NEW YORK, Feb. 10, 2020 /PRNewswire/ --ÌýÃÛÌÒ´«Ã½ Corporation (NYSE: L) today reported net income for the year ended December 31, 2019 of $932 million, or $3.07 per share, compared to $636 million, or $1.99 per share, in 2018. For the three months ended December 31, 2019, ÃÛÌÒ´«Ã½ reported net income of $217 million, or $0.73 per share, compared to a net loss of $165 million, or $0.53 per share, in the prior year period.
Net income for the year ended December 31, 2019 increased due to higher earnings at ÃÛÌÒ´«Ã½ Financial Corporation and Boardwalk Pipelines, as well as higher parent company net investment income. These increases were partially offset by lower results at Diamond Offshore Drilling, Inc.Ìýand ÃÛÌÒ´«Ã½ Hotels & Co. Results for the three months ended December 31, 2019 improved mainly due to increased net investment income at ÃÛÌÒ´«Ã½ and the parent company, partially offset by lower results at Boardwalk Pipelines and ÃÛÌÒ´«Ã½ Hotels & Co. The loss during the three months ended December 31, 2018 was driven by catastrophe losses at ÃÛÌÒ´«Ã½, investment results at both ÃÛÌÒ´«Ã½ and the parent company, and operating results at Diamond Offshore.
Book value per share increased to $65.71 at December 31, 2019 from $59.34 at December 31, 2018. Book value per share excluding accumulated other comprehensive income (AOCI) increased to $65.94 at December 31, 2019 from $62.16 at December 31, 2018.
CONSOLIDATED HIGHLIGHTS
(In millions, except per share data) | December 31, | |||
Three Months | Years Ended | |||
2019 | 2018 | 2019 | 2018 | |
Income (loss) before net investment gains (losses) | $ Ìý211 | $ (110) | $ 899 | $ 674 |
Net investment gains (losses) | 6 | (55) | 33 | (38) |
Net income (loss) attributable to ÃÛÌÒ´«Ã½ Corporation | $ Ìý217 | $ (165) | $ 932 | $ 636 |
Net income (loss) per share | $ 0.73 | $ (0.53) | $ 3.07 | $ 1.99 |
December 31, 2019 | December 31, 2018 | |||
Ìý Book value per share | $ Ìý65.71 | $ Ìý 59.34 | ||
Ìý Book value per share excluding AOCI | 65.94 | 62.16 | ||
Ìý Shares outstanding | 291.0 | 312.1 |
Three Months Ended December 31, 2019 Compared to 2018
ÃÛÌÒ´«Ã½'s earnings increased primarily due to higher net investment income and net investment gains and higher current year underwriting income driven mainly by lower catastrophe losses for the Property & Casualty ("P&C") business. Earnings were partially offset by a higher net retroactive reinsurance charge recorded under the 2010 loss portfolio transfer with National Indemnity as compared with 2018. The P&C business generated gross written premium growth of 8% and net written premium growth of 6%.
Diamond Offshore's net loss improved primarily due to higher contract drilling revenues as a result of a contractual margin commitment from a customer, significantly offset by higher rig operating expenses including contract preparation and rig activation costs and increased depreciation expense.
Boardwalk Pipelines' operations benefited from higher firm transportation revenues from growth projects recently placed into service partially offset by the net impact of contract restructurings, expirations and renewals. Boardwalk Pipelines' net income decreased as a result of a favorable tax adjustment recorded in 2018.
ÃÛÌÒ´«Ã½ Hotels & Co's results decreased due to impairment charges totaling $89 million ($69 million after tax) related to the carrying value of hotel properties. Excluding these charges, earnings benefited from improved results at the Orlando JV properties and certain owned hotels.
Income generated by the parent company investment portfolio increased primarily due to higher returns on equity securities.
Year Ended December 31, 2019 Compared to 2018
ÃÛÌÒ´«Ã½'s earnings increased from higher net investment income driven by improved returns on limited partnership investments and from higher net investment gains. In addition, earnings in 2019 benefited from a lower net retroactive reinsurance charge recorded under the 2010 loss portfolio transfer with National Indemnity as compared with 2018 and a higher reduction of claim reserves resulting from the annual long term care claim experience study as compared with 2018. These increases were partially offset by a charge of $216 million ($151 million after tax and noncontrolling interests) resulting from the recognition of an active life reserve premium deficiency in long term care.
Diamond Offshore's results declined due to compressed contract drilling margins. Results in 2019 benefited from the absence of a $12 million rig impairment charge and an $8 million legal settlement charge (both after tax and noncontrolling interests) recorded in 2018.
Boardwalk Pipelines' earnings attributable to ÃÛÌÒ´«Ã½ improved primarily due to ÃÛÌÒ´«Ã½ owning 100% of the company as compared to 51% for a portion of 2018. Net income in 2019 also includes proceeds received in conjunction with a contract cancellation due to a customer bankruptcy that resulted in a $19 million (after tax) benefit and higher firm transportation revenues from growth projects recently placed into service, partially offset by the impact of contract restructurings and expirations.
