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L · Loews

29 filings

10-K

L 10-K Annual Reports

Loews - 29 annual reports

Filing record · 2016–202610-K1110-Q338-K83

2025
Loews Annual Report, Year Ended Dec 31, 2025
Loews Corporation reported 2025 net income attributable to Loews Corporation of $1.7 billion, or $7.97 diluted net income per share, compared with $1.4 billion, or $6.41 per diluted share, in 2024. The 2024 result included a $265 million after-tax and noncontrolling interests pension settlement charge at CNA. The increase was driven mainly by CNA, where higher property and casualty underwriting income and net investment income were partly offset by unfavorable prior year reserve development tied to legacy mass tort abuse reserves. Boardwalk Pipelines also improved on higher transportation revenues from re-contracting at higher rates and recently completed growth projects. Loews Hotels & Co declined on an asset impairment charge and higher interest expense. The company's segments are CNA Financial (commercial property and casualty insurance, about 92% owned), Boardwalk Pipelines (natural gas and NGL transportation and storage, wholly owned), Loews Hotels & Co (27 hotels, wholly owned), and the Parent Company, which also holds an approximately 53% stake in Altium Packaging LLC, accounted for under the equity method. Parent Company cash and investments, net of receivables and payables, were $3.9 billion at December 31, 2025, versus $3.3 billion a year earlier. The company received $1.5 billion in cash dividends from subsidiaries in 2025 and spent $806 million on treasury stock purchases. Boardwalk Pipelines has growth projects under executed precedent or long-term firm agreements expected to add 4.2 Bcf/d of capacity at an expected aggregate cost of about $3.3 billion, scheduled through 2030. Of that, $135 million had been spent as of December 31, 2025. Loews also disclosed a Delaware class action tied to its 2018 Boardwalk unit acquisition. The Delaware Supreme Court affirmed in part and reversed in part on December 10, 2025, and the company cannot currently estimate a loss, so no accrual has been recorded.
Feb 10, 2026
2024
Loews Annual Report, Year Ended Dec 31, 2024
Loews Corporation is a holding company with four reportable segments: CNA Financial (commercial property and casualty insurance, approximately 92% owned), Boardwalk Pipelines (natural gas and natural gas liquids transportation and storage, wholly owned), Loews Hotels & Co (a chain of 25 hotels, wholly owned), and a Corporate segment that includes the equity method investment in Altium Packaging (approximately 53% owned). CNA accounted for 81.5% of consolidated total revenue in 2024. For 2024, net income attributable to Loews Corporation was $1.4 billion, or $6.41 diluted net income per share, compared with $1.4 billion, or $6.29, in 2023. Results include a $265 million after-tax and noncontrolling interests pension settlement charge at CNA; excluding that charge, the filing states net income attributable to Loews increased 17%. The improvement was driven by higher net investment income at CNA, improved underlying underwriting results partially offset by higher catastrophe losses ($358 million in 2024 versus $236 million in 2023), growth at Boardwalk Pipelines from re-contracting at higher rates, growth projects and the Bayou Ethane acquisition, and higher parent-company investment income. Loews Hotels & Co's earnings declined, reflecting depreciation and interest costs from the opening of Loews Arlington Hotel and Convention Center. At year-end 2024, total assets were $81.9 billion and total shareholders' equity was $17.1 billion. Parent Company cash and investments, net of receivables and payables, totaled $3.3 billion, and the company repurchased $608 million of treasury stock in 2024. The filing also flags ongoing risks, including CNA's long-term care and claim reserve estimates, social inflation, reinsurance and cyber exposure (including 2024 vendor-related data breaches at CNA), Boardwalk's regulatory and environmental exposure, a Delaware class action related to the 2018 Boardwalk unit acquisition in which the Delaware Supreme Court reversed the original $690 million trial-court award and the remanded issues were decided for defendants in September 2024 with an appeal pending, and Loews Hotels & Co's concentration of hotels in Florida.
Feb 11, 2025
2023
Loews Annual Report, Year Ended Dec 31, 2023
Loews Corporation is a holding company whose subsidiaries operate in commercial property and casualty insurance (CNA Financial, approximately 92% owned), natural gas and natural gas liquids transportation and storage (Boardwalk Pipelines, wholly owned), and hotels (Loews Hotels & Co, wholly owned). It also holds an unconsolidated equity-method investment of approximately 53% in Altium Packaging LLC. For 2023, net income attributable to Loews Corporation was $1,434 million, or $6.29 diluted net income per share, compared with $822 million, or $3.38 per share, in 2022. The increase was driven mainly by improved results at CNA, including higher net investment income, improved underwriting income and lower investment losses, along with higher Boardwalk Pipelines revenues from re-contracting at higher rates and growth projects. CNA reported 2023 total revenue of $13,299 million and net income attributable to Loews of $1,094 million, with a combined ratio of 93.5% for Property & Casualty Operations. Boardwalk Pipelines acquired Bayou Ethane for $355 million in cash in September 2023 and reported EBITDA of $929 million. Loews Hotels & Co operates 25 hotels, and its net income attributable to Loews was $147 million. The Parent Company held cash and investments, net of receivables and payables, of $2.6 billion at year-end 2023, down from $3.2 billion, after $849 million of treasury stock purchases and repayment of $500 million of 2.6% senior notes. Key risks disclosed include CNA's reserve adequacy, particularly for long-tail lines and long-term care, exposure to A&EP and mass tort claims, and cybersecurity incidents, including a March 2021 ransomware attack at CNA. Boardwalk Pipelines faces FERC rate regulation and climate-related regulatory risk, and Loews Hotels & Co faces geographic concentration in Florida. The Delaware class action related to Boardwalk Pipelines' 2018 unit acquisition was remanded to the Trial Court, with a hearing scheduled for April 2024.
