Net investment gains amounted to $45.1 million in the third quarter of 2001, compared to gains of $330.4 million in the third quarter of 2000.
Net operating income, which excludes net investment gains and losses, for the third quarter was $120.6 million or $.62 per share, compared to $349.2 million or $1.77 per share in 2000. The lower results in the current quarter are primarily due to losses of $264.6 million after taxes and minority interest at CNA related to the September 11, 2001 World Trade Center attack and related events ("WTC").
Net loss for the nine month period in 2001 was $777.2 million or $3.95 per share, compared to net income of $1,373.8 million or $6.90 per share in 2000. The loss was primarily attributable to CNA's second quarter reserve charge of $1.8 billion after taxes and minority interest, the above-mentioned WTC reserve charge of $264.6 million after taxes and minority interest, and the charge of $121.0 million after taxes that was taken at Lorillard in the second quarter related to the agreement with the Engle class.
The net loss in 2001 includes net investment gains of $555.5 million or $2.83 per share compared to gains of $404.5 million or $2.03 per share in the comparable period of the prior year. The net loss also includes a charge for accounting changes of $53.3 million or $.27 per share, related to accounting for derivative instruments at the CNA subsidiary.
Revenues in the third quarter amounted to $4.8 billion compared to $5.8 billion in the comparable 2000 quarter. Revenues declined $1.0 billion in the third quarter partly due to a decline in investment income of $.6 billion at the CNA subsidiary. Revenues for the nine month period were $14.3 billion in 2001, compared to $15.7 billion in 2000.
As of September 30, 2001, there were 191,493,300 Loews shares outstanding. During the nine months ended September 30, 2001, the Company purchased 5,746,600 shares of its outstanding common stock at an aggregate cost of $282.2 million. Depending on market conditions, the Company from time to time purchases shares of its, and its subsidiaries', outstanding common stock in the open market or otherwise.
A conference call to discuss the second quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Thursday, November 1, 2001. The call can be accessed by dialing (888) 307-7192 or by visiting the Loews Corporation website (www.loews.com), where the Company will provide an online, real-time broadcast of this call. Please go to the website at least 10 minutes before the event begins to register and to download and install any necessary audio software. An online replay will be available at the Company's website for one week following the call.
CNA has also scheduled a conference call to discuss its third quarter results. CNA's call will take place at 10:00 a.m. EST on Thursday, November 1, 2001, and can be accessed by dialing (800) 967-7184 or via the Internet at www.cna.com/cna/html/investor.html. A replay of this conference call will be available until November 8, 2001 at the aforementioned web address or by dialing (888) 203-1112, passcode 758579.
Loews Corporation and Subsidiaries
Financial Review
September 30,
Three Months Nine Months
2001 2000 2001 2000
(Amounts in millions, except per share data)
Revenues:
Insurance premiums
and net investment
income (a) $ 3,125.3 $ 4,196.1 $ 9,317.3 $ 11,156.4
Manufactured
products (b) 1,243.9 1,136.1 3,487.0 3,299.8
Other 471.7 425.1 1,459.1 1,270.8
Total 4,840.9 5,757.3 14,263.4 15,727.0
Expenses:
Insurance claims &
policyholders'
benefits 2,440.3 2,464.7 8,846.3 7,155.8
Cost of manufactured
products sold (b) (c) 601.1 582.1 1,730.5 1,727.3
Other (d) 1,508.0 1,566.8 4,856.0 4,497.7
Total 4,549.4 4,613.6 15,432.8 13,380.8
291.5 1,143.7 (1,169.4) 2,346.2
Income tax expense
(benefit) 113.8 379.1 (325.0) 794.2
Minority interest 12.0 85.0 (120.5) 178.2
Total 125.8 464.1 (445.5) 972.4
Income (loss) before
cumulative effect of
changes in
accounting principles 165.7 679.6 (723.9) 1,373.8
Cumulative effect of
change in accounting
principles-net (e) 0.0 0.0 (53.3) 0.0
Net income (loss) $ 165.7 $ 679.6 $ (777.2) $ 1,373.8
Income (loss) per
common share-basic (f):
Income (loss) before
cumulative effect of
changes in
accounting-principles $ 0.85 $ 3.45 $ (3.68) $ 6.90
Cumultive effect of
changes in accounting
principles-net (e) 0.00 0.00 (0.27) 0.00
Net income (loss) $ 0.85 $ 3.45 $ (3.95) $ 6.90
Book value per share $ 50.71 $ 53.64
Weighted number of
shares outstanding
(in millions) 195.4 197.2 196.6 199.2
(a) Includes investment gains of $72.5, $586.8, $1,065.5 and $741.8
for the respective periods.
(b) Includes excise taxes of $165.3, $171.1, $476.4 and $508.4 paid on
sales of manufactured products for the respective periods.
(c) Includes charges of $309.0, $281.6, $890.3 and $829.5 ($188.2,
$168.1, $542.2 and $495.0 after taxes) related to the settlement
of tobacco litigation for the respective periods.
