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Loews Corporation Reports Net Income Of $102 Million For The First Quarter Of 2016

NEW YORK, May 2, 2016 /PRNewswire/ -- Loews Corporation (NYSE: L) today reported net income for the three months ended March 31, 2016 of $102 million, or $0.30 per share, compared to $109 million, or $0.29 per share, in the prior year period.

Net income declined by $7 million as compared to the prior year due to lower earnings at CNA Financial Corporation and reduced results from the parent company investment portfolio, partially offset by higher earnings at Diamond Offshore Drilling, Inc. because of the absence this quarter of an asset impairment charge. Higher earnings at Boardwalk Pipeline Partners, LP also served as a partial offset. The increase in net income per share is due to treasury share purchases over the past year.

Book value per share excluding accumulated other comprehensive income (AOCI) increased to $52.98 at March 31, 2016 from $52.72 at December 31, 2015.

CONSOLIDATED HIGHLIGHTS


Three Months Ended March 31,

(In millions, except per share data)

2016

2015




Income before net investment gains (losses)

$        119

$        101

Net investment gains (losses)

(17)

8

Net income attributable to Loews Corporation

$        102

$        109




Net income per share

$       0.30

$       0.29





March 31, 2016

December 31, 2015

  Book value per share

$   52.60

$   51.67

  Book value per share excluding AOCI

52.98

52.72

           

CNA's earnings decreased due to a $74 million (after tax and noncontrolling interests) charge related to the 2010 retroactive reinsurance agreement to cede its legacy asbestos and environmental pollution liabilities (Loss Portfolio Transfer, or LPT). Under retroactive reinsurance accounting, amounts ceded through the LPT in excess of the consideration paid result in a deferred benefit that is recognized in income in proportion to paid recoveries over future periods. CNA's earnings were also impacted by a decline in net investment income driven by limited partnership investment results, as well as realized investment losses in 2016 as compared to gains in 2015. These investment-related declines, which totaled $99 million (after tax and noncontrolling interests), were partially offset by improved property & casualty underwriting results and improved results in the Life & Group segment.

Diamond Offshore's prior year earnings reflected a $158 million (after tax and noncontrolling interests) asset impairment charge. Year-over-year earnings also benefited from revenue earned by newbuild drillships, demobilization fees, lower operating costs, lower depreciation expense resulting mainly from the asset impairment charges taken in 2015, and a lower effective tax rate. These favorable items were largely offset by a substantial reduction in the number of operating rigs.

Boardwalk Pipeline's earnings increased as new rates took effect following the Gulf South rate case. Additionally, the Evangeline pipeline, which was placed into service in mid-2015, and new growth projects contributed to earnings.

SHARE REPURCHASES

At March 31, 2016, there were 339.0 million shares of Loews common stock outstanding. During the first quarter of 2016, the Company repurchased 0.9 million shares of its common stock at an aggregate cost of $33 million. 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 first 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 85830677. An online replay will also be available on the Loews Corporation's website following the call.

A conference call to discuss the first 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) 515-2880, or for international callers, (719) 325-2370.

A conference call to discuss the first 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 85747324.

A conference call to discuss the first 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 89517726.

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 













Three Months Ended March 31,

(In millions)

2016

2015

Revenues:



  CNA Financial 

$               2,231

$               2,342

  Diamond Offshore

471

627

  Boardwalk Pipeline

347

330

  Loews Hotels

163

139

  Investment income (loss) and other

(11)

30



3,201

3,468

  Investment gains (losses) - CNA Financial

(28)

10

Total

$               3,173

$               3,478





Income (Loss) Before Income Tax:



  CNA Financial (a)

$                    86

$                  304

  Diamond Offshore (b)

83

(287)

  Boardwalk Pipeline

99

77

  Loews Hotels 

9

10

  Investment income (loss), net

(13)

29

  Other (c)

(41)

(38)



223

95

  Investment gains (losses) - CNA Financial

(28)

10

Total

$                  195

$                  105





Net Income (Loss) Attributable to Loews Corporation:



  CNA Financial (a)

$                    77

$                  202

  Diamond Offshore (b)

43

(126)

  Boardwalk Pipeline

31

25

  Loews Hotels 

3

5

  Investment income (loss), net

(8)

19

  Other (c)

(27)

(24)



119

101

  Investment gains (losses) - CNA Financial

(17)

8

  Net income attributable to Loews Corporation

$                  102

$                  109





(a)

Includes a charge of $127 million ($74 million after tax and noncontrolling interests) for the three
months ended March 31, 2016 related to retroactive reinsurance accounting for the Loss Portfolio
Transfer.

(b)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling
interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling
rigs.



(c)

Consists primarily of corporate interest expense and other unallocated expenses.

 







Loews Corporation and Subsidiaries


Consolidated Financial Review














Three Months Ended March 31,


(In millions, except per share data)

2016

2015


Revenues:




  Insurance premiums

$               1,699

$               1,687


  Net investment income

422

588


  Investment gains (losses)

(28)

10


  Contract drilling revenues

444

600


  Other revenues

636

593


Total

3,173

3,478







Expenses:




  Insurance claims & policyholders' benefits (a)

1,408

1,339


  Contract drilling expenses

213

351


  Other operating expenses (b) 

1,357

1,683


Total

2,978

3,373







Income before income tax 

195

105


Income tax (expense) benefit

4

(56)


Net income 

199

49


Amounts attributable to noncontrolling interests

(97)

60


Net income attributable to Loews Corporation

$                  102

$                  109







Diluted income per share attributable to Loews Corporation

$                 0.30

$                 0.29







Weighted average diluted number of shares

339.25

373.19




(a)

Includes a charge of $127 million ($74 million after tax and noncontrolling interests) for the three
months ended March 31, 2016 related to retroactive reinsurance accounting for the Loss Portfolio
Transfer.


(b)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling
interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling
rigs.

 

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-102-million-for-the-first-quarter-of-2016-300260544.html

SOURCE Loews Corporation

Mary Skafidas, Investor and Public Relations, (212) 521-2788