NEW YORK, Aug. 2, 2021 /PRNewswire/ -- Loews Corporation
(NYSE:L) today reported net income of $754
million, or $2.86 per share,
for the second quarter of 2021 compared to a net loss of
$835 million, or $2.96 per share, for the second quarter of 2020.
Net income for the six months ended June 30,
2021 was $1.0 billion, or
$3.82 per share, compared to a net
loss of $1.5 billion, or $5.16 per share, for the six months ended
June 30, 2020.
The three and six months ended June 30,
2021 include a gain of $438
million (after tax) related to the sale of 47% of Altium
Packaging and its deconsolidation on April
1, 2021. The three and six months ended June 30, 2020 included a loss of $957 million (after tax) related to the
bankruptcy filing and deconsolidation of Diamond Offshore Drilling,
Inc. Excluding these significant transactions, net income for the
second quarter of 2021 would have been $316
million compared to $122
million for the second quarter of 2020.
The year-over-year increase in Loews's second quarter net
income, excluding these significant transactions, was driven by CNA
Financial Corporation, which reported lower net catastrophe losses,
improved net investment income, and higher property and casualty
underwriting results before net catastrophe losses and prior year
development. Boardwalk Pipelines also contributed positively as
revenues from recently completed growth projects increased from the
second quarter of 2020. Loews Hotels & Co posted improved
year-over-year second quarter results due to the strong rebound in
travel to resort destinations. The parent company investment
portfolio experienced lower net investment income in the second
quarter of 2021 compared to the prior year period.
The drivers of Loews's net income for the six months ended
June 30, 2021 are consistent with the
three-month discussion above. In addition, during the first six
months of 2020, Diamond Offshore recognized drilling rig impairment
charges of $408 million (after tax
and noncontrolling interests) and operating losses of $68 million (after tax and noncontrolling
interests). CNA posted net investment gains during the first six
months of 2021 compared to net investment losses in the prior year
period, and the parent company investment portfolio experienced
higher net investment income during the first six months of 2021
compared to the prior year period.
"Loews had a strong quarter driven by CNA, which is doing very
well. Strong natural gas flows continue to benefit Boardwalk
Pipelines' results, and while Loews Hotels & Co posted a net
loss for the quarter, its business is recovering from the effects
of the pandemic more quickly than expected," said James S. Tisch, President and CEO of Loews
Corporation.
CONSOLIDATED
HIGHLIGHTS
|
June 30,
|
|
Three
Months
|
Six Months
|
(In millions, except
per share data)
|
2021
|
2020
|
2021
|
2020
|
|
|
|
|
|
Income (loss) before
net investment gains (losses)
|
$
304
|
$
75
|
$
521
|
$
(405)
|
Net investment gains
(losses):
|
|
|
|
|
CNA
|
24
|
47
|
68
|
(105)
|
Corporate
|
426
|
(957)
|
426
|
(957)
|
Total net
investment gains (losses)
|
450
|
(910)
|
494
|
(1,062)
|
Net income (loss)
attributable to Loews Corporation
|
$
754
|
$
(835)
|
$ 1,015
|
$ (1,467)
|
Net income (loss) per
share
|
$
2.86
|
$ (2.96)
|
$ 3.82
|
$ (5.16)
|
|
June 30,
2021
|
|
December 31,
2020
|
|
|
|
|
Book value per
share
|
$ 69.59
|
|
$ 66.34
|
Book value per share
excluding
AOCI
|
68.33
|
|
64.18
|
Book value per share was $69.59 at
June 30, 2021 compared to
$66.34 at December 31, 2020. Book value per share excluding
accumulated other comprehensive income (AOCI) increased to
$68.33 at June
30, 2021 from $64.18 at
December 31, 2020.
Three Months Ended June 30,
2021 Compared to Three Months Ended June 30, 2020
CNA's results increased primarily due to lower net catastrophe
losses and higher property and casualty underwriting results before
net catastrophe losses and prior year development, as well as
higher net investment income, driven by limited partnership
investments. Lower investment gains partially offset these
positives.
Boardwalk Pipelines' earnings increased mainly due to higher
revenues from growth projects recently placed into service.
Loews Hotels' results improved as all hotel properties owned
and/or operated by Loews Hotels were open and operational by
June 30, 2021, whereas most hotel
properties had suspended operations in mid-March 2020 due to the COVID-19 pandemic and
related mitigation efforts. Although operations are steadily
improving and results were significantly better in 2021 compared to
2020, total occupancy levels for most of Loews Hotels' properties
have not yet reached pre-pandemic levels. Business at hotel
properties in resort destinations is improving faster than in city
centers.
The parent company investment portfolio produced good results,
although income was lower in 2021 due to the significant recovery
of the equity market 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.
Six Months Ended June 30, 2021
Compared to Six Months Ended June 30,
2020
CNA's earnings increased primarily due to the items discussed in
the three-month comparison and include significantly higher net
investment income and investment gains as compared to 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 six months ended June 30, 2021 do not include Diamond Offshore's
operating results. Diamond Offshore's results for the six months
ended June 30, 2020 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).
SHARE REPURCHASES
At June 30, 2021, there were 259.9
million shares of Loews common stock outstanding. For the three and
six months ended June 30, 2021, the
Company repurchased 3.9 million and 9.5 million shares of its
common stock at an aggregate cost of $219
million and $493 million,
respectively. From July 1, 2021 to
July 30, 2021, the Company
repurchased an additional 2.6 million shares of its common stock at
an aggregate cost of $140 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 or otherwise.
