Loews Corporation Reports 2021 Net Income Of $343 Million For The Fourth Quarter And $1.6 Billion For The Full Year

Loews Corporation (NYSE:L) today reported fourth quarter net income of $343 million, or $1.37 per share, compared to net income of $397 million, or $1.45 per share, for the fourth quarter of 2020. For the full year, Loews reported net income of $1.58 billion, or $6.07 per share, compared to a net loss of $931 million, or $3.32 per share, in 2020.

Excluding the 2021 investment gain for Altium Packaging, the 2020 investment loss for Diamond Offshore, and the 2020 operating loss for Diamond Offshore, as detailed on page 4 of this release, full year net income was $1.1 billion and $502 million in 2021 and 2020.

“Loews had a very strong fourth quarter and year, with each of our consolidated subsidiaries making solid progress in 2021. These results are doubly gratifying having been achieved in a period marred by the persistence of the COVID-19 pandemic, global supply chain disruptions, and the return of inflation,” said James S. Tisch, CEO of Loews Corporation. “CNA continues to be a success story with its core income reaching a new record of $1.1 billion for full year 2021. Additionally, Boardwalk favorably contributed to our growth and Loews Hotels continued to rebound from the pandemic’s worst effects.”

Loews Corporation posted solid earnings in the quarter as CNA Financial Corporation, Boardwalk Pipelines, and Loews Hotels & Co all generated strong operating results. Quarterly net income declined year-over-year, however, as CNA had lower net investment gains, lower results from the Life & Group business, and higher net catastrophe losses, all of which were partially offset by higher Property & Casualty non-catastrophe underwriting results. Loews Hotels posted significantly improved year-over-year fourth quarter results largely due to the continuing rebound in leisure travel, especially at resort destinations. Boardwalk Pipelines’ earnings for the quarter decreased compared to the prior year period due to the absence of a bankruptcy settlement received in 2020. The parent company investment portfolio experienced lower net investment income in the quarter compared to the prior year period.

Book value per share was $71.84 at December 31, 2021 compared to $66.34 at December 31, 2020. Book value per share excluding accumulated other comprehensive income (AOCI) increased to $71.09 at December 31, 2021 from $64.18 at December 31, 2020.

Three Months Ended December 31, 2021 Compared to Three Months Ended December 31, 2020

CNA’s results decreased primarily due to lower net investment gains, lower results from the Life & Group business driven by unfavorable morbidity, and higher net catastrophe losses, all of which were partially offset by higher Property & Casualty non-catastrophe underwriting results. CNA’s results were also negatively impacted by adverse development in legacy mass tort exposures and a higher non-economic charge related to the 2010 loss portfolio transfer covering legacy asbestos & environmental pollution liabilities.

Boardwalk Pipelines’ earnings decreased mainly due to the absence of $34 million ($26 million after tax) of proceeds received in 2020 related to a contract cancellation due to a customer bankruptcy. Excluding these proceeds, earnings increased due to higher revenues from growth projects recently placed into service and higher system utilization, partially offset by higher maintenance project costs.

Loews Hotels’ results improved significantly as all hotel properties owned and/or operated by Loews Hotels were open during the fourth quarter and the rebound in leisure travel continued, especially at resort destinations. Although results were significantly better in 2021 compared to 2020, occupancy levels have not reached pre-pandemic levels at many Loews Hotels properties. Results for 2021 benefited from a one-time net gain of $35 million ($26 million after tax) related to the acceleration of government grant payments used to retire outstanding debt.

The parent company investment portfolio produced lower returns from equity investments in 2021.

Year Ended December 31, 2021 Compared to 2020

CNA’s earnings increased primarily due to higher Property & Casualty non-catastrophe underwriting results, lower net catastrophe losses, higher net investment income, and net investment gains as compared to losses in 2020. Life & Group business results benefited from the reduction in long term care claims reserves resulting from the 2021 annual claim reserve review and the absence of the long term care active life premium deficiency charge recorded in 2020.

The parent company investment portfolio posted improved results primarily because limited partnership and equity investments generated higher income in 2021 versus 2020.

The Corporate & other segment includes an investment gain of $438 million (after tax) related to the sale of 47% of Altium Packaging and its deconsolidation in 2021 as compared to an investment loss of $957 million (after tax) related to the bankruptcy filing and deconsolidation of Diamond Offshore in 2020.

All other segment changes from 2020 to 2021 are primarily due to the reasons discussed in the three-month comparison. In addition, Loews’s results for the year ended December 31, 2020 included Diamond Offshore’s operating results through its second quarter deconsolidation, which comprised impairment charges totaling $774 million ($408 million after tax and noncontrolling interests) related to the carrying value of four drilling rigs and operating losses of $160 million ($68 million after tax and noncontrolling interests).

SHARE REPURCHASES

At December 31, 2021, there were 248.4 million shares of Loews common stock outstanding. For the three months and year ended December 31, 2021, the Company repurchased 5.4 million and 21.1 million shares of its common stock at an aggregate cost of $306 million and $1.13 billion, respectively. From January 1, 2022 to February 4, 2022, the Company repurchased an additional 0.2 million shares of its common stock at an aggregate cost of $14 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, in privately negotiated transactions or otherwise.

ABOUT LOEWS CORPORATION

Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality, and packaging industries. For more information please visit www.loews.com.