Segments

9 Months Ended

Sep. 30, 2021

Segments [Abstract]

Segments

11. Segments

Loews Corporation has four reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co; and the Corporate segment. In the first quarter of 2020, Diamond Offshore was a reportable segment; it was deconsolidated during the second quarter of 2020. The Corporate segment is primarily comprised of Loews Corporation, excluding its subsidiaries, and the operations of Altium Packaging through March 31, 2021. On April 1, 2021, Loews Corporation sold 47% of its interest in Altium Packaging and as a result, Altium Packaging was deconsolidated from Loews Corporation’s consolidated financial results. Subsequent to deconsolidation, Loews Corporation’s investment in Altium Packaging is accounted for under the equity method of accounting, with Equity income (loss) reported in Operating expenses and other on the Consolidated Condensed Statements of Operations in the Corporate segment. For further discussion on the deconsolidations of Diamond Offshore and Altium Packaging see Note 2.

Each of the operating subsidiaries is headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. For additional disclosures regarding the composition of Loews Corporation’s segments, see Note 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The following tables present the reportable segments and their contribution to the Consolidated Condensed Statements of Operations. Amounts presented will not necessarily be the same as those in the individual financial statements of the subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.

Statements of Operations by segment are presented in the following tables.

	CNA			Boardwalk			Loews
Three Months Ended September 30, 2021	Financial			Pipelines			Hotels & Co			Corporate			Total
(In millions)
Revenues:
Insurance premiums	$	2,059											$	2,059
Net investment income (loss)		513								$	(30	)		483
Investment gains		22												22
Non-insurance warranty revenue		357												357
Operating revenues and other		8		$	307		$	134			1			450
Total		2,959			307			134			(29	)		3,371
Expenses:
Insurance claims and policyholders’ benefits		1,632												1,632
Amortization of deferred acquisition costs		368												368
Non-insurance warranty expense		330												330
Operating expenses and other		287			215			109			27			638
Interest		28			40			8			23			99
Total		2,645			255			117			50			3,067
Income (loss) before income tax		314			52			17			(79	)		304
Income tax (expense) benefit		(59	)		(14	)		(4	)		19			(58	)
Net income (loss)		255			38			13			(60	)		246
Amounts attributable to noncontrolling interests		(26	)											(26	)
Net income (loss) attributable to Loews Corporation	$	229		$	38		$	13		$	(60	)	$	220

	CNA			Boardwalk			Loews
Three Months Ended September 30, 2020	Financial			Pipelines			Hotels & Co			Corporate (a)			Total
(In millions)
Revenues:
Insurance premiums	$	1,953											$	1,953
Net investment income		517								$	23			540
Investment gains		46												46
Non-insurance warranty revenue		317												317
Operating revenues and other		7		$	289		$	60			253			609
Total		2,840			289			60			276			3,465
Expenses:
Insurance claims and policyholders’ benefits		1,616												1,616
Amortization of deferred acquisition costs		360												360
Non-insurance warranty expense		293												293
Operating expenses and other		268			219			114			275			876
Interest		52			44			8			33			137
Total		2,589			263			122			308			3,282
Income (loss) before income tax		251			26			(62	)		(32	)		183
Income tax (expense) benefit		(36	)		(6	)		15			6			(21	)
Net income (loss)		215			20			(47	)		(26	)		162
Amounts attributable to noncontrolling interests		(23	)											(23	)
Net income (loss) attributable to Loews Corporation	$	192		$	20		$	(47	)	$	(26	)	$	139

(a) Amounts presented for Corporate include the operating results of Altium Packaging prior to the deconsolidation.

	CNA			Boardwalk			Loews
Nine Months Ended September 30, 2021	Financial			Pipelines			Hotels & Co			Corporate (b)			Total
(In millions)
Revenues:
Insurance premiums	$	6,056											$	6,056
Net investment income		1,608					$	1		$	40			1,649
Investment gains		117									540			657
Non-insurance warranty revenue		1,054												1,054
Operating revenues and other		19		$	991			288			282			1,580
Total		8,854			991			289			862			10,996
Expenses:
Insurance claims and policyholders’ benefits		4,684												4,684
Amortization of deferred acquisition costs		1,084												1,084
Non-insurance warranty expense		973												973
Operating expenses and other		874			641			328			365			2,208
Interest		85			121			25			93			324
Total		7,700			762			353			458			9,273
Income (loss) before income tax		1,154			229			(64	)		404			1,723
Income tax (expense) benefit		(219	)		(59	)		13			(126	)		(391	)
Net income (loss)		935			170			(51	)		278			1,332
Amounts attributable to noncontrolling interests		(97	)											(97	)
Net income (loss) attributable to Loews Corporation	$	838		$	170		$	(51	)	$	278		$	1,235

(b) Amounts presented for Corporate include the operating results of Altium Packaging through March 31, 2021. Beginning April 1, 2021, Altium Packaging is recorded as an equity method investment.

	CNA			Boardwalk			Loews						Diamond
Nine Months Ended September 30, 2020	Financial			Pipelines			Hotels & Co			Corporate (a)			Offshore (c)			Total
(In millions)
Revenues:
Insurance premiums	$	5,672														$	5,672
Net investment income (loss)		1,380								$	(33	)					1,347
Investment losses		(101	)								(1,211	)					(1,312	)
Non-insurance warranty revenue		926															926
Operating revenues and other		20		$	926		$	236			754		$	305			2,241
Total		7,897			926			236			(490	)		305			8,874
Expenses:
Insurance claims and policyholders’ benefits		4,683															4,683
Amortization of deferred acquisition costs		1,046															1,046
Non-insurance warranty expense		859															859
Operating expenses and other		851			633			404			810			1,196			3,894
Interest		114			127			24			96			43			404
Total		7,553			760			428			906			1,239			10,886
Income (loss) before income tax		344			166			(192	)		(1,396	)		(934	)		(2,012	)
Income tax (expense) benefit		(40	)		(43	)		48			293			26			284
Net income (loss)		304			123			(144	)		(1,103	)		(908	)		(1,728	)
Amounts attributable to noncontrolling interests		(32	)											432			400
Net income (loss) attributable to Loews Corporation	$	272		$	123		$	(144	)	$	(1,103	)	$	(476	)	$	(1,328	)

(c) Amounts presented for Diamond Offshore reflect the period prior to the deconsolidation.