ÃÛÌÒ´«Ã½ Hotels & Co's results decreased primarily due to impairment charges totaling $99 million ($77 million after tax) related to the carrying value of hotel properties. Excluding these impairment charges, earnings decreased due to higher pre-opening and other non-recurring expenses related to properties under development.
Income generated by the parent company investment portfolio increased due primarily to higher returns on equity securities.
SHARE REPURCHASES
At December 31, 2019, there were 291.0 million shares of ÃÛÌÒ´«Ã½ common stock outstanding. For the three months and year ended December 31, 2019, the ÃÛÌÒ´«Ã½ repurchased 8.3 million and 21.5 million shares of its common stock at an aggregate cost of $417 million and $1.1 billion. From January 1, 2020 to February 7, 2020, the ÃÛÌÒ´«Ã½ repurchased an additionalÌý3.3 million shares of its common stock at an aggregate cost ofÌýÌý$172 million. Depending on market conditions, the ÃÛÌÒ´«Ã½ 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 fourth quarter results of ÃÛÌÒ´«Ã½ Corporation has been scheduled for today at 11:00 a.m. ET. A live webcast will be available via the Investors/Media section of . 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 8484537. An online replay will also be available at following the call.
A conference call to discuss the fourth quarter results of ÃÛÌÒ´«Ã½ has been scheduled for today at 10:00 a.m. ET. A live webcast will be available via the Investor Relations section of . Those interested in participating in the question and answer session should dial (800) 289-0571, or for international callers, (720) 543-0206.
A conference call to discuss the fourth quarter results of Diamond Offshore 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 in the question and answer session should dial (844) 492-6043, or for international callers, (478) 219-0839. The conference ID number is 5959776.
ÃÛÌÒ´«Ã½ LOEWS CORPORATION
ÃÛÌÒ´«Ã½ Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries. Our subsidiaries are: ÃÛÌÒ´«Ã½ Financial Corporation (NYSE: ÃÛÌÒ´«Ã½), Diamond Offshore Drilling, Inc. (NYSE: DO), Boardwalk Pipelines, ÃÛÌÒ´«Ã½ Hotels & Co and Altium Packaging (formerly Consolidated Container ÃÛÌÒ´«Ã½). Investors are encouraged to view the subsidiary virtual investor presentations found in the 'Events & Presentations' section of for an in-depth strategic review of ÃÛÌÒ´«Ã½'s subsidiaries. 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 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 press 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.
Ìý
ÃÛÌÒ´«Ã½ Corporation and Subsidiaries | ||||||
Selected Financial InformationÌý | ||||||
December 31, | ||||||
Three Months | Years Ended | |||||
(In millions) | 2019 | 2018 | 2019 | 2018 | ||
Revenues: | ||||||
ÃÛÌÒ´«Ã½ Financial (a)Ìý | $ Ìý Ìý Ìý 2,777 | $ Ìý Ìý Ìý 2,403 | $ Ìý Ìý 10,788 | $ Ìý Ìý 10,134 | ||
Diamond OffshoreÌý | 277 | 234 | 988 | 1,093 | ||
Boardwalk Pipelines (b) | 331 | 326 | 1,300 | 1,227 | ||
ÃÛÌÒ´«Ã½ Hotels & Co | 170 | 181 | 692 | 755 | ||
Investment income and other (c) | 321 | 143 | 1,163 | 857 | ||
Total | $ Ìý Ìý Ìý 3,876 | $ Ìý Ìý Ìý 3,287 | $ Ìý Ìý 14,931 | $ Ìý Ìý 14,066 | ||
Income (Loss) Before Income Tax: | ||||||
ÃÛÌÒ´«Ã½ Financial (a) (d) (e) (f) | $ Ìý Ìý Ìý Ìý Ìý336 | $ Ìý Ìý Ìý Ìý(114) | $ Ìý Ìý Ìý 1,224 | $ Ìý Ìý Ìý Ìý Ìý963 | ||
Diamond Offshore (g) (h) | (81) | (66) | (402) | (226) | ||
Boardwalk Pipelines (b) | 64 | 59 | 281 | 231 | ||
ÃÛÌÒ´«Ã½ Hotels & Co (i) | (70) | 15 | (28) | 73 | ||
Corporate: (j) | ||||||
Investment income (loss), net | 76 | (71) | 229 | (10) | ||
OtherÌý | (49) | (55) | (185) | (197) | ||
Total | $ Ìý Ìý Ìý Ìý Ìý276 | $ Ìý Ìý Ìý Ìý(232) | $ Ìý Ìý Ìý 1,119 | $ Ìý Ìý Ìý Ìý Ìý834 | ||
Net Income (Loss) Attributable to ÃÛÌÒ´«Ã½ Corporation: | ||||||
ÃÛÌÒ´«Ã½ Financial (a) (d) (e) (f) | $ Ìý Ìý Ìý Ìý Ìý244 | $ Ìý Ìý Ìý Ìý Ìý(75) | $ Ìý Ìý Ìý Ìý Ìý894 | $ Ìý Ìý Ìý Ìý Ìý726 | ||
Diamond Offshore (g) (h) (k) | (38) | (58) | (175) | (112) | ||
