LOEWS CORPORATION

L
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Loews : Q2 2021 Earnings Results Supplement

08/02/2021 | 06:12am

EARNINGS SUPPLEMENT

August 2021

2021 Q2

Legal Disclaimers

Forward Looking Statements and Risk Factors. The information presented herein is generally available from public sources, including our and our subsidiaries' earnings releases and SEC filings. We urge you to read those documents, and we specifically direct you to the forward-looking statements, disclaimers and risk factors they contain. The primary purpose of this presentation is to help you understand how we view our Company, not to update our filings or correct any forecasts - we categorically do not give guidance. Conditions faced by our various businesses may have changed - for better or worse - since the time periods reflected in this presentation and we disclaim any obligation to update the information presented herein. Any statements made in addressing our results are not meant as an indication of the Company's performance since the time of our latest public filings and disclosures.

There are a number of important risk factors that could cause the actual results for each of the companies discussed in this presentation to differ from those expressed in forward-looking statements contained herein, including those risk factors discussed in detail in annual and quarterly reports and other filings made with the SEC by Loews Corporation and its consolidated subsidiaries: CNA Financial Corporation and Boardwalk Pipelines. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements.

Non-GAAPFinancial Measures. Certain financial information presented herein includes non-GAAP financial measures. Management believes these measures are useful to understanding the key drivers of the Company's operating performance. These non-GAAP measures are reconciled to GAAP numbers herein (or in documents referred to herein).

Where You Can Find More Information. Annual, quarterly and other reports filed with the SEC by Loews Corporation and its consolidated subsidiaries: CNA Financial Corporation and Boardwalk Pipeline Partners, LP contain important additional information about those companies and we urge you to read this presentation together with those filings, copies of which are available, as applicable, at the corporate websites of Loews Corporation at www.loews.comand such subsidiaries at www.cna.comand www.bwpipelines.com, or at the SEC's website at www.sec.gov.

2

2021 Second Quarter - Key Highlights

  • $3.9 billion in cash and investments at the parent company
  • Net income of $754 million, or $2.86 per share
    • Includes a gain of $438 million related to the sale of 47% of Altium Packaging1
    • The increase in quarterly net income excluding the Altium gain is driven by:
  1. CNA Financial Corporation with lower net catastrophe losses, improved net investment income, and higher property and casualty underwriting results before net catastrophe losses and prior year development
  1. Boardwalk Pipelines which contributed positively as revenues from recently completed growth projects increased
    1. Loews Hotels & Co with improved results due to the strong rebound in travel to resort destinations
  • Repurchased 3.9 million Loews shares at an aggregate cost of $219 million

Loews Cash & Investments

June 30,

($ millions)

2021

Portfolio Composition*

Cash & short term investments

$

3,167

Equity securities

621

Limited partnership investments

118

Other

4

Total Cash & Investments

$

3,910

  • Net of receivable and payable positions.
  • Dividends from subsidiaries totaled $92 million
  • $18.1 billion in shareholders' equity / book value per share of $69.59 as of June 30, 2021

Loews press release: http://ir.loews.com/phoenix.zhtml?c=102789&p=irol-financials

All balance sheet data included in this presentation is as of the end of each period presented.

1. Loews deconsolidated Altium Packaging as of the date of the sale and now records Altium Packaging as an equity method investment.

3

Financial Summary

June 30

Three Months

Six Months

(in millions, except per share data)

2021

2020

2021

2020

Revenues1,2,3

$

4,003

$

2,310

$

7,625

$

5,409

Net income (loss)1,2,3,4

754

(835)

1,015

(1,467)

Net income (loss) per share

2.86

(2.96)

3.82

(5.16)

Dividends paid per share

0.0625

0.0625

0.1250

0.1250

Weighted average shares

263.3

281.5

265.6

284.3

Cash & investments

$

3,910

$

3,638

(Parent company)

Total debt

2,300

2,300

(Parent company)

Book value per share

69.59

61.35

Book value per share excluding AOCI

68.33

61.33

Balance sheet data included on this page is as of the end of each period presented.

  1. The 2021 three- and six-months periods include an investment gain of $555 million ($438 million after tax) related to the sale of 47% of Altium Packaging on April 1, 2021. The 2020 three- and six-months periods include an investment loss of $1.2 billion ($957 million after tax) as a result of Diamond Offshore's Chapter 11 bankruptcy filing on April 26, 2020.
  2. Loews deconsolidated Altium Packaging as of the date of the sale and now records Altium Packaging as an equity method investment.
  3. The 2020 three- and six-months periods include financial results of Diamond Offshore prior to its deconsolidation in the second quarter of 2020.
  4. The 2020 six-months period includes impairment charges of $774 million ($408 million after tax and noncontrolling interests) related to the carrying value of four drilling rigs at Diamond Offshore.

4

Net Income (Loss) by Segment

June 30

Three Months

Six Months

($ millions)

2021

2020

2021

2020

CNA

$

330

$

135

$

609

$

80

Boardwalk

47

34

132

99

Hotels

(21)

(72)

(64)

(97)

Corporate1,2

398

(908)

338

(1,073)

Diamond3

-

(24)

-

(476)

Net income (loss) attributable to Loews

$

754

$

(835)

$

1,015

$

(1,467)

  1. Includes investment income from the parent company's cash and investments, interest expense, other unallocated corporate expenses and the financial results of Altium Packaging. The 2021 three- and six-months periods include a net investment gain of $438 million related to the sale of 47% of Altium Packaging on April 1, 2021. The 2020 three- and six-months periods include a net investment loss of $957 million as a result of Diamond Offshore's Chapter 11 bankruptcy filing on April 26, 2020.
  2. Loews deconsolidated Altium Packaging as of the date of the sale and now records Altium Packaging as an equity method investment.
  3. Diamond Offshore was deconsolidated in the second quarter of 2020. The 2020 six-months period includes impairment charges of $408 million related to the carrying value of four drilling rigs at Diamond Offshore.

5

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Disclaimer

Loews Corporation published this content on 02 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2021 10:11:07 UTC.

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