The loss during the three months ended
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
December 31, |
|||
Three Months |
Years Ended |
|||
2018 |
2017 |
2018 |
2017 |
|
Net income (loss) attributable to Loews Corporation |
$(165) |
$ 481 |
$ 636 |
$ 1,164 |
Net income (loss) per share |
$(0.53) |
$ 1.43 |
$ 1.99 |
$ 3.45 |
December 31, 2018 |
December 31, 2017 |
|||
Book value per share |
$ |
59.34 |
$ |
57.83 |
Book value per share excluding AOCI |
62.16 |
57.91 |
Three Months Ended
The lower corporate tax rate in 2018 contributed to improved net income for all segments with pretax income. For those segments with pretax losses, the net loss increased on a comparative basis due to the reduced tax benefit in 2018.
CNA's net income in 2017 was affected by a
Loews Hotels & Co's net income in 2017 were affected by a
Investment results generated by the parent company investment portfolio decreased primarily due to losses in the current period on common equity and limited partnership investments as compared to gains in the prior year, as well as a lower level of invested assets than during 2017.
Year Ended
The following discussion excludes the 2017 impact on each segment of the Tax Act, which is included in the quarterly discussion described above. However, the discussion below includes the impact of the lower corporate tax rate in 2018 resulting from the Tax Act.
CNA's net income decreased primarily due to lower net investment income driven by limited partnership returns, as well as realized investment losses as compared to gains in 2017. Lower favorable net prior year loss reserve development was offset by lower net catastrophe losses. CNA also recognized increased losses from its loss portfolio transfer due to the timing of reserve reviews and non-recurring costs associated with the transition to a new IT infrastructure service provider. The lower corporate tax rate partially offset the year-over-year decline in earnings.
Loews Hotels & Co's net income increased due to improved results at several owned hotels and the improved operating performance of the
Investment results generated by the parent company investment portfolio decreased due to the reasons discussed above.
Corporate and other results improved before income tax due to the absence of costs related to the acquisition of
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
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) |
2018 |
2017 |
2018 |
2017 |
|||
Revenues: |
|||||||
CNA Financial (a) (b) |
$ 2,403 |
$ 2,447 |
$ 10,134 |
$ 9,583 |
|||
Diamond Offshore |
234 |
356 |
1,093 |
1,500 |
|||
Boardwalk Pipeline |
326 |
338 |
1,227 |
1,325 |
|||
Loews Hotels & Co |
181 |
172 |
755 |
682 |
|||
Investment income and other (c) |
143 |
242 |
857 |
645 |
|||
Total |
$ 3,287 |
$ 3,555 |
$ 14,066 |
$ 13,735 |
|||
Income (Loss) Before Income Tax: |
|||||||
CNA Financial (a) (d) |
$ (114) |
$ 409 |
$ 963 |
$ 1,314 |
|||
Diamond Offshore (d) (e) |
(66) |
(35) |
(226) |
(22) |
|||
Boardwalk Pipeline (f) |
59 |
83 |
231 |
293 |
|||
Loews Hotels & Co |
15 |
18 |
73 |
65 |
|||
Corporate: (g) |
|||||||
Investment income (loss), net |
(71) |
37 |
(10) |
146 |
|||
Other |
(55) |
(51) |
(197) |
(214) |
|||
Total |
$ (232) |
$ 461 |
$ 834 |
$ 1,582 |
|||
Net Income (Loss) Attributable to Loews Corporation (h): |
|||||||
CNA Financial (a) (d) |
$ (75) |
$ 193 |
$ 726 |
$ 801 |
|||
Diamond Offshore (d) (e) |
(58) |
(52) |
(112) |
(27) |
|||
Boardwalk Pipeline (f) |
55 |
320 |
135 |
380 |
|||
Loews Hotels & Co |
7 |
40 |
48 |
64 |
|||
Corporate: (g) |
|||||||
Investment income (loss), net |
(57) |
25 |
(8) |
97 |
|||
Other |
(37) |
(45) |
(153) |
(151) |
|||
Net income (loss) attributable to Loews Corporation |
$ (165) |
$ 481 |
$ 636 |
$ 1,164 |
(a) |
Includes realized investment losses of $78 million and gains of $29 million ($55 million and $18 million after |
||||||
(b) |
Includes an increase in revenues of $158 million and $587 million for the three months and year ended |
||||||
(c) |
Includes parent company investment income and the financial results of Consolidated Container Company, |
||||||
(d) |
Includes a loss on the early redemption of debt of $42 million ($24 million after tax and noncontrolling |
||||||
(e) |
Includes asset impairment charges of $28 million ($9 million after tax and noncontrolling interests) for the three |
||||||
(f) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related |
||||||
(g) |
The Corporate segment consists of investment income from the parent company's cash and investments, interest |
||||||
(h) |
Net income for the three months and year ended December 31, 2017 includes a net benefit of $200 million, |
Loews Corporation and Subsidiaries |
||||||
Consolidated Financial Review |
||||||
December 31, |
||||||
Three Months |
Years Ended |
|||||
(In millions, except per share data) |
2018 |
2017 |
2018 |
2017 |
||
Revenues: |
||||||
Insurance premiums |
$ 1,859 |
$ 1,803 |
$ 7,312 |
$ 6,988 |
||
Net investment income |
266 |
543 |
1,817 |
2,182 |
||
Investment gains (losses) |
(78) |
29 |
(57) |
122 |
||
Operating revenues and other (a) (b) |
1,240 |
1,180 |
4,994 |
4,443 |
||
Total |
3,287 |
3,555 |
14,066 |
13,735 |
||
Expenses: |
||||||
Insurance claims and policyholders' benefits |
1,594 |
1,257 |
5,572 |
5,310 |
||
Operating expenses and other (a) (b) (c) (d) (e) |
1,925 |
1,837 |
7,660 |
6,843 |
||
Total |
3,519 |
3,094 |
13,232 |
12,153 |
||
Income (loss) before income tax |
(232) |
461 |
834 |
1,582 |
||
Income tax (expense) benefit (f) |
21 |
70 |
(128) |
(170) |
||
Net income (loss) |
(211) |
531 |
706 |
1,412 |
||
Amounts attributable to noncontrolling interests |
46 |
(50) |
(70) |
(248) |
||
Net income (loss) attributable to Loews Corporation |
$ (165) |
$ 481 |
$ 636 |
$ 1,164 |
||
Net income (loss) per share attributable to Loews Corporation |
$ (0.53) |
$ 1.43 |
$ 1.99 |
$ 3.45 |
||
Weighted average number of shares |
313.88 |
336.80 |
319.93 |
337.50 |
(a) |
Includes the financial results of Consolidated Container Company, which was acquired on May 22, 2017. |
|||||
(b) |
Includes an increase in revenues of $158 million and $587 million and expenses of $159 million and $595 million for |
|||||
(c) |
Includes asset impairment charges of $28 million ($9 million after tax and noncontrolling interests) for the three |
|||||
(d) |
Includes a loss of $47 million ($15 million after tax and noncontrolling interests) at Boardwalk Pipeline related to the |
|||||
(e) |
Includes an aggregate loss on the early redemption of debt of $77 million ($35 million after tax and noncontrolling |
|||||
(f) |
Net income for the three months and year ended December 31, 2017 includes a net benefit of $200 million, resulting |
View original content:http://www.prnewswire.com/news-releases/loews-corporation-reports-net-income-of-636-million-for-2018-300792913.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788