-
Realized investment losses at CNA of
$283 million for the fourth quarter of 2008 and$756 million for the full year 2008, after tax and minority interest. -
A
$440 million after tax non-cash impairment charge for the fourth quarter and full year 2008, related to the carrying value of HighMount’s proved reserves reflecting commodity prices atDecember 31, 2008 . -
A
$314 million after tax non-cash goodwill impairment charge for the fourth quarter and full year 2008, related toHighMount . -
Book value per common share of
$30.17 atDecember 31, 2008 as compared to$32.40 atDecember 31, 2007 .
Net income for the year ended
Net income (loss) and earnings (loss) per share information attributable
to
December 31, | ||||||||||||||
Three Months | Years Ended | |||||||||||||
(In millions, except per share data) | 2008 | 2007 | 2008 | 2007 | ||||||||||
Net income (loss) attributable to Loews common stock: | ||||||||||||||
Income (loss) from continuing operations |
$ | (958 | ) | $ | 295 | $ | (182 | ) | $ | 1,587 | ||||
Discontinued operations, net | 89 | 4,501 | 369 | |||||||||||
Net income (loss) attributable to Loews common stock | (958 | ) | 384 | 4,319 | 1,956 | |||||||||
Net income attributable to former Carolina Group | ||||||||||||||
stock-Discontinued operations, net (a) | 128 | 211 | 533 | |||||||||||
Consolidated net income (loss) | $ | (958 | ) | $ | 512 | $ | 4,530 | $ | 2,489 | |||||
Net income (loss) per share: | ||||||||||||||
Loews common stock: | ||||||||||||||
Income (loss) from continuing operations | $ | (2.20 | ) | $ | 0.56 | $ | (0.38 | ) | $ | 2.96 | ||||
Discontinued operations, net | 0.16 | 9.43 | 0.69 | |||||||||||
Loews common stock | $ | (2.20 | ) | $ | 0.72 | $ | 9.05 | $ | 3.65 | |||||
Former Carolina Group stock-Discontinued
|
$ | - | $ | 1.18 | $ | 1.95 | $ | 4.91 | ||||||
(a) The Carolina Group and Carolina Group stock were eliminated effective June 10, 2008 as part of the separation of Lorillard. |
Income (Loss) from Continuing Operations
Three Months Ended
Higher investment losses and lower investment income at CNA contributed to the loss from continuing operations for the fourth quarter of 2008. Investment income at the holding company also included losses in 2008, as compared to gains in the comparable period of the prior year. The prolonged and severe disruptions in the debt and equity markets, including among other things, widening of credit spreads, bankruptcies and government intervention in a number of large financial institutions as well as the global economic downturn, resulted in significant realized and unrealized losses in CNA’s investment portfolio and declines in net investment income during 2008.
HighMount’s results also contributed to the loss from continuing
operations and include a non-cash impairment charge of
These declines were partially offset by significantly improved results
at
Year Ended
The loss from continuing operations primarily reflected a decline in
results at CNA due to increased investment losses, lower net investment
income and increased catastrophe losses of
Discontinued Operations
In
At
CONFERENCE CALLS
A conference call to discuss the fourth quarter and year end results of
A conference call to discuss the fourth quarter and year end results of
CNA has been scheduled for
A conference call to discuss the fourth quarter and year end results of
A conference call to discuss the fourth quarter and year end 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 | |||||||||||||||||
Financial Review | |||||||||||||||||
December 31, | |||||||||||||||||
Three Months | Years Ended | ||||||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||||||
(In millions, except per share data) | |||||||||||||||||
Revenues: | |||||||||||||||||
|
Insurance premiums |
$ | 1,765 | $ | 1,866 | $ | 7,150 | $ | 7,482 | ||||||||
