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Loews Corporation Reports Net Income For 2012

Stocks in this article: L

Loews Corporation (NYSE:L) today reported net income for 2012 of $568 million or $1.43 per share as compared to $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 Financial Corporation primarily related to Storm Sandy and after tax ceiling test impairment charges of $433 million at HighMount Exploration & Production LLC related to the carrying value of its natural gas and oil properties reflecting declines in natural gas and NGL prices. Excluding these charges, net income (non-GAAP), as adjusted, in 2012 was $1.2 billion.

For the three months ended December 31, 2012, Loews reported a net loss of $32 million or $0.08 per share as compared to net income of $271 million, or $0.68 per share, in the 2011 fourth quarter. Excluding catastrophe losses of $171 million (after tax and noncontrolling interests) at CNA and the after tax ceiling test impairment charge of $97 million at HighMount, net income (non-GAAP), as adjusted, in the 2012 fourth quarter was $236 million.

Book value per share increased to $49.67 at December 31, 2012 from $47.33 at December 31, 2011.



(In millions, except per share data)         December 31,
Three Months       Years Ended
        2012     2011       2012     2011

Income before net investment gains (losses) and

    ceiling test impairment charges









Non-cash ceiling test impairment charges (97 ) (433 )
Net investment gains (losses)           (2 )       (40 )         33         (31 )
Net income (loss) attributable to Loews Corporation         $ (32 )     $ 271         $ 568       $ 1,062  
Net income (loss) per share         $ (0.08 )     $ 0.68         $ 1.43       $ 2.62  
Book value per share at:
December 31, 2012 $ 49.67
December 31, 2011           47.33                      

Three Months Ended December 31, 2012 Compared to 2011

Income before net investment losses and ceiling test impairment charges in 2012 was $67 million, as compared to $311 million in the 2011 fourth quarter. The decrease is due primarily to lower results at CNA and Diamond Offshore Drilling, Inc. as well as decreased parent company investment income as a result of lower performance of equity investments. These decreases were partially offset by higher earnings at Boardwalk Pipeline Partners, L.P.

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