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) |
September 30, |
|||
Three Months |
Nine Months |
|||
2014 |
2013 |
2014 |
2013 |
|
Income before net investment gains |
$ 155 |
$ 317 |
$ 708 |
$ 896 |
Net investment gains |
24 |
1 |
39 |
5 |
Income from continuing operations |
179 |
318 |
747 |
901 |
Discontinued operations, net (a) (b) |
29 |
(36) |
(364) |
(108) |
Net income attributable to Loews Corporation |
$ 208 |
$ 282 |
$ 383 |
$ 793 |
Net income per share: |
||||
Income from continuing operations |
$ 0.47 |
$ 0.82 |
$ 1.94 |
$ 2.31 |
Discontinued operations, net |
0.08 |
(0.09) |
(0.94) |
(0.28) |
Net income per share |
$ 0.55 |
$ 0.73 |
$ 1.00 |
$ 2.03 |
September 30, |
Year Ended |
||
2014 |
2013 |
||
Book value per share |
$ 52.01 |
$ 49.99 |
$ 50.25 |
Book value per share excluding AOCI |
50.32 |
49.94 |
49.38 |
(a) Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled $137 million for the nine months ended September 30, 2014. |
(b) Includes an impairment charge of $189 million related to the sale of CNA's annuity and pension deposit business for the nine months ended September 30, 2014. |
Three Months Ended
Income from continuing operations decreased primarily due to lower earnings at
CNA's earnings declined primarily due to lower net investment income, driven by limited partnerships; reduced favorable net prior year development; and a
Discontinued operations in 2014 include a
Nine Months Ended
Income from continuing operations decreased primarily due to lower earnings at CNA,
CNA's earnings were impacted by lower net investment income as a result of reduced limited partnership income and reduced favorable net prior year development, partially offset by improved current accident year underwriting results and a curtailment gain of
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 third quarter results of
A conference call to discuss the third quarter results of CNA has been scheduled for
A conference call to discuss the third quarter results of
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, |
|||||
(In millions) |
Three Months |
Nine Months |
|||
2014 |
2013 |
2014 |
2013 |
||
Revenues: |
|||||
CNA Financial |
$ 2,374 |
$ 2,456 |
$ 7,249 |
$ 7,356 |
|
Diamond Offshore |
737 |
706 |
2,148 |
2,198 |
|
Boardwalk Pipeline |
279 |
288 |
931 |
921 |
|
Loews Hotels |
126 |
95 |
343 |
290 |
|
Investment income (loss) and other |
(30) |
50 |
68 |
59 |
|
3,486 |
3,595 |
10,739 |
10,824 |
||
Investment gains - CNA Financial |
37 |
2 |
65 |
7 |
|
Total |
$ 3,523 |
$ 3,597 |
$ 10,804 |
$ 10,831 |
|
Income (Loss) Before Income Tax: |
|||||
CNA Financial (a) |
$ 258 |
$ 372 |
$ 896 |
$ 989 |
|
Diamond Offshore (b) |
82 |
131 |
362 |
593 |
|
Boardwalk Pipeline (c) |
28 |
60 |
105 |
226 |
|
Loews Hotels |
- |
(2) |
14 |
- |
|
Investment income (loss), net |
(29) |
50 |
68 |
58 |
|
Other (d) |
(37) |
(37) |
(111) |
(94) |
|
302 |
574 |
1,334 |
1,772 |
||
Investment gains - CNA Financial |
37 |
2 |
65 |
7 |
|
Total |
$ 339 |
$ 576 |
$ 1,399 |
$ 1,779 |
|
Net Income (Loss) Attributable to Loews Corporation: |
|||||
CNA Financial (a) |
$ 164 |
$ 244 |
$ 584 |
$ 630 |
|
Diamond Offshore (b) |
25 |
44 |
136 |
213 |
|
Boardwalk Pipeline (c) |
8 |
19 |
7 |
74 |
|
Loews Hotels |
- |
1 |
8 |
2 |
|
Investment income (loss), net |
(18) |
33 |
46 |
39 |
|
Other (d) |
(24) |
(24) |
(73) |
(62) |
|
155 |
317 |
708 |
896 |
||
Investment gains - CNA Financial |
24 |
1 |
39 |
5 |
|
Income from continuing operations |
179 |
318 |
747 |
