NEW YORK, Nov. 1, 2021 /PRNewswire/ -- Loews Corporation
(NYSE: L) today reported net income of $220
million, or $0.85 per share,
for the third quarter of 2021 compared to net income of
$139 million, or $0.50 per share, for the third quarter of 2020.
Net income for the nine months ended September 30, 2021 was $1.24 billion, or $4.70 per share, compared to a net loss of
$1.33 billion, or $4.70 per share, for the nine months ended
September 30, 2020.
Each of the company's consolidated subsidiaries, CNA Financial
Corporation, Boardwalk Pipelines, and Loews Hotels & Co,
contributed meaningfully to the year-over-year increase in Loews's
third quarter net income. As compared to the third quarter of 2020,
CNA benefited from higher Property & Casualty non-catastrophe
underwriting results and improved Life & Group business results
primarily due to the absence of the prior year active life premium
deficiency charge, partially offset by higher net catastrophe
losses and lower investment gains. Loews Hotels posted
significantly improved year-over-year third quarter results due to
the continuing rebound in leisure travel, especially at resort
destinations. Boardwalk Pipelines revenues for the third quarter of
2021 increased compared to the prior year period, reflecting the
impact of recently completed growth projects and higher system
utilization. The parent company investment portfolio experienced
lower net investment income in the third quarter of 2021 compared
to the prior year period.
"Loews had another great quarter with each of our consolidated
subsidiaries contributing positively to our results,"
said James Tisch, CEO of Loews Corporation. "CNA delivered
strong investment results, favorable life and group results, and
its underlying combined ratio continued to improve. While
weather-related catastrophe losses were high for CNA and the
industry this quarter, CNA's underlying property & casualty
franchise is stronger than it has ever been. Turning to Loews's
other subsidiaries, Mr. Tisch added, "Boardwalk's operating results
benefited from revenues generated by its growth projects and Loews
Hotels continued to rebound from the COVID-induced downturn, with
its resort properties leading the way."
Book value per share was $70.21 at
September 30, 2021 compared to
$66.34 at December 31, 2020. Book value per share excluding
accumulated other comprehensive income (AOCI) increased to
$69.46 at September 30, 2021 from $64.18 at December 31,
2020.
CONSOLIDATED
HIGHLIGHTS
|
September
30,
|
|
Three
Months
|
|
Nine
Months
|
(In millions, except
per share data)
|
2021
|
2020
|
|
2021
|
2020
|
|
|
|
|
|
|
Income (loss) before
net investment gains (losses)
|
$
204
|
$
106
|
|
$
725
|
$
(299)
|
Net investment gains
(losses):
|
|
|
|
|
|
CNA
|
16
|
33
|
|
84
|
(72)
|
Corporate
|
|
|
|
426
|
(957)
|
Total net
investment gains (losses)
|
16
|
33
|
|
510
|
(1,029)
|
Net income (loss)
attributable to Loews Corporation
|
$
220
|
$
139
|
|
$ 1,235
|
$ (1,328)
|
Net income (loss) per
share
|
$
0.85
|
$
0.50
|
|
$ 4.70
|
$ (4.70)
|
|
|
|
September 30,
2021
|
|
December 31,
2020
|
|
|
|
|
Book value per
share
|
$
|
70.21
|
|
$
|
66.34
|
Book value per share
excluding AOCI
|
|
69.46
|
|
|
64.18
|
Three Months Ended September 30,
2021 Compared to Three Months Ended September 30, 2020
CNA's results increased primarily due to higher Property &
Casualty non-catastrophe underwriting results, improved Life &
Group business results, primarily due to the absence of the active
life premium deficiency charge recorded in the third quarter of
2020, and the absence of a debt retirement charge recorded in the
third quarter of 2020, partially offset by higher net catastrophe
losses and lower investment gains. Net catastrophe losses were
$178 million and $160 million ($125
million and $112 million after
tax and noncontrolling interests) for the three months ended
September 30, 2021 and 2020.
Catastrophe losses for the three months ended September 30, 2021 include $114 million for Hurricane Ida.
Boardwalk Pipelines' earnings increased mainly due to higher
revenues from growth projects recently placed into service and
higher system utilization.
Loews Hotels' results improved significantly as all hotel
properties owned and/or operated by Loews Hotels were open and
operational during the third quarter of 2021 and the rebound in
leisure travel, especially at resort destinations, has continued.
For the first time, Loews Hotels had 9,000 rooms open at the
Universal Orlando Resort for a full quarter, which was a major
contributor to the net income for the third quarter of 2021.
Although results were significantly better in 2021 compared to
2020, occupancy levels have not reached pre-pandemic levels at many
hotels owned and/or operated by Loews Hotels.
The parent company investment portfolio experienced losses from
equity investments versus gains in 2020.
