Ҵý

Ҵý Corporation Reports Net Income Of $102 Million For The First Quarter Of 2016

NEW YORK, May 2, 2016 /PRNewswire/ --Ҵý Corporation (NYSE: L) today reported net income for the three months ended March 31, 2016 of $102 million, or $0.30 per share, compared to $109 million, or $0.29 per share, in the prior year period.

Net income declined by $7 million as compared to the prior year due to lower earnings at Ҵý Financial Corporation and reduced results from the parent company investment portfolio, partially offset by higher earnings at Diamond Offshore Drilling, Inc. because of the absence this quarter of an asset impairment charge. Higher earnings at Boardwalk Pipeline Partners, LP also served as a partial offset. The increase in net income per share is due to treasury share purchases over the past year.

Book value per share excluding accumulated other comprehensive income (AOCI) increased to $52.98 at March 31, 2016 from $52.72 at December 31, 2015.

CONSOLIDATED HIGHLIGHTS


Three Months Ended March 31,

(In millions, except per share data)

2016

2015




Income before net investment gains (losses)

$ 119

$ 101

Net investment gains (losses)

(17)

8

Net income attributable to Ҵý Corporation

$ 102

$ 109




Net income per share

$ 0.30

$ 0.29





March 31, 2016

December 31, 2015

Book value per share

$ 52.60

$ 51.67

Book value per share excluding AOCI

52.98

52.72

Ҵý's earnings decreased due to a $74 million (after tax and noncontrolling interests) charge related to the 2010 retroactive reinsurance agreement to cede its legacy asbestos and environmental pollution liabilities (Loss Portfolio Transfer, or LPT). Under retroactive reinsurance accounting, amounts ceded through the LPT in excess of the consideration paid result in a deferred benefit that is recognized in income in proportion to paid recoveries over future periods. Ҵý's earnings were also impacted by a decline in net investment income driven by limited partnership investment results, as well as realized investment losses in 2016 as compared to gains in 2015. These investment-related declines, which totaled $99 million (after tax and noncontrolling interests), were partially offset by improved property & casualty underwriting results and improved results in the Life & Group segment.

Diamond Offshore's prior year earnings reflected a $158 million (after tax and noncontrolling interests) asset impairment charge. Year-over-year earnings also benefited from revenue earned by newbuild drillships, demobilization fees, lower operating costs, lower depreciation expense resulting mainly from the asset impairment charges taken in 2015, and a lower effective tax rate. These favorable items were largely offset by a substantial reduction in the number of operating rigs.

Boardwalk Pipeline's earnings increased as new rates took effect following the Gulf South rate case. Additionally, the Evangeline pipeline, which was placed into service in mid-2015, and new growth projects contributed to earnings.

SHARE REPURCHASES

At March 31, 2016, there were 339.0 million shares of Ҵý common stock outstanding. During the first quarter of 2016, the Ҵý repurchased 0.9 million shares of its common stock at an aggregate cost of $33 million. The Ҵý also purchased 0.3 million shares of Ҵý common stock at an aggregate cost of $8 million. Depending on market conditions, the Ҵý 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 Ҵý Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be available online at the Ҵý Corporation website (). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 85830677. An online replay will also be available on the Ҵý Corporation's website following the call.

A conference call to discuss the first quarter results of Ҵý has been scheduled for today at 10:00 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (888) 515-2880, or for international callers, (719) 325-2370.

A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (855) 793-3255 or for international callers, (631) 485-4925. The conference ID number is 85747324.

A conference call to discuss the first quarter results of Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (800) 247-9979, or for international callers, (973) 321-1100. The conference ID number is 89517726.

Ҵý LOEWS CORPORATION

Ҵý Corporation is a diversified company with three publicly-traded subsidiaries: Ҵý Financial Corporation (NYSE: Ҵý), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk Pipeline Partners, LP (NYSE: BWP); and one wholly owned subsidiary, Ҵý Hotels & Resorts. For more information please visit .

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 Ҵý. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Ҵý's overall business and financial performance can be found in the Ҵý'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 Ҵý's website (). 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 Ҵý expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Ҵý's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.





Ҵý Corporation and Subsidiaries



Selected Financial Information













Three Months Ended March 31,

(In millions)

2016

2015

Revenues:



Ҵý Financial

$ 2,231

$ 2,342

Diamond Offshore

471

627

Boardwalk Pipeline

347

330

Ҵý Hotels

163

139

Investment income (loss) and other

(11)

30



3,201

3,468

Investment gains (losses) - Ҵý Financial

(28)

10

Total

$ 3,173

$ 3,478





Income (Loss) Before Income Tax:



Ҵý Financial (a)

$ 86

$ 304

Diamond Offshore (b)

83

(287)

Boardwalk Pipeline

99

77

Ҵý Hotels

9

10

Investment income (loss), net

(13)

29

Other (c)

(41)

(38)



223

95

Investment gains (losses) - Ҵý Financial

(28)

10

Total

$ 195

$ 105





Net Income (Loss) Attributable to Ҵý Corporation:



Ҵý Financial (a)

$ 77

$ 202

Diamond Offshore (b)

43

(126)

Boardwalk Pipeline

31

25

Ҵý Hotels

3

5

Investment income (loss), net

(8)

19

Other (c)

(27)

(24)



119

101

Investment gains (losses) - Ҵý Financial

(17)

8

Net income attributable to Ҵý Corporation

$ 102

$ 109





(a)

Includes a charge of $127 million ($74 million after tax and noncontrolling interests) for the three
months ended March 31, 2016 related to retroactive reinsurance accounting for the Loss Portfolio
Transfer.

(b)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling
interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling
rigs.



(c)

Consists primarily of corporate interest expense and other unallocated expenses.







Ҵý Corporation and Subsidiaries


Consolidated Financial Review














Three Months Ended March 31,


(In millions, except per share data)

2016

2015


Revenues:




Insurance premiums

$ 1,699

$ 1,687


Net investment income

422

588


Investment gains (losses)

(28)

10


Contract drilling revenues

444

600


Other revenues

636

593


Total

3,173

3,478







Expenses:




Insurance claims & policyholders' benefits (a)

1,408

1,339


Contract drilling expenses

213

351


Other operating expenses (b)

1,357

1,683


Total

2,978

3,373







Income before income tax

195

105


Income tax (expense) benefit

4

(56)


Net income

199

49


Amounts attributable to noncontrolling interests

(97)

60


Net income attributable to Ҵý Corporation

$ 102

$ 109







Diluted income per share attributable to Ҵý Corporation

$ 0.30

$ 0.29







Weighted average diluted number of shares

339.25

373.19




(a)

Includes a charge of $127 million ($74 million after tax and noncontrolling interests) for the three
months ended March 31, 2016 related to retroactive reinsurance accounting for the Loss Portfolio
Transfer.


(b)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling
interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling
rigs.

SOURCE Ҵý Corporation