and Subsidiaries
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
Three
Months
|
Years
Ended
|
(In millions, except
per share data)
|
2016
|
2015
|
2016
|
2015
|
Revenues:
|
|
|
|
|
Insurance premiums
|
$
1,728
|
$
1,748
|
$
6,924
|
$
6,921
|
Net
investment income
|
565
|
447
|
2,135
|
1,866
|
Investment gains (losses)
|
32
|
(29)
|
50
|
(71)
|
Contract
drilling revenues
|
384
|
544
|
1,525
|
2,360
|
Other
revenues
|
629
|
623
|
2,471
|
2,339
|
Total
|
3,338
|
3,333
|
13,105
|
13,415
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance claims & policyholders' benefits (a) (b)
|
1,334
|
1,376
|
5,283
|
5,384
|
Contract
drilling expenses
|
174
|
257
|
772
|
1,228
|
Other
operating expenses (c)
|
1,369
|
2,204
|
6,114
|
6,559
|
Total
|
2,877
|
3,837
|
12,169
|
13,171
|
|
|
|
|
|
|
Income (loss) before
income tax
|
461
|
(504)
|
936
|
244
|
Income tax (expense)
benefit
|
(91)
|
213
|
(262)
|
43
|
Net income
(loss)
|
370
|
(291)
|
674
|
287
|
Amounts attributable
to noncontrolling interests
|
(102)
|
90
|
(42)
|
(27)
|
Net income (loss)
attributable to Loews Corporation
|
$
268
|
$
(201)
|
$
632
|
$
260
|
|
|
|
|
|
|
Net income (loss) per
share attributable to Loews Corporation
|
$
0.79
|
$
(0.58)
|
$
1.87
|
$
0.72
|
|
|
|
|
|
|
Weighted average
number of shares
|
337.50
|
346.69
|
338.31
|
362.69
|
|
|
|
|
|
(a)
|
Includes charges of
$93 million ($54 million after tax and noncontrolling interests)
and $65 million ($38 million after tax and noncontrolling
interests) for the year ended December 31, 2016 and 2015 related to
retroactive reinsurance accounting for the transaction in which CNA
ceded substantially all of their legacy asbestos and environmental
pollution reserve liabilities to a third party through a loss
portfolio transfer.
|
(b)
|
Includes a charge of
$305 million ($177 million after tax and noncontrolling interests)
for the three months and year ended December 31, 2015 related to an
increase in long term care insurance reserves.
|
(c)
|
Includes asset
impairment charges of $499 million ($182 million after tax and
noncontrolling interests) for the three months ended December 31,
2015 and charges of $680 million and $861 million ($267 million and
$341 million after tax and noncontrolling interests) for the year
ended December 31, 2016 and 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-net-income-of-632-million-for-2016-300402283.html
SOURCE Loews Corporation