Loews Corporation Reports Net Income of $367 Million for the First Quarter of 2012

Net Income Per Share of $0.92

Book Value Per Share of $48.96, an Increase of 3.4% from December 31, 2011

NEW YORK--()--Loews Corporation (NYSE:L) today reported net income for the 2012 first quarter of $367 million, or $0.92 per share, compared to $379 million, or $0.92 per share, in the 2011 first quarter. Book value per share increased to $48.96 at March 31, 2012 from $47.33 at December 31, 2011.

The decrease in net income is due to lower earnings at Diamond Offshore Drilling, Inc. and HighMount Exploration & Production LLC. These decreases were partially offset by higher earnings at CNA Financial Corporation and increased parent company investment income.

CNA’s earnings increased as a result of higher investment income primarily due to an increase in limited partnership results and higher fixed maturity securities income and lower catastrophe losses.

Diamond Offshore’s earnings decreased due to lower utilization primarily from fewer revenue earning days and higher contract drilling expense that reflects the higher cost of operating rigs internationally rather than domestically.

HighMount’s earnings decreased due to a non-cash impairment charge related to the carrying value of its natural gas and oil properties. This charge was the result of declines in natural gas prices. The results in 2012 also reflect lower production volumes and prices as compared to the prior year period.

 

CONSOLIDATED HIGHLIGHTS

 
        Three Months Ended March 31,
(In millions, except per share data)         2012     2011
   
Net income attributable to Loews Corporation:

Income before net investment gains

$ 348 $ 367
Net investment gains           19       12
Net income attributable to Loews Corporation         $ 367     $ 379
 
Net income per share         $ 0.92     $ 0.92
Book value per share at:
March 31, 2012 $ 48.96
December 31, 2011 47.33
March 31, 2011           45.38      
 

CONFERENCE CALLS

A conference call to discuss the first quarter results of Loews Corporation has been scheduled for 11:00 a.m. EDT, today. A live webcast of the call will be available online at the Loews Corporation website (www.loews.com). 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 67907133. An online replay will also be available on the Loews Corporation’s website following the call.

A conference call to discuss the first quarter results of CNA has been scheduled for 10:00 a.m. EDT, today. A live webcast will be available at http://investor.cna.com. Those interested in participating in the question and answer session should dial (888) 352-6793, or for international callers, (719) 457-2707. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software.

A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for 9:00 a.m. EDT, today. A live webcast will be available at www.bwpmlp.com. Those interested in participating in the question and answer session should dial (866) 202-0886 or for international callers, (617) 213-8841. The conference ID number is 79965643. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software.

A conference call to discuss the first quarter results of Diamond Offshore was held on Thursday, April 19, 2012. An online replay is available on Diamond Offshore’s website (www.diamondoffshore.com).

ABOUT LOEWS CORPORATION

Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA), a 90% owned subsidiary; Diamond Offshore Drilling, Inc. (NYSE: DO), a 50.4% owned subsidiary; Boardwalk Pipeline Partners, LP (NYSE: BWP), a 61% owned subsidiary; HighMount Exploration & Production LLC, a wholly owned subsidiary; and Loews Hotels, a wholly owned subsidiary.

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 Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as 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 review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website (www.loews.com). 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 Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

               
Loews Corporation and Subsidiaries
Selected Financial Information by Segment
                 
(In millions) Three Months Ended March 31,
          2012     2011
Revenues:
CNA Financial $ 2,369 $ 2,302
Diamond Offshore (a) 796 809
Boardwalk Pipeline 314 311
HighMount 76 104
Loews Hotels 80 80
Investment income and other           77         39  
            3,712         3,645  
Investment gains:
CNA Financial 32 22
Corporate and other                 1  
            32         23  
Total         $ 3,744       $ 3,668  
 
Income (Loss) Before Income Tax:
CNA Financial $ 334 $ 310
Diamond Offshore (a) 252 296
Boardwalk Pipeline 92 82
HighMount (b) (34 ) 29
Loews Hotels 7 3
Investment income, net 76 41
Other (c)           (18 )       (27 )
            709         734  
Investment gains:
CNA Financial 32 22
Corporate and other                 1  
            32         23  
Total         $ 741       $ 757  
 
Net Income (Loss) Attributable to Loews Corporation:
CNA Financial $ 207 $ 187
Diamond Offshore (a) 87 117
Boardwalk Pipeline (d) 35 33
HighMount (b) (22 ) 19
Loews Hotels 4 2
Investment income, net 50 27
Other (c)           (13 )       (18 )
            348         367  
Investment gains:
CNA Financial 19 12
Corporate and other                
            19         12  
Net income attributable to Loews Corporation         $ 367       $ 379  
 
(a)     Includes a $25 million gain ($9 million after tax and noncontrolling interests) for the three months ended March 31, 2012 on the sale of a jack-up rig.
(b) Includes a non-cash impairment charge of $44 million ($28 million after tax) for the three months ended March 31, 2012 related to the carrying value of HighMount's natural gas and oil properties.
(c) Consists primarily of corporate interest expense and other unallocated expenses.
(d) Represents a 61.8% and 65.9% ownership interest in Boardwalk Pipeline for the respective periods.
 
               
Loews Corporation and Subsidiaries
Consolidated Financial Review
                 
(In millions, except per share data) Three Months Ended March 31,
          2012     2011
Revenues:
Insurance premiums $ 1,649 $ 1,615
Net investment income 726 661
Investment gains 32 23
Contract drilling revenues 755 789
Other           582         580  
Total           3,744         3,668  
 
Expenses:
Insurance claims & policyholders’ benefits 1,381 1,364
Contract drilling expenses 397 362
Other (a)           1,225         1,185  
Total           3,003         2,911  
 
Income before income tax 741 757
Income tax expense           (222 )       (195 )
 
Net income 519 562
Amounts attributable to noncontrolling interests           (152 )       (183 )
Net income attributable to Loews Corporation         $ 367       $ 379  
 
 
Diluted income per share attributable to Loews Corporation         $ 0.92       $ 0.92  
 
Weighted diluted number of shares           397.44         413.83  
 
(a)     Includes a non-cash impairment charge of $44 million ($28 million after tax) for the three months ended March 31, 2012 related to the carrying value of HighMount's natural gas and oil properties.
 

Contacts

Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Mary Skafidas, 212-521-2788
Investor Relations
or
Candace Leeds, 212-521-2416
Public Affairs

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Contacts

Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Mary Skafidas, 212-521-2788
Investor Relations
or
Candace Leeds, 212-521-2416
Public Affairs