Ҵý

Ҵý Corporation Reports Net Income Of $261 Million For The First Quarter Of 2021

NEW YORK, May 3, 2021 /PRNewswire/ -- Ҵý Corporation (NYSE:L) today reported net income of $261 million, or $0.97 per share, for the first quarter of 2021 compared to a net loss of $632 million, or $2.20 per share, in the first quarter of 2020.

Ҵý's strong net income for the first quarter of 2021 was driven by Ҵý Financial Corporation, which had improved net investment income, net investment gains, and solid underlying property and casualty underwriting results, which excludes the impact of net catastrophe losses and prior year development. Boardwalk Pipelines also contributed positively to Ҵý's 2021 quarterly results.

Ҵý Hotels & Co posted a net loss for the first quarter of 2021 due to the continued negative impact on travel of the COVID-19 pandemic. Last year's first quarter results included a significant loss related to Diamond Offshore Drilling, Inc., which is no longer a subsidiary.

"Ҵý had a great first quarter, with excellent results from Ҵý Financial leading the way. Ҵý's underlying combined ratio of 91.9% declined nearly two points from the prior year quarter. Premium growth was strong, driven by continuing rate increases and robust new business," said James S. Tisch, President and CEO of Ҵý Corporation. "Additionally, Ҵý Hotels & Co, the subsidiary hardest hit by the pandemic, is showing signs of progress. With over two-thirds of its rooms located in resort destinations, we think Ҵý Hotels is well positioned to benefit from this leisure-led recovery."

As previously disclosed, on April 1, 2021 Ҵý sold 47% of its interest in Altium Packaging for approximately $420 million in cash, subject to transaction expenses and post-closing adjustments. Per the terms of this transaction, Ҵý has concluded that it will no longer control Altium under US GAAP and is required to deconsolidate Altium as of the date of the sale. In connection with the sale and deconsolidation, we expect to recognize a pretax gain of approximately $560 million in the second quarter of 2021.

Book value per share was $65.47 at March 31, 2021 compared to $66.34 at December 31, 2020, reflecting a lower unrealized gain position on investments in 2021 due to an increase in interest rates. Book value per share excluding accumulated other comprehensive income (AOCI) increased to $65.35 at March 31, 2021 from $64.18 at December 31, 2020.

CONSOLIDATED HIGHLIGHTS

Three Months Ended


March 31,

(In millions, except per share data)

2021

2020




Income (loss) before net investment gains (losses)

$ 217

$ (480)

Net investment gains (losses)

44

(152)

Net income (loss) attributable to Ҵý Corporation

$ 261

$ (632)




Net income (loss) per share

$ 0.97

$ (2.20)





March 31, 2021


December 31, 2020





Book value per share

$ 65.47


$ 66.34

Book value per share excluding AOCI

65.35


64.18









Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

Ҵý's results increased primarily due to higher net investment income driven by limited partnership and common stock investments and a swing to net investment gains from net investment losses in the prior year period. While Ҵý generated improved underlying property and casualty underwriting income, this was offset by higher net catastrophe losses.

Boardwalk Pipelines' earnings increased due to higher revenues from growth projects recently placed into service and improved system utilization due to colder winter weather experienced during the first quarter of 2021.

Ҵý Hotels' results declined because of the continued adverse revenue impact of the COVID-19 pandemic. During the first quarter of 2020, operations were at pre-pandemic levels for the first two months of the quarter, with results falling off dramatically as March 2020 progressed. While most of Ҵý Hotels' properties were operating during the first quarter of 2021, occupancy rates remained well below pre-pandemic levels. Hotel properties in resort destinations continue to show more improvement than those in city centers.

The parent company investment portfolio recorded income for the quarter as compared to a loss in the prior year period. Results improved primarily due to stronger returns on equity investments.

The Corporate & other segment was negatively impacted by the recognition of a $35 million deferred tax liability resulting from the Altium Packaging transaction.

Ҵý's results no longer include Diamond Offshore. In last year's first quarter, Diamond Offshore's results included impairment charges totaling $774 million ($408 million after tax and noncontrolling interests) related to the carrying value of four drilling rigs.

