14.0 MILLION COMMON SHARES REPURCHASED IN 2023 FOR $852 MILLION
NEW YORK, Feb. 5, 2024 /PRNewswire/ -- ÃÛÌÒ´«Ã½ Corporation (NYSE: L) today released its fourth quarter 2023 financial results.Ìý
Fourth Quarter highlights:
ÃÛÌÒ´«Ã½ Corporation reported net income of $446 million, or $1.99 per share, in the fourth quarter of 2023, which represents a 26% increase over $355 million, or $1.49 per share, in the fourth quarter of 2022. The following are the highlights for the fourth quarter:
CEO commentary:
"ÃÛÌÒ´«Ã½ had a spectacular quarter, with each of our subsidiaries producing strong results."
– James S. Tisch, President and CEO, ÃÛÌÒ´«Ã½ Corporation
Consolidated highlights:
December 31, | |||||
Three Months | Years Ended | ||||
(In millions, except per share data) | 2023 | 2022 (a) | 2023 | 2022 (a) | |
Net income attributable to ÃÛÌÒ´«Ã½ Corporation before | |||||
ÌýÌý net investment gains (losses) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 442 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 378 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,469 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 960 | |
Net investment gains (losses): | |||||
ÃÛÌÒ´«Ã½ | 4 | (23) | (71) | (138) | |
ÃÛÌÒ´«Ã½ Hotels & Co | 36 | ||||
Total net investment gains (losses) | 4 | (23) | (35) | (138) | |
Net income attributable to ÃÛÌÒ´«Ã½ Corporation | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 446 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 355 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,434 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 822 | |
Net income per share | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1.99 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1.49 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 6.29 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 3.38 |
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December 31, 2023 | December 31, 2022 (a) | |||
Book value per share | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 70.69 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 60.81 | ||
Book value per share excluding AOCI | 81.92 | 74.88 | ||
(a) | As of January 1, 2023, ÃÛÌÒ´«Ã½ Corporation adopted Accounting Standards Update 2018-12, "Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ("ASU 2018-12"), which was applied retrospectively effective January 1, 2021. Previously reported amounts have been adjusted to reflect application of the new guidance. See pages 4 and 5 of this release for more information. |
Three months ended DecemberÌý31, 2023 compared to 2022
ÃÛÌÒ´«Ã½:
Boardwalk:
ÃÛÌÒ´«Ã½ Hotels:
Corporate & Other:
Year ended DecemberÌý31, 2023 compared to 2022
ÃÛÌÒ´«Ã½ Corporation reported net income of $1,434 million, or $6.29 per share, compared to $822 million, or $3.38 per share. The 74% year-over-year increase was driven by the following:
ÌýShare Purchases:
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management believes some investors may find these measures useful to evaluate our and our subsidiaries' financial performance. ÃÛÌÒ´«Ã½ utilizes core income, Boardwalk utilizes earnings before interest, income tax expense, depreciation and amortization ("EBITDA"), and ÃÛÌÒ´«Ã½ Hotels utilizes Adjusted EBITDA. These measures are defined and reconciled to the most comparable GAAP measures on pages 6 and 7 of this release.
Earnings Remarks and Conference Calls
For ÃÛÌÒ´«Ã½ Corporation
For ÃÛÌÒ´«Ã½
About ÃÛÌÒ´«Ã½ Corporation
ÃÛÌÒ´«Ã½ 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 news 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 ÃÛÌÒ´«Ã½. A discussion of the important risk factors and other considerations that could materially impact these matters, as well as the ÃÛÌÒ´«Ã½'s overall business and financial performance, can be found in the ÃÛÌÒ´«Ã½'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 ÃÛÌÒ´«Ã½'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 news release. The ÃÛÌÒ´«Ã½ expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the ÃÛÌÒ´«Ã½'s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.
