Net income for the year ended
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
December 31, |
|||||
Three Months |
Years Ended |
||||
(In millions, except per share data) |
2016 |
2015 |
2016 |
2015 |
|
Income (loss) before net investment gains (losses) |
$ 245 |
$ (185) |
$ 597 |
$ 294 |
|
Net investment gains (losses) |
23 |
(16) |
35 |
(34) |
|
Net income (loss) attributable to Loews Corporation |
$ 268 |
$ (201) |
$ 632 |
$ 260 |
|
Net income (loss) per share |
$ 0.79 |
$ (0.58) |
$ 1.87 |
$ 0.72 |
|
December 31, |
|||||
2016 |
2015 |
||||
Book value per share |
$ 53.89 |
$ 51.67 |
|||
Book value per share excluding AOCI |
$ 54.56 |
$ 52.72 |
Three Months Ended
Net income attributable to
Excluding the reserve charge of
Excluding
Income generated by the parent company investment portfolio increased due to higher income from limited partnership investments.
Year Ended
Net income attributable to
Excluding the reserve charge in 2015, CNA's earnings increased due to higher net investment income driven by limited partnership investments, higher favorable net prior year reserve development and realized investment gains in 2016 compared to losses in the prior year. These increases were partially offset by an increase in the current accident year loss ratio and higher underwriting expenses.
Excluding asset impairment charges in 2015 and 2016,
Income generated by the parent company investment portfolio improved due to higher income from fixed income and equity securities.
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 today at
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, |
|||||
Three Months |
Years Ended |
||||
(In millions) |
2016 |
2015 |
2016 |
2015 |
|
Revenues: |
|||||
CNA Financial (a) |
$ 2,400 |
$ 2,269 |
$ 9,384 |
$ 9,101 |
|
Diamond Offshore (b) |
390 |
561 |
1,589 |
2,428 |
|
Boardwalk Pipeline |
355 |
329 |
1,316 |
1,254 |
|
Loews Hotels |
154 |
152 |
667 |
604 |
|
Investment income and other |
39 |
22 |
149 |
28 |
|
Total |
$ 3,338 |
$ 3,333 |
$ 13,105 |
$ 13,415 |
|
Income (Loss) Before Income Tax: |
|||||
CNA Financial (a) (c) (d) |
$ 317 |
$ (160) |
$ 1,141 |
$ 553 |
|
Diamond Offshore (b) (e) |
79 |
(360) |
(471) |
(402) |
|
Boardwalk Pipeline |
88 |
64 |
298 |
227 |
|
Loews Hotels |
5 |
3 |
22 |
28 |
|
Investment income, net |
38 |
18 |
146 |
22 |
|
Other (f) |
(66) |
(69) |
(200) |
(184) |
|
Total |
$ 461 |
$ (504) |
$ 936 |
$ 244 |
|
Net Income (Loss) Attributable to Loews Corporation: |
|||||
CNA Financial (a) (c) (d) |
$ 217 |
$ (62) |
$ 774 |
$ 433 |
|
Diamond Offshore (b) (e) |
36 |
(122) |
(208) |
(156) |
|
Boardwalk Pipeline |
27 |
19 |
89 |
74 |
|
Loews Hotels |
5 |
(3) |
12 |
12 |
|
Investment income, net |
25 |
12 |
97 |
16 |
|
Other (f) |
(42) |
(45) |
(132) |
(119) |
|
Net income (loss) attributable to Loews Corporation |
$ 268 |
$ (201) |
$ 632 |
$ 260 |
(a) |
Includes investment gains of $32 million ($23 million after tax and noncontrolling interests) and losses of $29 million ($16 million after tax and noncontrolling interests) for the three months ended December 31, 2016 and 2015 and investment gains of $62 million ($39 million after tax and noncontrolling interests) and losses of $71 million ($34 million after tax and noncontrolling interests) for the years ended December 31, 2016 and 2015. |
||||
(b) |
Includes investment losses of $12 million ($4 million after tax and noncontrolling interests) for the year ended December 31, 2016. |
||||
(c) |
