) reported first-quarter 2013 operating net income of 81 cents
per share, which lagged the Zacks Consensus Estimate of 84 cents.
Earnings dropped 14.7% year over year from 95 cents per share.
Including non-cash ceiling test impairment charges of $92 million
and net investment gains of $14 million, Loews reported net
income of $242 million or 62 cents per share, comparing
unfavorably with income of 367 million or 92 cents per share in
the year-ago quarter.
Lower parent company investment income as a result of a weak
performance in the trading portfolio induced lower income.
Loews' total revenue was $3.73 billion in the reported quarter,
down 0.3% year over year. Lower net investment income and
contract drilling revenues, led to the overall decline in top
Total expense in the quarter increased 7.9% year over year to
$3.2 billion. The increase was mainly due to higher insurance
claims & policyholders' benefits, which was partly offset by
lower contract drilling expenses.
posted the highest growth in revenues in the quarter, improving
17.5% year over year to $94 million.
) revenues increased 4.6% over the prior-year period to $2.45
billion in the quarter under review. It reported net income
attributable to Loews Corp. of $212 million, improving 2.4% year
over year. Improved current year non-catastrophe underwriting
results, to some extent offset by lower investment income, higher
catastrophe losses and decreased net favorable prior-year
development attributed to the increase.
The Boardwalk Pipeline
's revenues improved 4.8% to $329 million from the prior-year
level. Earnings improved 7.6% to $99 million in the quarter.
) revenues declined 8% year over year to $732 million. Earnings
decreased 18.7% year over year to $205 million, largely due to
increased rig surveys lowering utilization and thus reducing
's revenues declined 10.5% year over year to $68 million in the
quarter under review. Earnings plunged 40% year over year to $6
million. The company also recorded a ceiling test impairment
charge of $145 million.
Book value as of Mar 31, 2013, was $49.93 per share, up 4.9% from
$48.96 as of Mar 31, 2012.
During the first quarter, Loews spent $92 million to buyback 2.1
Loews remains on track to strengthen its hotel business by
doubling its hotel count within the next three to five years and
expects to triple the net income by 2015. The company's total
number of hotels stands at 21.
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
fleet. Strong balance sheet with low leverage and adequate cash
and strong rating scores are among the positives for Loews.
Loews carries a Zacks Rank #3 (Hold).
FBL Financial Group Inc.
), another multi-line insurer with a Zacks Rank # 1 (Strong Buy),
will report its result on Mar 2 after the market closes.
CNA FINL CORP (CNA): Free Stock Analysis
DIAMOND OFFSHOR (DO): Free Stock Analysis
FBL FINL GRP-A (FFG): Free Stock Analysis
LOEWS CORP (L): Free Stock Analysis Report
To read this article on Zacks.com click here.