Feb 6, 2024
2022
Loews Annual Report, Year Ended Dec 31, 2022
Loews Corporation is a holding company whose principal operating subsidiaries are CNA Financial Corporation (commercial property and casualty insurance, a 90.0% owned subsidiary), Boardwalk Pipeline Partners, LP (natural gas and NGL transportation and storage, wholly owned) and Loews Hotels Holding Corporation (a chain of 26 hotels, wholly owned). Net income attributable to Loews Corporation was $1,012 million, or $4.16 per diluted share, in 2022, compared with $1,578 million, or $6.07 per diluted share, in 2021. The 2021 result included a $555 million pretax gain ($438 million after tax) on the sale of 47% of Altium Packaging. Excluding that gain, net income decreased $128 million, driven by unfavorable limited partnership and common stock results and net losses from fixed income sales at CNA, partially offset by improved underwriting at CNA and a rebound in hotel results. CNA's net income attributable to Loews fell to $802 million from $1,077 million, mainly due to lower net investment income and investment losses. Catastrophe losses declined to $247 million from $397 million, and CNA's Property & Casualty combined ratio was 93.2%. Boardwalk Pipelines' net income rose to $247 million from $235 million on higher revenues from growth projects and re-contracting at higher rates. Loews Hotels & Co swung to $117 million of net income from a $14 million loss, as occupancy and room rates recovered. Parent Company cash and investments were $3.2 billion at year-end, and the company repurchased 12.7 million of its own shares in 2022 for $729 million in treasury stock purchases. The filing also highlights several forward-looking items: the adoption of ASU 2018-12 on January 1, 2023, which the company expects to reduce AOCI by approximately $2.1 billion (after tax and noncontrolling interests) as of the transition date, and a pending Delaware Supreme Court matter involving Boardwalk Pipelines, which reversed a trial court damages award of approximately $690 million and remanded the case for further proceedings.
Feb 7, 2023
2021
Loews Annual Report, Year Ended Dec 31, 2021
Loews Corporation is a holding company with four reportable segments: CNA Financial (an 89.6% owned commercial property and casualty insurer), Boardwalk Pipelines (natural gas and NGL transportation and storage), Loews Hotels & Co (a chain of 26 hotels), and the Corporate segment. CNA accounted for 81.2% of consolidated total revenue in 2021. For 2021, net income attributable to Loews Corporation was $1,578 million, or $6.07 per diluted share, compared with a net loss of $931 million, or $3.32 per share, in 2020. The filing attributes the improvement mainly to better current accident year underwriting results at CNA, higher net investment income, and a rebound in leisure travel at Loews Hotels & Co. Net catastrophe losses at CNA declined to $397 million from $550 million. The 2021 results include a $555 million pretax gain on the April 1, 2021 sale of 47% of Altium Packaging for $420 million in cash. Altium Packaging was deconsolidated and is now accounted for under the equity method, with Loews retaining a 52.7% interest. The company repurchased 21.1 million shares of its common stock in 2021 at an aggregate cost of $1.1 billion. Parent Company cash and investments, net of receivables and payables, totaled $3.4 billion at December 31, 2021. The filing also discloses material contingent exposure at Boardwalk Pipelines. The Delaware Court of Chancery awarded plaintiffs approximately $690 million plus pre-judgment interest of approximately $166 million, and both sides have appealed. Management says it is reasonably possible that a loss has occurred but cannot estimate it, and no liability has been recorded. CNA also disclosed a March 2021 ransomware attack, which the company does not believe will have a material impact.
Feb 8, 2022
2020
Loews Annual Report, Year Ended Dec 31, 2020
Loews Corporation is a holding company whose subsidiaries operate in commercial property and casualty insurance (CNA Financial Corporation, an 89.6% owned subsidiary, accounting for 86.0% of consolidated total revenue in 2020), natural gas and NGL transportation and storage (Boardwalk Pipeline Partners, LP, wholly owned, 10.3% of revenue), hotels (Loews Hotels Holding Corporation, 2.2% of revenue), and rigid plastic packaging (Altium Packaging LLC, 99% owned, 8.1% of revenue). For 2020, Loews reported a net loss attributable to Loews Corporation of $931 million, or $3.32 per diluted share, compared with net income of $932 million, or $3.07 per share, in 2019. The loss was driven primarily by a $1.2 billion ($957 million after tax) investment loss from the deconsolidation of Diamond Offshore after its April 26, 2020 Chapter 11 filing, Diamond Offshore drilling rig impairment charges of $774 million, operating losses at Loews Hotels, lower net investment income, and higher catastrophe losses at CNA. Total revenues were $12.58 billion in 2020 versus $14.93 billion in 2019. The filing shows the COVID-19 pandemic materially affected Loews Hotels & Co, which temporarily suspended operations at most owned and operated hotels beginning in March 2020 and expects to need additional funding from Loews Corporation in 2021. CNA recorded net catastrophe losses of $550 million in 2020, including $195 million related to COVID-19, compared with $179 million in 2019. Boardwalk Pipelines reported net income attributable to Loews of $206 million, and Altium Packaging revenues were $1,022 million. At year end, Loews reported total assets of $80.2 billion, debt of $10.1 billion, and shareholders' equity of $17.9 billion. Parent Company cash and investments, net of receivables and payables, were $3.5 billion. Subsequent events include the February 5, 2021 closing of CNA's retroactive reinsurance transaction with Cavello Bay Reinsurance, covering approximately $690 million of legacy excess workers' compensation liabilities, and Altium Packaging's $1.05 billion seven-year secured term loan issued on February 3, 2021. The company repurchased $923 million of its own stock in 2020 and paid $0.25 per share in dividends.
Feb 9, 2021
2019
Loews Annual Report, Year Ended Dec 31, 2019
Loews Corporation is a holding company with five reportable segments: CNA Financial (89% owned, commercial property and casualty insurance), Diamond Offshore Drilling (53% owned, offshore drilling), Boardwalk Pipelines (wholly owned, natural gas and NGL transportation and storage), Loews Hotels & Co (wholly owned, 26 hotels), and a Corporate segment that includes Altium Packaging (99% owned, rigid plastic packaging). CNA accounted for 72.3% of consolidated total revenue in 2019. For 2019, net income attributable to Loews Corporation was $932 million, or $3.07 per diluted share, compared with $636 million, or $1.99 per share, in 2018. The filing attributes the increase mainly to higher earnings at CNA and Boardwalk Pipelines and higher parent company net investment income, partly offset by lower results at Diamond Offshore and Loews Hotels & Co. Diamond Offshore remains under pressure. It reported a 2019 net loss attributable to Loews of $175 million, its contract drilling backlog fell to $1.6 billion from $2.0 billion a year earlier, and it expects negative cash flows in 2020 and to draw on its credit facilities. Its senior unsecured notes are rated below investment grade, with S&P at CCC+. CNA recorded a $151 million after-tax charge for a premium deficiency on its long term care reserves following the third quarter 2019 gross premium valuation, and Other Insurance Operations posted a core loss of $211 million. Total assets were $82.2 billion and shareholders' equity was $19.1 billion at year end. At the parent level, Loews received $927 million in dividends from subsidiaries in 2019, including a $485 million special dividend from CNA. It spent $1.1 billion repurchasing 21.5 million shares and paid $76 million in common dividends. The filing notes that Parent Company cash and investments, net of receivables and payables, totaled $3.3 billion at year end.
