Loews Corporation Reports Net Income Of $269 Million For The Second Quarter Of 2013

Loews Corporation Reports Net Income Of $269 Million For The Second Quarter Of
                                     2013

PR Newswire

NEW YORK, July 29, 2013

NEW YORK, July 29, 2013 /PRNewswire/ --Loews Corporation (NYSE: L) today
reported net income for the 2013 second quarter of $269 million, or $0.69 per
share, compared to $56 million, or $0.14 per share, in the 2012 second
quarter. Net income for the second quarter of 2012 includes an after tax
non-cash impairment charge of $142 million at HighMount Exploration &
Production LLC related to the carrying value of its natural gas and oil
properties. Excluding this impairment charge, net income (non-GAAP) for the
second quarter of 2012 was $198 million.

Net income for the six months ended June 30, 2013 was $511 million, or $1.31
per share as compared to $423 million, or $1.06 per share in the prior year
period. Net income for the six months ended June 30, 2013 and 2012 includes
after tax non-cash ceiling test impairment charges of $92 million and $170
million at HighMount. Excluding these non-cash impairment charges, net income
(non-GAAP) for the six months ended June 30, 2013 and 2012 was $603 million
and $593 million.

Book value per share excluding Accumulated other comprehensive income (AOCI)
increased to $49.26 at June 30, 2013 from $47.42 at June 30, 2012 and $47.94
at December 31, 2012.

CONSOLIDATED HIGHLIGHTS

                                             June 30,
(In millions, except per share data)         Three Months    Six Months
                                             2013    2012    2013     2012
Income before net investment gains (losses)  $ 277   $ 186   $ 597    $ 562
and impairment charges
Non-cash ceiling test impairment               (142)   (92)     (170)
charges
Net investment gains (losses)          (8)     12      6        31
Net income attributable to Loews Corporation $ 269   $ 56    $ 511    $ 423
Net income per share                         $ 0.69  $ 0.14  $ 1.31   $ 1.06
                                             June 30,        Year Ended
                                             2013    2012    December 31, 2012
Book value per share                         $ 49.36 $ 49.31 $ 49.67
Book value per share (excluding AOCI)        49.26   47.42   47.94

Three Months Ended June 30, 2013 Compared to 2012

Income before net investment gains (losses) and impairment charges increased
in 2013 as compared to 2012. This increase is primarily due to higher earnings
at CNA and improved investment income at the parent company. These increases
were partially offset by lower earnings at Diamond Offshore Drilling, Inc.

CNA's earnings increased primarily from higher net investment income due to
increased limited partnership results and improved non-catastrophe current
accident year underwriting results. These increases were partially offset by
lower favorable net prior year development and reduced results from the Life &
Group Non-Core segment as a result of unfavorable morbidity in the long term
care business.

Diamond Offshore's earnings decreased primarily as a result of a prior year
gain of $23 million (after tax and noncontrolling interests) from the sale of
five jack-up rigs partially offset by higher dayrates and utilization as well
as lower contract drilling expense in 2013, primarily reflecting reduced
mobilization costs.

Six Months Ended June 30, 2013 Compared to 2012

Income before net investment gains and impairment charges increased in 2013 as
compared to 2012. The increase is primarily due to the reasons discussed in
the three month comparison above for CNA and the parent company. Diamond
Offshore's earnings decreased primarily as a result of a prior year gain of
$32 million (after tax and noncontrolling interests) from the sale of six
jack-up rigs and lower utilization in 2013 partially offset by higher
dayrates.

SHARE REPURCHASES

At June 30, 2013, there were 388.0 million shares of Loews common stock
outstanding. During the three and six months ended June 30, 2013, the Company
purchased 1.9 million and 4.0 million shares of its common stock at an
aggregate cost of $85 million and $177 million. From July 1, 2013 to July 25,
2013, the Company repurchased an additional 0.8 million shares of its common
stock at an aggregate cost of $37 million. Depending on market conditions, the
Company may from time to time purchase shares of its and its subsidiaries'
outstanding common stock in the open market or otherwise.

CONFERENCE CALLS

A conference call to discuss the second quarter results of Loews Corporation
has been scheduled for 11:00 a.m. ET, today. A live webcast of the call will
be available online at the Loews Corporation website at 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
11582722. An online replay will also be available on the Loews Corporation's
website following the call.