|
Net investment income |
50 | 620 | 1,581 | 2,785 | ||||||||||||
|
Investment losses (a) |
(484 | ) | (91 | ) | (1,294 | ) | (135 | ) | ||||||||
|
Contract drilling revenues |
887 | 652 | 3,476 | 2,506 | ||||||||||||
|
Other |
525 | 545 | 2,334 | 1,664 | ||||||||||||
|
Total |
2,743 | 3,592 | 13,247 | 14,302 | ||||||||||||
Expenses: | |||||||||||||||||
|
Insurance claims & policyholders' benefits |
1,343 | 1,513 | 5,723 | 6,009 | ||||||||||||
|
Contract drilling expenses |
313 | 289 | 1,185 | 1,004 | ||||||||||||
|
Impairment of proved reserves (b) |
691 | 691 | ||||||||||||||
|
Impairment of goodwill (c) |
482 | 482 | ||||||||||||||
|
Other |
1,255 | 1,143 | 4,579 | 4,094 | ||||||||||||
|
Total |
4,084 | 2,945 | 12,660 | 11,107 | ||||||||||||
Income (loss) before income tax and minority interest | (1,341 | ) | 647 | 587 | 3,195 | ||||||||||||
|
Income tax expense (benefit) |
(530 | ) | 221 | 7 | 995 | |||||||||||
|
Minority interest |
147 | 131 | 762 | 613 | ||||||||||||
|
Total |
(383 | ) | 352 | 769 | 1,608 | |||||||||||
Income (loss) from continuing operations | (958 | ) | 295 | (182 | ) | 1,587 | |||||||||||
Discontinued operations: | |||||||||||||||||
Results of operations | 217 | 350 | 902 | ||||||||||||||
Gain on disposal (d) | 4,362 | ||||||||||||||||
Net income (loss) | $ | (958 | ) | $ | 512 | $ | 4,530 | $ | 2,489 | ||||||||
Net income (loss) attributable to: | |||||||||||||||||
|
Loews common stock: |
||||||||||||||||
Income (loss) from continuing operations | $ | (958 | ) | $ | 295 | $ | (182 | ) | $ | 1,587 | |||||||
Discontinued operations, net | 89 | 4,501 | 369 | ||||||||||||||
|
Loews common stock |
(958 | ) | 384 | 4,319 | 1,956 | |||||||||||
|
Former Carolina Group stock - Discontinued operations, net |
128 | 211 | 533 | |||||||||||||
$ | (958 | ) | $ | 512 | $ | 4,530 | $ | 2,489 | |||||||||
Income (loss) per share of Loews common stock: | |||||||||||||||||
Income (loss) from continuing operations | $ | (2.20 | ) | $ | 0.56 | $ | (0.38 | ) | $ | 2.96 | |||||||
Discontinued operations, net | 0.16 | 9.43 | 0.69 | ||||||||||||||
Diluted net income (loss) | $ | (2.20 | ) | $ | 0.72 | $ | 9.05 | $ | 3.65 | ||||||||
Diluted net income per share of former Carolina Group stock |
|||||||||||||||||
|
- Discontinued operations, net |
$ | - | $ | 1.18 | $ | 1.95 | $ | 4.91 | ||||||||
Weighted diluted number of shares: | |||||||||||||||||
|
Loews common stock |
435.65 | 530.94 | 477.23 | 536.00 | ||||||||||||
|
Former Carolina Group stock |
- | 108.61 | 108.60 | 108.57 | ||||||||||||
(a) | Includes a gain of $143 ($93 after tax), for the year ended December 31, 2007, related to a reduction in the Company's ownership interest in Diamond Offshore from the conversion of Diamond Offshore's 1.5% convertible debentures into Diamond Offshore common stock. | ||||||||||||||||
(b) | The non-cash impairment charge ($440 after tax) relates to the carrying value of HighMount's proved reserves for the three months and year ended December 31, 2008. | ||||||||||||||||
(c) | The non-cash impairment charge ($314 after tax) relates to goodwill at HighMount for the three months and year ended December 31, 2008. | ||||||||||||||||
(d) | Includes a tax-free non-cash gain of $4,287 related to the separation of Lorillard and an after tax gain of $75 from the sale of Bulova Corporation for the year ended December 31, 2008. |
Loews Corporation and Subsidiaries | |||||||||||||||||
Additional Financial Information | |||||||||||||||||
December 31, | |||||||||||||||||
Three Months | Years Ended | ||||||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||||||
(In millions) | |||||||||||||||||
Revenues: | |||||||||||||||||
|
CNA Financial |
$ | 2,021 | $ | 2,509 | $ | 9,096 | $ | 10,196 | ||||||||
|
Diamond Offshore |