Feb 12, 2020
2018
Loews Annual Report, Year Ended Dec 31, 2018
Loews Corporation's 2018 Form 10-K reports consolidated net income attributable to Loews Corporation of $636 million, or $1.99 per diluted share, compared with $1.16 billion, or $3.45 per share, in 2017. The prior year benefited from a $200 million net benefit from the Tax Act. Excluding that effect, earnings decreased due to lower results at CNA and Diamond Offshore, partially offset by higher earnings at Loews Hotels & Co and Boardwalk Pipeline. Consolidated revenues were $14.07 billion in 2018 versus $13.74 billion in 2017. The company is a holding company with five reportable segments: CNA Financial (commercial property and casualty insurance, 89% owned), Diamond Offshore Drilling (53% owned), Boardwalk Pipeline Partners (wholly owned after Loews acquired the public units for about $1.5 billion in July 2018), Loews Hotels Holding Corporation (wholly owned), and Corporate, which includes Consolidated Container (99% owned, acquired in 2017). Segment net income attributable to Loews in 2018 was $726 million at CNA, $135 million at Boardwalk, $48 million at Loews Hotels, a loss of $112 million at Diamond Offshore, and a corporate loss of $161 million. Financially, Parent Company cash and investments, net of receivables and payables, were $3.1 billion at year-end 2018, down from $4.9 billion. Parent Company liquidity was reduced by the $1.5 billion Boardwalk unit purchase and $1.0 billion of treasury stock purchases. Total assets were $78.3 billion and shareholders' equity was $18.5 billion. Diamond Offshore faces ongoing industry oversupply, with its contract backlog at $2.0 billion as of January 1, 2019, and its credit ratings were downgraded to below investment grade by S&P and Moody's during 2018.
Feb 13, 2019
2017
Loews Annual Report, Year Ended Dec 31, 2017
Loews Corporation (L) reported net income attributable to Loews Corporation of $1.16 billion, or $3.45 per diluted share, for 2017, compared with $654 million, or $1.93 per share, in 2016. The filing states that net income includes a net benefit of $200 million, or $0.59 per share, from the Tax Cut and Jobs Act of 2017; excluding that impact, net income would have been $964 million. Total revenues were $13.74 billion in 2017 versus $13.11 billion in 2016. Loews is a holding company whose operating subsidiaries are CNA Financial (89% owned, commercial property and casualty insurance), Diamond Offshore Drilling (53% owned), Boardwalk Pipeline Partners (51% owned), Loews Hotels Holding Corporation (wholly owned), and Consolidated Container Company (99% owned). The most significant 2017 event was the $1.2 billion acquisition of CCC Acquisition Holdings, Inc. (Consolidated Container), completed May 22, 2017, funded with about $620 million of Parent Company cash and $600 million of debt financing at the subsidiary. Consolidated Container contributed $498 million of revenue from the acquisition date through year-end. Diamond Offshore remained under pressure, recording asset impairment charges of $100 million in 2017 versus $680 million in 2016, and its contract drilling revenues fell to $1.45 billion from $1.53 billion. Parent Company cash and investments totaled $4.9 billion at December 31, 2017. At year-end, total assets were $79.59 billion, debt was $11.53 billion, and shareholders' equity was $19.20 billion. Diamond Offshore's contract backlog was $2.4 billion as of January 1, 2018, and the filing describes ongoing oversupply and weak demand in the offshore drilling market. Boardwalk Pipeline expects lower firm transportation revenues in 2018 as expansion contracts expire.
Feb 15, 2018
2016
Loews Annual Report, Year Ended Dec 31, 2016
Loews Corporation reported net income attributable to Loews Corporation of $654 million, or $1.93 per share, for 2016, compared with $260 million, or $0.72 per share, in 2015. Total revenues were $13.105 billion in 2016 versus $13.415 billion in 2015. The filing attributes the improvement mainly to the absence of the 2015 long term care reserve charge at CNA and lower asset impairment charges at Diamond Offshore, partly offset by lower earnings at Diamond Offshore. Net income for 2016 included a $267 million after-tax asset impairment charge at Diamond Offshore. Loews is a holding company whose results depend on four operating subsidiaries: CNA Financial (90% owned, commercial property and casualty insurance, 71.6% of 2016 consolidated revenue), Diamond Offshore Drilling (53% owned, offshore drilling, 12.1%), Boardwalk Pipeline Partners (51% owned, natural gas and NGL transportation and storage, 10.0%), and Loews Hotels (wholly owned, 5.1%). Diamond Offshore remains under severe pressure, with a 2016 impairment loss of $680 million, a contract backlog of $3.6 billion as of January 1, 2017, and S&P downgrades to BB- in January 2017. The filing states that adverse market conditions are expected to continue for the foreseeable future. At the parent level, Parent Company cash and investments net of receivables and payables totaled $5.0 billion at December 31, 2016, up from $4.3 billion. The company received $780 million in dividends from subsidiaries in 2016, including a $485 million special dividend from CNA, and repurchased $134 million of treasury stock. Total shareholders' equity rose to $18.163 billion, and book value per share was $53.96.
Feb 16, 2017
2015
Loews Annual Report, Year Ended Dec 31, 2015
Loews Corporation reported 2015 consolidated net income attributable to Loews Corporation of $260 million, or $0.72 per share, compared with $591 million, or $1.55 per share, in 2014. Income from continuing operations fell to $260 million from $962 million, driven mainly by a $177 million after-tax reserve charge at CNA for its long term care business and asset impairment charges at Diamond Offshore. Total revenues were $13.415 billion in 2015 versus $14.325 billion in 2014, and book value per share was $51.67 at December 31, 2015, essentially flat with $51.70 a year earlier. Shareholders' equity declined to $17.561 billion from $19.280 billion, largely reflecting $1.265 billion of treasury stock purchases, and the company retired all treasury stock during the year. The company is a holding company whose principal subsidiaries are CNA Financial (90% owned, commercial property and casualty insurance, 67.8% of 2015 consolidated revenue), Diamond Offshore Drilling (53% owned, offshore drilling, 18.1% of revenue), Boardwalk Pipeline Partners (51% owned, natural gas pipelines and storage, 9.3% of revenue) and Loews Hotels (wholly owned, 24 hotels, 4.5% of revenue). Diamond Offshore recorded asset impairment charges totaling $861 million pretax in 2015, and management describes depressed oil prices and a floater rig oversupply that are expected to persist. Boardwalk Pipeline faces contract renewals at lower rates, and CNA recorded a premium deficiency of $296 million in its long term care business. Parent company cash and investments, net of receivables and payables, totaled $4.3 billion at year end, down from $5.1 billion. The company received $816 million in dividends from subsidiaries, including a $485 million special dividend from CNA, and paid $1.3 billion to fund share repurchases. Quarterly dividends remained at $0.0625 per share.