SHARE REPURCHASES

At March 31, 2021, there were 263.8 million shares of Ҵý common stock outstanding. For the three months ended March 31, 2021, the Ҵý repurchased 5.6 million shares of its common stock at an aggregate cost of $274 million. From April 1, 2021 to April 30, 2021, the Ҵý repurchased an additional 0.6 million shares of its common stock at an aggregate cost of $32 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 10:00 a.m. ET. A live webcast will be available via the Investors/Media section of . Those interested in participating should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 9887092. An online replay will also be available at following the call.

A conference call to discuss the first quarter results of Ҵý has been scheduled for today at 9:00 a.m. ET. A live webcast will be available via the Investor Relations section of . Those interested in participating should dial (800) 289-0571, or for international callers, (720) 543-0206.

Ҵý LOEWS CORPORATION

Ҵý Corporation is a diversified company with businesses in the insurance, energy, hospitality, and packaging industries. 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)

2021

2020

Revenues:



Ҵý Financial (a)

$ 2,866

$ 2,291

Boardwalk Pipelines

372

341

Ҵý Hotels & Co

57

142

Investment income and other (b)

327

91

Diamond Offshore (c)


234

Total

$ 3,622

$ 3,099




Income (Loss) Before Income Tax:



Ҵý Financial (a)

$ 377

$ (90)

Boardwalk Pipelines

114

88

Ҵý Hotels & Co

(55)

(33)

Corporate: (d)



Investment income (loss), net

46

(166)

Other

(75)

(42)

Diamond Offshore (c) (e)


(878)

Total

$ 407

$ (1,121)




Net Income (Loss) Attributable to Ҵý Corporation:



Ҵý Financial (a)

$ 279

$ (55)

Boardwalk Pipelines

85

65

Ҵý Hotels & Co

(43)

(25)

Corporate: (d)



Investment income (loss), net

36

(130)

Other (f)

(96)

(35)

Diamond Offshore (c) (e)


(452)

Net income (loss) attributable to Ҵý Corporation

$ 261

$ (632)





(a)

Includes net investment gains of $57 million and net investment losses of $216 million ($44 million and $152 million after tax and noncontrolling interests) for the three months ended March 31, 2021 and 2020.

(b)

Includes parent company investment income (loss) and the financial results of Altium Packaging.

(c)

On April 26, 2020 Diamond Offshore filed for bankruptcy and ceased being a consolidated subsidiary.

(d)

The Corporate segment consists of investment income (loss) from the parent company's cash and investments, interest expense, other unallocated corporate expenses, and the financial results of Altium Packaging.

(e)

The three months ended March 31, 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.

(f)

The three months ended March 31, 2021 includes the recognition of a $35 million deferred tax liability resulting from the Altium Packaging transaction.





Ҵý Corporation and Subsidiaries

Consolidated Financial Review


Three Months Ended March 31,

(In millions, except per share data)

2021

2020

Revenues:



Insurance premiums

$ 1,962

$ 1,869

Net investment income

550

163

Investment gains (losses)

57

(216)

Operating revenues and other (a)

1,053

1,283

Total

3,622

3,099




Expenses:



Insurance claims and policyholders' benefits

1,506

1,425

Operating expenses and other (a) (b)

1,709

2,795

Total

3,215

4,220




Income (loss) before income tax

407

(1,121)

Income tax (expense) benefit (c)

(114)

77

Net income (loss)

293

(1,044)

Amounts attributable to noncontrolling interests

(32)

412

Net income (loss) attributable to Ҵý Corporation

$ 261

$ (632)




Net income (loss) per share attributable to Ҵý Corporation

$ 0.97

$ (2.20)




Weighted average number of shares

267.76

287.04



(a)

On April 26, 2020 Diamond Offshore filed for bankruptcy and ceased being a consolidated subsidiary.

(b)

The three months ended March 31, 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.

(c)

The three months ended March 31, 2021 includes the recognition of a $35 million deferred tax liability resulting from the Altium Packaging transaction.

SOURCE Ҵý Corporation