Net income for the three and nine months ended
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
September 30, |
|||
Three Months |
Nine Months |
|||
2018 |
2017 |
2018 |
2017 |
|
Income before net investment gains |
$ 267 |
$ 147 |
$ 784 |
$ 627 |
Net investment gains |
11 |
10 |
17 |
56 |
Net income attributable to Loews Corporation |
$ 278 |
$ 157 |
$ 801 |
$ 683 |
Net income per share |
$ 0.88 |
$ 0.46 |
$ 2.49 |
$ 2.02 |
September 30, 2018 |
December 31, 2017 |
|||
Book value per share |
$ |
60.18 |
$ |
57.83 |
Book value per share excluding AOCI |
62.58 |
57.91 |
Three Months Ended
CNA's earnings increased due to improved underwriting income driven by lower net catastrophe losses for the core property & casualty business as compared to the prior year and a lower corporate tax rate from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). These increases were partially offset by lower favorable net prior year reserve development and lower net investment income driven by decreased limited partnership returns. Earnings in 2017 were impacted by a loss of
Loews Hotels & Co's earnings increased because of improved results at several owned hotels including the
Income generated by the parent company investment portfolio decreased primarily due to weaker returns on equity securities and alternatives and a lower overall investment balance caused primarily by the purchase of
Corporate and other results were consistent with the prior year period on a pretax basis. Net income for Corporate and other in 2018 was negatively impacted by the lower corporate tax rate, which resulted in a reduced tax benefit as compared to the prior year period.
Nine Months Ended
CNA's earnings increased primarily due to the reasons discussed above partially offset by lower realized investment gains in 2018 as compared with the 2017 period.
Loews Hotels & Co's earnings increased primarily due to improved operating performance of
Income generated by the parent company investment portfolio decreased due to lower performance of equity securities partially offset by improved returns on short-term investments and a lower corporate tax rate.
Corporate and other results improved before income tax due to the absence of costs related to the acquisition of
SHARE REPURCHASES
At
CONFERENCE CALLS
A conference call to discuss the third quarter results of
A conference call to discuss the third quarter results of CNA has been scheduled for today at
A conference call to discuss the third quarter results of
ABOUT
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
Loews Corporation and Subsidiaries |
||||||
Selected Financial Information |
||||||
September 30, |
||||||
Three Months |
Nine Months |
|||||
(In millions) |
2018 |
2017 |
2018 |
2017 |
||
Revenues: |
||||||
CNA Financial (a) (b) |
$ 2,622 |
$ 2,441 |
$ 7,731 |
$ 7,136 |
||
Diamond Offshore |
289 |
368 |
859 |
1,144 |
||
Boardwalk Pipeline |
279 |
301 |
901 |
987 |
||
Loews Hotels & Co |
190 |
162 |
574 |
510 |
||
Investment income and other (c) |
228 |
249 |
714 |
403 |
||
Total |
$ 3,608 |
$ 3,521 |
$ 10,779 |
$ 10,180 |
||
Income (Loss) Before Income Tax: |
||||||
CNA Financial (a) (d) |
$ 401 |
$ 190 |
$ 1,077 |
$ 905 |
||
Diamond Offshore (d) (e) (f) |
(56) |
(3) |
(160) |
13 |
||
Boardwalk Pipeline (g) |
38 |
69 |
172 |
210 |
||
Loews Hotels & Co |
14 |
8 |
58 |
47 |
||
Investment income, net |
5 |
48 |
61 |
109 |
||
Corporate and other (c) |
(48) |
(48) |
(142) |
(163) |
||
Total |
$ 354 |
$ 264 |
$ 1,066 |
$ 1,121 |
||
Net Income (Loss) Attributable to Loews Corporation: |
||||||
CNA Financial (a) (d) |
$ 300 |
$ 130 |
$ 801 |
$ 608 |
||
Diamond Offshore (d) (e) (f) |
(27) |
6 |
(54) |
25 |
||
Boardwalk Pipeline (g) |
28 |
17 |
80 |
60 |
||
Loews Hotels & Co |
11 |
4 |
41 |
24 |
||
Investment income, net |
4 |
32 |
49 |
72 |
||
Corporate and other (c) |
(38) |
(32) |
(116) |
(106) |
||
Net income attributable to Loews Corporation |
$ 278 |
$ 157 |
$ 801 |
$ 683 |
(a) |
Includes realized investment gains of $15 million and $16 million ($11 million and $10 million after tax and noncontrolling interests) for the three months ended September 30, 2018 and 2017. Realized investment gains were $21 million and $93 million ($17 million and $56 million after tax and noncontrolling interests) for the nine months ended September 30, 2018 and 2017. |
