NEW YORK, Feb. 8, 2016 /PRNewswire/ -- Loews
Corporation (NYSE: L) today reported net income of $260 million, or $0.72 per share, for the year ended December 31, 2015, compared to net income of
$591 million, or $1.55 per share, in the prior year. Net income in
2014 included a loss from discontinued operations of $371 million, or $0.97 per share, reflecting the disposition by
Loews of HighMount Exploration & Production, LLC and by CNA
Financial Corporation of its former life insurance subsidiary.
Results for the three months ended December 31, 2015 were a net loss of $201 million, or $0.58 per share, compared to net income of
$208 million, or $0.55 per share, in the prior year period. The
three months and full year of 2015 included a reserve charge of
$177 million (after tax and
noncontrolling interests) related to the long term care business at
CNA Financial Corporation. Diamond Offshore Drilling, Inc. recorded
asset impairment charges of $182
million and $341 million
(after tax and noncontrolling interests) for the three months and
year ended December 31, 2015,
compared to $55 million of asset
impairment charges for the year ended December 31, 2014.
Book value per share excluding accumulated other comprehensive
income (AOCI) increased to $52.72 at
December 31, 2015 from $50.95 at December 31,
2014.
CONSOLIDATED HIGHLIGHTS
(In millions, except
per share data)
|
December
31,
|
Three
Months
|
Years
Ended
|
2015
|
2014
|
2015
|
2014
|
Income (loss) before
net investment gains (losses)
|
$ (185)
|
$ 222
|
$ 294
|
$ 930
|
Net investment gains
(losses)
|
(16)
|
(7)
|
(34)
|
32
|
Income (loss) from
continuing operations
|
(201)
|
215
|
260
|
962
|
Discontinued
operations, net
|
̶
|
(7)
|
̶
|
(371)
|
Net income (loss)
attributable to Loews Corporation
|
$ (201)
|
$ 208
|
$ 260
|
$ 591
|
Net income (loss) per
share:
|
|
|
|
|
Income
(loss) from continuing operations
|
$ (0.58)
|
$ 0.57
|
$ 0.72
|
$ 2.52
|
Discontinued operations, net
|
̶
|
(0.02)
|
̶
|
(0.97)
|
Net income (loss) per
share
|
$ (0.58)
|
$ 0.55
|
$ 0.72
|
$ 1.55
|
|
December
31,
|
|
2015
|
2014
|
Book value per
share
|
$ 51.67
|
$ 51.70
|
Book value per
share excluding AOCI
|
52.72
|
50.95
|
Three Months Ended December 31,
2015 Compared to 2014
Income from continuing operations declined due primarily to
lower earnings at CNA and Diamond Offshore, partially offset by
higher earnings at Boardwalk Pipeline Partners, LP.
CNA's results decreased primarily due to a charge of
$177 million (after tax and
noncontrolling interests) resulting from the unlocking of actuarial
assumptions related to future policy benefit reserves for the long
term care business. Earnings also include lower limited partnership
investment results partially offset by a prior year charge of
$49 million (after tax and
noncontrolling interests) related to a lump sum pension plan
settlement.
Diamond Offshore's results decreased primarily due to an asset
impairment charge of $182 million
(after tax and noncontrolling interests) related to the carrying
value of nine drilling rigs. Excluding this charge, earnings were
favorably impacted by higher average daily revenue earned by
ultra-deepwater floaters and significantly reduced contract
drilling expenses for the fleet offset by lower rig utilization and
increased interest expense.
Boardwalk Pipeline's earnings increased primarily due to new
rates taking effect as a result of the Gulf South rate case,
partially offset by increased depreciation costs.
Loews Hotels' results decreased primarily due to an asset
impairment charge of $3 million
(after tax) related to a joint venture equity interest in a hotel
property as well as increased tax expense due to an adjustment for
prior years' estimates and higher Florida state income taxes reflecting
increased profits at the Universal Orlando and Miami properties.
Year Ended December 31, 2015
Compared to 2014
Income from continuing operations for year ended December 31, 2015 was $260
million, or $0.72 per share,
compared to $962 million, or
$2.52 per share, in the prior year.
The decline in income from continuing operations was primarily due
to the reserve charges at CNA and Diamond Offshore asset impairment
charges discussed above. In addition, parent company investment
income declined as a result of lower performance of equity
securities in the trading portfolio and decreased results from
limited partnership investments.
Excluding the insurance reserve charge discussed above, CNA's
earnings declined year-over-year primarily due to lower limited
partnership results and a $38 million
charge (after tax and noncontrolling interests) related to a
retroactive reinsurance agreement to cede its legacy asbestos and
environmental pollution liabilities. This earnings decline was
partially offset by improved underwriting results driven by higher
favorable net prior year development.
Diamond Offshore's results for 2015 include asset impairment
charges totaling $341 million (after
tax and noncontrolling interests) related to the carrying value of
17 drilling rigs, as well as lower rig utilization. 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 as
well as increased depreciation and interest expense. In 2014,
Diamond Offshore recognized an asset impairment charge of
$55 million (after tax and
noncontrolling interests).
