Net income for the three and nine months ended
Earnings for the nine months ended
Book value per share increased to
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) |
September 30, |
|||
Three Months |
Nine Months |
|||
2019 |
2018 |
2019 |
2018 |
|
Income before net investment gains |
$ 67 |
$ 267 |
$ 688 |
$ 784 |
Net investment gains |
5 |
11 |
27 |
17 |
Net income attributable to Loews Corporation |
$ 72 |
$ 278 |
$ 715 |
$ 801 |
Net income per share |
$ 0.24 |
$ 0.88 |
$ 2.34 |
$ 2.49 |
September 30, 2019 |
December 31, 2018 |
|||
Book value per share |
$ 64.90 |
$ 59.34 |
||
Book value per share excluding AOCI |
64.85 |
62.16 |
||
Shares outstanding |
299.2 |
312.1 |
Three Months Ended
CNA's earnings decreased primarily due to a charge of
Boardwalk Pipelines' earnings increased slightly as higher firm transportation revenues from growth projects recently placed into service mostly offset the negative revenue impact of contract restructurings and expirations.
Loews Hotels & Co's earnings decreased due to lower earnings from its properties in
Income generated by the parent company investment portfolio increased primarily due to higher returns on equity securities and short-term investments.
Nine Months Ended
CNA's earnings decreased primarily due to the long term care charge set forth above and lower favorable prior year reserve development, as well as a
Boardwalk Pipelines' results improved primarily due to
Loews Hotels & Co's earnings decreased primarily due to the reasons set forth above, and the write-off of capitalized development costs related to a potential development site and a charge related to the disposition of a hotel property in 2019.
Income generated by the parent company investment portfolio increased due to the reasons set forth above.
SHARE REPURCHASES
At
CONFERENCE CALLS
A conference call to discuss the third quarter results of
A conference call to discuss the third quarter results of CNA has been scheduled for today at
A conference call to discuss the third 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 |
|||||
September 30, |
|||||
Three Months |
Nine Months |
||||
(In millions) |
2019 |
2018 |
2019 |
2018 |
|
Revenues: |
|||||
CNA Financial (a) |
$ 2,686 |
$ 2,622 |
$ 8,011 |
$ 7,731 |
|
Diamond Offshore |
251 |
289 |
711 |
859 |
|
Boardwalk Pipelines (b) |
296 |
279 |
969 |
901 |
|
Loews Hotels & Co |
156 |
190 |
522 |
574 |
|
Investment income and other (c) |
286 |
228 |
842 |
714 |
|
Total |
$ 3,675 |
$ 3,608 |
$ 11,055 |
$ 10,779 |
|
Income (Loss) Before Income Tax: |
|||||
CNA Financial (a) (d) (e) (f) |
$ 127 |
$ 401 |
$ 888 |
$ 1,077 |
|
Diamond Offshore (g) (h) (i) |
(102) |
(56) |
(321) |
(160) |
|
Boardwalk Pipelines (b) |
39 |
38 |
217 |
172 |
|
Loews Hotels & Co |
5 |
14 |
42 |
58 |
|
Corporate: (j) |
|||||
Investment income, net |
36 |
5 |
153 |
61 |
|
Other |
(45) |
(48) |
(136) |
(142) |
|
Total |
$ 60 |
$ 354 |
$ 843 |
$ 1,066 |
|
Net Income (Loss) Attributable to Loews Corporation: |
|||||
CNA Financial (a) (d) (e) (f) |
$ 96 |
$ 300 |
$ 650 |
$ 801 |
|
Diamond Offshore (g) (h) (i) |
(48) |
(27) |
(137) |
(54) |
|
Boardwalk Pipelines (b) |
29 |
28 |
161 |
80 |
|
Loews Hotels & Co |
3 |
11 |
28 |
41 |
|
Corporate: (j) |
|||||
Investment income, net |
28 |
4 |
121 |
49 |
|
Other |
(36) |
(38) |
(108) |
(116) |
|
Net income attributable to Loews Corporation |
$ 72 |
$ 278 |
$ 715 |
$ 801 |
|
(a) |
Includes net investment gains of $8 million and $15 million ($5 million and $11 million after tax and noncontrolling interests) for the three months ended September 30, 2019 and 2018. Includes net investment gains of $41 million and $21 million ($27 million and $17 million after tax and noncontrolling interests) for the nine months ended September 30, 2019 and 2018. |
||||
(b) |
Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the nine months ended September 30, 2019. |
||||
(c) |
Includes parent company investment income and the financial results of Consolidated Container. |
||||
(d) |
Includes gains of $7 million and $12 million ($4 million and $8 million after tax and noncontrolling interests) for the three months ended September 30, 2019 and 2018 and a gain of $43 million ($30 million after tax and noncontrolling interests) and a loss of $13 million ($10 million after tax and noncontrolling interests) for the nine months ended September 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 nine months ended September 30, 2019. |