Feb 19, 2016
2014
Loews Annual Report, Year Ended Dec 31, 2014
Loews Corporation is a holding company whose subsidiaries operate in commercial property and casualty insurance (CNA Financial Corporation, 90% owned), offshore oil and gas drilling (Diamond Offshore Drilling, Inc., 52.5% owned), natural gas and natural gas liquids transportation and storage (Boardwalk Pipeline Partners, LP, 53% owned), and hotels (Loews Hotels Holding Corporation, wholly owned). In 2014 income from continuing operations was $962 million, or $2.52 per diluted share, compared with $1.1 billion, or $2.95 per share, in 2013. Net income attributable to Loews Corporation was $591 million, or $1.55 per share, versus $595 million, or $1.53 per share, in 2013, with discontinued operations (the sales of HighMount Exploration & Production and CNA's life insurance subsidiary, Continental Assurance Company) producing losses of $371 million for the year. The decline in continuing earnings was driven mainly by lower results at CNA, Diamond Offshore and Boardwalk Pipeline. Diamond Offshore recorded a $55 million after-tax impairment on six semisubmersible rigs and reported that oil price declines in the second half of 2014 had reduced demand for offshore drilling, with PEMEX and Petrobras signaling contract terminations in early 2015. Boardwalk Pipeline took a $55 million after-tax charge to write off Bluegrass Project costs and reported narrowing basis and time-period price spreads that adversely affected its transportation and storage revenues. Book value per share rose to $51.70 from $50.25, and Parent Company cash and investments were $5.1 billion at year end. The filing also notes that CNA has not yet completed its fourth-quarter 2014 A&EP reserve review, which it expects to finish in the first half of 2015, and that Diamond Offshore's contract backlog as of February 9, 2015 was $6.84 billion, down from $8.19 billion at October 21, 2014.
Feb 24, 2015
2013
Loews Annual Report, Year Ended Dec 31, 2013
Loews Corporation is a holding company whose subsidiaries span commercial property and casualty insurance (CNA Financial Corporation, a 90% owned subsidiary, which accounted for 67.2% of consolidated total revenue in 2013), offshore drilling (Diamond Offshore Drilling, Inc., 50.4% owned), natural gas and NGL transportation and storage (Boardwalk Pipeline Partners, LP, 53% owned), natural gas and oil exploration and production (HighMount Exploration & Production LLC, wholly owned), and hotels (Loews Hotels Holding Corporation, wholly owned). Consolidated revenues were $15.05 billion in 2013 versus $14.55 billion in 2012, and net income attributable to Loews Corporation was $595 million, or $1.53 per diluted share, compared with $568 million, or $1.43 per share, in 2012. Income before ceiling test and goodwill impairment charges, the LPT charge and net investment gains was $1.3 billion in 2013 versus $968 million in 2012. Results were weighed down by non-cash charges at HighMount, which recorded a $584 million goodwill impairment (all of its remaining goodwill) and a $291 million ceiling test impairment in 2013, and by a $398 million after-tax goodwill impairment at the parent level. Book value per share rose to $50.25 from $49.67. Boardwalk Pipeline cut its February 2014 quarterly distribution to $0.10 per unit from $0.5325, citing weaker transportation and storage market conditions, and Diamond Offshore reported softening ultra-deepwater and deepwater dayrates and a backlog of $6.8 billion as of February 5, 2014. At year-end 2013, total debt was $10.85 billion and shareholders' equity was $19.46 billion, and the Parent Company held $4.7 billion of cash and investments net of receivables and payables. Subsequent to year-end, CNA agreed on February 10, 2014 to sell the majority of its run-off annuity and pension deposit business, with an expected approximately $200 million after-tax impairment in the first quarter of 2014.
Feb 24, 2014
2012
Loews Annual Report, Year Ended Dec 31, 2012
Loews Corporation reported consolidated net income attributable to Loews Corporation of $568 million, or $1.43 per diluted share, for 2012, compared with $1.1 billion, or $2.62 per share, in 2011. Net income in 2012 includes catastrophe losses of $243 million (after tax and noncontrolling interests) at CNA, primarily related to Storm Sandy, and after-tax ceiling test impairment charges of $433 million at HighMount on its natural gas and oil properties. Lower results at Diamond Offshore also reduced net income, partially offset by higher earnings at Boardwalk Pipeline and higher parent company investment income. Book value per share rose to $49.67 at December 31, 2012 from $47.33 at December 31, 2011. Loews is a holding company whose principal operating subsidiaries are CNA Financial Corporation (90% owned, commercial property and casualty insurance, 65.6% of 2012 consolidated revenue), Diamond Offshore Drilling (50.4% owned, offshore drilling, 21.1%), Boardwalk Pipeline Partners (55% owned, natural gas and NGL transportation and storage, 8.1%), HighMount Exploration & Production (wholly owned, natural gas and oil, 2.0%), and Loews Hotels (wholly owned, 2.7%). Parent company cash and investments, net of receivables and payables, totaled $3.9 billion at December 31, 2012. The filing notes that Boardwalk Pipeline expects transportation contracts renewed in 2013 to be at lower rates and that Diamond Offshore's contract backlog was approximately $8.6 billion as of February 1, 2013. The filing shows total revenues of $14.55 billion in 2012 versus $14.13 billion in 2011, total assets of $80.02 billion, and total shareholders' equity of $19.46 billion. Loews paid regular quarterly dividends of $0.0625 per share and repurchased 5.6 million shares for $222 million during 2012.
Feb 22, 2013
2011
Loews Annual Report, Year Ended Dec 31, 2011
Loews Corporation reported 2011 consolidated net income attributable to Loews Corporation of $1,064 million, or $2.63 per share, compared with $1,288 million, or $3.07 per share, in 2010. Revenues were $14,127 million (2010: $14,615 million). The decline was driven primarily by lower investment income from limited partnership results at CNA, higher catastrophe losses, lower favorable net prior year development at CNA, and a $104 million after-tax increase in payout annuity reserves. Book value per share rose to $47.49 from $44.51 at year-end 2010. Loews is a holding company whose results depend on five operating subsidiaries: CNA Financial (90% owned), Diamond Offshore Drilling (50.4% owned), HighMount Exploration & Production (wholly owned), Boardwalk Pipeline Partners (61% owned), and Loews Hotels (wholly owned). The filing highlights concentrated exposures and capital commitments. CNA accounted for 63.4% of consolidated revenue in 2011. Diamond Offshore's revenue depends heavily on Petrobras (35% of its 2011 revenue) and OGX (14%), and it has three ultra-deepwater drillships under construction at an aggregate cost of about $1.8 billion. HighMount's natural gas price realizations weakened, and the filing states that if prices stay at their then-current levels through 2012, HighMount would likely incur one or more material non-cash ceiling test impairments. Parent Company cash and investments, net, fell to $3.3 billion from $4.6 billion, largely due to $718 million of share repurchases. The filing also discloses ongoing risk items, including CNA's reserve uncertainty and its $4.0 billion aggregate-limit Loss Portfolio Transfer for asbestos and environmental pollution claims with National Indemnity Company, and two pending tobacco-related lawsuits naming the company, for which Lorillard has agreed to indemnify Loews.
