Date of Report (Date of earliest event reported)
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November 3, 2014
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LOEWS CORPORATION
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Delaware
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1-6541
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13-2646102
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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667 Madison Avenue, New York, N.Y.
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10065-8087
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
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(212) 521-2000
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NOT APPLICABLE
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(Former name or former address, if changed since last report.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Not applicable.
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(b)
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Not applicable.
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(c)
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Exhibit:
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Exhibit Reference
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Number
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Exhibit Description
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99.1
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Loews Corporation press release, issued November 3, 2014, providing information on its results of operations for the third quarter of 2014.
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LOEWS CORPORATION
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(Registrant)
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Dated: November 3, 2014
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By:
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/s/ Gary W. Garson
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Gary W. Garson
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Senior Vice President
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General Counsel
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and Secretary
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Contact:
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David B. Edelson
Chief Financial Officer
(212) 521-2439
Mary Skafidas
Investor and Public Relations
(212) 521-2788
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September 30,
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Three Months
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Nine Months
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(In millions, except per share data)
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2014
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2013
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2014
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2013
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Income before net investment gains
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$ | 155 | $ | 317 | $ | 708 | $ | 896 | ||||||||
Net investment gains
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24 | 1 | 39 | 5 | ||||||||||||
Income from continuing operations
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179 | 318 | 747 | 901 | ||||||||||||
Discontinued operations, net (a) (b)
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29 | (36 | ) | (364 | ) | (108 | ) | |||||||||
Net income attributable to Loews Corporation
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$ | 208 | $ | 282 | $ | 383 | $ | 793 | ||||||||
Net income per share:
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Income from continuing operations
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$ | 0.47 | $ | 0.82 | $ | 1.94 | $ | 2.31 | ||||||||
Discontinued operations, net
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0.08 | (0.09 | ) | (0.94 | ) | (0.28 | ) | |||||||||
Net income per share
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$ | 0.55 | $ | 0.73 | $ | 1.00 | $ | 2.03 |
September 30,
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Year Ended
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2014
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2013
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December 31, 2013
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Book value per share
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$ | 52.01 | $ | 49.99 | $ | 50.25 | ||||||
Book value per share excluding AOCI
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50.32 | 49.94 | 49.38 |
(a)
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Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled $137 million for the nine months ended September 30, 2014.
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(b)
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Includes an impairment charge of $189 million related to the sale of CNA’s annuity and pension deposit business for the nine months ended September 30, 2014.
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September 30,
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(In millions)
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Three Months
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Nine Months
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2014
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2013
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2014
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2013
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Revenues:
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CNA Financial
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$ | 2,374 | $ | 2,456 | $ | 7,249 | $ | 7,356 | ||||||||
Diamond Offshore
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737 | 706 | 2,148 | 2,198 | ||||||||||||
Boardwalk Pipeline
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279 | 288 | 931 | 921 | ||||||||||||
Loews Hotels
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126 | 95 | 343 | 290 | ||||||||||||
Investment income (loss) and other
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(30 | ) | 50 | 68 | 59 | |||||||||||
3,486 | 3,595 | 10,739 | 10,824 | |||||||||||||
Investment gains – CNA Financial
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37 | 2 | 65 | 7 | ||||||||||||
Total
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$ | 3,523 | $ | 3,597 | $ | 10,804 | $ | 10,831 | ||||||||
Income (Loss) Before Income Tax:
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CNA Financial (a)
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$ | 258 | $ | 372 | $ | 896 | $ | 989 | ||||||||
Diamond Offshore (b)
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82 | 131 | 362 | 593 | ||||||||||||
Boardwalk Pipeline (c)
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28 | 60 | 105 | 226 | ||||||||||||
Loews Hotels
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- | (2 | ) | 14 | - | |||||||||||
Investment income (loss), net
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(29 | ) | 50 | 68 | 58 | |||||||||||
Other (d)
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(37 | ) | (37 | ) | (111 | ) | (94 | ) | ||||||||
302 | 574 | 1,334 | 1,772 | |||||||||||||
Investment gains – CNA Financial
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37 | 2 | 65 | 7 | ||||||||||||
Total
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$ | 339 | $ | 576 | $ | 1,399 | $ | 1,779 | ||||||||
Net Income (Loss) Attributable to Loews Corporation:
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CNA Financial (a)
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$ | 164 | $ | 244 | $ | 584 | $ | 630 | ||||||||
Diamond Offshore (b)
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25 | 44 | 136 | 213 | ||||||||||||
Boardwalk Pipeline (c)
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8 | 19 | 7 | 74 | ||||||||||||
Loews Hotels
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- | 1 | 8 | 2 | ||||||||||||
Investment income (loss), net
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(18 | ) | 33 | 46 | 39 | |||||||||||
Other (d)
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(24 | ) | (24 | ) | (73 | ) | (62 | ) | ||||||||
155 | 317 | 708 | 896 | |||||||||||||
Investment gains – CNA Financial
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24 | 1 | 39 | 5 | ||||||||||||
Income from continuing operations
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179 | 318 | 747 | 901 | ||||||||||||
Discontinued operations, net (e) (f)
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29 | (36 | ) | (364 | ) | (108 | ) | |||||||||
Net income attributable to Loews Corporation
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$ | 208 | $ | 282 | $ | 383 | $ | 793 |
(a)
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Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014, and an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations at CNA for the nine months ended September 30, 2014.