Boardwalk Pipeline's earnings increase primarily 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. Absent this charge, earnings were largely
consistent with the prior year as additional revenues from the
settlement of the Gulf South rate case and a franchise tax refund
related to settlement of prior tax periods were offset by lower
natural gas storage revenues and increased depreciation and
interest costs.
Loews Hotels' earnings were slightly higher as increased income
from Universal Orlando joint venture properties were largely offset
by increased interest expense and higher income taxes as described
above.
Discontinued operations in 2014 included impairment charges
related to the sale of both CNA's former life insurance subsidiary
and HighMount.
SHARE REPURCHASES
At December 31, 2015, there were
339.9 million shares of Loews common stock outstanding. For the
three months and year ended December 31,
2015, the Company repurchased 17.0 million and 33.3 million
shares of its common stock at an aggregate cost of $632 million and $1.3
billion. From January 1, 2016
to February 5, 2016, the Company
repurchased an additional 0.9 million shares of its common stock at
an aggregate cost of $33 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 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 21220803. 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 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 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 20355677.
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 (800) 247-9979, or for
international callers, (973) 321-1100. The conference ID number is
26416613.
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)
|
2015
|
2014
|
2015
|
2014
|
|
Revenues:
|
|
|
|
|
|
CNA
Financial
|
$ 2,298
|
$ 2,389
|
$ 9,172
|
$ 9,638
|
|
Diamond
Offshore
|
561
|
677
|
2,428
|
2,825
|
|
Boardwalk
Pipeline
|
329
|
305
|
1,254
|
1,236
|
|
Loews
Hotels
|
152
|
132
|
604
|
475
|
|
Investment
income and other
|
22
|
29
|
28
|
97
|
|
|
|
3,362
|
3,532
|
13,486
|
14,271
|
|
Investment
gains (losses) - CNA Financial
|
(29)
|
(11)
|
(71)
|
54
|
|
Total
|
$ 3,333
|
$ 3,521
|
$ 13,415
|
$ 14,325
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
|
CNA Financial
(a)
|
$ (131)
|
$
265
|
$
624
|
$ 1,161
|
|
Diamond
Offshore (b)
|
(360)
|
152
|
(402)
|
514
|
|
Boardwalk
Pipeline (c)
|
64
|
35
|
227
|
140
|
|
Loews
Hotels
|
3
|
7
|
28
|
21
|
|
Investment
income, net
|
18
|
26
|
22
|
94
|
|
Other
(d)
|
(69)
|
(63)
|
(184)
|
(174)
|
|
|
|
(475)
|
422
|
315
|
1,756
|
|
Investment
gains (losses) - CNA Financial
|
(29)
|
(11)
|
(71)
|
54
|
|
Total
|
$ (504)
|
$
411
|
$
244
|
$ 1,810
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
|
CNA Financial
(a)
|
$
(46)
|
$
186
|
$
467
|
$
770
|
|
Diamond
Offshore (b)
|
(122)
|
47
|
(156)
|
183
|
|
Boardwalk
Pipeline (c)
|
19
|
11
|
74
|
18
|
|
Loews
Hotels
|
(3)
|
3
|
12
|
11
|
|
Investment
income, net
|
12
|
17
|
16
|
63
|
|
Other
(d)
|
(45)
|
(42)
|
(119)
|
(115)
|
|
|
|
(185)
|
222
|
294
|
930
|
|
Investment
gains (losses) - CNA Financial
|
(16)
|
(7)
|
(34)
|
32
|
|
Income (loss)
from continuing operations
|
(201)
|
215
|
260
|
962
|
|
Discontinued
operations, net (e)
|
-
|
(7)
|
-
|
(371)
|
|
Net income
(loss) attributable to Loews Corporation
|
$ (201)
|
$
208
|
$
260
|
$
591
|
|
|
|
|
(a)
|
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, and a charge of $65
million ($38 million after tax and noncontrolling interests) for
the year ended December 31, 2015 related to retroactive reinsurance
accounting for the Loss Portfolio Transfer. Includes a charge of
$84 million ($49 million after tax and noncontrolling interests)
for the three months and year ended December 31, 2014 related to a
lump sum pension plan settlement. Includes a curtailment gain
of $86 million ($50 million after tax and noncontrolling interests)
related to a negative plan amendment and the re-measurement of
postretirement benefit obligations and 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 year ended December 31,
2014.
|
|
(b)
|
Includes an asset
impairment charge of $499 million ($182 million after tax and
noncontrolling interests) for the three months ended December 31,
2015 related to the carrying value of nine drilling rigs and
charges totaling $861 million ($341 million after tax and
noncontrolling interests) for the year ended December 31, 2015
related to the carrying value of 17 drilling rigs. Includes an
asset impairment charge of $109 million ($55 million after tax and
noncontrolling interests) for the year ended December 31, 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 year ended December 31, 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 labeled
"Discontinued Operations Review" for a summary of these
items.