Feb 22, 2012
2010
Loews Annual Report, Year Ended Dec 31, 2010
Loews Corporation, a holding company, reported 2010 consolidated net income attributable to Loews Corporation of $1.3 billion, or $3.07 per diluted share, compared with $564 million, or $1.30 per share, in 2009. Income from continuing operations was $2.0 billion before noncontrolling interests, and the results included a $309 million after-tax charge tied to CNA's Loss Portfolio Transfer, under which substantially all of CNA's legacy asbestos and environmental pollution liabilities were ceded to National Indemnity Company, a Berkshire Hathaway subsidiary, subject to a $4.0 billion aggregate limit. Results also benefited from significantly lower other-than-temporary impairment losses and increased favorable prior year reserve development at CNA, while 2009 included a $660 million after-tax HighMount impairment. The company's five operating subsidiaries are CNA Financial (90% owned, commercial property and casualty insurance, 63.0% of 2010 consolidated revenue), Diamond Offshore Drilling (50.4% owned, offshore drilling, 23.0% of revenue), HighMount Exploration & Production (wholly owned, natural gas, 2.9% of revenue), Boardwalk Pipeline Partners (66% owned, interstate natural gas pipelines, 7.7% of revenue), and Loews Hotels (wholly owned, 2.1% of revenue). Book value per common share rose to $44.51 from $39.76, and shareholders' equity reached $18.45 billion. Parent company cash and investments, net of receivables and payables, totaled $4.6 billion at year-end 2010, up from $3.0 billion, and the company repurchased 10,964,200 shares for $405 million during 2010. Key risks disclosed include CNA's reserve adequacy, A&EP exposure, and credit-rating sensitivity; Diamond Offshore's exposure to the Gulf of Mexico drilling moratorium following the Macondo incident and to customer concentration, with Petrobras and OGX together accounting for about 38% of its 2010 revenue; HighMount's full-cost ceiling test and commodity price volatility; and Boardwalk's expiring contracts and narrowing basis spreads. The company also disclosed that it is a defendant in three tobacco-related lawsuits, which it says are indemnified by Lorillard.
Feb 23, 2011
2009
Loews Annual Report, Year Ended Dec 31, 2009
Loews Corporation is a holding company whose operating subsidiaries span commercial property and casualty insurance (CNA Financial Corporation, 90% owned), offshore drilling (Diamond Offshore Drilling, 50.4% owned), natural gas exploration and production (HighMount, wholly owned), interstate natural gas pipelines (Boardwalk Pipeline Partners, 67% owned), and hotels (Loews Hotels, wholly owned). CNA accounted for 60.0% of consolidated total revenue in 2009, Diamond Offshore for 25.9%, and HighMount for 4.4%. For 2009, consolidated revenues were $14,117 million and income from continuing operations was $566 million, or $1.31 per share, compared with a loss of $182 million, or $0.38 per share, in 2008. Net income attributable to Loews Corporation was $564 million, compared with $4.5 billion in 2008, which included a tax-free non-cash gain of $4.3 billion from the Separation of Lorillard. The 2009 improvement was driven mainly by improved net investment income and net investment gains at CNA, partly offset by a $660 million after-tax non-cash impairment charge at HighMount on its natural gas and oil properties. Book value per share of Loews common stock rose to $39.76 from $30.18. Shareholders' equity was $16,899 million at year-end, and total debt was $9,485 million. The filing notes that results at Boardwalk Pipeline were lower because of lost revenue while remediating pipeline anomalies, and that Loews Hotels posted a net loss of $34 million as revenue per available room fell to $134.60. The filing identifies material risks including the holding company's reliance on subsidiary dividends, CNA's exposure to investment losses and reserve development (particularly asbestos and environmental claims), commodity price volatility affecting HighMount, and Boardwalk Pipeline's need for PHMSA authority to operate expansion pipelines at higher pressures. Loews also disclosed the repurchase of 10,523,800 shares for $348 million during 2009 and a February 2010 sale of 10 million Boardwalk Pipeline common units for about $289 million.
Feb 24, 2010
2008
Loews Annual Report, Year Ended Dec 31, 2008
Loews Corporation is a holding company whose subsidiaries span commercial property and casualty insurance (CNA Financial, 90% owned), offshore drilling (Diamond Offshore, 50.4% owned), natural gas exploration and production (HighMount, wholly owned), interstate natural gas pipelines (Boardwalk Pipeline Partners, 74% owned), and hotels (Loews Hotels, wholly owned). In June 2008, Loews disposed of its entire interest in Lorillard, Inc. through the Separation, which produced a $4.3 billion gain reported as discontinued operations. Net income for 2008 was $4.5 billion, but loss from continuing operations was $182 million, or $0.38 per share, compared with income from continuing operations of $1,587 million, or $2.96 per share, in 2007. The continuing-operations loss was driven by realized investment losses at CNA ($756 million after tax and minority interest for the full year), a $440 million after-tax non-cash impairment of HighMount's natural gas and oil properties, and a $314 million after-tax goodwill impairment at HighMount. Book value per common share fell to $30.17 from $32.40. Diamond Offshore and Boardwalk Pipeline contributed improved operating results, and Diamond Offshore's contract drilling backlog was $10.3 billion as of February 5, 2009. The filing also highlights capital and liquidity pressure: Loews bought $1.25 billion of CNA senior preferred stock in November 2008, and Boardwalk Pipeline's expansion projects require significant additional financing, which Loews' board has committed to provide if external funds are unavailable on acceptable terms. Management expects Loews Hotels' revenue per available room to decrease significantly in the near term, and Moody's and A.M. Best revised CNA's outlook to negative.