A conference call to discuss the second quarter results of CNA has been
scheduled for 10:00 a.m. ET, 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) 427-9376, or for international callers, (719)
457-2645. 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 second quarter results of Boardwalk Pipeline
has been scheduled for 9:00 a.m. ET, today. A live webcast will be available
at www.bwpmlp.com. Those interested in participating in the question and
answer session should dial (866) 515-2908 or for international callers, (617)
399-5122. The conference ID number is 64121897. 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 second quarter results of Diamond Offshore
was held on Thursday, July 25, 2013. An online replay is available on Diamond
Offshore's website at 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 53% 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 at 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
                               June 30,
 (In millions)                 Three Months            Six Months
                               2013        2012        2013        2012
 Revenues:
 CNA Financial                 $      $      $      $     
                               2,507      2,224      4,986      4,593
 Diamond Offshore (a)          760         793         1,492       1,589
 Boardwalk Pipeline            304         277         633         591
 HighMount                     66          69          134         145
 Loews Hotels                  101         94          195         174
 Investment income (loss) and  1           (89)        9           (12)
 other
                               3,739       3,368       7,449       7,080
 Investment gains (losses):
 CNA Financial           (14)        22          10          54
 Corporate and other                (2)                     (2)
                               (14)        20          10          52
 Total                   $      $      $      $     
                               3,725      3,388      7,459      7,132
 Income (Loss) Before Income
 Tax:
 CNA Financial                 $      $      $      $     
                                 292       211       632       545
 Diamond Offshore (a)          257         246         462         498
 Boardwalk Pipeline            67          66          166         158
 HighMount
 Operations              9           5           15          15
 Ceiling test impairment             (222)       (145)       (266)
 charge
 Loews Hotels                 2           11          2           18
 Investment income (loss), net 1           (85)        8           (9)
 Other (b)                     (33)        (38)        (57)        (56)
                               595         194         1,083       903
 Investment gains (losses):
 CNA Financial                 (14)        22          10          54
 Corporate and other                      (2)                     (2)
                               (14)        20          10          52
 Total                   $      $      $      $     
                                 581       214     1,093        955
 Net Income (Loss)
 Attributable to Loews
 Corporation:
 CNA Financial                $      $      $      $     
                                 183       138       395       345
 Diamond Offshore (a)          87          94          169         181
 Boardwalk Pipeline (c)        22          25          55          60
 HighMount
 Operations              5           3           9           9
 Ceiling test impairment             (142)       (92)        (170)
 charge
 Loews Hotels                 1           6           1           10
 Investment income (loss), net 1           (56)        6           (6)
 Other (b)                     (22)        (24)        (38)        (37)
                               277         44          505         392
 Investment gains (losses):
 CNA Financial          (8)         13          6           32
 Corporate and other                 (1)                     (1)
                               (8)         12          6           31
 Net income attributable to    $      $      $      $     
 Loews Corporation               269        56      511       423

 (a) Includes a $51 million gain ($23 million after tax and noncontrolling
     interests) and a $76 million gain ($32 million after tax and
     noncontrolling interests) for the three and six months ended June 30,
     2012 related to the sale of jack-up rigs.
 (b) Consists primarily of corporate interest expense and other unallocated
     expenses.
 (c) Represents a 54.3% , 61.2%, 54.9% and 61.5% ownership interest in
     Boardwalk Pipeline for the respective periods.



 Loews Corporation and Subsidiaries
 Consolidated Financial Review
                                    June 30,
 (In millions, except per share     Three Months          Six Months
 data)
                                    2013      2012        2013      2012
 Revenues:
 Insurance premiums                 $      $        $      $   
                                    1,800     1,668       3,564     3,317
 Net investment income              579       386         1,220     1,112
 Investment gains (losses)          (14)      20          10        52
 Contract drilling revenues         745       726         1,445     1,481
 Other                              615       588         1,220     1,170
 Total                        3,725     3,388       7,459     7,132
 Expenses:
 Insurance claims & policyholders'  1,521     1,348       2,950     2,729
 benefits
 Contract drilling expenses         369       405         744       802
 Other (a)                          1,254     1,421       2,672     2,646
 Total                        3,144     3,174       6,366     6,177
 Income before income tax          581       214         1,093     955
 Income tax expense                 (169)     (16)        (283)     (238)
 Net income                         412       198         810       717
 Amounts attributable to            (143)     (142)       (299)     (294)
 noncontrolling interests
 Net income attributable to Loews   $     $      $     $    
 Corporation                        269      56         511      423
 Diluted income per share           $     $       $     $    
 attributable to Loews Corporation  0.69      0.14        1.31      1.06
 Weighted diluted number of shares  389.62    397.13      390.88    397.30

     Includes non-cash impairment charges of $222 million ($142 million after
     tax) for the three months ended June 30, 2012 and $145 million and $266
 (a) million ($92 million and $170 million after tax) for the six months
     ended June 30, 2013 and 2012 related to the carrying value of
     HighMount's natural gas and oil properties.



SOURCE Loews Corporation

Website: http://www.loews.com
Contact: Peter W. Keegan, Chief Financial Officer, (212) 521-2950, or Mary
Skafidas, Investor and Public Relations, (212) 521-2788
 
Press spacebar to pause and continue. Press esc to stop.