CONFERENCE CALLS
A conference call to discuss the first 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) 692-2592, or for international
callers, (973) 582-2757. The conference ID number is 7442319. An
online replay will also be available at www.loews.com following the
call.
A conference call to discuss the first 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
|
|
|
June 30,
|
|
Three
Months
|
Six Months
|
(In
millions)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
CNA Financial (a)
|
$
3,029
|
$
2,766
|
$
5,895
|
$
5,057
|
Boardwalk Pipelines
|
312
|
296
|
684
|
637
|
Loews Hotels & Co
|
98
|
34
|
155
|
176
|
Investment income (loss) and other (b)(c)
|
564
|
(857)
|
891
|
(766)
|
Diamond Offshore (d)
|
|
71
|
|
305
|
Total
|
$
4,003
|
$
2,310
|
$
7,625
|
$
5,409
|
Income (Loss) Before
Income Tax:
|
|
|
|
|
CNA Financial (a) (e)
|
$
463
|
$
183
|
$
840
|
$
93
|
Boardwalk Pipelines
|
63
|
45
|
177
|
133
|
Loews Hotels & Co
|
(26)
|
(97)
|
(81)
|
(130)
|
Corporate: (f)
|
|
|
|
|
Investment
income (loss), net
|
24
|
110
|
70
|
(56)
|
Other
(c)
|
488
|
(1,259)
|
413
|
(1,301)
|
Diamond Offshore (d) (g)
|
|
(56)
|
|
(934)
|
Total
|
$
1,012
|
$
(1,074)
|
$
1,419
|
$
(2,195)
|
Net Income (Loss)
Attributable to Loews Corporation:
|
|
|
|
|
CNA Financial (a) (e)
|
$
330
|
$
135
|
$
609
|
$
80
|
Boardwalk Pipelines
|
47
|
34
|
132
|
99
|
Loews Hotels & Co
|
(21)
|
(72)
|
(64)
|
(97)
|
Corporate: (f)
|
|
|
|
|
Investment
income (loss), net
|
19
|
86
|
55
|
(44)
|
Other
(c)
|
379
|
(994)
|
283
|
(1,029)
|
Diamond Offshore (d) (g)
|
|
(24)
|
|
(476)
|
Net income (loss) attributable to Loews Corporation
|
$
754
|
$
(835)
|
$
1,015
|
$
(1,467)
|
|
|
(a)
|
Includes net
investment gains of $38 million and $69 million ($24 million and
$47 million after tax and noncontrolling interests) for the three
months ended June 30, 2021 and 2020. Includes net investment gains
of $95 and net investment losses of $147 million ($68 million and
$105 million after tax and noncontrolling interests) for the six
months ended June 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
three and six months ended June 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
three and six months ended June 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 $54 million ($38 million after tax and
noncontrolling interests) and $301 million ($212 million after tax
and noncontrolling interests) for the three months ended June 30,
2021 and 2020, and $179 million ($126 million after tax and
noncontrolling interests) and $376 million ($265 million after tax
and noncontrolling interests) for the six months ended June 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 six months ended
June 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
|
|
|
June 30,
|
|
Three
Months
|
Six Months
|
(In millions, except
per share data)
|
2021
|
2020
|
2021
|
2020
|
Revenues:
|
|
|
|
|
Insurance premiums
|
$
2,035
|
$
1,850
|
$
3,997
|
$
3,719
|
Net investment income
|
616
|
644
|
1,166
|
807
|
Investment gains (losses) (a)
|
578
|
(1,142)
|
635
|
(1,358)
|
Operating revenues and other (b)
|
774
|
958
|
1,827
|
2,241
|
Total
|
4,003
|
2,310
|
7,625
|
5,409
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Insurance claims and policyholders' benefits (c)
|
1,546
|
1,642
|
3,052
|
3,067
|
Operating expenses and other (b) (d)
|
1,445
|
1,742
|
3,154
|
4,537
|
Total
|
2,991
|
3,384
|
6,206
|
7,604
|
|
|
|
|
|
Income (loss) before
income tax
|
1,012
|
(1,074)
|
1,419
|
(2,195)
|
Income tax (expense)
benefit
|
(219)
|
228
|
(333)
|
305
|
Net income
(loss)
|
793
|
(846)
|
1,086
|
(1,890)
|
Amounts attributable
to noncontrolling interests
|
(39)
|
11
|
(71)
|
423
|
Net income (loss)
attributable to Loews Corporation
|
$
754
|
$
(835)
|
$
1,015
|
$
(1,467)
|
|
|
|
|
|
Net income (loss) per
share attributable to Loews
|
|
|
|
|
Corporation
|
$
2.86
|
$
(2.96)
|
$
3.82
|
$
(5.16)
|
|
|
|
|
|
Weighted average
number of shares
|
263.34
|
281.48
|
265.55
|
284.26
|
|
|
(a)
|
Includes an
investment gain of $555 million ($438 million after tax) for the
three and six months ended June 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
three and six months ended June 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 $54 million ($38 million after tax and
noncontrolling interests) and $301 million ($212 million after tax
and noncontrolling interests) for the three months ended June 30,
2021 and 2020, and $179 million ($126 million after tax and
noncontrolling interests) and $376 million ($265 million after tax
and noncontrolling interests) for the six months ended June 30,
2021 and 2020.
|
(d)
|
The three and six
months ended June 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