Feb 25, 2009
2007
Loews Annual Report, Year Ended Dec 31, 2007
Loews Corporation is a holding company whose subsidiaries operate in commercial property and casualty insurance (CNA Financial Corporation, an 89% owned subsidiary, accounting for 53.8% of consolidated total revenue in 2007), cigarette production (Lorillard, Inc., a wholly owned subsidiary, 22.2% of revenue), offshore drilling (Diamond Offshore Drilling, Inc., 51% owned, 14.2% of revenue), natural gas exploration and production (HighMount Exploration & Production LLC, wholly owned, acquired July 31, 2007 from Dominion Resources for $4.0 billion), natural gas pipelines (Boardwalk Pipeline Partners, LP, 70% owned, 3.7% of revenue), and hotels (Loews Hotels Holding Corporation, wholly owned, 2.1% of revenue). For 2007, consolidated net income was $2,489 million, compared with $2,491 million in 2006, and net income attributable to Loews common stock was $1,956 million, or $3.65 per share. The decline in common-stock income reflected reduced investment income, reduced results at CNA, and a smaller share of Carolina Group earnings after the 2006 sales of Carolina Group stock, partially offset by higher Lorillard results. CNA recorded $428 million (after tax and minority interest) of other-than-temporary impairment losses in 2007. The company announced on December 17, 2007 a plan to dispose of its entire interest in Lorillard in a tax-free manner, which would eliminate the Carolina Group tracking stock and establish Lorillard as an independent public company. The separation is conditioned on, among other things, a favorable IRS ruling and effectiveness of Lorillard's registration statement. In January 2008, Loews sold Bulova Corporation to Citizen Watch Co., Ltd. for approximately $250 million, subject to adjustment, and expects a pretax gain of approximately $105 million. Lorillard faces substantial tobacco litigation, including approximately 3,775 pending cases, and made State Settlement Agreement payments of $945 million in 2007, with 2008 payments expected to be approximately $1,050 million to $1,100 million. Loews' parent company cash and investments, net of receivables and payables, totaled $3.8 billion at December 31, 2007, down from $5.3 billion a year earlier, after the HighMount acquisition and share repurchases.
Feb 27, 2008
2007
Loews Annual Report, Year Ended Feb 23, 2007
Loews Corporation reported consolidated net income of $2,491.3 million for 2006, compared to $1,211.6 million in 2005, and consolidated revenues of $17.9 billion, compared to $16.0 billion. Net income attributable to Loews common stock was $2,074.9 million, or $3.75 per share, versus $960.3 million, or $1.72 per share, in the prior year. Net income attributable to Carolina Group stock was $416.4 million, or $4.46 per share. The increase was primarily driven by improved results at CNA and Diamond Offshore, partially offset by a decrease in the share of Carolina Group earnings attributable to Loews common stock following additional Carolina Group stock sales in 2006. Loews is a holding company whose operating subsidiaries include CNA Financial (89% owned, commercial property and casualty insurance), Lorillard (wholly owned, cigarettes), Boardwalk Pipeline (80% owned, natural gas pipelines), Diamond Offshore (51% owned, offshore drilling), Loews Hotels, and Bulova. Lorillard's tobacco business carries significant risk: the filing describes roughly 2,840 tobacco-related lawsuits pending against it, a February 2007 Louisiana appellate ruling in the Scott case, and a Florida Supreme Court decision in Engle that is not final. Lorillard also faces annual State Settlement Agreement payments that the filing estimates at $925.0 million to $975.0 million in 2007. The filing reports that management concluded internal control over financial reporting was effective as of December 31, 2006, after remediating material weaknesses identified in prior periods. Shareholders' equity rose to $16,501.8 million from $13,092.1 million, and book value per Loews common share was $30.14 at year-end.
Feb 26, 2007
2005
Loews Annual Report, Year Ended Dec 31, 2005
Loews Corporation's 2005 annual report, filed on Form 10-K for the fiscal year ended December 31, 2005, describes a holding company with six operating lines: commercial property and casualty insurance through CNA Financial (91% owned), cigarette production through Lorillard (wholly owned), natural gas pipelines through Boardwalk Pipeline Partners (85% owned), offshore drilling through Diamond Offshore (54% owned), hotels through Loews Hotels, and watches and clocks through Bulova. Consolidated revenues were $16,017.8 million in 2005 versus $15,236.9 million in 2004, and net income was $1,211.6 million versus $1,215.8 million. Net income attributable to Loews common stock was $960.3 million, or $5.16 per diluted share, compared with $5.56 in 2004, and Carolina Group stock earned $251.3 million, or $3.62 per share. The filing is dominated by material weaknesses and restatements. Management concluded that internal control over financial reporting was ineffective as of December 31, 2005, because of weaknesses at CNA relating to discontinued operations acquired in its 1995 merger with The Continental Corporation and to the classification of cash flows. Loews restated 2001 through 2004 and interim periods through September 30, 2005, and the auditor, Deloitte & Touche LLP, issued an adverse opinion on internal control. CNA recorded $991.0 million of loss reserve development in 2005, including $433.0 million tied to commutations of finite reinsurance contracts, and catastrophe losses from Hurricanes Katrina, Rita and Wilma. Investors should weigh these items alongside the disclosed litigation exposure at Lorillard, including an Engle judgment of $16.3 billion that is under appeal and a Scott judgment of $591.0 million plus judicial interest. Lorillard's State Settlement Agreement payments are expected to be $875.0 million to $925.0 million in 2006, and the filing says these obligations will materially adversely affect future cash flows and operating income. Loews' book value per Loews common share rose to $70.93 from $65.56, and the company reported total debt of $5,206.8 million at year-end 2005, down from $6,990.3 million.
Mar 10, 2006
2004-A
Loews Annual Report (Amendment), Year Ended Dec 31, 2004
Loews Corporation's Form 10-K/A (Amendment No. 1) for fiscal year 2004 restates the company's consolidated financial statements as of December 31, 2004 and 2003 and for the years 2004, 2002 and 2003. The restatement corrects the accounting for several reinsurance contracts entered into by CNA Financial Corporation, a 91%-owned subsidiary, primarily with a former affiliate, and CNA's equity accounting for that affiliate. Per the filing, the restatement affects only Items 1, 6, 7, 8 and 15. As restated, consolidated net income for 2004 is $1,235.3 million (previously reported $1,231.3 million), and the net loss for 2003 is $598.6 million (previously reported $610.7 million). Shareholders' equity at December 31, 2004 is $12,156.0 million, compared with $12,183.3 million previously reported. Total assets at December 31, 2004 are $73,634.9 million, compared with $73,749.5 million previously reported. Loews is a holding company whose subsidiaries operate commercial property and casualty insurance (CNA, 91% owned), cigarettes (Lorillard, wholly owned), hotels, offshore drilling (Diamond Offshore, 55% owned), interstate natural gas pipelines (Boardwalk Pipelines, wholly owned, which acquired Gulf South for approximately $1.14 billion in December 2004), and watches and clocks (Bulova). Loews's Carolina Group tracking stock, outstanding at 68,019,435 shares as of February 18, 2005, represents a 39.21% economic interest in the Carolina Group. Net income attributable to Loews common stock was $1,050.8 million, or $5.66 per share, in 2004. The filing states that CNA's further finite reinsurance reviews could lead to additional restatements that could have a material adverse impact on the company's financial condition. Deloitte & Touche LLP's report on the restated statements is dated May 5, 2005.