856 | 682 | 3,486 | 2,617 | ||||||||||||
|
HighMount |
180 | 174 | 770 | 274 | ||||||||||||
|
Boardwalk Pipeline |
207 | 181 | 848 | 671 | ||||||||||||
|
Loews Hotels |
88 | 99 | 380 | 384 | ||||||||||||
|
Investment income and other |
(125 | ) | 38 | (39 | ) | 295 | ||||||||||
3,227 | 3,683 | 14,541 | 14,437 | ||||||||||||||
Investment gains (losses): | |||||||||||||||||
|
CNA Financial |
(484 | ) | (93 | ) | (1,297 | ) | (310 | ) | ||||||||
|
Corporate and other (a) |
2 | 3 | 175 | |||||||||||||
(484 | ) | (91 | ) | (1,294 | ) | (135 | ) | ||||||||||
|
Total |
$ | 2,743 | $ | 3,592 | $ | 13,247 | $ | 14,302 | ||||||||
Income (Loss) Before Tax and Minority Interest: | |||||||||||||||||
|
CNA Financial |
$ | (50 | ) | $ | 308 | $ | 747 | $ | 1,544 | |||||||
|
Diamond Offshore |
402 | 294 | 1,843 | 1,239 | ||||||||||||
|
HighMount (b) |
(1,115 | ) | 62 | (890 | ) | 92 | ||||||||||
|
Boardwalk Pipeline |
66 | 73 | 292 | 229 | ||||||||||||
|
Loews Hotels |
5 | 13 | 62 | 60 | ||||||||||||
|
Investment income, net |
(123 | ) | 32 | (54 | ) | 295 | ||||||||||
|
Other (c) |
(42 | ) | (44 | ) | (119 | ) | (129 | ) | ||||||||
(857 | ) | 738 | 1,881 | 3,330 | |||||||||||||
|
Investment gains (losses): |
||||||||||||||||
|
CNA Financial |
(484 | ) | (93 | ) | (1,297 | ) | (310 | ) | ||||||||
|
Corporate and other (a) |
2 | 3 | 175 | |||||||||||||
(484 | ) | (91 | ) | (1,294 | ) | (135 | ) | ||||||||||
|
Total |
$ | (1,341 | ) | $ | 647 | $ | 587 | $ | 3,195 | |||||||
Net Income (Loss): | |||||||||||||||||
|
CNA Financial |
$ | (15 | ) | $ | 201 | $ | 488 | $ | 950 | |||||||
|
Diamond Offshore |
137 | 76 | 612 | 396 | ||||||||||||
|
HighMount (b) |
(717 | ) | 38 | (575 | ) | 57 | ||||||||||
|
Boardwalk Pipeline (d) |
27 | 32 | 125 | 106 | ||||||||||||
|
Loews Hotels |
4 | 7 | 40 | 36 | ||||||||||||
|
Investment income, net |
(78 | ) | 22 | (33 | ) | 194 | ||||||||||
|
Other (c) |
(34 | ) | (29 | ) | (85 | ) | (85 | ) | ||||||||
(676 | ) | 347 | 572 | 1,654 | |||||||||||||
|
Investment gains (losses): |
||||||||||||||||
|
CNA Financial |
(283 | ) | (54 | ) | (756 | ) | (180 | ) | ||||||||
|
Corporate and other (a) |
1 | 2 | 2 | 113 | ||||||||||||
(282 | ) | (52 | ) | (754 | ) | (67 | ) | ||||||||||
|
Income (loss) from continuing operations |
(958 | ) | 295 | (182 | ) | 1,587 | ||||||||||
|
Discontinued operations, net (e) |
89 | 4,501 | 369 | |||||||||||||
|
Loews common stock |
(958 | ) | 384 | 4,319 | 1,956 | |||||||||||
|
Former Carolina Group stock - Discontinued operations, net |
128 | 211 | 533 | |||||||||||||
|
Total |
$ | (958 | ) | $ | 512 | $ | 4,530 | $ | 2,489 | |||||||
(a) | Includes a gain of $143 ($93 after tax), for the year ended December 31, 2007, related to a reduction in the Company's ownership interest in Diamond Offshore from the conversion of Diamond Offshore's 1.5% convertible debentures into Diamond Offshore common stock. | ||||||||||||||||
(b) | Reflects a $691 ($440 after tax) non-cash impairment charge related to the carrying value of HighMount's proved reserves and a $482 ($314 after tax) non-cash impairment charge related to goodwill at HighMount for the three months and year ended December 31, 2008. | ||||||||||||||||
(c) | Consists primarily of corporate interest expense and other unallocated expenses. | ||||||||||||||||
(d) | Represents a 72.9%, 72.1%, 71.1% and 75.2% ownership interest in Boardwalk Pipeline for the respective periods. | ||||||||||||||||
(e) | Includes a tax-free non-cash gain of $4,287 related to the separation of Lorillard and an after tax gain of $75 from the sale of Bulova Corporation for the year ended December 31, 2008. |
Source:
Loews Corporation
Peter W. Keegan, 212-521-2950
Chief
Financial Officer
or
Darren Daugherty, 212-521-2788
Investor
Relations
or
Candace Leeds, 212-521-2416
Public Affairs