Date of Report (Date of earliest event reported)
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April 28, 2014
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LOEWS CORPORATION
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Delaware
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1-6541
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13-2646102
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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667 Madison Avenue, New York, N.Y.
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10065-8087
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(212) 521-2000
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NOT APPLICABLE
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Exhibit:
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Exhibit Reference
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Number
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Exhibit Description
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99.1
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Loews Corporation press release, issued April 28, 2014, providing information on its results of operations for the first quarter of 2014.
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LOEWS CORPORATION
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(Registrant)
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Dated: April 28, 2014
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By:
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/s/ Gary W. Garson
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Gary W. Garson
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Senior Vice President
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General Counsel
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and Secretary
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Contact:
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Peter W. Keegan
Chief Financial Officer
(212) 521-2950
Mary Skafidas
Investor and Public Relations
(212) 521-2788
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Three Months Ended March 31,
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(In millions, except per share data)
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2014
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2013
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Income before net investment gains and ceiling test impairment charges
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$ | 240 | $ | 314 | ||||
Ceiling test impairment charges
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(19 | ) | (92 | ) | ||||
Net investment gains
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24 | 12 | ||||||
Income from continuing operations
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245 | 234 | ||||||
Discontinued operations, net (a)
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(186 | ) | 8 | |||||
Net income attributable to Loews Corporation
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$ | 59 | $ | 242 | ||||
Net income per share:
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Income from continuing operations
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$ | 0.63 | $ | 0.60 | ||||
Discontinued operations, net
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(0.48 | ) | 0.02 | |||||
Net income per share
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$ | 0.15 | $ | 0.62 |
March 31,
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Year Ended
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2014
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2013
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December 31, 2013
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Book value per share
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$ | 50.89 | $ | 49.93 | $ | 50.25 | ||||||
Book value per share excluding AOCI
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$ | 49.43 | $ | 48.48 | $ | 49.38 |
(a)
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Includes an impairment loss of $193 million and income from operations of $7 million for the three months ended March 31, 2014 related to the pending sale of CNA’s annuity and pension deposit business.
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(In millions)
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Three Months Ended March 31,
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2014
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2013
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Revenues:
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CNA Financial
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$ | 2,421 | $ | 2,436 | ||||
Diamond Offshore
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710 | 732 | ||||||
Boardwalk Pipeline
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357 | 329 | ||||||
HighMount
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55 | 68 | ||||||
Loews Hotels
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105 | 94 | ||||||
Investment income and other
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53 | 8 | ||||||
3,701 | 3,667 | |||||||
Investment gains (losses):
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CNA Financial
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42 | 19 | ||||||
Corporate and other
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42 | 19 | |||||||
Total
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$ | 3,743 | $ | 3,686 | ||||
Income (Loss) Before Income Tax:
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CNA Financial
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$ | 259 | $ | 331 | ||||
Diamond Offshore
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168 | 205 | ||||||
Boardwalk Pipeline (a)
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23 | 99 | ||||||
HighMount
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Operations
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(2 | ) | 6 | |||||
Ceiling test impairment charge
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(29 | ) | (145 | ) | ||||
Loews Hotels
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5 | |||||||
Investment income, net
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51 | 7 | ||||||
Other (b)
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(34 | ) | (24 | ) | ||||
441 | 479 | |||||||
Investment gains (losses):
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CNA Financial
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42 | 19 | ||||||
Corporate and other
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42 | 19 | |||||||
Total
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$ | 483 | $ | 498 | ||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial
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$ | 176 | $ | 206 | ||||
Diamond Offshore
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69 | 82 | ||||||
Boardwalk Pipeline (a)
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(18 | ) | 33 | |||||
HighMount
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Operations
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(1 | ) | 4 | |||||
Ceiling test impairment charge
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(19 | ) | (92 | ) | ||||
Loews Hotels
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3 | |||||||
Investment income, net
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34 | 5 | ||||||
Other (b)
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(23 | ) | (16 | ) | ||||
221 | 222 | |||||||
Investment gains (losses):
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CNA Financial
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24 | 12 | ||||||
Corporate and other
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24 | 12 | |||||||
Income from continuing operations
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245 | 234 | ||||||
Discontinued operations, net (c)
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(186 | ) | 8 | |||||
Net income attributable to Loews Corporation
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$ | 59 | $ | 242 |
(a)
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Includes a charge of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project.
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(b)
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Consists primarily of corporate interest expense and other unallocated expenses.
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(c)
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Includes an impairment loss of $193 million and income from operations of $7 million for the three months ended March 31, 2014 related to the pending sale of CNA’s annuity and pension deposit business.
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(In millions, except per share data)
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Three Months Ended March 31,
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2014
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2013
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Revenues:
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Insurance premiums
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$ | 1,806 | $ | 1,764 | ||||
Net investment income
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577 | 599 | ||||||
Investment gains
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42 | 19 | ||||||
Contract drilling revenues
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685 | 700 | ||||||
Other
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633 | 604 | ||||||
Total
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3,743 | 3,686 | ||||||
Expenses:
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Insurance claims & policyholders’ benefits
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1,446 | 1,396 | ||||||
Contract drilling expenses
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370 | 375 | ||||||
Other (a)
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1,444 | 1,417 | ||||||
Total
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3,260 | 3,188 | ||||||
Income before income tax
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483 | 498 | ||||||
Income tax expense
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(92 | ) | (109 | ) | ||||
Income from continuing operations
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391 | 389 | ||||||
Discontinued operations, net of income tax
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(207 | ) | 9 | |||||
Net income
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184 | 398 | ||||||
Amounts attributable to noncontrolling interests
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(125 | ) | (156 | ) | ||||
Net income attributable to Loews Corporation
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$ | 59 | $ | 242 | ||||
Net income attributable to Loews Corporation:
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Income from continuing operations
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$ | 245 | $ | 234 | ||||
Discontinued operations, net (b)
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(186 | ) | 8 | |||||
Net income
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$ | 59 | $ | 242 | ||||
Diluted income per share:
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Income from continuing operations
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$ | 0.63 | $ | 0.60 | ||||
Discontinued operations, net
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(0.48 | ) | 0.02 | |||||
Diluted income per share attributable to Loews Corporation
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$ | 0.15 | $ | 0.62 | ||||
Weighted diluted number of shares
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388.07 | 392.16 |
(a)
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Includes ceiling test impairment charges of $29 million and $145 million ($19 million and $92 million after tax) for the three months ended March 31, 2014 and 2013 related to the carrying value of HighMount’s natural gas and oil properties.
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(b)
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Includes an impairment loss of $193 million and income from operations of $7 million for the three months ended March 31, 2014 related to the pending sale of CNA's annuity and pension deposit business.
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