Loews Corporation Reports Net Income Of $170 Million For The Second Quarter Of 2015

OREANDA-NEWS. Loews Corporation (NYSE: L) today reported net income for the three months ended June 30, 2015 of \\$170 million, or \\$0.46 per share, compared to \\$116 million, or \\$0.30 per share, in the prior year period. Net income for the six months ended June 30, 2015 was \\$279 million, or \\$0.75 per share, compared to \\$175 million, or \\$0.45 per share, in the prior year period. Net income for the three and six month periods in 2014 included losses from discontinued operations of \\$187 million and \\$393 million reflecting the disposition by Loews of HighMount Exploration & Production, LLC and by CNA Financial Corporation of its annuity and pension deposit business.

Book value per share excluding accumulated other comprehensive income (AOCI) increased to \\$51.77 at June 30, 2015 from \\$50.95 at December 31, 2014 and \\$49.74 at June 30, 2014.

CONSOLIDATED HIGHLIGHTS

Three Months Ended June 30, 2015 Compared to 2014

Income from continuing operations for the three months ended June 30, 2015 was \\$170 million, or \\$0.46 per share, compared to \\$303 million, or \\$0.79 per share, in the 2014 second quarter. Income from continuing operations decreased primarily due to lower earnings at CNA and less favorable performance of the parent company trading portfolio as a result of lower returns on equities and limited partnership investments.

CNA's earnings decreased primarily due to an \\$84 million (\\$49 million after tax and noncontrolling interests) charge related to a retroactive reinsurance agreement to cede its legacy asbestos and environmental pollution liabilities (loss portfolio transfer or LPT). Under retroactive reinsurance accounting, amounts ceded through the LPT in excess of the consideration paid result in a deferred benefit that is recognized in income in proportion to paid recoveries over future periods. The year-over-year earnings comparison was also impacted by a gain of \\$86 million (\\$50 million after tax and noncontrolling interests) in 2014 from a postretirement plan curtailment. The decline in the second quarter of 2015 as compared to the prior year was partially offset by an improvement in net prior year development in CNA's commercial business segment.

Diamond Offshore's earnings were relatively flat as lower rig utilization and increased depreciation and interest expense were offset by significantly reduced contract drilling expenses.

Boardwalk Pipeline's earnings decreased primarily as a result of lower parking and lending revenue and increased depreciation and interest costs. Boardwalk Pipeline recorded \\$12 million of higher transportation revenue due to business interruption insurance proceeds received and new rates taking effect as a result of the Gulf South rate case.

Loews Hotels' earnings increased primarily due to higher income from joint venture properties.

Discontinued operations in 2014 included an impairment charge related to the divested HighMount business.

Six Months Ended June 30, 2015 Compared to 2014

Income from continuing operations for the six months ended June 30, 2015 was \\$279 million, or \\$0.75 per share, compared to \\$568 million, or \\$1.47 per share, in the prior year period. Income from continuing operations decreased primarily due to lower earnings at CNA and Diamond Offshore.

CNA's earnings decreased primarily due to the reasons discussed above in the three month comparison.

Diamond Offshore's earnings decreased primarily due to a \\$158 million (after tax and noncontrolling interests) asset impairment charge taken in the first quarter of 2015 related to the carrying value of eight drilling rigs as well as lower rig utilization and increased depreciation and interest expense.

Boardwalk Pipeline's earnings increase stemmed from the impact in 2014 of a \\$55 million charge (after tax and noncontrolling interests) related to the write off of all capitalized costs associated with the terminated Bluegrass project. Absent this charge, earnings decreased primarily due to the unusually cold and sustained winter of 2014 as compared to the relatively normal 2015 winter season and lower natural gas storage revenues.

Loews Hotels' earnings increased primarily due to higher income from joint venture properties partially offset by higher interest expense.

Discontinued operations in 2014 included impairment charges related to the sale of both CNA's annuity and pension deposit business and HighMount.

SHARE REPURCHASES

At June 30, 2015, there were 365.6 million shares of Loews common stock outstanding. During the three and six months ended June 30, 2015, the Company repurchased 5.8 million and 7.6 million shares of its common stock at an aggregate cost of \\$233 million and \\$305 million. From July 1, 2015 to July 31, 2015, the Company repurchased an additional 3.3 million shares of its common stock at an aggregate cost of \\$127 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 or otherwise.

ABOUT LOEWS CORPORATION

Loews Corporation is a diversified company with three publicly-traded subsidiaries: CNA Financial Corporation (NYSE: CNA), Diamond Offshore Drilling, Inc. (NYSE: DO) and Boardwalk Pipeline Partners, LP (NYSE: BWP); and one wholly owned subsidiary, Loews Hotels & Resorts.