Results for the fourth quarter and full year of 2013 and 2012 include the following significant items (after tax and noncontrolling interests):
A ceiling test impairment charge at
Goodwill impairment charges of
A
Book value per share excluding accumulated other comprehensive income (AOCI) increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
December 31, |
||||
Three Months |
Years Ended |
||||
2013 |
2012 |
2013 |
2012 |
||
Income before ceiling test and goodwill impairment charges, impact of LPT charge and net investment gains (losses) |
$ 356 |
$ 67 |
$ 1,275 |
$ 968 |
|
Ceiling test impairment charges |
(52) |
(97) |
(186) |
(433) |
|
Goodwill impairment charges |
(398) |
(398) |
|||
Impact of LPT charge |
(111) |
(111) |
|||
Net investment gains (losses) |
7 |
(2) |
15 |
33 |
|
Net income (loss) attributable to Loews Corporation |
$ (198) |
$ (32) |
$ 595 |
$ 568 |
|
Net income (loss) per share |
$ (0.51) |
$ (0.08) |
$ 1.53 |
$ 1.43 |
|
December 31, |
|||||
2013 |
2012 |
||||
Book value per share |
$ 50.25 |
$ 49.67 |
|||
Book value per share (excluding AOCI) |
49.38 |
47.94 |
Three Months Ended
Income before ceiling test and goodwill impairment charges, the impact of the LPT charge and net investment gains (losses) was
CNA's earnings increased primarily from improved non-catastrophe current accident year underwriting results, higher investment income and lower catastrophe losses. These increases were partially offset by a lower level of favorable net prior year development in 2013 as compared to 2012. The prior year catastrophe losses included
Year Ended
Income before ceiling test and goodwill impairment charges, the impact of the LPT charge and net investment gains was
SHARE REPURCHASES
At
CONFERENCE CALLS
A conference call to discuss the fourth quarter results of
A conference call to discuss the fourth quarter results of CNA has been scheduled for
A conference call to discuss the fourth quarter results of
A conference call to discuss the fourth 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 |
|||||||
December 31, |
|||||||
(In millions) |
Three Months |
Years Ended |
|||||
2013 |
2012 |
2013 |
2012 |
||||
Revenues: |
|||||||
CNA Financial |
$ 2,601 |
$ 2,437 |
$ 10,086 |
$ 9,487 |
|||
Diamond Offshore (a) |
728 |
753 |
2,926 |
3,072 |
|||
Boardwalk Pipeline |
311 |
325 |
1,232 |
1,187 |
|||
HighMount |
64 |
78 |
260 |
297 |
|||
Loews Hotels |
90 |
125 |
380 |
397 |
|||
Investment income (loss) and other |
84 |
(11) |
143 |
55 |
|||
3,878 |
3,707 |
15,027 |
14,495 |
||||
Investment gains (losses): |
|||||||
CNA Financial |
12 |
(2) |
27 |
60 |
|||
Corporate and other |
(1) |
(3) |
|||||
12 |
(2) |
26 |
57 |
||||
Total |
$ 3,890 |
$ 3,705 |
$ 15,053 |
$ 14,552 |
|||
Income (Loss) Before Income Tax: |
|||||||
CNA Financial (b) (c) |
$ 288 |
$ (31) |
$ 1,293 |
$ 820 |
|||
Diamond Offshore (a) |
181 |
185 |
774 |
917 |
|||
Boardwalk Pipeline |
|||||||
Operations |
67 |
88 |
293 |
304 |
|||
Goodwill impairment charge |
(52) |
(52) |
|||||
HighMount |
|||||||
Operations (d) |
(30) |
16 |
(9) |
44 |
|||
Goodwill impairment charge |
(584) |
(584) |
|||||
Ceiling test impairment charge |
(81) |
(153) |
(291) |
(680) |
|||
Loews Hotels |
(4) |
(3) |
(4) |
14 |
|||
Investment income (loss), net |
83 |
(9) |
141 |
61 |
|||
Other (e) |
(64) |
(56) |
(158) |
(138) |
|||
(196) |
37 |
1,403 |
1,342 |
||||
Investment gains (losses): |
|||||||
CNA Financial |
12 |
(2) |
27 |
60 |
|||
Corporate and other |
(1) |
(3) |
|||||
12 |
(2) |
26 |
57 |
||||
Total |
$ (184) |
$ 35 |
$ 1,429 |
$ 1,399 |
|||
Net Income (Loss) Attributable to Loews Corporation: |
|||||||
CNA Financial (b) (c) |
$ 192 |
$ (5) |
$ 831 |
$ 535 |
|||
Diamond Offshore (a) (f) |
44 |
73 |
257 |
337 |
|||
Boardwalk Pipeline (g) |
|||||||
Operations |
20 |
31 |
94 |
111 |
|||
Goodwill impairment charge |
(16) |
(16) |
|||||
HighMount |
|||||||
Operations (d) |
(19) |
9 |
(5) |
26 |
|||
Goodwill impairment charge |
(382) |
(382) |
|||||
Ceiling test impairment charge |
(52) |
(97) |
(186) |
(433) |
|||
Loews Hotels |