||||
(f) |
Includes a charge of $216 million ($151 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2019 related to the recognition of an active life reserve premium deficiency in long term care that was primarily driven by changes in interest rate assumptions, partially offset by a $56 million ($39 million after tax and noncontrolling interests) reduction in claim and claim adjustment expense reserves for policyholders on claim resulting from the annual long term care claim experience study. The prior year claim experience study resulted in a reduction in claim and claim adjustment expense reserves of $31 million ($21 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2018. |
||||
(g) |
Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the nine months ended September 30, 2018. |
||||
(h) |
For the nine months ended September 30, 2019 and 2018, includes a favorable tax adjustment of $14 million and $43 million ($7 million and $23 million after noncontrolling interests) related to an uncertain tax position recorded by Diamond Offshore at year-end 2017. |
||||
(i) |
Includes a legal settlement charge of $18 million ($8 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2018. |
||||
(j) |
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. |
Loews Corporation and Subsidiaries |
|||||
Consolidated Financial Review |
|||||
September 30, |
|||||
Three Months |
Nine Months |
||||
(In millions, except per share data) |
2019 |
2018 |
2019 |
2018 |
|
Revenues: |
|||||
Insurance premiums |
$ 1,890 |
$ 1,853 |
$ 5,517 |
$ 5,453 |
|
Net investment income |
525 |
494 |
1,733 |
1,551 |
|
Investment gains |
8 |
15 |
41 |
21 |
|
Operating revenues and other (a) |
1,252 |
1,246 |
3,764 |
3,754 |
|
Total |
3,675 |
3,608 |
11,055 |
10,779 |
|
Expenses: |
|||||
Insurance claims and policyholders' benefits (b) (c) |
1,614 |
1,312 |
4,323 |
3,978 |
|
Operating expenses and other (d) (e) |
2,001 |
1,942 |
5,889 |
5,735 |
|
Total |
3,615 |
3,254 |
10,212 |
9,713 |
|
Income before income tax |
60 |
354 |
843 |
1,066 |
|
Income tax expense (f) |
(21) |
(65) |
(183) |
(149) |
|
Net income |
39 |
289 |
660 |
917 |
|
Amounts attributable to noncontrolling interests |
33 |
(11) |
55 |
(116) |
|
Net income attributable to Loews Corporation |
$ 72 |
$ 278 |
$ 715 |
$ 801 |
|
Net income per share attributable to Loews Corporation |
$ 0.24 |
$ 0.88 |
$ 2.34 |
$ 2.49 |
|
Weighted average number of shares |
302.35 |
316.80 |
305.73 |
321.73 |
|
(a) |
Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the nine months ended September 30, 2019. |
||||
(b) |
Includes gains of $7 million and $12 million ($4 million and $8 million after tax and noncontrolling interests) for the three months ended September 30, 2019 and 2018 and a gain of $43 million ($30 million after tax and noncontrolling interests) and a loss of $13 million ($10 million after tax and noncontrolling interests) for the nine months ended September 30, 2019 and 2018 related to the 2010 retroactive reinsurance agreement to cede CNA's legacy asbestos and environmental pollution liabilities. |
||||
(c) |
Includes a charge of $216 million ($151 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2019 related to the recognition by CNA of an active life reserve premium deficiency in long term care that was primarily driven by changes in interest rate assumptions, partially offset by a $56 million ($39 million after tax and noncontrolling interests) reduction in claim and claim adjustment expense reserves for policyholders on claim resulting from the annual long term care claim experience study. The prior year claim experience study resulted in a reduction in claim and claim adjustment expense reserves of $31 million ($21 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2018. |
||||
(d) |
Includes a loss of $21 million ($15 million after tax and noncontrolling interests) on the early redemption of debt for the nine months ended September 30, 2019. |
||||
(e) |
Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the nine months ended September 30, 2018. |
||||
(f) |
For the nine months ended September 30, 2019 and 2018, includes a favorable tax adjustment of $14 million and $43 million ($7 million and $23 million after noncontrolling interests) 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-72-million-for-the-third-quarter-of-2019-300945802.html
SOURCE
Mary Skafidas, Investor and Public Relations, (212) 521-2788