Nine Months Ended September 30,
2021 Compared to Nine Months Ended September 30, 2020
CNA's earnings increased primarily due to higher Property &
Casualty non-catastrophe underwriting results, lower net
catastrophe losses, significantly higher net investment income, and
investment gains as compared to losses in 2020. Life & Group
business results also benefited from the absence of the active life
premium deficiency charge recorded in the third quarter of
2020.
The parent company investment portfolio posted improved results
primarily because limited partnership and equity investments
generated gains in 2021 versus losses in 2020.
The Corporate & other segment includes an investment gain of
$438 million (after tax) related to
the sale of 47% of Altium Packaging and its deconsolidation in 2021
as compared to an investment loss of $957
million (after tax and noncontrolling interests) related to
the bankruptcy filing and deconsolidation of Diamond Offshore in
2020.
All other segment improvements from 2020 to 2021 are primarily
due to the reasons discussed in the three-month comparison. In
addition, Loews's results for the nine months ended September 30, 2021 do not include Diamond
Offshore's operating results, which included impairment charges
totaling $774 million ($408 million after tax and noncontrolling
interests) related to the carrying value of four drilling rigs and
operating losses of $160 million
($68 million after tax and
noncontrolling interests) in the 2020 period.
SHARE REPURCHASES
At September 30, 2021, there were
253.8 million shares of Loews common stock outstanding. For the
three and nine months ended September 30,
2021, the Company repurchased 6.2 million and 15.7 million
shares of its common stock at an aggregate cost of $333 million and $826
million, respectively. From October
1, 2021 to October 29, 2021,
the Company repurchased an additional 0.1 million shares of its
common stock at an aggregate cost of $5
million. Depending on market conditions, the Company may
from time-to-time purchase shares of its and its subsidiaries'
outstanding common stock in the open market, in privately
negotiated transactions or otherwise.
CONFERENCE CALLS
A conference call to discuss the third quarter results of Loews
Corporation has been scheduled for today at 10:00 a.m. ET. A live webcast will be available
via the Investors/Media section of www.loews.com. Those interested
in participating should dial (877) 876-9173, or for international
callers, (785) 424-1667. The conference ID number is L3Q21. An
online replay will also be available at www.loews.com following the
call.
A conference call to discuss the third quarter results of CNA
has been scheduled for today at 9:00 a.m.
ET. A live webcast will be available via the Investor
Relations section of www.cna.com. Those interested in participating
should dial (800) 289-0571, or for international callers, (720)
543-0206.
# # #
ABOUT LOEWS CORPORATION
Loews Corporation is a diversified company with businesses in
the insurance, energy, hospitality, and packaging industries. For
more information please visit www.loews.com.
# # #
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
Securities and Exchange Commission and readers of this release are
urged to review those reports carefully when considering these
forward-looking statements. Copies of these reports are available
through the Company's website (www.loews.com). Given these risk
factors, investors and analysts should not place undue reliance on
forward-looking statements. Any such forward-looking statements
speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in the Company's expectations with regard
thereto or any change in events, conditions or circumstances on
which any forward-looking statement is based.
Loews Corporation
and Subsidiaries
|
Selected Financial
Information
|
|
|
September
30,
|
|
Three
Months
|
Nine
Months
|
(In
millions)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
CNA Financial (a)
|
$
2,959
|
$
2,840
|
$
8,854
|
$
7,897
|
Boardwalk Pipelines
|
307
|
289
|
991
|
926
|
Loews Hotels & Co
|
134
|
60
|
289
|
236
|
Investment income (loss) and other (b) (c)
|
(29)
|
276
|
862
|
(490)
|
Diamond Offshore (d)
|
|
|
|
305
|
Total
|
$
3,371
|
$
3,465
|
$
10,996
|
$
8,874
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA Financial (a) (e)
|
$
314
|
$
251
|
$
1,154
|
$
344
|
Boardwalk Pipelines
|
52
|
26
|
229
|
166
|
Loews Hotels & Co
|
17
|
(62)
|
(64)
|
(192)
|
Corporate: (f)
|
|
|
|
|
Investment
income (loss), net
|
(30)
|
23
|
40
|
(33)
|
Other (b)
(c)
|
(49)
|
(55)
|
364
|
(1,363)
|
Diamond Offshore (d) (g)
|
|
|
|
(934)
|
Total
|
$
304
|
$
183
|
$
1,723
|
$
(2,012)
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA Financial (a) (e)
|
$
229
|
$
192
|
$
838
|
$
272
|
Boardwalk Pipelines
|
38
|
20
|
170
|
123
|
Loews Hotels & Co
|
13
|
(47)
|
(51)
|
(144)
|
Corporate: (f)
|
|
|
|
|
Investment
income (loss), net
|
(23)
|
18
|
32
|
(26)
|
Other (b)
(c)
|
(37)
|
(44)
|
246
|
(1,077)
|
Diamond Offshore (d) (g)
|
|
|
|
(476)
|
Net income (loss) attributable to Loews Corporation
|
$
220
|
$
139
|
$
1,235
|
$
(1,328)
|
|
|
(a)
|
Includes net
investment gains of $22 million and $46 million ($16 million and
$33 million after tax and noncontrolling interests) for the three
months ended September 30, 2021 and 2020. Includes net investment
gains of $117 million and net investment losses of $101 million
($84 million and $72 million after tax and noncontrolling
interests) for the nine months ended September 30, 2021 and
2020.