(5) |
(2) |
(3) |
7 |
|||
Investment income (loss), net |
54 |
(6) |
93 |
41 |
|||
Other (e) |
(41) |
(33) |
(103) |
(89) |
|||
(205) |
(30) |
580 |
535 |
||||
Investment gains (losses): |
|||||||
CNA Financial |
7 |
(2) |
16 |
35 |
|||
Corporate and other |
(1) |
(2) |
|||||
7 |
(2) |
15 |
33 |
||||
Net income (loss) attributable to Loews Corporation |
$ (198) |
$ (32) |
$ 595 |
$ 568 |
|||
(a) |
Includes a $76 million gain ($32 million after tax and noncontrolling interests) for the year ended December 31, 2012 related to the sale of jack-up rigs. |
||||||
(b) |
Includes catastrophe losses of $23 million, $268 million, $169 million and $391 million ($14 million, $171 million, $100 million and $243 million after tax and noncontrolling interests) for the three months and years ended December 31, 2013 and 2012. |
||||||
(c) |
Includes a charge of $189 million ($111 million after tax and noncontrolling interests) for the three months and year ended December 31, 2013 related to retroactive reinsurance accounting for the Loss Portfolio Transfer. |
||||||
(d) |
Includes a $34 million impairment charge ($22 million after tax) for the three months and year ended December 31, 2013 related to gathering pipelines as a result of low natural gas and NGL prices and decreased production. |
||||||
(e) |
Consists primarily of corporate interest expense and other unallocated expenses. |
||||||
(f) |
Includes a $27 million charge (after noncontrolling interests) for the three months and year ended December 31, 2013 related to an uncertain tax position for Egyptian operations. |
||||||
(g) |
Represents a 52.6%, 55.5%, 53.7% and 59.3% ownership interest in Boardwalk Pipeline for the respective periods. |
Loews Corporation and Subsidiaries |
||||||
Consolidated Financial Review |
||||||
December 31, |
||||||
(In millions, except per share data) |
Three Months |
Years Ended |
||||
2013 |
2012 |
2013 |
2012 |
|||
Revenues: |
||||||
Insurance premiums |
$ 1,882 |
$ 1,784 |
$ 7,271 |
$ 6,882 |
||
Net investment income |
726 |
555 |
2,593 |
2,349 |
||
Investment gains (losses) |
12 |
(2) |
26 |
57 |
||
Contract drilling revenues |
708 |
741 |
2,844 |
2,936 |
||
Other |
562 |
627 |
2,319 |
2,328 |
||
Total |
3,890 |
3,705 |
15,053 |
14,552 |
||
Expenses: |
||||||
Insurance claims & policyholders' benefits (a) |
1,583 |
1,732 |
5,947 |
5,896 |
||
Contract drilling expenses |
408 |
377 |
1,573 |
1,537 |
||
Impairment of goodwill (b) |
636 |
636 |
||||
Other (c) |
1,447 |
1,561 |
5,468 |
5,720 |
||
Total |
4,074 |
3,670 |
13,624 |
13,153 |
||
Income (loss) before income tax |
(184) |
35 |
1,429 |
1,399 |
||
Income tax (expense) benefit |
59 |
48 |
(360) |
(289) |
||
Net income (loss) |
(125) |
83 |
1,069 |
1,110 |
||
Amounts attributable to noncontrolling interests |
(73) |
(115) |
(474) |
(542) |
||
Net income (loss) attributable to Loews Corporation |
$ (198) |
$ (32) |
$ 595 |
$ 568 |
||
Diluted income (loss) per share attributable to Loews Corporation |
$ (0.51) |
$ (0.08) |
$ 1.53 |
$ 1.43 |
||
Weighted diluted number of shares |
387.19 |
392.85 |
389.51 |
395.87 |
||
(a) |
Includes a charge of $189 million ($111 million after tax and noncontrolling interests) at CNA related to retroactive reinsurance accounting for the Loss Portfolio Transfer. |
|||||
(b) |
Includes goodwill impairment charges of $584 million ($382 million after tax) at HighMount and $52 million ($16 million after tax and noncontrolling interests) at Boardwalk Pipeline for the three months and year ended December 31, 2013. |
|||||
(c) |
Includes ceiling test impairment charges of $81 million and $153 million ($52 million and $97 million after tax) for the three months ended December 31, 2013 and 2012 and $291 million and $680 million ($186 million and $433 million after tax) for the years ended December 31, 2013 and 2012 related to the carrying value of HighMount's natural gas and oil properties. |
|||||
SOURCE
Peter W. Keegan, Chief Financial Officer, (212) 521-2950 or Mary Skafidas, Investor and Public Relations, (212) 521-2788