May 10, 2005
2004
Loews Annual Report, Year Ended Dec 31, 2004
Loews Corporation, a holding company, reported 2004 consolidated net income of $1,231.3 million, compared with a net loss of $610.7 million in 2003. Net income attributable to Loews common stock was $1,046.8 million, or $5.64 per share, versus a loss of $3.91 per share in the prior year. Revenues were $15.2 billion, down from $16.5 billion, reflecting CNA's sales of its Group Benefits and individual life businesses. Results were helped by $116.5 million of after-tax income from Hellespont Shipping's sale of four ultra-large crude oil tankers, and were held back by $162.5 million of after-tax and minority-interest charges at CNA from Hurricanes Charley, Frances, Ivan and Jeanne, and a $352.9 million after-tax and minority-interest loss on the individual life sale. The company's subsidiaries span commercial property and casualty insurance (CNA Financial, 91% owned), cigarettes (Lorillard, wholly owned), hotels, offshore drilling (Diamond Offshore, 55% owned), natural gas pipelines (Boardwalk Pipelines, which acquired Gulf South for about $1.14 billion in December 2004), and watches and clocks (Bulova). Carolina Group tracking stock, which reflects Lorillard, has a 39.21% economic interest in its group. Shareholders' equity rose to $12,183.3 million from $11,054.3 million, and book value per Loews common share was $66.71. The filing also details significant risks. Lorillard faces substantial tobacco litigation, including the Engle punitive damages judgment (vacated on appeal) and the $591.0 million Scott verdict. Its State Settlement Agreement payments were about $830.0 million in 2004 and are estimated at $875.0 million to $925.0 million for 2005. CNA recorded a $80.5 million pretax impairment on loans to a national contractor, and further charges could follow.
Mar 3, 2005
2003-A
Loews Annual Report (Amendment), Year Ended Dec 31, 2003
Loews Corporation (NYSE: L) reported a 2003 net loss of $610.7 million, compared with net income of $912.0 million in 2002, driven mainly by $1,667.4 million (after tax and minority interest) of net unfavorable prior year development at its 90% owned subsidiary CNA Financial Corporation. Consolidated revenues were $16,461.0 million versus $17,456.5 million in 2002. Loss from continuing operations was $666.1 million, or $(4.21) per Loews common share, and Lorillard's net income fell $178.2 million. Book value per Loews common share was $60.92 at year-end 2003, versus $61.68 a year earlier. This is an amended filing (Form 10-K/A, Amendment No. 1) that corrects several typographical and numerical errors. CNA took significant 2003 actions to replenish statutory capital. Loews bought $750.0 million of CNA convertible preferred stock in November 2003 and purchased $345.6 million of CCC surplus notes in February 2004, with further commitments. CNA sold most of its Group Benefits business to Hartford on December 31, 2003, and agreed in February 2004 to sell its individual life insurance business to Swiss Re for approximately $690.0 million, with completion expected by March 31, 2004. Loews also acquired Texas Gas Transmission for approximately $1.05 billion in May 2003. Lorillard's net income declined to $587.6 million, and the company disclosed continuing tobacco litigation, including the Engle judgment that was vacated on appeal. For investors, the key issues are the size of CNA's reserve charges, the capital support Loews has committed to CNA, the ongoing cost of tobacco settlement payments, and the pending RJR and B&W combination, which the filing says could further concentrate the U.S. tobacco market.
Mar 4, 2004
2003
Loews Annual Report, Year Ended Dec 31, 2003
Loews Corporation, a holding company, reported a 2003 net loss of $610.7 million, driven primarily by unfavorable net prior year reserve development at its 90% owned subsidiary CNA Financial Corporation. Total revenues were $16,461.0 million versus $17,456.5 million in 2002. The loss from continuing operations was $666.1 million, compared with income of $978.6 million in 2002. Loss from continuing operations attributable to Loews common stock was $781.3 million, or $4.21 per share. CNA recorded 2003 unfavorable net prior year development of $1,667.4 million after tax and minority interest, plus a $356.9 million increase in reinsurance and insurance receivable bad debt reserves. CNA also launched a strategic review that led to a capital plan, the sale of most of its Group Benefits business to Hartford in December 2003, and a February 2004 agreement to sell its individual life business to Swiss Re for approximately $690.0 million. Loews committed additional capital support to CNA, including $750.0 million of CNA convertible preferred stock purchased in November 2003. Lorillard, the wholly owned cigarette subsidiary, remains a major contributor, accounting for 19.96% of consolidated revenue in 2003. Lorillard's revenues declined $548.4 million, or 14.3%, and its net income fell $178.2 million, or 23.3%. The company also faces substantial tobacco litigation, including the Engle punitive damages judgment that was vacated on appeal and a U.S. government RICO action seeking $280.0 billion in disgorgement. The filing also describes ongoing State Settlement Agreement payments, which Lorillard made at approximately $800.0 million in 2003. Other operations include Diamond Offshore (54% owned), Loews Hotels, Texas Gas Transmission (acquired May 2003 for approximately $1.05 billion), and Bulova (97% owned). Carolina Group tracking stock, outstanding at 57,965,000 shares, reflects economic performance of Lorillard and related liabilities. Carolina Group stock produced net income of $115.2 million, or $2.76 per share, in 2003. Shareholders' equity was $11,054.3 million, and book value per Loews common share was $60.92.