Boardwalk Pipelines (b) | 48 | 55 | 209 | 135 | ||
ÃÛÌÒ´«Ã½ Hotels & Co (i) | (59) | 7 | (31) | 48 | ||
Corporate: (k) | ||||||
Investment income (loss), net | 67 | (57) | 188 | (8) | ||
OtherÌý | (45) | (37) | (153) | (153) | ||
Net income (loss) attributable to ÃÛÌÒ´«Ã½ Corporation | $ Ìý Ìý Ìý Ìý Ìý217 | $ Ìý Ìý Ìý Ìý(165) | $ Ìý Ìý Ìý Ìý Ìý932 | $ Ìý Ìý Ìý Ìý Ìý636 | ||
(a) | Includes net investment gains of $8 million and net investment losses of $78 million ($6 million and $55 million | |||||
(b) | Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the year | |||||
(c) | Includes parent company investment income and the financial results of Altium Packaging (formerly Consolidated | |||||
(d) | Includes losses of $61 million and $35 million ($43 million and $24 million after tax and noncontrolling interests) | |||||
(e) | Includes a loss of $21 million ($15 million after tax and noncontrolling interests) on the early redemption of debt | |||||
(f) | Includes a charge of $216 million ($151 million after tax and noncontrolling interests) for the year ended December | |||||
(g) | Includes asset impairment charges of $27 million ($12 million after tax and noncontrolling interests) for the year | |||||
(h) | Includes a legal settlement charge of $18 million ($8 million after tax and noncontrolling interests) for the year | |||||
(i) | Includes asset impairment charges of $89 million ($69 million after tax) for the three months ended December | |||||
(j) | The Corporate segment consists of investment income from the parent company's cash and investments, | |||||
(k) | For the three months ended December 31, 2019, includes a favorable tax adjustment of $12 million ($5 million | |||||
Ìý
Ìý
ÃÛÌÒ´«Ã½ Corporation and Subsidiaries | ||||||
Consolidated Financial Review | ||||||
December 31, | ||||||
Three Months | Years Ended | |||||
(In millions, except per share data) | 2019 | 2018 | 2019 | 2018 | ||
Revenues: | ||||||
Insurance premiums | $ Ìý Ìý Ìý 1,911 | $ Ìý Ìý Ìý 1,859 | $ Ìý Ìý Ìý 7,428 | $ Ìý Ìý Ìý 7,312 | ||
Net investment income | 622 | 266 | 2,355 | 1,817 | ||
Investment gains (losses) | 8 | (78) | 49 | (57) | ||
Operating revenues and other (a) | 1,335 | 1,240 | 5,099 | 4,994 | ||
Total | 3,876 | 3,287 | 14,931 | 14,066 | ||
Expenses: | ||||||
Insurance claims and policyholders' benefits (b) (c) | 1,483 | 1,594 | 5,806 | 5,572 | ||
Operating expenses and other (d) (e)Ìý | 2,117 | 1,925 | 8,006 | 7,660 | ||
Total | 3,600 | 3,519 | 13,812 | 13,232 | ||
Income (loss) before income tax | 276 | (232) | 1,119 | 834 | ||
Income tax (expense) benefit (f)Ìý | (65) | 21 | (248) | (128) | ||
Net income (loss) | 211 | (211) | 871 | 706 | ||
Amounts attributable to noncontrolling interests | 6 | 46 | 61 | (70) | ||
Net income (loss) attributable to ÃÛÌÒ´«Ã½ Corporation | $ Ìý Ìý Ìý Ìý Ìý217 | $ Ìý Ìý Ìý Ìý(165) | $ Ìý Ìý Ìý Ìý Ìý932 | $ Ìý Ìý Ìý Ìý Ìý636 | ||
Net income (loss) per share attributable to ÃÛÌÒ´«Ã½ Corporation | $ Ìý Ìý Ìý Ìý 0.73 | $ Ìý Ìý Ìý (0.53) | $ Ìý Ìý Ìý Ìý 3.07 | $ Ìý Ìý Ìý Ìý 1.99 | ||
Weighted average number of shares | 296.29 | 313.88 | 303.35 | 319.93 | ||
(a) | Includes settlement proceeds of $26 million ($19 million after tax) related to a customer bankruptcy for the year ended | |||||
(b) | Includes losses of $61 million and $35 million ($43 million and $24 million after tax and noncontrolling interests) for the | |||||
(c) | Includes a charge of $216 million ($151 million after tax and noncontrolling interests) for the year ended December 31, | |||||
(d) | Includes a loss of $21 million ($15 million after tax and noncontrolling interests) on the early redemption of debt for the year | |||||
(e) | Includes asset impairment charges of $89 million ($69 million after tax) for the three months ended December 31, 2019 | |||||
(f) | For the three months ended December 31, 2019, includes a favorable tax adjustment of $12 million ($5 million after |
Ìý
SOURCE ÃÛÌÒ´«Ã½ Corporation