Net income for the three months ended
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
June 30, |
|||
Three Months |
Six Months |
|||
2018 |
2017 |
2018 |
2017 |
|
Income before net investment gains (losses) |
$ 231 |
$ 205 |
$ 517 |
$ 480 |
Net investment gains (losses) |
(1) |
26 |
6 |
46 |
Net income attributable to Loews Corporation |
$ 230 |
$ 231 |
$ 523 |
$ 526 |
Net income per share |
$ 0.72 |
$ 0.69 |
$ 1.61 |
$ 1.56 |
June 30, 2018 |
December 31, 2017 |
|||
Book value per share |
$ 59.72 |
$ 57.83 |
||
Book value per share excluding AOCI |
61.69 |
57.91 |
Three Months Ended
CNA's earnings decreased slightly mainly due to lower realized investment results and increased costs associated with the transition to a new IT infrastructure service provider. This was offset by an improvement in underwriting income generated by the core property & casualty business over the prior year due to the lower corporate tax rate from the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). An increase in earned premium also contributed to the bottom line. Net investment income also benefited from the lower tax rate as well as improved performance of limited partnership investments.
Loews Hotels & Co's earnings increased due to improved results at several owned hotels, primarily the
Income generated by the parent company investment portfolio increased primarily due to improved returns on limited partnerships, equity securities and cash, together with the lower corporate tax rate.
Corporate and other results improved in 2018 on a pretax basis due to the absence of transaction expenses incurred in 2017 related to the acquisition of
Six Months Ended
CNA's earnings increased primarily due to improved underwriting results and increased net investment income driven by premium growth and the lower corporate tax rate, partially offset by lower realized investment gains and costs associated with the transition to a new IT infrastructure service provider.
Loews Hotels & Co's earnings increased primarily due to improved operating performance of joint venture properties and improved results at several owned hotels, primarily the
Income generated by the parent company investment portfolio increased due to improved returns on limited partnership and short-term investments, together with the lower corporate tax rate. These increases were partially offset by lower performance of equity securities.
Corporate and other results improved before income tax due to the reasons discussed above. The lowering of the corporate tax rate resulted in a slight deterioration in Corporate and other after-tax results in 2018.
SHARE REPURCHASES
At
On
CONFERENCE CALLS
A conference call to discuss the second quarter results of
A conference call to discuss the second quarter results of CNA has been scheduled for today at
A conference call to discuss the second 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 |
|||||
June 30, |
|||||
Three Months |
Six Months |
||||
(In millions) |
2018 |
2017 |
2018 |
2017 |
|
Revenues: |
|||||
CNA Financial (a) (b) |
$ 2,574 |
$ 2,366 |
$ 5,109 |
$ 4,695 |
|
Diamond Offshore |
271 |
399 |
570 |
776 |
|
Boardwalk Pipeline |
285 |
318 |
622 |
686 |
|
Loews Hotels & Co |
201 |
181 |
384 |
348 |
|
Investment income and other (c) |
259 |
95 |
486 |
154 |
|
Total |
$ 3,590 |
$ 3,359 |
$ 7,171 |
$ 6,659 |
|
Income (Loss) Before Income Tax: |
|||||
CNA Financial (a) (d) |
$ 329 |
$ 370 |
$ 676 |
$ 715 |
|
Diamond Offshore (e) |
(79) |
(9) |
(104) |
16 |
|
Boardwalk Pipeline (f) |
39 |
23 |
134 |
141 |
|
Loews Hotels & Co |
24 |
20 |
44 |
39 |
|
Investment income, net |
42 |
2 |
56 |
61 |
|
Corporate and other (c) |
(48) |
(59) |
(94) |
(115) |
|
Total |
$ 307 |
$ 347 |
$ 712 |
$ 857 |
|
Net Income (Loss) Attributable to Loews Corporation: |
|||||
CNA Financial (a) (d) |
$ 240 |
$ 244 |
$ 501 |
$ 478 |
|
Diamond Offshore (e) (g) |
(37) |
7 |
(27) |
19 |
|
Boardwalk Pipeline (f) |
16 |
6 |
52 |
43 |
|
Loews Hotels & Co |
17 |
10 |
30 |
20 |
|
Investment income, net |
34 |
2 |
45 |
40 |
|
Corporate and other (c) |
(40) |
(38) |
(78) |
(74) |
|