(d) Includes a $200.0 charge related to an agreement with the Engle
class for the nine months ended September 30, 2001.
(e) Adoption of SFAS No. 133, accounting for derivative instruments
and hedging activities at the CNA subsidiary.
(f) Earnings per common share-assuming dilution is not presented
because securities that could potentially dilute basic earnings
per common share in the future would have been antidilutive or
insignificant for the periods presented.
Loews Corporation and Subsidiaries
Additional Financial Information
September 30,
Three Months Nine Months
2001 2000 2001 2000
(In millions, except per share amounts)
Revenues:
CNA Financial $ 3,148.2 $ 3,703.0 $ 8,555.1 $ 10,727.0
Lorillard (a) 1,228.7 1,124.6 3,461.4 3,267.4
Loews Hotels 71.1 82.9 247.1 248.7
Diamond Offshore (b) 244.1 174.2 707.8 518.0
Bulova (c) 35.4 42.1 100.0 114.9
Investment
income-net
and other (d) 40.9 43.7 126.5 109.2
4,768.4 5,170.5 13,197.9 14,985.2
Investment gains
(losses):
CNA Financial 0.6 605.8 939.8 909.6
Corporate and other 71.9 (19.0) 125.7 (167.8)
72.5 586.8 1,065.5 741.8
Total $ 4,840.9 $ 5,757.3 $ 14,263.4 $ 15,727.0
Income (Loss)
Before Taxes &
Minority Interest
and Cumulative Effect
of Changes in
Accounting Principles:
CNA Financial (g) $ (230.6) $ 209.0 $ (3,225.1) $ 612.2
Lorillard (e) (f) 376.8 320.1 781.2 905.8
Loews Hotels (0.4) 7.8 23.4 34.9
Diamond Offshore (b) 71.4 15.4 175.7 65.2
Bulova (c) 2.7 6.5 10.3 20.1
Investment income-net
and other (d) (0.9) (1.9) (0.4) (33.8)
219.0 556.9 (2,234.9) 1,604.4
Investment gains
(losses):
CNA Financial 0.6 605.8 939.8 909.6
Corporate and other 71.9 (19.0) 125.7 (167.8)
72.5 586.8 1,065.5 741.8
Total $ 291.5 $ 1,143.7 $ (1,169.4) $ 2,346.2
Net Income (Loss):
CNA Financial (g) $ (133.0) $ 138.8 $ (1,829.8) $ 379.9
Lorillard (e) (f) 229.9 198.7 474.4 559.3
Loews Hotels 0.1 5.0 15.2 22.5
Diamond Offshore (b) 22.7 4.5 55.2 19.2
Bulova (c) 1.5 3.6 5.7 11.1
Investment
income-net and
other (d) (0.6) (1.4) (0.1) (22.7)
120.6 349.2 (1,279.4) 969.3
Per share 0.62 1.77 (6.51) 4.87
Investment gains
(losses):
CNA Financial 0.4 342.8 479.8 513.6
Corporate and other 44.7 (12.4) 75.7 (109.1)
45.1 330.4 555.5 404.5
Per share 0.23 1.68 2.83 2.03
Cumulative effect of
changes in
accounting
principles-net 0.0 0.0 (53.3) 0.0
Per share 0.00 0.00 (0.27) 0.00
Total $ 165.7 $ 679.6 $ (777.2) $ 1,373.8
Per share $ 0.85 $ 3.45 $ (3.95) $ 6.90
(a) Includes excise taxes of $165.3, $171.1, $476.4 and $508.4 paid on
sales of manufactured products for the respective periods.
(b) Includes a gain from the sale of a drilling rig of $13.9 ($4.7
after taxes and minority interest) for the nine months ended
September 30, 2000.
(c) Includes a gain of $5.5 from settlement of a contract dispute
($3.0 after taxes and minority interest) for the nine months ended
September 30, 2000.
(d) Consists primarily of corporate investment income, interest
expenses and other unallocated expenses.
(e) Includes charges of $309.0, $281.6, $890.3 and $829.5 ($188.2,
$168.1, $542.2 and $495.0 after taxes) related to the settlement
of tobacco litigation for the respective periods.
(f) Includes a $200.0 charge ($121.0 after taxes) related to an
agreement with the Engle class for the nine months ended September
30, 2001.
(g) Includes charges of $467.7 ($264.6 after taxes and minority
interest) for the three and nine months ended September 30, 2001
related to the World Trade Center attack, and $3,200.0 ($1,810.5
after taxes and minority interest) for the nine months ended
September 30, 2001 related to a change in estimate of prior year
net loss and allocated loss adjustment expense reserves and
retrospective premium accruals.
CONTACT: Loews Corporation, New York
Peter W. Keegan, Senior Vice President, 212/521-2950
Candace Leeds, V.P. of Public Affairs, 212/521-2416
Joshua E. Kahn, Investor Relations, 212/521-2788
URL: http://www.businesswire.com
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.