||||||
(b) |
Includes an increase of $145 million and $419 million for the three and nine months ended September 30, 2018 due to the implementation of a new accounting standard for revenue recognition (Accounting Standard Update 2014-09) on January 1, 2018. The new standard increases revenues and expenses to reflect the gross amounts paid by consumers for CNA's non-insurance warranty products. |
||||||
(c) |
Includes the financial results of Consolidated Container Company, which was acquired on May 22, 2017, corporate interest expense and other unallocated corporate expenses. |
||||||
(d) |
Includes a loss on the early redemption of debt of $42 million ($24 million after tax and noncontrolling interests) at CNA and $35 million ($11 million after tax and noncontrolling interests) at Diamond Offshore for the three and nine months ended September 30, 2017. |
||||||
(e) |
Includes asset impairment charges of $27 million and $72 million ($12 million and $23 million after tax and noncontrolling interests) for the nine months ended September 30, 2018 and 2017 related to the carrying value of Diamond Offshoreʼs drilling rigs. |
||||||
(f) |
Includes a tax benefit of $43 million ($23 million after noncontrolling interests) for the nine months ended September 30, 2018 related to a favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act. |
||||||
(g) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related to the sale of a processing facility for the nine months ended September 30, 2017. |
Loews Corporation and Subsidiaries |
||||||
Consolidated Financial Review |
||||||
September 30, |
||||||
Three Months |
Nine Months |
|||||
(In millions, except per share data) |
2018 |
2017 |
2018 |
2017 |
||
Revenues: |
||||||
Insurance premiums |
$ 1,853 |
$ 1,806 |
$ 5,453 |
$ 5,185 |
||
Net investment income |
494 |
557 |
1,551 |
1,639 |
||
Investment gains |
15 |
16 |
21 |
93 |
||
Operating revenues and other (a) (b) |
1,246 |
1,142 |
3,754 |
3,263 |
||
Total |
3,608 |
3,521 |
10,779 |
10,180 |
||
Expenses: |
||||||
Insurance claims and policyholders' benefits |
1,312 |
1,480 |
3,978 |
4,053 |
||
Operating expenses and other (a) (b) (c) (d) |
1,942 |
1,777 |
5,735 |
5,006 |
||
Total |
3,254 |
3,257 |
9,713 |
9,059 |
||
Income before income tax |
354 |
264 |
1,066 |
1,121 |
||
Income tax expense (e) |
(65) |
(52) |
(149) |
(240) |
||
Net income |
289 |
212 |
917 |
881 |
||
Amounts attributable to noncontrolling interests |
(11) |
(55) |
(116) |
(198) |
||
Net income attributable to Loews Corporation |
$ 278 |
$ 157 |
$ 801 |
$ 683 |
||
Net income per share attributable to Loews Corporation |
$ 0.88 |
$ 0.46 |
$ 2.49 |
$ 2.02 |
||
Weighted average number of shares |
316.81 |
337.79 |
321.73 |
337.73 |
(a) |
Includes the financial results of Consolidated Container Company, which was acquired on May 22, 2017. |
|||||
(b) |
Includes an increase of $145 million and $419 million for the three and nine months ended September 30, 2018 due to the implementation of a new accounting standard for revenue recognition (Accounting Standard Update 2014-09) on January 1, 2018. The new standard increases revenues and expenses to reflect the gross amounts paid by consumers for CNA's non-insurance warranty products. |
|||||
(c) |
Includes asset impairment charges of $27 million and $72 million ($12 million and $23 million after tax and noncontrolling interests) for the nine months ended September 30, 2018 and 2017 related to the carrying value of Diamond Offshoreʼs drilling rigs. |
|||||
(d) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related to the sale of a processing facility for the nine months ended September 30, 2017. |
|||||
(e) |
Includes a benefit of $43 million ($23 million after noncontrolling interests) for the nine months ended September 30, 2018 related to a favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act. |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-278-million-for-the-third-quarter-of-2018-300743731.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788