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(b)
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Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six semisubmersible rigs.
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(c)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project.
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(d)
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Consists primarily of corporate interest expense and other unallocated expenses.
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(e)
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Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled $137 million for the nine months ended September 30, 2014.
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(f)
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Includes an impairment loss of $189 million for the nine months ended September 30, 2014 related to the sale of CNA’s annuity and pension deposit business.
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September 30,
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(In millions, except per share data)
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Three Months
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Nine Months
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2014
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2013
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2014
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2013
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Revenues:
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Insurance premiums
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$ | 1,810 | $ | 1,825 | $ | 5,427 | $ | 5,389 | ||||||||
Net investment income
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451 | 605 | 1,625 | 1,739 | ||||||||||||
Investment gains
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37 | 2 | 65 | 7 | ||||||||||||
Contract drilling revenues
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728 | 691 | 2,063 | 2,136 | ||||||||||||
Other
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497 | 474 | 1,624 | 1,560 | ||||||||||||
Total
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3,523 | 3,597 | 10,804 | 10,831 | ||||||||||||
Expenses:
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Insurance claims and policyholders’ benefits
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1,354 | 1,378 | 4,241 | 4,259 | ||||||||||||
Contract drilling expenses
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400 | 420 | 1,165 | 1,164 | ||||||||||||
Other (a) (b) (c)
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1,430 | 1,223 | 3,999 | 3,629 | ||||||||||||
Total
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3,184 | 3,021 | 9,405 | 9,052 | ||||||||||||
Income before income tax
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339 | 576 | 1,399 | 1,779 | ||||||||||||
Income tax expense
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(99 | ) | (155 | ) | (347 | ) | (478 | ) | ||||||||
Income from continuing operations
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240 | 421 | 1,052 | 1,301 | ||||||||||||
Discontinued operations, net of income tax (d) (e)
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29 | (37 | ) | (384 | ) | (107 | ) | |||||||||
Net income
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269 | 384 | 668 | 1,194 | ||||||||||||
Amounts attributable to noncontrolling interests
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(61 | ) | (102 | ) | (285 | ) | (401 | ) | ||||||||
Net income attributable to Loews Corporation
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$ | 208 | $ | 282 | $ | 383 | $ | 793 | ||||||||
Net income attributable to Loews Corporation
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Income from continuing operations
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$ | 179 | $ | 318 | $ | 747 | $ | 901 | ||||||||
Discontinued operations, net (d) (e)
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29 | (36 | ) | (364 | ) | (108 | ) | |||||||||
Net income
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$ | 208 | $ | 282 | $ | 383 | $ | 793 | ||||||||
Diluted income per share:
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Income from continuing operations
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$ | 0.47 | $ | 0.82 | $ | 1.94 | $ | 2.31 | ||||||||
Discontinued operations, net
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0.08 | (0.09 | ) | (0.94 | ) | (0.28 | ) | |||||||||
Diluted income per share attributable to Loews
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Corporation
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$ | 0.55 | $ | 0.73 | $ | 1.00 | $ | 2.03 | ||||||||
Weighted diluted number of shares
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381.19 | 388.14 | 385.19 | 389.96 |
(a)
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Includes a loss of $31 million (after noncontrolling interests) related to a coinsurance agreement entered into on a separate small block of annuity business outside of Continental Assurance Company for the three and nine months ended September 30, 2014, and an $86 million curtailment gain ($50 million after tax and noncontrolling interests) related to a negative plan amendment and the re-measurement of postretirement benefit obligations at CNA for the nine months ended September 30, 2014.
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(b)
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Includes an impairment charge of $109 million ($55 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2014 related to the carrying value of six semisubmersible rigs.
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(c)
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Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the nine months ended September 30, 2014 to write off all previously capitalized costs incurred related to the Bluegrass project.
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(d)
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Includes a $30 million adjustment for the three months ended September 30, 2014 to reduce the previously recognized impairment charge for the sale of HighMount. After this adjustment, the impairment charge totaled $137 million for the nine months ended September 30, 2014.
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(e)
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Includes an impairment loss of $189 million for the nine months ended September 30, 2014 related to the sale of CNA's annuity and pension deposit business.
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end