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 |
|||
2019 |
2018 |
2019 |
2018 |
|
Income before net investment gains (losses) |
$ 248 |
$ 231 |
$ 621 |
$ 517 |
Net investment gains (losses) |
1 |
(1) |
22 |
6 |
Net income attributable to Loews Corporation |
$ 249 |
$ 230 |
$ 643 |
$ 523 |
Net income per share |
$ 0.82 |
$ 0.72 |
$ 2.09 |
$ 1.61 |
June 30, 2019 |
December 31, 2018 |
|||
Book value per share |
$ 64.49 |
$ 59.34 |
||
Book value per share excluding AOCI |
64.48 |
62.16 |
Three Months Ended
CNA's earnings increased primarily due to improved results in its
Boardwalk Pipelines' results were favorably impacted by higher firm transportation revenues from growth projects recently placed into service. Additionally, in 2019, proceeds received in conjunction with a contract cancellation due to a customer bankruptcy resulted in a
Loews Hotels & Co's earnings decreased primarily due to charges of
Income generated by the parent company investment portfolio decreased primarily due to lower income from limited partnership investments as well as a lower level of invested assets.
Six Months Ended
CNA's earnings increased primarily due to higher net investment income driven by improved returns from limited partnership investments and higher net investment gains. In addition, earnings in 2019 increased due to a net retroactive reinsurance benefit under the 2010 loss portfolio transfer with National Indemnity as compared to a net retroactive reinsurance charge recorded in 2018. Partially offsetting these increases were lower underwriting income reflecting higher catastrophe losses and lower favorable prior year reserve development, as well as a loss on the early redemption of debt.
Boardwalk Pipelines' results improved primarily due to the reasons set forth in the three-month discussion above.
Loews Hotels & Co's earnings decreased primarily due to the reasons set forth in the three-month discussion above and a charge related to the disposition of a property in 2019.
Income generated by the parent company investment portfolio increased primarily due to improved performance from equity securities, partially offset by lower returns from limited partnership investments as well as a lower level of invested assets.
SHARE REPURCHASES
At
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) |
2019 |
2018 |
2019 |
2018 |
|||
Revenues: |
|||||||
CNA Financial (a) |
$ 2,630 |
$ 2,574 |
$ 5,325 |
$ 5,109 |
|||
Diamond Offshore |
224 |
271 |
460 |
570 |
|||
Boardwalk Pipelines (b) |
327 |
285 |
673 |
622 |
|||
Loews Hotels & Co |
186 |
201 |
366 |
384 |
|||
Investment income and other (c) |
256 |
259 |
556 |
486 |
|||
Total |
$ 3,623 |
$ 3,590 |
$ 7,380 |
$ 7,171 |
|||
Income (Loss) Before Income Tax: |
|||||||
CNA Financial (a) (d) (e) |
$ 343 |
$ 329 |
$ 761 |
$ 676 |
|||
Diamond Offshore (f) |
(142) |
(79) |
(219) |
(104) |
|||
Boardwalk Pipelines (b) |
72 |
39 |
178 |
134 |
|||
Loews Hotels & Co |
18 |
24 |
37 |
44 |
|||
Corporate: (g) |
|||||||
Investment income, net |
33 |
42 |
117 |
56 |
|||
Other |
(49) |
(48) |
(91) |
(94) |
|||
Total |
$ 275 |
$ 307 |
$ 783 |
$ 712 |
|||
Net Income (Loss) Attributable to Loews Corporation: |
|||||||
CNA Financial (a) (d) (e) |
$ 249 |
$ 240 |
$ 554 |
$ 501 |
|||
Diamond Offshore (f) (h) |
(52) |
(37) |
(89) |
(27) |
|||
Boardwalk Pipelines (b) |
53 |
16 |
132 |
52 |
|||
Loews Hotels & Co |
12 |
17 |
25 |
30 |
|||
Corporate: (g) |
|||||||
Investment income, net |
26 |
34 |
93 |
45 |
|||
Other |
(39) |
(40) |
(72) |
(78) |
|||
Net income attributable to Loews Corporation |
$ 249 |
$ 230 |
$ 643 |
$ 523 |
|||
(a) |
Includes net investment gains of $2 million ($1 million after tax and noncontrolling interests) and net investment losses of $3 million ($1 million after tax and noncontrolling interests) for the three months ended June 30, 2019 and 2018. Includes net investment gains of $33 million ($22 million after tax and noncontrolling interests) and $6 million ($6 million after tax and noncontrolling interests) for the six months ended June 30, 2019 and 2018. |
|
(b) |
Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the three and six months ended June 30, 2019. |
|
(c) |
Includes parent company investment income and the financial results of Consolidated Container. |
|
(d) |
Includes a gain of $14 million and $15 million (each $10 million after tax and noncontrolling interests) for the three months ended June 30, 2019 and 2018 and a gain of $36 million ($26 million after tax and noncontrolling interests) and a loss of $25 million ($18 million after tax and noncontrolling interests) for the six months ended June 30, 2019 and 2018 related to the 2010 retroactive reinsurance agreement to cede CNA's legacy asbestos and environmental pollution liabilities. |
|
(e) |
Includes a loss of $21 million ($15 million after tax and noncontrolling interests) on the early redemption of debt for the three and six months ended June 30, 2019. |
|
(f) |
Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the three and six months ended June 30, 2018. |
|
(g) |
The Corporate segment consists of investment income from the parent company's cash and investments, interest expense, other unallocated expenses and the financial results of Consolidated Container. |
|
(h) |
For the three and six months ended June 30, 2019, includes a favorable adjustment of $14 million ($7 million after noncontrolling interests) and for the six months ended June 30, 2018, includes a favorable adjustment of $43 million ($23 million after noncontrolling interests) each related to an uncertain tax position recorded by Diamond Offshore at year-end 2017. |
Loews Corporation and Subsidiaries |
||||||
Consolidated Financial Review |
||||||
June 30, |
||||||
Three Months |
Six Months |
|||||
(In millions, except per share data) |
2019 |
2018 |
2019 |
2018 |
||
Revenues: |
||||||
Insurance premiums |
$ 1,824 |
$ 1,815 |
$ 3,627 |
$ 3,600 |
||
Net investment income |
551 |
551 |
1,208 |
1,057 |
||
Investment gains (losses) |
2 |
(3) |
33 |
6 |
||
Operating revenues and other (a) |
1,246 |
1,227 |
2,512 |
2,508 |
||
Total |
3,623 |
3,590 |
7,380 |
7,171 |
||
Expenses: |
||||||
Insurance claims and policyholders' benefits (b) |
1,352 |
1,327 |
2,709 |
2,666 |
||
Operating expenses and other (c) (d) |
1,996 |
1,956 |
3,888 |
3,793 |
||
Total |
3,348 |
3,283 |
6,597 |
6,459 |
||
Income before income tax |
275 |
307 |
783 |
712 |
||
Income tax expense (e) |
(50) |
(59) |
(162) |
(84) |
||
Net income |
225 |
248 |
621 |
628 |
||
Amounts attributable to noncontrolling interests |
24 |
(18) |
22 |
(105) |
||
Net income attributable to Loews Corporation |
$ 249 |
$ 230 |
$ 643 |
$ 523 |
||
Net income per share attributable to Loews Corporation |
$ 0.82 |
$ 0.72 |
$ 2.09 |
$ 1.61 |
||
Weighted average number of shares |
304.54 |
319.78 |
307.44 |
324.23 |
||
(a) |
Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the three and six months ended June 30, 2019. |
(b) |
Includes a gain of $14 million and $15 million (each $10 million after tax and noncontrolling interests) for the three months ended June 30, 2019 and 2018 and a gain of $36 million ($26 million after tax and noncontrolling interests) and a loss of $25 million ($18 million after tax and noncontrolling interests) for the six months ended June 30, 2019 and 2018 related to the 2010 retroactive reinsurance agreement to cede CNA's legacy asbestos and environmental pollution liabilities. |
(c) |
Includes a loss of $21 million ($15 million after tax and noncontrolling interests) on the early redemption of debt for the three and six months ended June 30, 2019. |
(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. |
(e) |
For the three and six months ended June 30, 2019, includes a favorable adjustment of $14 million ($7 million after noncontrolling interests) and for the six months ended June 30, 2018, includes a favorable adjustment of $43 million ($23 million after noncontrolling interests) each related to an uncertain tax position recorded by Diamond Offshore at year-end 2017. |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-249-million-for-the-second-quarter-of-2019-300896015.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788