Includes charges of $93 million ($54 million after tax and noncontrolling interests) and $65 million ($38 million after tax and noncontrolling interests) for the years ended December 31, 2016 and 2015 related to retroactive reinsurance accounting for the transaction in which CNA ceded substantially all of their legacy asbestos and environmental pollution reserve liabilities to a third party through a loss portfolio transfer. |
||||
(d) |
Includes a charge of $305 million ($177 million after tax and noncontrolling interests) for the three months and year ended December 31, 2015 related to an increase in long term care insurance reserves. |
||||
(e) |
Includes asset impairment charges of $499 million ($182 million after tax and noncontrolling interests) for the three months ended December 31, 2015 and charges of $680 million and $861 million ($267 million and $341 million after tax and noncontrolling interests) for the years ended December 31, 2016 and 2015 related to the carrying value of Diamond Offshore's drilling rigs. |
||||
(f) |
Consists primarily of corporate interest expense and other unallocated expenses. |
Loews Corporation and Subsidiaries |
|||||
Consolidated Financial Review |
|||||
December 31, |
|||||
Three Months |
Years Ended |
||||
(In millions, except per share data) |
2016 |
2015 |
2016 |
2015 |
|
Revenues: |
|||||
Insurance premiums |
$ 1,728 |
$ 1,748 |
$ 6,924 |
$ 6,921 |
|
Net investment income |
565 |
447 |
2,135 |
1,866 |
|
Investment gains (losses) |
32 |
(29) |
50 |
(71) |
|
Contract drilling revenues |
384 |
544 |
1,525 |
2,360 |
|
Other revenues |
629 |
623 |
2,471 |
2,339 |
|
Total |
3,338 |
3,333 |
13,105 |
13,415 |
|
Expenses: |
|||||
Insurance claims & policyholders' benefits (a) (b) |
1,334 |
1,376 |
5,283 |
5,384 |
|
Contract drilling expenses |
174 |
257 |
772 |
1,228 |
|
Other operating expenses (c) |
1,369 |
2,204 |
6,114 |
6,559 |
|
Total |
2,877 |
3,837 |
12,169 |
13,171 |
|
Income (loss) before income tax |
461 |
(504) |
936 |
244 |
|
Income tax (expense) benefit |
(91) |
213 |
(262) |
43 |
|
Net income (loss) |
370 |
(291) |
674 |
287 |
|
Amounts attributable to noncontrolling interests |
(102) |
90 |
(42) |
(27) |
|
Net income (loss) attributable to Loews Corporation |
$ 268 |
$ (201) |
$ 632 |
$ 260 |
|
Net income (loss) per share attributable to Loews Corporation |
$ 0.79 |
$ (0.58) |
$ 1.87 |
$ 0.72 |
|
Weighted average number of shares |
337.50 |
346.69 |
338.31 |
362.69 |
(a) |
Includes charges of $93 million ($54 million after tax and noncontrolling interests) and $65 million ($38 million after tax and noncontrolling interests) for the year ended December 31, 2016 and 2015 related to retroactive reinsurance accounting for the transaction in which CNA ceded substantially all of their legacy asbestos and environmental pollution reserve liabilities to a third party through a loss portfolio transfer. |
||||
(b) |
Includes a charge of $305 million ($177 million after tax and noncontrolling interests) for the three months and year ended December 31, 2015 related to an increase in long term care insurance reserves. |
||||
(c) |
Includes asset impairment charges of $499 million ($182 million after tax and noncontrolling interests) for the three months ended December 31, 2015 and charges of $680 million and $861 million ($267 million and $341 million after tax and noncontrolling interests) for the year ended December 31, 2016 and 2015 related to the carrying value of Diamond Offshore's drilling rigs. |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-632-million-for-2016-300402283.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788