) reported second quarter 2013 operating net income of 71 cents
per share, which lagged the Zacks Consensus Estimate of 73 cents.
Earnings surged 51% year over year from 47 cents per share.
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Including net investment losses of $8 million, Loews reported net
income of $269 million or 69 cents per share, comparing favorably
with income of $56 million or 14 cents per share in the year-ago
Higher parent company investment income drove the improvement.
However, lower earnings at Diamond Offshore limited the upside.
Loews' total revenue was $3.73 billion in the reported quarter,
up nearly 10% year over year. An increase in Insurance premiums,
net investment income as well as contract drilling revenues aided
Total expense in the quarter inched down 0.9% year over year to
$3.1 billion. The decrease was mainly due to lower contract
During the reported quarter,
) revenues increased 12.7% over the prior-year period to $2.51
billion in the quarter under review. It reported net income
attributable to Loews Corp. of $183 million, improving 32.6% year
over year. Increased net investment income attributable to
increased limited partnership results along with better
non-catastrophe current accident year underwriting results drove
the upside. However, these positives were to some extent offset
by lower favorable net prior-year development and weak results
from the Life & Group Non-Core segment because of unfavorable
morbidity in the long-term care business.
The Boardwalk Pipeline's revenues improved 9.7% to $304 million
from the prior-year level. Earnings declined 12% to $22 million
in the quarter.
Loews Hotels' revenues improved 7.4% year over year to $101
million. Earnings plunged 83% year over year to $1 million.
) revenues declined 4.2% year over year to $760 million. Earnings
decreased 7.4% year over year to $87 million. In the year-ago
quarter, earnings benefited from the sale of five jack-up rigs.
However, the reported quarter experienced higher day rates, and
utilization as well as lower contract drilling expense.
HighMount's revenues declined 4.3% year over year to $66 million
in the quarter under review. Earnings surged 67% year over year
to $5 million.
Book value as of Jun 30, 2013 was $49.26 per share, up 3.9% from
$47.42 as of Jun 30, 2012.
During the second quarter, Loews spent $85 million to buy back
1.9 million shares. Thus, the company bought back 4 million
shares for $177 million in the first half of 2013. Subsequent to
the second quarter, Loews repurchased another 0.8 million shares
for $37 million.
Loews remains on track to strengthen its hotel business by
doubling its hotel count within the next two to four years and
expects to triple the net income by 2015. Strong balance sheet
with low leverage, adequate cash and strong rating scores are
among the positives for Loews.
It also forayed into the natural gas liquids business with the
acquisition of Louisiana Midstream. The acquisitions of HP
Storage and Louisiana Midstream support its strategy to focus on
diversification, which would help the company become less
dependent on its base gas transportation business.
Moreover, Diamond Offshore continues to work on improving its
Loews carries a Zacks Rank #4 (Sell).
), another multi-line insurer with a Zacks Rank # 1 (Strong Buy),
will report its result on Aug 1 before the market opens.