|
(b)
|
Includes parent
company investment income (loss) and the financial results of
Altium Packaging. On April 1, 2021, Loews sold 47% of Altium
Packaging, which was deconsolidated and is now recorded as an
equity method investment.
|
(c)
|
Includes an
investment gain of $555 million ($438 million after tax) for the
nine months ended September 30, 2021 related to the sale of 47% of
Altium Packaging and its deconsolidation on April 1, 2021, and an
investment loss of $1.2 billion ($957 million after tax) for the
nine months ended September 30, 2020 as a result of Diamond
Offshore's bankruptcy filing and deconsolidation on April 26,
2020.
|
(d)
|
On April 26, 2020,
Diamond Offshore filed for bankruptcy and ceased being a
consolidated subsidiary.
|
(e)
|
Includes net
catastrophe losses of $178 million and $160 million ($125 million
and $112 million after tax and noncontrolling interests) for the
three months ended September 30, 2021 and 2020, and $357 million
and $536 million ($251 million and $377 million after tax and
noncontrolling interests) for the nine months ended September 30,
2021 and 2020.
|
(f)
|
The Corporate segment
consists of investment income (loss) from the parent company's cash
and investments, interest expense, other unallocated corporate
expenses, the financial results of Altium Packaging, as well as the
gain (loss) related to deconsolidation of subsidiaries.
|
(g)
|
The nine months ended
September 30, 2020 included impairment charges of $774 million
($408 million after tax and noncontrolling interests) at Diamond
Offshore related to the carrying value of four drilling
rigs.
|
Loews Corporation
and Subsidiaries
|
Consolidated
Financial Review
|
|
|
September
30,
|
|
Three
Months
|
Nine
Months
|
(In millions, except
per share data)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
Insurance premiums
|
$
2,059
|
$
1,953
|
$
6,056
|
$
5,672
|
Net investment income
|
483
|
540
|
1,649
|
1,347
|
Investment gains (losses) (a)
|
22
|
46
|
657
|
(1,312)
|
Operating revenues and other (b)
|
807
|
926
|
2,634
|
3,167
|
Total
|
3,371
|
3,465
|
10,996
|
8,874
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance claims and policyholders' benefits (c)
|
1,632
|
1,616
|
4,684
|
4,683
|
Operating expenses and other (b) (d)
|
1,435
|
1,666
|
4,589
|
6,203
|
Total
|
3,067
|
3,282
|
9,273
|
10,886
|
|
|
|
|
|
Income (loss) before
income tax
|
304
|
183
|
1,723
|
(2,012)
|
Income tax (expense)
benefit
|
(58)
|
(21)
|
(391)
|
284
|
Net income
(loss)
|
246
|
162
|
1,332
|
(1,728)
|
Amounts attributable
to noncontrolling interests
|
(26)
|
(23)
|
(97)
|
400
|
Net income (loss)
attributable to Loews Corporation
|
$
220
|
$
139
|
$
1,235
|
$
(1,328)
|
|
|
|
|
|
Net income (loss) per
share attributable to Loews
|
|
|
|
|
Corporation
|
$
0.85
|
$
0.50
|
$
4.70
|
$
(4.70)
|
|
|
|
|
|
Weighted average
number of shares
|
257.30
|
279.49
|
262.77
|
282.63
|
|
|
(a)
|
Includes an
investment gain of $555 million ($438 million after tax) for the
nine months ended September 30, 2021 related to the sale of 47% of
Altium Packaging and its deconsolidation on April 1, 2021 and an
investment loss of $1.2 billion ($957 million after tax) for the
nine months ended September 30, 2020 as a result of Diamond
Offshore's bankruptcy filing and deconsolidation on April 26,
2020.
|
(b)
|
On April 1, 2021,
Loews sold 47% of Altium Packaging, which was deconsolidated and is
now recorded as an equity method investment. On April 26, 2020,
Diamond Offshore filed for bankruptcy and ceased being a
consolidated subsidiary.
|
(c)
|
Includes net
catastrophe losses of $178 million and $160 million ($125 million
and $112 million after tax and noncontrolling interests) for the
three months ended September 30, 2021 and 2020, and $357 million
and $536 million ($251 million and $377 million after tax and
noncontrolling interests) for the nine months ended September 30,
2021 and 2020.
|
(d)
|
The nine months ended
September 30, 2020, included impairment charges of $774 million
($408 million after tax and noncontrolling interests) at Diamond
Offshore related to the carrying value of four drilling
rigs.
|
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SOURCE Loews Corporation