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ÃÛÌÒ´«Ã½ÌýCorporation and Subsidiaries | |||||
Selected Financial Information | |||||
December 31, | |||||
Three Months | Years Ended | ||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |
Revenues: | |||||
ÃÛÌÒ´«Ã½ Financial (a) | $ÌýÌýÌýÌýÌý 3,507 | $ÌýÌýÌýÌýÌý 3,111 | $ÌýÌýÌý 13,299 | $ÌýÌýÌý 11,879 | |
Boardwalk Pipelines | 511 | 401 | 1,636 | 1,446 | |
ÃÛÌÒ´«Ã½ Hotels & Co (b) | 210 | 189 | 852 | 721 | |
Corporate investment income (loss) and other | 30 | 92 | 114 | (2) | |
Total | $ÌýÌýÌýÌýÌý 4,258 | $ÌýÌýÌýÌýÌý 3,793 | $ÌýÌýÌý 15,901 | $ÌýÌýÌý 14,044 | |
Income (Loss) Before Income Tax: | |||||
ÃÛÌÒ´«Ã½ Financial (a) (c) | $ÌýÌýÌýÌýÌýÌýÌýÌý 460 | $ÌýÌýÌýÌýÌýÌýÌýÌý 283 | $ÌýÌýÌýÌýÌý 1,518 | $ÌýÌýÌýÌýÌýÌýÌýÌý 814 | |
Boardwalk Pipelines | 116 | 109 | 373 | 330 | |
ÃÛÌÒ´«Ã½ Hotels & Co (b) | 41 | 41 | 200 | 161 | |
Corporate: | |||||
Investment income (loss), net | 30 | 92 | 114 | (8) | |
Other (d) | (34) | (60) | (209) | (183) | |
Total (c) | $ÌýÌýÌýÌýÌýÌýÌýÌý 613 | $ÌýÌýÌýÌýÌýÌýÌýÌý 465 | $ÌýÌýÌýÌýÌý 1,996 | $ÌýÌýÌýÌýÌý 1,114 | |
Net Income (Loss) Attributable to ÃÛÌÒ´«Ã½ Corporation: | |||||
ÃÛÌÒ´«Ã½ Financial (a) (c) | $ÌýÌýÌýÌýÌýÌýÌýÌý 336 | $ÌýÌýÌýÌýÌýÌýÌýÌý 214 | $ÌýÌýÌýÌýÌý 1,094 | $ÌýÌýÌýÌýÌýÌýÌýÌý 612 | |
Boardwalk Pipelines | 92 | 83 | 283 | 247 | |
ÃÛÌÒ´«Ã½ Hotels & Co (b) | 32 | 33 | 147 | 117 | |
Corporate: | |||||
Investment income (loss), net | 24 | 72 | 90 | (6) | |
Other (d) | (38) | (47) | (180) | (148) | |
Net income attributable to ÃÛÌÒ´«Ã½ Corporation (c) | $ÌýÌýÌýÌýÌýÌýÌýÌý 446 | $ÌýÌýÌýÌýÌýÌýÌýÌý 355 | $ÌýÌýÌýÌýÌý 1,434 | $ÌýÌýÌýÌýÌýÌýÌýÌý 822 |
(a)Ìý Ìý | The three months ended December 31, 2023 includes net investment gains of $6 million ($4 million after tax and noncontrolling interests). The three months ended December 31, 2022 includes net investment losses of $33 million ($23 million after tax and noncontrolling interests). The years ended December 31, 2023 and 2022 include net investment losses of $99 million and $199 million ($71 million and $138 million after tax and noncontrolling interests). |
(b)Ìý Ìý | Includes a gain of $46 million ($36 million after tax) for the year ended December 31, 2023 related to ÃÛÌÒ´«Ã½ Hotels & Co's acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property. |
(c)Ìý Ìý | The effects of adopting ASU 2018-12 on the Selected Financial Information were as follows: |
Three Months Ended December 31, 2022 | As | Effect of | As | |||
Income (Loss) Before Income Tax: | ||||||
ÃÛÌÒ´«Ã½ Financial | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 294 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (11) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 283 | |||
Total | 476 | (11) | 465 | |||
Net Income (Loss) Attributable to ÃÛÌÒ´«Ã½ Corporation: | ||||||
ÃÛÌÒ´«Ã½ Financial | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 223 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (9) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 214 | |||
Total | 364 | (9) | 355 | |||
Year Ended December 31, 2022 | As | Effect of | As | |||
Income (Loss) Before Income Tax: | ||||||
ÃÛÌÒ´«Ã½ Financial | $ÌýÌýÌýÌýÌýÌý 1,081 | $ÌýÌýÌýÌýÌýÌýÌýÌý (267) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 814 | |||
Total | 1,381 | (267) | 1,114 | |||
Net Income (Loss) Attributable to ÃÛÌÒ´«Ã½ Corporation: | ||||||
ÃÛÌÒ´«Ã½ Financial | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 802 | $ÌýÌýÌýÌýÌýÌýÌýÌý (190) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 612 | |||
Total | 1,012 | (190) | 822 | |||
(d)Ìý Ìý | Consists of parent company interest expense, corporate expenses and the equity income (loss) of Altium Packaging. The year ended DecemberÌý31, 2023 includes a charge of $47 million ($37 million after tax) related to the termination of a defined benefit plan. |
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ÃÛÌÒ´«Ã½ÌýCorporation and Subsidiaries | |||||
Consolidated Financial Review | |||||
December 31, | |||||
Three Months | Years Ended | ||||
(In millions, except per share data) | 2023 | 2022 | 2023 | 2022 | |
