Net income for the three months ended
Book value per share decreased to
CONSOLIDATED HIGHLIGHTS
Three Months Ended March 31, |
||||
(In millions, except per share data) |
2018 |
2017 |
||
Income before net investment gains |
$ 286 |
$ 275 |
||
Net investment gains |
7 |
20 |
||
Net income attributable to Loews Corporation |
$ 293 |
$ 295 |
||
Net income per share |
$ 0.89 |
$ 0.87 |
||
March 31, 2018 |
December 31, 2017 |
|||
Book value per share |
$ 57.48 |
$ 57.83 |
||
Book value per share excluding AOCI |
58.78 |
57.91 |
CNA's earnings increased mainly due to improved P&C underwriting results and a reduction in the corporate tax rate due to the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). These improvements were partially offset by the decline in limited partnership investment results, higher adverse reserve development under the 2010 asbestos and environmental pollution loss portfolio transfer, and lower realized investment results.
Loews Hotels & Co's earnings increased due to improved operating performance at joint venture properties. Earnings also benefited from improved results at several owned hotels, primarily the
Income generated by the parent company investment portfolio decreased primarily due to lower performance from equity securities, partially offset by a lower corporate tax rate as a result of the Tax Act.
Corporate and other results improved before income tax in 2018 due mainly to income generated by
SHARE REPURCHASES
At
CONFERENCE CALLS
A conference call to discuss the first quarter results of
A conference call to discuss the first quarter results of CNA has been scheduled for today at
A conference call to discuss the first quarter results of
A conference call to discuss the first 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 |
||||
Three Months Ended March 31, |
||||
(In millions) |
2018 |
2017 |
||
Revenues: |
||||
CNA Financial (a) (b) |
$ 2,535 |
$ 2,329 |
||
Diamond Offshore |
299 |
377 |
||
Boardwalk Pipeline |
337 |
368 |
||
Loews Hotels & Co |
183 |
167 |
||
Investment income and other (c) |
227 |
59 |
||
Total |
$ 3,581 |
$ 3,300 |
||
Income (Loss) Before Income Tax: |
||||
CNA Financial (a) (d) |
$ 347 |
$ 345 |
||
Diamond Offshore |
(25) |
25 |
||
Boardwalk Pipeline |
95 |
118 |
||
Loews Hotels & Co |
20 |
19 |
||
Investment income, net |
14 |
59 |
||
Corporate and other (c) |
(46) |
(56) |
||
Total |
$ 405 |
$ 510 |
||
Net Income (Loss) Attributable to Loews Corporation: |
||||
CNA Financial (a) (d) |
$ 261 |
$ 234 |
||
Diamond Offshore (e) |
10 |
12 |
||
Boardwalk Pipeline |
36 |
37 |
||
Loews Hotels & Co |
13 |
10 |
||
Investment income, net |
11 |
38 |
||
Corporate and other (c) |
(38) |
(36) |
||
Net income attributable to Loews Corporation |
$ 293 |
$ 295 |
||
(a) |
Includes realized investment gains of $9 million ($7 million after tax and noncontrolling interests) and $34 million ($20 million after tax and noncontrolling interests) for the three months ended March 31, 2018 and 2017. |
||
(b) |
Includes an increase of $137 million for the three months ended March 31, 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 for the three months ended March 31, 2018 subsequent to its acquisition on May 22, 2017, corporate interest expense and other unallocated corporate expenses. |
||
(d) |
Includes charges of $40 million ($28 million after tax and noncontrolling interests) and $20 million ($12 million after tax and noncontrolling interests) for the three months ended March 31, 2018 and 2017 related to the 2010 retroactive reinsurance agreement to cede CNAʼs legacy asbestos and environmental pollution liabilities. |
||
(e) |
Includes a $43 million ($23 million after noncontrolling interests) favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act for the three months ended March 31, 2018. |
Loews Corporation and Subsidiaries |
||||
Consolidated Financial Review |
||||
Three Months Ended March 31, |
||||
(In millions, except per share data) |
2018 |
2017 |
||
Revenues: |
||||
Insurance premiums |
$ 1,785 |
$ 1,645 |
||
Net investment income |
506 |
604 |
||
Investment gains |
9 |
34 |
||
Operating revenues and other (a) (b) |
1,281 |
1,017 |
||
Total |
3,581 |
3,300 |
||
Expenses: |
||||
Insurance claims and policyholders' benefits (c) |
1,339 |
1,293 |
||
Operating expenses and other (a) (b) |
1,837 |
1,497 |
||
Total |
3,176 |
2,790 |
||
Income before income tax |
405 |
510 |
||
Income tax expense (d) |
(25) |
(119) |
||
Net income |
380 |
391 |
||
Amounts attributable to noncontrolling interests |
(87) |
(96) |
||
Net income attributable to Loews Corporation |
$ 293 |
$ 295 |
||
Net income per share attributable to Loews Corporation |
$ 0.89 |
$ 0.87 |
||
Weighted average number of shares |
328.72 |
337.68 |
||
(a) |
Includes the financial results of Consolidated Container Company for the three months ended March 31, 2018 subsequent to its acquisition on May 22, 2017. |
||
(b) |
Includes an increase of $137 million for the three months ended March 31, 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 charges of $40 million ($28 million after tax and noncontrolling interests) and $20 million ($12 million after tax and noncontrolling interests) for the three months ended March 31, 2018 and 2017 related to the 2010 retroactive reinsurance agreement to cede CNAʼs legacy asbestos and environmental pollution liabilities. |
||
(d) |
Includes a $43 million ($23 million after noncontrolling interests) favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act for the three months ended March 31, 2018. |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-293-million-for-the-first-quarter-of-2018-300638662.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788