Net income attributable to Loews Corporation |
$ 230 |
$ 231 |
$ 523 |
$ 526 |
|
(a) |
Includes realized investment losses of $3 million ($1 million after tax and noncontrolling interests) and realized investment gains of $43 million ($26 million after tax and noncontrolling interests) for the three months ended June 30, 2018 and 2017. Realized investment gains were $6 million ($6 million after tax and noncontrolling interests) and $77 million ($46 million after tax and noncontrolling interests) for the six months ended June 30, 2018 and 2017. |
||||
(b) |
Includes an increase of $143 million and $280 million for the three and six months ended June 30, 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 which was acquired 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 six months ended June 30, 2018 and 2017 related to the 2010 retroactive reinsurance agreement to cede CNAʼs legacy asbestos and environmental pollution liabilities. |
||||
(e) |
Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the three and six months ended June 30, 2018 and $72 million ($23 million after tax and noncontrolling interests) for the three and six months ended June 30, 2017 related to the carrying value of Diamond Offshoreʼs drilling rigs. |
||||
(f) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related to the sale of a processing facility for the three and six months ended June 30, 2017. |
||||
(g) |
Includes a tax benefit of $43 million ($23 million after noncontrolling interests) for the six months ended June 30, 2018 related to a favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act. |
Loews Corporation and Subsidiaries |
|||||
Consolidated Financial Review |
|||||
June 30, |
|||||
Three Months |
Six Months |
||||
(In millions, except per share data) |
2018 |
2017 |
2018 |
2017 |
|
Revenues: |
|||||
Insurance premiums |
$ 1,815 |
$ 1,734 |
$ 3,600 |
$ 3,379 |
|
Net investment income |
551 |
478 |
1,057 |
1,082 |
|
Investment gains (losses) |
(3) |
43 |
6 |
77 |
|
Operating revenues and other (a) (b) |
1,227 |
1,104 |
2,508 |
2,121 |
|
Total |
3,590 |
3,359 |
7,171 |
6,659 |
|
Expenses: |
|||||
Insurance claims and policyholders' benefits (c) |
1,327 |
1,280 |
2,666 |
2,573 |
|
Operating expenses and other (a) (b) (d) (e) |
1,956 |
1,732 |
3,793 |
3,229 |
|
Total |
3,283 |
3,012 |
6,459 |
5,802 |
|
Income before income tax |
307 |
347 |
712 |
857 |
|
Income tax expense (f) |
(59) |
(69) |
(84) |
(188) |
|
Net income |
248 |
278 |
628 |
669 |
|
Amounts attributable to noncontrolling interests |
(18) |
(47) |
(105) |
(143) |
|
Net income attributable to Loews Corporation |
$ 230 |
$ 231 |
$ 523 |
$ 526 |
|
Net income per share attributable to Loews Corporation |
$ 0.72 |
$ 0.69 |
$ 1.61 |
$ 1.56 |
|
Weighted average number of shares |
319.78 |
337.72 |
324.23 |
337.70 |
|
(a) |
Includes the financial results of Consolidated Container Company, which was acquired on May 22, 2017. |
(b) |
Includes an increase of $143 million and $280 million for the three and six months ended June 30, 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 six months ended June 30, 2018 and 2017 related to the 2010 retroactive reinsurance agreement to cede CNAʼs legacy asbestos and environmental pollution liabilities. |
(d) |
Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the three and six months ended June 30, 2018 and $72 million ($23 million after tax and noncontrolling interests) for the three and six months ended June 30, 2017 related to the carrying value of Diamond Offshoreʼs drilling rigs. |
(e) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related to the sale of a processing facility for the three and six months ended June 30, 2017. |
(f) |
Includes a benefit of $43 million ($23 million after noncontrolling interests) for the six months ended June 30, 2018 related to a favorable adjustment to an uncertain tax position recorded by Diamond Offshore at year-end 2017 related to the Tax Act. |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-230-million-for-the-second-quarter-of-2018-300688209.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788