Revenues: | |||||
Insurance premiums | $ÌýÌýÌýÌýÌýÌý 2,479 | $ÌýÌýÌýÌýÌýÌý 2,232 | $ÌýÌýÌýÌýÌýÌý 9,480 | $ÌýÌýÌýÌýÌýÌý 8,667 | |
Net investment income | 643 | 600 | 2,395 | 1,802 | |
Investment gains (losses) (a) | 6 | (33) | (53) | (199) | |
Operating revenues and other | 1,130 | 994 | 4,079 | 3,774 | |
Total | 4,258 | 3,793 | 15,901 | 14,044 | |
Expenses: | |||||
Insurance claims and policyholders' benefits (b) | 1,810 | 1,694 | 7,068 | 6,653 | |
Operating expenses and other | 1,835 | 1,634 | 6,837 | 6,277 | |
Total | 3,645 | 3,328 | 13,905 | 12,930 | |
Income before income tax (b) | 613 | 465 | 1,996 | 1,114 | |
Income tax expense (b) | (136) | (87) | (451) | (223) | |
Net income (b) | 477 | 378 | 1,545 | 891 | |
Amounts attributable to noncontrolling interests (b) | (31) | (23) | (111) | (69) | |
Net income attributable to ÃÛÌÒ´«Ã½ Corporation (b) | $ÌýÌýÌýÌýÌýÌýÌýÌýÌý 446 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌý 355 | $ÌýÌýÌýÌýÌýÌý 1,434 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌý 822 | |
Net income per share attributable to ÃÛÌÒ´«Ã½ ÌýÌý Corporation (b) | $ÌýÌýÌýÌýÌýÌýÌýÌý 1.99 | $ÌýÌýÌýÌýÌýÌýÌýÌý 1.49 | $ÌýÌýÌýÌýÌýÌýÌýÌý 6.29 | $ÌýÌýÌýÌýÌýÌýÌýÌý 3.38 | |
Weighted average number of shares | 223.80 | 238.08 | 227.81 | 243.28 |
(a)Ìý Ìý | Includes a gain of $46 million ($36 million after tax) for the year ended December 31, 2023 related to ÃÛÌÒ´«Ã½ Hotels & Co's acquisition of an additional equity interest in, and the consolidation of, a previously unconsolidated joint venture property. |
(b)Ìý Ìý | The effects of adopting ASU 2018-12 on the Consolidated Financial Review were as follows: |
Three Months Ended December 31, 2022 | As | Effect of | As | |||
Insurance claims and policyholders' benefits | $ÌýÌýÌýÌýÌýÌý 1,683 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 11 | $ÌýÌýÌýÌýÌýÌý 1,694 | |||
Income before income tax | 476 | (11) | 465 | |||
Income tax expense | (88) | 1 | (87) | |||
Net income | 388 | (10) | 378 | |||
Amounts attributable to noncontrolling interests | (24) | 1 | (23) | |||
Net income attributable to ÃÛÌÒ´«Ã½ Corporation | 364 | (9) | 355 | |||
Net income per share attributable to ÃÛÌÒ´«Ã½ Corporation | 1.53 | (0.04) | 1.49 | |||
Year Ended December 31, 2022 | As | Effect of | As | |||
Insurance claims and policyholders' benefits | $ÌýÌýÌýÌýÌýÌý 6,386 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 267 | $ÌýÌýÌýÌýÌýÌý 6,653 | |||
Income before income tax | 1,381 | (267) | 1,114 | |||
Income tax expense | (278) | 55 | (223) | |||
Net income | 1,103 | (212) | 891 | |||
Amounts attributable to noncontrolling interests | (91) | 22 | (69) | |||
Net income attributable to ÃÛÌÒ´«Ã½ Corporation | 1,012 | (190) | 822 | |||
Net income per share attributable to ÃÛÌÒ´«Ã½ Corporation | 4.16 | (0.78) | 3.38 |
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Definitions of Non-GAAP Measures and Reconciliation of GAAP Measures to Non-GAAP Measures:
ÃÛÌÒ´«Ã½ Financial Corporation
Core income is calculated by excluding from ÃÛÌÒ´«Ã½'s net income attributable to ÃÛÌÒ´«Ã½ Corporation the after-tax effects of investment gains (losses). In addition, core income excludes the effects of noncontrolling interests. The calculation of core income excludes investment gains (losses) because these are generally driven by economic factors that are not necessarily reflective of ÃÛÌÒ´«Ã½'s primary operations. The following table presents a reconciliation of ÃÛÌÒ´«Ã½ net income attributable to ÃÛÌÒ´«Ã½ Corporation to core income:
December 31, | |||||
Three Months | Years Ended | ||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |
ÃÛÌÒ´«Ã½ net income attributable to ÃÛÌÒ´«Ã½ ÌýÌý Corporation | $Ìý Ìý Ìý Ìý Ìý 336 | $Ìý Ìý Ìý Ìý Ìý 214 | $Ìý Ìý Ìý Ìý1,094 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 612 | |
Investment (gains) losses | (5) | 26 | 79 | 154 | |
Consolidation adjustments including noncontrolling | 31 | 25 | 111 | 70 | |
Core income | $Ìý Ìý Ìý Ìý Ìý 362 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 265 | $ÌýÌýÌýÌýÌýÌýÌý 1,284 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 836 |