901 |
|
Discontinued operations, net (e) (f) |
29 |
(36) |
(364) |
(108) |
|
Net income attributable to Loews Corporation |
$ 208 |
$ 282 |
$ 383 |
$ 793 |
|
(a) |
Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014, and 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 at CNA for the nine months ended September 30, 2014. |
||||
(b) |
Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six semisubmersible rigs. |
||||
(c) |
Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project. |
||||
(d) |
Consists primarily of corporate interest expense and other unallocated expenses. |
||||
(e) |
Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled of $137 million for the nine months ended September 30, 2014. |
||||
(f) |
Includes an impairment charge of $189 million for the nine months ended September 30, 2014 related to the sale of CNA's annuity and pension deposit business. |
Loews Corporation and Subsidiaries |
|||||
Consolidated Financial Review |
|||||
September 30, |
|||||
(In millions, except per share data) |
Three Months |
Nine Months |
|||
2014 |
2013 |
2014 |
2013 |
||
Revenues: |
|||||
Insurance premiums |
$ 1,810 |
$ 1,825 |
$ 5,427 |
$ 5,389 |
|
Net investment income |
451 |
605 |
1,625 |
1,739 |
|
Investment gains |
37 |
2 |
65 |
7 |
|
Contract drilling revenues |
728 |
691 |
2,063 |
2,136 |
|
Other |
497 |
474 |
1,624 |
1,560 |
|
Total |
3,523 |
3,597 |
10,804 |
10,831 |
|
Expenses: |
|||||
Insurance claims & policyholders' benefits |
1,354 |
1,378 |
4,241 |
4,259 |
|
Contract drilling expenses |
400 |
420 |
1,165 |
1,164 |
|
Other (a) (b) (c) |
1,430 |
1,223 |
3,999 |
3,629 |
|
Total |
3,184 |
3,021 |
9,405 |
9,052 |
|
Income before income tax |
339 |
576 |
1,399 |
1,779 |
|
Income tax expense |
(99) |
(155) |
(347) |
(478) |
|
Income from continuing operations |
240 |
421 |
1,052 |
1,301 |
|
Discontinued operations, net of income tax (d) (e) |
29 |
(37) |
(384) |
(107) |
|
Net income |
269 |
384 |
668 |
1,194 |
|
Amounts attributable to noncontrolling interests |
(61) |
(102) |
(285) |
(401) |
|
Net income attributable to Loews Corporation |
$ 208 |
$ 282 |
$ 383 |
$ 793 |
|
Net income attributable to Loews Corporation: |
|||||
Income from continuing operations |
$ 179 |
$ 318 |
$ 747 |
$ 901 |
|
Discontinued operations, net (d) (e) |
29 |
(36) |
(364) |
(108) |
|
Net income |
$ 208 |
$ 282 |
$ 383 |
$ 793 |
|
Diluted income per share: |
|||||
Income from continuing operations |
$ 0.47 |
$ 0.82 |
$ 1.94 |
$ 2.31 |
|
Discontinued operations, net |
0.08 |
(0.09) |
(0.94) |
(0.28) |
|
Diluted income per share attributable to Loews Corporation |
$ 0.55 |
$ 0.73 |
$ 1.00 |
$ 2.03 |
|
Weighted diluted number of shares |
381.19 |
388.14 |
385.19 |
389.96 |
|
(a) |
Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014, and 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 at CNA for the nine months ended September 30, 2014. |
||||
(b) |
Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six semisubmersible rigs. |
||||
(c) |
Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project. |
||||
(d) |
Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled $137 million for the nine months ended September 30, 2014. |
||||
(e) |
Includes an impairment charge of $189 million for the nine months ended September 30, 2014 related to the sale of CNA's annuity and pension deposit business. |
SOURCE
David B. Edelson, Chief Financial Officer, (212) 521-2439 or Mary Skafidas, Investor and Public Relations, (212) 521-2788