Net income for the three months ended
Book value per share excluding accumulated other comprehensive income (AOCI) increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
December 31, |
|||
Three Months |
Years Ended |
|||
2014 |
2013 |
2014 |
2013 |
|
Income before net investment gains (losses) |
$ 222 |
$ 243 |
$ 930 |
$ 1,139 |
Net investment gains (losses) |
(7) |
5 |
32 |
10 |
Income from continuing operations |
215 |
248 |
962 |
1,149 |
Discontinued operations, net |
(7) |
(446) |
(371) |
(554) |
Net income (loss) attributable to Loews Corporation |
$ 208 |
$ (198) |
$ 591 |
$ 595 |
Net income (loss) per share: |
||||
Income from continuing operations |
$ 0.57 |
$ 0.64 |
$ 2.52 |
$ 2.95 |
Discontinued operations, net |
(0.02) |
(1.15) |
(0.97) |
(1.42) |
Net income (loss) per share |
$ 0.55 |
$ (0.51) |
$ 1.55 |
$ 1.53 |
December 31, |
||||
2014 |
2013 |
|||
Book value per share |
$ 51.70 |
$ 50.25 |
||
Book value per share excluding AOCI |
50.95 |
49.38 |
Three Months Ended
Income from continuing operations decreased primarily due to a decline in parent company investment income attributable to equity and limited partnership investments.
CNA's earnings were impacted by a
Loews Hotels' earnings increased primarily due to higher equity earnings from joint venture properties as a result of improved performance of the Universal Orlando properties.
Discontinued operations in 2013 included the following charges at HighMount: an impairment charge of
Year Ended
Income from continuing operations decreased primarily due to lower earnings at CNA,
CNA's earnings declined due to lower net investment income as a result of reduced limited partnership income and lower favorable net prior year development, as well as a
Discontinued operations in 2014 include impairment charges related to the sale of HighMount and CNA's annuity and pension deposit business as well as the operations of those businesses. Additionally, discontinued operations in 2013 included a ceiling test impairment charge of
SHARE REPURCHASES
At
CONFERENCE CALLS
A conference call to discuss the fourth quarter results of
A conference call to discuss the fourth quarter results of CNA has been scheduled for today at
A conference call to discuss the fourth quarter results of
A conference call to discuss the fourth 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 |
|||||||||
December 31, |
|||||||||
(In millions) |
Three Months |
Years Ended |
|||||||
2014 |
2013 |
2014 |
2013 |
||||||
Revenues: |
|||||||||
CNA Financial |
$ 2,389 |
$ 2,560 |
$ 9,638 |
$ 9,916 |
|||||
Diamond Offshore |
677 |
728 |
2,825 |
2,926 |
|||||
Boardwalk Pipeline |
305 |
311 |
1,236 |
1,232 |
|||||
Loews Hotels |
132 |
90 |
475 |
380 |
|||||
Investment income and other |
29 |
84 |
97 |
143 |
|||||
3,532 |
3,773 |
14,271 |
14,597 |
||||||
Investment gains (losses) - CNA Financial |
(11) |
9 |
54 |
16 |
|||||
Total |
$ 3,521 |
$ 3,782 |
$ 14,325 |
$ 14,613 |
|||||
Income (Loss) Before Income Tax: |
|||||||||
CNA Financial (a) (b) |
$ 265 |
$ 278 |
$ 1,161 |
$ 1,267 |
|||||
Diamond Offshore (c) |
152 |
181 |
514 |
774 |
|||||
Boardwalk Pipeline (d) (e) |
35 |
15 |
140 |
241 |
|||||
Loews Hotels |
7 |
(4) |
21 |
(4) |
|||||
Investment income, net |
26 |
83 |
94 |
141 |
|||||
Other (f) |
(63) |
(64) |
(174) |
(158) |
|||||
422 |
489 |
1,756 |
2,261 |
||||||
Investment gains (losses) - CNA Financial |
(11) |
9 |
54 |
16 |
|||||
Total |
$ 411 |
$ 498 |
$ 1,810 |
$ 2,277 |
|||||
Net Income (Loss) Attributable to Loews Corporation: |
|||||||||
CNA Financial (a) (b) |
$ 186 |
$ 187 |
$ 770 |
$ 817 |
|||||
Diamond Offshore (c) |
47 |
44 |
183 |
257 |
|||||
Boardwalk Pipeline (d) (e) |
11 |
4 |
18 |
78 |
|||||
Loews Hotels |
3 |
(5) |
11 |
(3) |
|||||
Investment income, net |
17 |
54 |
63 |
93 |
|||||
Other (f) |
(42) |
(41) |
(115) |
(103) |
|||||
222 |
243 |
930 |
1,139 |
||||||
Investment gains (losses) - CNA Financial |
(7) |
5 |
32 |
10 |
|||||
Income from continuing operations |
215 |
248 |
962 |
1,149 |
|||||
Discontinued operations, net (g) |
(7) |
(446) |
(371) |
(554) |
|||||
Net income (loss) attributable to Loews Corporation |
