Note 20. Segments

The Company has five reportable segments comprised of four individual operating subsidiaries, CNA, Diamond Offshore, Boardwalk Pipeline and Loews Hotels & Co; and the Corporate segment. The operations of Consolidated Container since the acquisition date are included in the Corporate segment. 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.

CNA’s business is the sale of property and casualty insurance coverage primarily through a network of independent agents, brokers and managing general underwriters. CNA’s operations also include its long term care business that is in run-off, certain corporate expenses, including interest on CNA’s corporate debt, and certain property and casualty businesses in run-off, including CNA Re and A&EP.

Diamond Offshore provides contract drilling services to the energy industry around the world with a fleet of 17 offshore drilling rigs consisting of four drillships and 13 semisubmersible rigs.

Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas and NGLs. This segment consists of interstate natural gas pipeline systems located in the Gulf Coast region, Oklahoma, Arkansas and the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, natural gas storage facilities in four states and NGL pipelines and storage facilities in Louisiana and Texas, with approximately 14,230 miles of pipeline.

Loews Hotels & Co operates a chain of 24 hotels, 22 of which are in the United States and two of which are in Canada.

The Corporate segment consists of investment income from the Parent Company’s cash and investments, interest expense, other unallocated expenses and the results of Consolidated Container since the acquisition date. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1.

In the following tables certain financial measures are presented to provide information used by management to monitor the Company’s operating performance. These schedules present the reportable segments of the Company and their contribution to the consolidated financial statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.

Statements of Income and Total assets by segment are presented in the following tables.

CNA

Diamond

Boardwalk

Loews

Year Ended December 31, 2018

Financial

Offshore

Pipeline

Hotels & Co

Corporate

Total

(In millions)

Revenues:

Insurance premiums

7,312

Net investment income (loss)

1,817

(10

)

1,817

Investment losses

(57)

Non-insurance warranty revenue (Notes 1 and 13)

1,007

Operating revenues and other

1,085

1,227

753

867

3,987

Total

10,134

1,093

1,227

755

857

14,066

Expenses:

Insurance claims and policyholders’ benefits

5,572

Amortization of deferred acquisition costs

1,335

Non-insurance warranty expense (Notes 1 and 13)

923

Operating expenses and other

1,203

1,196

820

653

956

4,828

Interest

138

123

176

108

574

Total

9,171

1,319

996

682

1,064

13,232

Income (loss) before income tax

963

(226

)

231

(207

)

834

Income tax (expense) benefit

(151)

(28

)

(25

)

(128)

Net income (loss)

812

(196

)

203

(161

)

706

Amounts attributable to noncontrolling interests

(86)

(68

)

(70)

Net income (loss) attributable to Loews Corporation

726

(112

)

135

(161

)

636

December 31, 2018

Total assets

57,123

6,036

9,131

1,812

4,214

78,316


	CNA			Diamond			Boardwalk			Loews
Year Ended December 31, 2017	Financial			Offshore			Pipeline			Hotels & Co			Corporate			Total
(In millions)

Revenues:

Insurance premiums	$	6,988														$	6,988
Net investment income		2,034		$	2								$	146			2,182
Investment gains		122															122
Non-insurance warranty revenue (Notes 1 and 13)		390															390
Operating revenues and other		49			1,498		$	1,325		$	682			499			4,053
Total		9,583			1,500			1,325			682			645			13,735

Expenses:

Insurance claims and policyholders’ benefits		5,310															5,310
Amortization of deferred acquisition costs		1,233															1,233
Non-insurance warranty expense (Notes 1 and 13)		299															299
Operating expenses and other		1,224			1,373			861			589			618			4,665
Interest		203			149			171			28			95			646
Total		8,269			1,522			1,032			617			713			12,153
Income (loss) before income tax		1,314			(22	)		293			65			(68	)		1,582
Income tax (expense) benefit		(419	)		4			232			(1	)		14			(170	)
Net income (loss)		895			(18	)		525			64			(54	)		1,412
Amounts attributable to noncontrolling interests		(94	)		(9	)		(145	)								(248	)
Net income (loss) attributable to Loews Corporation	$	801		$	(27	)	$	380		$	64		$	(54	)	$	1,164


December 31, 2017

Total assets	$	56,539		$	6,251		$	8,972		$	1,558		$	6,266		$	79,586


	CNA			Diamond			Boardwalk			Loews
Year Ended December 31, 2016	Financial			Offshore			Pipeline			Hotels & Co			Corporate			Total
(In millions)

Revenues:

Insurance premiums	$	6,924														$	6,924
Net investment income		1,988		$	1								$	146			2,135
Investment gains (losses)		62			(12	)											50
Non-insurance warranty revenue (Notes 1 and 13)		361															361
Operating revenues and other		49			1,600		$	1,316		$	667			3			3,635
Total		9,384			1,589			1,316			667			149			13,105

Expenses:

Insurance claims and policyholders’ benefits		5,283															5,283
Amortization of deferred acquisition costs		1,235															1,235
Non-insurance warranty expense (Notes 1 and 13)		271															271
Operating expenses and other		1,287			1,970			835			621			131			4,844
Interest		167			90			183			24			72			536
Total		8,243			2,060			1,018			645			203			12,169
Income (loss) before income tax		1,141			(471	)		298			22			(54	)		936
Income tax (expense) benefit		(279	)		111			(61	)		(10	)		19			(220	)
Net income (loss)		862			(360	)		237			12			(35	)		716
Amounts attributable to noncontrolling interests		(88	)		174			(148	)								(62	)
Net income (loss) attributable to Loews Corporation	$	774		$	(186	)	$	89		$	12		$	(35	)	$	654