May 19, 2022
  • May 19, 2022

LOEWS CORPORATION REPORTS $338 MILLION NET INCOME FOR FIRST QUARTER 2022

By on May 2, 2022 0

NEW YORK, May 2, 2022 /PRNewswire/ — Loews Corporation (NYSE:L) today reported net income of $338 millionor $1.36 per share, for the first quarter of 2022 compared to a net result of $261 millionor $0.97 per share, in the first quarter of 2021.

Net income for the first quarter of 2022 increased over the comparable period a year earlier as CNA Financial, Boardwalk Pipelines and Loews Hotels & Co all delivered strong operating results. CNA reported higher P&C non-catastrophic underwriting results and lower catastrophe losses, offset by lower net investment income and net investment losses versus net investment gains for the period comparable to the previous year. Loews Hotels’ results improved significantly as the business continues to recover from reduced travel during the COVID-19 pandemic, and Boardwalk Pipelines’ earnings rose on higher revenue from growth projects recently commissioned. The parent company generated lower net investment income than the comparable period last year.

“Loews is off to a strong start to 2022, with a nearly 30% increase in net income over the prior year quarter. Each of our consolidated subsidiaries — CNA Financial, Boardwalk Pipelines and Loews Hotels — delivered strong first quarter results,” said James S.TischPresident and CEO of Loews Corporation.

Book value per share at March 31, 2022 been $67.27 compared to $71.84 from December 31, 2021, reflecting lower net unrealized investment gains due to higher interest rates. Book value per share excluding accumulated other comprehensive income (AOCI) increased to $72.34 from March 31, 2022 from $71.09 from December 31, 2021.

CONSOLIDATED HIGHLIGHTS

Three months completed


March, 31st,

(In millions, except per share data)

2022

2021




Income before net investment gains (losses)

$341

$217

Net investment gains (losses)

(3)

44

Net income attributable to Loews Corporation

$338

$261




Net earnings per share

$1.36

$0.97





March 31, 2022


December 31, 2021





Book value per share

$67.27


$71.84

Book value per share excluding AOCI

72.34


71.09

Three months completed March 31, 2022 Compared to the three months ended March 31, 2021

CNA’s earnings were in line with the prior year. P&C insurance underwriting results increased, with lower catastrophe claims and higher non-catastrophic underwriting income. Net investment income decreased due to lower yields from limited partnerships and common equity investments. CNA went from net investment gains last year to net investment losses, driven by lower fair value of non-callable preferred shares and lower gains on sales of fixed-maturity securities.

Boardwalk Pipelines earnings increased primarily due to higher revenue from recently commissioned growth projects, partially offset by higher employee costs and higher expenses due to an increased asset base of growth projects.

Loews Hotels’ results improved significantly, driven by higher occupancy rates due to the rebound in travel, particularly in resort destinations, and higher average daily room rates. Hotel properties at Universal Orlando Resort contributed significantly to the period-over-period improvement as all 9,000 rooms were open throughout the quarter. Although results were significantly better in 2022 compared to 2021, occupancy levels have not rebounded to pre-pandemic levels at some Loews hotel properties, particularly those located in downtown areas.

The parent company’s investment portfolio recorded a loss for the quarter compared to the income for the comparable period last year, mainly due to losses generated by investments in equity securities.

The Corporate & other segment benefited from the absence of unusual items recorded in 2021 related to the recapitalization and the sale of 47% of Altium Packaging, including a $35 million deferred tax liability and a $14 million ($10 million after tax) debt extinguishment charge. In addition, parent company overhead was lower in 2022 than in the comparable period of the prior year.

SHARE REDEMPTIONS

To March 31, 2022, there were 246.4 million shares of Loews common stock outstanding. For the three months ended March 31, 2022the Company repurchased 2.15 million common shares at a total cost of $129 million. Since April 1, 2022 for April 29, 2022the Company repurchased an additional 0.3 million common shares at a total cost of $19 million. Depending on market conditions, the Company may from time to time purchase outstanding common stock of its subsidiaries and stock in the open market, in over-the-counter transactions or otherwise.

TELECONFERENCES

A conference call to discuss Loews Corporation’s first quarter results is 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 (866) 342-8591, or for international callers, (203) 518-9797. The conference ID number is L1Q22. An online replay will also be available at www.loews.com following the call.

A conference call to discuss CNA’s first quarter results is 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 operations in the insurance, energy, hospitality and packaging industries. For more information, visit www.loews.com.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that 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 the Company’s management. A discussion of important risk factors and other considerations that could materially impact these matters and 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 consider these reports carefully when considering these forward-looking statements. Copies of these reports are available on the Company’s website (www.loews.com). In light of these risk factors, investors and analysts should not place undue reliance on forward-looking statements. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to issue updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances about which any forward-looking statement is made. based. .

Loews Corporation and its subsidiaries

Selected financial information





Quarter ended March 31

(in millions)

2022

2021

Income:



CNA Financial (a)

$2,885

$2,866

Parkway pipelines

381

372

Loews Hotels & Co

152

57

Investment income (loss) and other (b)

(16)

327

Total

$3,402

$3,622




Income (loss) before income tax:



CNA Financial (a)

$378

$377

Parkway pipelines

122

114

Loews Hotels & Co

22

(55)

Company: (c)



Investment income (loss), net

(16)

46

Other

(44)

(75)

Total

$462

$407




Net income (loss) attributable to Loews Corporation:



CNA Financial (a)

$281

$279

Parkway pipelines

91

85

Loews Hotels & Co

15

(43)

Company: (c)



Investment income (loss), net

(13)

36

Other (d)

(36)

(96)

Net income attributable to Loews Corporation

$338

$261




(a)

Includes net investment losses of $11 million and net investment gains of $57 million ($3 million net investment losses and $44 million net investment gains after tax and non-controlling interests). control) for the three months ended March 31, 2022 and 2021.

(b)

Includes parent company investment income (loss) and Altium Packaging financial results. On April 1, 2021, Loews sold 47% of Altium Packaging, which was subsequently deconsolidated and then accounted for as an equity-accounted investment.

(vs)

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

(D)

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

Loews Corporation and its subsidiaries

Consolidated financial review




Quarter ended March 31

(In millions, except per share data)

2022

2021

Income:



Insurance premiums

$2,059

$1,962

Net investment income

432

550

Investment gains (losses)

(11)

57

Operating income and others (a)

922

1,053

Total

3,402

3,622




Expenses:



Insurance claims and policyholder benefits

1,455

1,506

Operating expenses and other (a)

1,485

1,709

Total

2,940

3,215




Income before income tax

462

407

Income tax (b)

(92)

(114)

Net revenue

370

293

Amounts attributable to non-controlling interests

(32)

(32)

Net income attributable to Loews Corporation

$338

$261




Net earnings per share attributable to Loews Corporation

$1.36

$0.97




Weighted average number of shares

248.48

267.76



(a)

On April 1, 2021, Loews sold 47% of Altium Packaging, which was subsequently deconsolidated and then accounted for as an equity-accounted investment.

(b)

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

SOURCELoews Corporation