Boardwalk Pipelines
EBITDA is defined as earnings before interest, income tax expense, depreciation and amortization. The following table presents a reconciliation of Boardwalk net income attributable to ÃÛÌÒ´«Ã½ Corporation to EBITDA:
December 31, | |||||
Three Months | Years Ended | ||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |
Boardwalk net income attributable to ÃÛÌÒ´«Ã½ | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 92 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 83 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 283 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 247 | |
Interest, net | 38 | 40 | 144 | 166 | |
Income tax expense | 24 | 26 | 90 | 83 | |
Depreciation and amortization | 106 | 99 | 412 | 396 | |
EBITDA | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 260 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 248 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 929 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 892 |
ÃÛÌÒ´«Ã½ Hotels & Co
Adjusted EBITDA is calculated by excluding from ÃÛÌÒ´«Ã½ Hotels & Co's EBITDA, noncontrolling interest share of EBITDA adjustments, state and local government development grants, gains or losses on asset acquisitions and dispositions, asset impairments, and equity method income, and including ÃÛÌÒ´«Ã½ Hotels & Co's pro rata Adjusted EBITDA of equity method investments. Pro rata Adjusted EBITDA of equity method investments is calculated by applying ÃÛÌÒ´«Ã½ Hotels & Co's ownership percentage to the underlying equity method investment's components of EBITDA and excluding distributions in excess of basis.
The following table presents a reconciliation of ÃÛÌÒ´«Ã½ Hotels & Co net income attributable to ÃÛÌÒ´«Ã½ Corporation to Adjusted EBITDA:
December 31, | |||||
Three Months | Years Ended | ||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |
ÃÛÌÒ´«Ã½ Hotels & Co net income attributable to ÃÛÌÒ´«Ã½ | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 32 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 33 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 147 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 117 | |
Interest, net | 4 | 4 | 9 | 11 | |
Income tax expense | 9 | 8 | 53 | 44 | |
Depreciation and amortization | 18 | 17 | 69 | 64 | |
EBITDA | 63 | 62 | 278 | 236 | |
Noncontrolling interest share of EBITDA adjustments | (2) | (5) | |||
Gain on asset acquisition | (46) | ||||
Asset impairments | 3 | 3 | 12 | 25 | |
Equity investment adjustments: | |||||
ÃÛÌÒ´«Ã½ Hotels & Co's equity method income | (31) | (33) | (129) | (148) | |
Pro rata Adjusted EBITDA of equity method | 50 | 54 | 218 | 234 | |
Consolidation adjustments | (1) | (2) | |||
Adjusted EBITDA | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 83 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 85 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 328 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 345 |
The following table presents a reconciliation of ÃÛÌÒ´«Ã½ Hotels & Co's equity method income to Pro rata Adjusted EBITDA of equity method investments:
December 31, | |||||
Three Months | Years Ended | ||||
(In millions) | 2023 | 2022 | 2023 | 2022 | |
ÃÛÌÒ´«Ã½ Hotels & Co's equity method income | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 31 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 33 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 129 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 148 | |
Pro rata share of equity method investments: | |||||
Interest, net | 10 | 11 | 43 | 40 | |
Income tax expense | |||||
Depreciation and amortization | 12 | 12 | 49 | 50 | |
Distributions in excess of basis | (3) | (3) | (3) | (4) | |
Consolidation adjustments | 1 | ||||
Pro rata Adjusted EBITDA of equity method | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 50 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 54 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 218 | $ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 234 |
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SOURCE ÃÛÌÒ´«Ã½ Corporation