Mar 1, 2004
2002
Loews Annual Report, Year Ended Dec 31, 2002
Loews Corporation reported consolidated net income of $912.0 million for 2002, compared with a net loss of $587.1 million in 2001, and revenues of $17,495.4 million versus $18,769.6 million in 2001. Results include a $31.0 million loss from discontinued operations at CNA and a $39.6 million charge for accounting changes related to goodwill. Consolidated net operating income, excluding net investment gains (losses), discontinued operations and accounting changes, was $1,099.3 million, compared with a loss of $1,333.1 million in 2001. Shareholders' equity rose to $11,235.2 million from $9,429.3 million, and book value per Loews common share increased to $61.68 from $49.24, driven largely by the February 2002 sale of 40,250,000 Carolina Group shares for net proceeds of $1.1 billion. The company is a holding company whose main businesses are CNA Financial Corporation (90% owned, property and casualty and life insurance; 70.23% of 2002 consolidated revenue), Lorillard, Inc. (wholly owned cigarette maker; 22.18% of revenue), Loews Hotels, Diamond Offshore Drilling (54% owned) and Bulova Corporation (97% owned). The filing describes substantial tobacco litigation against Lorillard, including a $16.3 billion punitive damage judgment in Engle v. R.J. Reynolds that is under appeal, and ongoing State Settlement Agreement payments that the Company says will materially adversely affect its results and cash flows. CNA reported a combined property and casualty ratio of 109.6% on a GAAP basis for 2002, and recorded impairment losses of $890.0 million in 2002. The 2001 and 2000 financial statements were restated to reflect an adjustment for CNA's life settlement contract accounting, following an SEC review. The filing also notes uncertainty around CNA's reserves, including asbestos and environmental claims, and a contractor exposure in which CNA may face surety losses of up to $200.0 million if the contractor's restructuring fails.
Mar 27, 2003
2001
Loews Annual Report, Year Ended Dec 31, 2001
Loews Corporation reported a 2001 net loss of $589.1 million, or $3.02 per share, compared with net income of $1,876.7 million, or $9.44 per share, in 2000. Management attributes the loss primarily to CNA's second quarter reserve charge of $1.8 billion, World Trade Center related losses of $264.6 million at CNA, fourth quarter restructuring and other charges at CNA, and a $121.0 million after-tax charge at Lorillard related to the Engle class agreement. Revenues fell to $19.4 billion from $21.3 billion, mainly on lower CNA property-casualty earned premiums. Book value per share declined to $50.39 from $56.74. The filing describes a diversified holding company whose main operations are CNA Financial (89% owned, property-casualty and life insurance, 68.00% of 2001 consolidated revenue), Lorillard (cigarettes, 100% owned, 23.32% of revenue), Loews Hotels, Diamond Offshore (53% owned) and Bulova (97% owned). CNA took $2.6 billion in pretax-and-related second quarter reserve strengthening charges, of which $1.2 billion related to asbestos, pollution and other mass tort claims. CNA's 2001 combined ratio, including these items, was 162.3% for the property-casualty segment. The filing also discloses that CNA's Continental Casualty Company pool is in a negative earned surplus position, and that CNA's commercial paper rating was lowered and Moody's downgraded CNA's senior debt to Baa2. On February 6, 2002, Loews issued 40,250,000 shares of Carolina Group tracking stock for net proceeds of $1,070.5 million. The Carolina Group tracks Lorillard and carries $2.5 billion of intergroup debt, with holders holding an approximately 23.17% economic interest. Lorillard faces extensive tobacco litigation, including the Engle class judgment with $16.3 billion in punitive damages awarded against Lorillard, and the Master Settlement Agreement payments, which Lorillard expects to cost more than $1.0 billion annually.
Mar 8, 2002
1994
Loews Annual Report, Year Ended Dec 31, 1994
Loews Corporation's 1994 Form 10-K reports consolidated revenues of $13.52 billion and net income of $267.8 million ($4.45 per share), down from $594.1 million ($9.27 per share) in 1993. Shareholders' equity fell to $5.41 billion from $6.13 billion, and total assets rose to $50.34 billion from $45.85 billion. Results were pressured by realized investment losses of $447.0 million pre-tax in 1994 (versus gains of $862.8 million in 1993) as rising interest rates reduced bond values, and by a property and casualty underwriting loss of $1.2 billion, with a combined ratio of 115.0 (versus 127.3 in 1993). CNA Financial Corporation, an 84% owned subsidiary and the largest contributor to revenue at 81.27%, agreed in the fourth quarter of 1994 to acquire The Continental Corporation for approximately $1.1 billion, or $20 a share, in a cash merger expected to close in the second quarter of 1995. The filing also describes significant contingent liabilities, including the Fibreboard asbestos litigation and Global Settlement, which awaited court approval, and multiple tobacco-related lawsuits and government investigations involving Lorillard, the company's cigarette subsidiary. Other operations include Lorillard (cigarettes, 14.29% of revenue), Loews Hotels (14 hotels), Bulova (watches), and Diamond Offshore Drilling (38 mobile offshore rigs and 10 land rigs, with depressed industry conditions expected to persist in 1995). Loews also holds approximately 18% of CBS Inc. and reported that its drilling and watch businesses faced continued adverse market conditions.
Mar 27, 1995
1993
Loews Annual Report, Year Ended Dec 31, 1993
Loews Corporation, a holding company, reported 1993 net income of $594.1 million, or $9.27 per share, compared with net income of $122.6 million in 1992, which included a $144.7 million cumulative effect of accounting changes and a loss before accounting changes of $22.1 million. Total revenues were $13.69 billion, essentially flat with 1992. Shareholders' equity rose to $6.13 billion from $5.53 billion, and book value per share was $99.59 compared with $84.90 a year earlier. The company's largest subsidiary, CNA Financial Corporation (83% owned), reported an operating loss of $251.7 million net of tax for 1993, compared with $897.8 million in 1992. The results were weighed down by a $500 million third-quarter addition to asbestos claim reserves tied to the Fibreboard litigation, which resulted in a $270.1 million after-tax charge. CNA reported that a global settlement with Fibreboard was executed in December 1993 but remains subject to court approval. The other segments are mixed. Lorillard, the wholly owned cigarette unit, saw revenues fall 12.7% to $1.91 billion (the filing states $276.5 million of decline) after Lorillard cut premium brand prices about 25% in August 1993, and the filing says the new pricing will substantially reduce its revenues, income and cash flow. Lorillard faces 43 pending smoking-and-health cases and a Justice Department antitrust civil investigative demand. Diamond Offshore Drilling, a wholly owned subsidiary, saw revenues rise to $288.3 million and reported a net loss of $16.6 million, though the filing says oversupply and low crude prices continue to depress its industry. Management states that the outcome of pending litigation should not have a material adverse effect on the Company. During 1993 Loews repurchased 3,574,000 shares for about $336.3 million, redeemed about $368 million of higher-coupon debt, issued $700 million of new senior notes, and redeemed its zero coupon convertible notes for about $411 million. Long-term debt rose to $2.20 billion from $1.76 billion. The company paid $1.00 per share in dividends.
Mar 25, 1994