$ 208 |
$ (198) |
$ 591 |
$ 595 |
|||||
(a) |
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 and for the year ended December 31, 2014, an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations. |
(b) |
Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013, related to retroactive reinsurance accounting for the Loss Portfolio Transfer. |
(c) |
Includes an 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 semisubmersible rigs. |
(d) |
Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project. |
(e) |
Includes a goodwill impairment charge of $52 million ($16 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013. |
(f) |
Consists primarily of corporate interest expense and other unallocated expenses. |
(g) |
See table on page seven for a summary of items comprising discontinued operations for the respective periods. |
Loews Corporation and Subsidiaries Consolidated Financial Review December 31, (In millions, except per share data) Three Months Years Ended 2014 2013 2014 2013 Revenues: Insurance premiums $ 1,785 $ 1,882 $ 7,212 $ 7,271 Net investment income 538 686 2,163 2,425 Investment gains (losses) (11) 9 54 16 Contract drilling revenues 674 708 2,737 2,844 Other 535 497 2,159 2,057 Total 3,521 3,782 14,325 14,613 Expenses: Insurance claims & policyholders' benefits (a) 1,350 1,547 5,591 5,806 Contract drilling expenses 359 409 1,524 1,573 Other (b) (c) (d) (e) 1,401 1,328 5,400 4,957 Total 3,110 3,284 12,515 12,336 Income before income tax 411 498 1,810 2,277 Income tax expense (110) (178) (457) (656) Income from continuing operations 301 320 1,353 1,621 Discontinued operations, net of income tax (7) (445) (391) (552) Net income (loss) 294 (125) 962 1,069 Amounts attributable to noncontrolling interests (86) (73) (371) (474) Net income (loss) attributable to Loews Corporation $ 208 $ (198) $ 591 $ 595 Net income (loss) attributable to Loews Corporation: Income from continuing operations $ 215 $ 248 $ 962 $ 1,149 Discontinued operations, net (f) (7) (446) (371) (554) Net income (loss) $ 208 $ (198) $ 591 $ 595 Diluted income per share: Income from continuing operations $ 0.57 $ 0.64 $ 2.52 $ 2.95 Discontinued operations, net (0.02) (1.15) (0.97) (1.42) Diluted income (loss) per share attributable to Loews Corporation $ 0.55 $ (0.51) $ 1.55 $ 1.53 Weighted diluted number of shares 374.71 387.19 382.55 389.51 (a) Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013, related to retroactive reinsurance accounting for the Loss Portfolio Transfer. (b) 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 and for the year ended December 31, 2014, an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations. (c) Includes an 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 semisubmersible rigs. (d) Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the year ended December 31, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project. (e) Includes a goodwill impairment charge of $52 million ($16 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013. (f) See table on page seven for a summary of items comprising discontinued operations for the respective periods.
Loews Corporation and Subsidiaries Discontinued Operations Review December 31, (In millions) Three Months Years Ended 2014 2013 2014 2013 CNA Financial Continental Assurance Company ("CAC") operations $ 7 $ 12 $ 20 Impairment loss on sale of CAC (189) CNA Financial - Discontinued operations, net 7 (177) 20 HighMount Operations $ (6) 3 (37) 16 Goodwill impairment (382) (382) Ceiling test impairment (52) (19) (186) Impairment loss on gathering pipelines (22) (22) Loss from operations (6) (453) (56) (574) Impairment loss on sale (1) (138) HighMount - Discontinued operations, net (7) (453) (194) (574) Discontinued operations, net $ (7) $ (446) $ (371) $ (554)
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-income-from-continuing-operations-of-215-million-for-the-fourth-quarter-of-2014-300032500.html
SOURCE
David B. Edelson, Chief Financial Officer, (212) 521-2439 or Mary Skafidas, Investor and Public Relations, (212) 521-2788