"CNA delivered excellent property and casualty underwriting results in 2020, even while faced with a once-in-a-century pandemic, record catastrophe losses, and historically low interest rates. CNA's strong performance underscores the company's continued focus on disciplined and profitable underwriting. Rates increased 11% for the full year and new business flow was solid, resulting in strong premium growth. The underlying combined ratio of 93.1% for the full year represents an improvement of more than one full point over 2019," said James Tisch, CEO of Loews.
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
|
|||
Three Months |
Years Ended |
|||
2020 |
2019 |
2020 |
2019 |
|
Income before net investment gains (losses) |
$ 352 |
$ 211 |
$ 53 |
$ 899 |
Net investment gains (losses): |
||||
CNA |
45 |
6 |
(27) |
33 |
Corporate |
(957) |
|||
Total net investment gains (losses) |
45 |
6 |
(984) |
33 |
Net income (loss) attributable to |
$ 397 |
$ 217 |
$ (931) |
$ 932 |
Net income (loss) per share |
$ 1.45 |
$ 0.73 |
$ (3.32) |
$ 3.07 |
|
|
|||
Book value per share |
$ 66.34 |
$ 65.71 |
||
Book value per share excluding AOCI |
64.18 |
65.94 |
The net loss for the year ended
The economic disruption caused by the COVID-19 pandemic and measures to mitigate the spread of the virus significantly affected Loews's results in 2020. The impact of COVID-19 on Loews's financial results going forward will depend on the duration of mandated and voluntary containment efforts, related economic policies, the success of vaccination efforts in mitigating the pandemic, and other societal responses to the pandemic.
Three Months Ended
CNA's earnings increased due to improved property and casualty underwriting income, as premiums increased and the underlying combined ratio, which excludes the impact of net catastrophe losses and prior year development, improved by more than two points. CNA's earnings also benefited from higher net investment income and net investment gains, with returns on limited partnership and common stock investments driving the increase in net investment income.
Boardwalk Pipelines' earnings increased mostly from
Year Ended
The net loss for the year ended
CNA's earnings decreased in 2020 primarily due to higher net catastrophe losses, lower net investment income, and net investment losses as compared to investment gains in 2019. Partially offsetting these declines were improved underlying underwriting income and lower net reserve charges in
Boardwalk Pipelines' earnings in 2020 were down slightly from 2019 as net operating revenues declined and expenses increased. Revenue from growth projects recently placed in service and higher storage and park and loan revenues did not fully offset revenue declines from expiring contracts replaced by contracts at lower overall average rates. Depreciation and property taxes rose, primarily due to an increased asset base from recently completed growth projects and the expiration of property tax abatements, partially offset by a reduction in interest expense due to lower average interest rates.
Income from the parent company investment portfolio declined in 2020 as limited partnership and equity investments generated lower returns as compared to 2019.
Corporate segment results include the investment loss realized upon
SHARE REPURCHASES
For the three months and year ended
CONFERENCE CALLS
A conference call to discuss the fourth quarter and full year results of
A conference call to discuss the fourth quarter results of CNA has been scheduled for today at
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
|
|||||
Selected Financial Information |
|||||
|
|||||
Three Months |
Years Ended |
||||
(In millions) |
2020 |
2019 |
2020 |
2019 |
|
Revenues: |
|||||
|
$ 2,930 |
$ 2,777 |
$ 10,827 |
$ 10,788 |
|
Boardwalk Pipelines (b) |
376 |
331 |
1,302 |
1,300 |
|
|
42 |
170 |
278 |
692 |
|
Investment income (loss) and other (d) (e) |
361 |
321 |
(129) |
1,163 |
|
|
277 |
305 |
988 |
||
Total |
$ 3,709 |
$ 3,876 |
$ 12,583 |
$ 14,931 |
|
Income (Loss) Before Income Tax: |
|||||
|
$ 477 |
$ 336 |
$ 821 |
$ 1,224 |
|
Boardwalk Pipelines (b) |
111 |
64 |
277 |
281 |
|
|
(82) |
(70) |
(274) |
(28) |
|
Corporate: (i) |
|||||
Investment income (loss), net |
92 |
76 |
59 |
229 |
|
Other (e) |
(50) |
(49) |
(1,413) |
(185) |
|
|
(81) |
(934) |
(402) |
||
Total |
$ 548 |
$ 276 |
$ (1,464) |
$ 1,119 |
|
Net Income (Loss) Attributable to |
|||||
|
$ 346 |
$ 244 |
$ 618 |
$ 894 |
|
Boardwalk Pipelines (b) |
83 |
48 |
206 |
209 |
|
|
(68) |
(59) |
(212) |
(31) |
|
Corporate: (i) |
|||||
Investment income (loss), net |
73 |
67 |
47 |
188 |
|
Other (e) |
(37) |
(45) |
(1,114) |
(153) |
|
|
(38) |
(476) |
(175) |
||
Net income (loss) attributable to |
$ 397 |
$ 217 |
$ (931) |
$ 932 |
|
(a) |
Includes net investment gains of |
||||
(b) |
Includes settlement proceeds of |
||||
(c) |
Includes asset impairment charges of |
||||
(d) |
Includes parent company investment income (loss) and the financial results of |
||||
(e) |
Includes a loss of |
||||
(f) |
Includes financial results through |
||||
(g) |
Includes a charge of |
||||
(h) |
Includes net catastrophe losses of |
||||
(i) |
The Corporate segment consists of investment income (loss) from the parent company's cash and investments, |
||||
(j) |
Includes impairment charges of |
|
|||||
Consolidated Financial Review |
|||||
|
|||||
Three Months |
Years Ended |
||||
(In millions, except per share data) |
2020 |
2019 |
2020 |
2019 |
|
Revenues: |
|||||
Insurance premiums |
$ 1,977 |
$ 1,911 |
$ 7,649 |
$ 7,428 |
|
Net investment income |
648 |
622 |
1,995 |
2,355 |
|
Investment gains (losses) (a) |
66 |
8 |
(1,246) |
49 |
|
Operating revenues and other (b) |
1,018 |
1,335 |
4,185 |
5,099 |
|
Total |
3,709 |
3,876 |
12,583 |
14,931 |
|
Expenses: |
|||||
Insurance claims and policyholders' benefits (c) (d) |
1,487 |
1,483 |
6,170 |
5,806 |
|
Operating expenses and other (b) (e) |
1,674 |
2,117 |
7,877 |
8,006 |
|
Total |
3,161 |
3,600 |
14,047 |
13,812 |
|
Income (loss) before income tax |
548 |
276 |
(1,464) |
1,119 |
|
Income tax (expense) benefit |
(111) |
(65) |
173 |
(248) |
|
Net income (loss) |
437 |
211 |
(1,291) |
871 |
|
Amounts attributable to noncontrolling interests |
(40) |
6 |
360 |
61 |
|
Net income (loss) attributable to |
$ 397 |
$ 217 |
$ (931) |
$ 932 |
|
Net income (loss) per share attributable to |
$ 1.45 |
$ 0.73 |
$ (3.32) |
$ 3.07 |
|
Weighted average number of shares |
273.62 |
296.29 |
280.32 |
303.35 |
|
(a) |
Includes a loss of |
||||
(b) |
Includes financial results of |
||||
(c) |
Includes a charge of |
||||
(d) |
Includes net catastrophe losses of |
||||
(e) |
Includes impairment charges of |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-397-million-for-the-fourth-quarter-of-2020-301223544.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788