|
|
Loews Corporation
and Subsidiaries
|
|
Consolidated
Financial Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
Three
Months
|
Years
Ended
|
|
(In millions, except
per share data)
|
2015
|
2014
|
2015
|
2014
|
|
Revenues:
|
|
|
|
|
|
Insurance
premiums
|
$ 1,748
|
$ 1,785
|
$ 6,921
|
$ 7,212
|
|
Net investment
income
|
447
|
538
|
1,866
|
2,163
|
|
Investment
gains (losses)
|
(29)
|
(11)
|
(71)
|
54
|
|
Contract
drilling revenues
|
544
|
674
|
2,360
|
2,737
|
|
Other
|
623
|
535
|
2,339
|
2,159
|
|
Total
|
3,333
|
3,521
|
13,415
|
14,325
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Insurance
claims & policyholders' benefits (a)
|
1,376
|
1,350
|
5,384
|
5,591
|
|
Contract
drilling expenses
|
257
|
359
|
1,228
|
1,524
|
|
Other (b)
(c)
|
2,204
|
1,401
|
6,559
|
5,400
|
|
Total
|
3,837
|
3,110
|
13,171
|
12,515
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax
|
(504)
|
411
|
244
|
1,810
|
|
Income tax (expense)
benefit
|
213
|
(110)
|
43
|
(457)
|
|
Income (loss) from
continuing operations
|
(291)
|
301
|
287
|
1,353
|
|
Discontinued
operations, net of income tax
|
-
|
(7)
|
-
|
(391)
|
|
Net income
(loss)
|
(291)
|
294
|
287
|
962
|
|
Amounts attributable
to noncontrolling interests
|
90
|
(86)
|
(27)
|
(371)
|
|
Net income (loss)
attributable to Loews Corporation
|
$ (201)
|
$
208
|
$
260
|
$
591
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Loews Corporation:
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$ (201)
|
$
215
|
$
260
|
$
962
|
|
Discontinued
operations, net (d)
|
-
|
(7)
|
-
|
(371)
|
|
Net income
(loss)
|
$ (201)
|
$
208
|
$
260
|
$
591
|
|
|
|
|
|
|
|
|
Diluted income (loss)
per share:
|
|
|
|
|
|
Income (loss)
from continuing operations
|
$ (0.58)
|
$ 0.57
|
$ 0.72
|
$ 2.52
|
|
Discontinued
operations, net
|
-
|
(0.02)
|
-
|
(0.97)
|
|
Diluted income
(loss) per share attributable to
Loews Corporation
|
$ (0.58)
|
$ 0.55
|
$ 0.72
|
$ 1.55
|
|
|
|
|
|
|
|
|
Weighted diluted
number of shares
|
346.69
|
374.71
|
362.69
|
382.55
|
|
|
|
|
|
|
|
(a)
|
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, and a charge of $65
million ($38 million after tax and noncontrolling interests) for
the year ended December 31, 2015 related to retroactive reinsurance
accounting for the Loss Portfolio Transfer. Includes a charge of
$84 million ($49 million after tax and noncontrolling interests)
for the three months and year ended December 31, 2014 related to a
lump sum pension plan settlement. Includes a curtailment gain
of $86 million ($50 million after tax and noncontrolling interests)
related to a negative plan amendment and the re-measurement of
postretirement benefit obligations and 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 at CNA for the year ended December
31, 2014.
|
|
(b)
|
Includes an asset
impairment charge of $499 million ($182 million after tax and
noncontrolling interests) for the three months ended December 31,
2015 related to the carrying value of nine drilling rigs and
charges totaling $861 million ($341 million after tax and
noncontrolling interests) for the year ended December 31, 2015
related to the carrying value of 17 drilling rigs. Includes an
asset impairment charge of $109 million ($55 million after tax and
noncontrolling interests) for the year ended December 31, 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 year ended December 31, 2014 to write off all capitalized
costs associated with the terminated Bluegrass project.
|
|
(d)
|
See table labeled
"Discontinued Operations Review" for a summary of these
items.
|
|
Loews Corporation
and Subsidiaries
|
|
|
|
Discontinued
Operations Review
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
(In
millions)
|
Three
Months
|
Year Ended
|
|
CNA
Financial
|
|
|
|
Continental
Assurance Company (῝CAC῞) operations
|
-
|
$
12
|
|
Impairment
loss on sale of CAC
|
-
|
(189)
|
|
CNA Financial -
Discontinued operations, net
|
-
|
(177)
|
|
|
|
|
|
HighMount
|
|
|
|
Operations
|
$
(6)
|
(37)
|
|
Ceiling test
impairment
|
-
|
(19)
|
|
Impairment
loss on sale
|
|
(1)
|
(138)
|
|
HighMount -
Discontinued operations, net
|
(7)
|
(194)
|
|
|
|
|
|
|
Discontinued
operations, net
|
$
(7)
|
$
(371)
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-for-2015-300216356.html
SOURCE Loews Corporation