°ϲʿ¼

°ϲʿ¼ Reports Net Income Of $109 Million For The First Quarter Of 2015

NEW YORK, May 4, 2015 /PRNewswire/ -- °ϲʿ¼ (NYSE: L) today reported net income for the three months ended March 31, 2015 of $109 million, or $0.29 per share, compared to $59 million, or $0.15 per share, in the prior year period. Net income in 2014 included a loss from discontinued operations of $206 million reflecting the disposition of both HighMount Exploration & Production, LLC and CNA Financial Corporation's annuity and pension deposit business.

Income from continuing operations for the three months ended March 31, 2015 was $109 million, or $0.29 per share, compared to $265 million, or $0.68 per share, in the 2014 first quarter. Excluding asset impairment charges of $158 million (after tax and noncontrolling interests) in 2015 at Diamond Offshore Drilling, Inc. and $55 million (after tax and noncontrolling interests) in 2014 at Boardwalk Pipeline Partners, LP, income from continuing operations, as adjusted, in 2015 was $267 million as compared to $320 million in the prior year period.

Book value per share excluding accumulated other comprehensive income (AOCI) increased to $51.18 at March 31, 2015 from $50.95 at December 31, 2014 and $49.43 at March 31, 2014.

CONSOLIDATED HIGHLIGHTS

                                                 Three Months Ended
                                                 March 31,
                                                 ------------------

    (In millions, except per share data)                2015        2014
    -----------------------------------                 ----        ----


    Income before net investment gains                  $101        $241

          Net investment gains                             8          24
          --------------------                           ---         ---

          Income from continuing operations              109         265

          Discontinued operations, net                            (206)
          ----------------------------                             ----

    Net income attributable to °ϲʿ¼        $109         $59
    ============================================        ====         ===

    Net income per share:

        Income from continuing operations              $0.29       $0.68

        Discontinued operations, net                             (0.53)
        ----------------------------                              -----

    Net income per share                               $0.29       $0.15
    ====================                               =====       =====

                                         March 31,          Year Ended
                                                        December 31, 2014
                                                        -----------------

                                                   2015               2014
                                                   ----               ----

     Book value per share                        $51.98             $50.89 $51.70

     Book value per share excluding AOCI          51.18              49.43  50.95
     ===================================          =====              =====  =====

Income from continuing operations decreased primarily due to lower earnings at Diamond Offshore and less favorable performance of the parent company trading portfolio.

CNA's earnings increased primarily due to higher investment income driven by limited partnerships and improved current accident year underwriting results including lower catastrophe losses, partially offset by lower realized investment gains.

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

°ϲʿ¼ Hotels' earnings increased primarily due to improved performance of recently acquired properties and higher equity income from joint venture properties.

Discontinued operations in 2014 included an impairment charge related to the sale of CNA's annuity and pension deposit business and a ceiling test impairment charge at HighMount.

SHARE REPURCHASES

At March 31, 2015, there were 371.4 million shares of °ϲʿ¼ common stock outstanding. During the first quarter of 2015, the Company repurchased 1.8 million shares of its common stock at an aggregate cost of $71 million. During the first quarter of 2015, the Company also purchased 0.9 million shares of Diamond Offshore's common stock at an aggregate cost of $24 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.

CONFERENCE CALLS

A conference call to discuss the first quarter results of °ϲʿ¼ has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be available online at the °ϲʿ¼ website (). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 20554874. An online replay will also be available on the °ϲʿ¼'s website following the call.

A conference call to discuss the first quarter results of CNA has been scheduled for today at 10:00 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (888) 551-9020, or for international callers, (719) 457-2638.

A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (855) 793-3255 or for international callers, (631) 485-4925. The conference ID number is 21218946.

A conference call to discuss the first quarter results of Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (800) 247-9979, or for international callers, (973) 321-1100. The conference ID number is 22913137.

°ϲʿ¼ LOEWS CORPORATION

°ϲʿ¼ 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, °ϲʿ¼ Hotels & Resorts. For more information please visit .

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.


     °ϲʿ¼ and Subsidiaries

     Selected Financial Information



                                                Three Months
                                               Ended March 31,
                                              ----------------

     (In millions)                                               2015   2014
     ------------                                                ----   ----

     Revenues:

        CNA Financial                                          $2,342 $2,421

        Diamond Offshore                                          627    710

        Boardwalk Pipeline                                        330    357

        °ϲʿ¼ Hotels                                              139    105

        Investment income and other                                30     53
     ---------------------------                                  ---    ---

                                                                      3,468  3,646

        Investment gains - CNA Financial                           10     42
     --------------------------------

     Total                                                     $3,478 $3,688
     =====                                                     ====== ======

     Income (Loss) Before Income Tax:

        CNA Financial                                            $304   $259

        Diamond Offshore (a)                                    (287)   168

        Boardwalk Pipeline (b)                                     77     23

        °ϲʿ¼ Hotels                                               10      5

        Investment income, net                                     29     51

        Other (c)                                                (38)  (34)
     --------

                                                                         95    472

        Investment gains - CNA Financial                           10     42
     --------------------------------

     Total                                                       $105   $514
     =====                                                       ====   ====

      Net Income (Loss) Attributable to °ϲʿ¼
      Corporation:

        CNA Financial                                            $202   $176

        Diamond Offshore (a)                                    (126)    69

        Boardwalk Pipeline (b)                                     25   (18)

        °ϲʿ¼ Hotels                                                5      3

        Investment income, net                                     19     34

        Other (c)                                                (24)  (23)
     --------                                                     ---    ---

                                                                        101    241

        Investment gains - CNA Financial                            8     24
     --------------------------------                             ---    ---

        Income from continuing operations                         109    265

        Discontinued operations, net (d)                              (206)
     -------------------------------

        Net income attributable to °ϲʿ¼
         Corporation                                             $109    $59
     ===================================                         ====    ===


              (a)             Includes an
                               asset
                               impairment
                               charge of
                               $359 million
                               ($158
                               million
                               after tax
                               and
                               noncontrolling
                               interests)
                               for the
                               three months
                               ended March
                               31, 2015
                               related to
                               the carrying
                               value of
                               eight
                               drilling
                               rigs.

              (b)             Includes a
                               loss of $94
                               million ($55
                               million
                               after tax
                               and
                               noncontrolling
                               interests)
                               for the
                               three months
                               ended March
                               31, 2014 to
                               write off
                               all
                               capitalized
                               costs
                               associated
                               with the
                               Bluegrass
                               project.

              (c)             Consists
                               primarily of
                               corporate
                               interest
                               expense and
                               other
                               unallocated
                               expenses.

              (d)             See table on
                               page six for
                               a summary of
                               items
                               comprising
                               discontinued
                               operations
                               for 2014.


     °ϲʿ¼ and Subsidiaries

     Consolidated Financial Review



                                                Three Months Ended
                                                    March 31,
                                               ------------------

      (In millions,
      except per share
      data)                               2015                  2014
     -----------------                    ----                  ----

     Revenues:

        Insurance premiums              $1,687                $1,806

        Net investment
         income                            588                   577

        Investment gains                    10                    42

        Contract drilling
         revenues                          600                   685

        Other                              593                   578
                                           ---                   ---

     Total                               3,478                 3,688
     -----                               -----                 -----


     Expenses:

        Insurance claims &
         policyholders'
         benefits                        1,339                 1,446

        Contract drilling
         expenses                          351                   370

        Other (a) (b)                    1,683                 1,358
     ------------                        -----                 -----

     Total                               3,373                 3,174
     -----                               -----                 -----


      Income before
      income tax                           105                   514

     Income tax expense                   (56)                (103)
     ------------------                    ---                  ----

      Income from
      continuing
      operations                            49                   411

      Discontinued
      operations, net of
      income tax                                              (227)
     -------------------                                       ----

     Net income                             49                   184

      Amounts
      attributable to
      noncontrolling
      interests                             60                 (125)
                                           ---                  ----

      Net income
      attributable to
      °ϲʿ¼                   $109                   $59
     ==================                   ====                   ===


      Net income
      attributable to
      °ϲʿ¼:

        Income from
         continuing
         operations                       $109                  $265

        Discontinued
         operations, net
         (c)                                                  (206)
     ---------------                                           ----

        Net income                        $109                   $59
     ==========                           ====                   ===


      Diluted income per
      share:

        Income from
         continuing
         operations                      $0.29                 $0.68

        Discontinued
         operations, net                                     (0.53)
     ---------------                                          -----

        Diluted income per
         share attributable
         to °ϲʿ¼
         Corporation                     $0.29                 $0.15
     ===================                 =====                 =====


      Weighted diluted
      number of shares                  373.19                388.07
     =================                  ======                ======

              (a)             Includes an
                               asset
                               impairment
                               charge of
                               $359 million
                               ($158
                               million
                               after tax
                               and
                               noncontrolling
                               interests)
                               for the
                               three months
                               ended March
                               31, 2015
                               related to
                               the carrying
                               value of
                               eight
                               drilling
                               rigs.

              (b)             Includes a
                               loss of $94
                               million ($55
                               million
                               after tax
                               and
                               noncontrolling
                               interests)
                               for the
                               three months
                               ended March
                               31, 2014 to
                               write off
                               all
                               capitalized
                               costs
                               associated
                               with the
                               Bluegrass
                               project.

              (c)             See table on
                               page six for
                               a summary of
                               items
                               comprising
                               discontinued
                               operations
                               for 2014.

     °ϲʿ¼ and Subsidiaries

     Discontinued Operations Review



                                                                               Three Months Ended

     (In millions)                                       March 31, 2014
     ------------                                        --------------

     CNA Financial

        Continental Assurance Company (?CAC?) operations                    $7

        Impairment loss on sale of CAC                                   (193)
     ------------------------------                                       ----

     CNA Financial - Discontinued operations, net                        (186)
     --------------------------------------------                         ----


     HighMount

        Operations                                                         (1)

        Ceiling test impairment                                                                (19)

     HighMount - Discontinued operations, net                             (20)
     ----------------------------------------                              ---


     Discontinued operations, net                                       $(206)
     ============================                                        =====

SOURCE °ϲʿ¼

SOURCE: °ϲʿ¼

°ϲʿ¼

°ϲʿ¼ Reports Net Income Of $109 Million For The First Quarter Of 2015

PR Newswire

NEW YORK, May 4, 2015 /PRNewswire/ --°ϲʿ¼ (NYSE: L) today reported net income for the three months ended March 31, 2015 of $109 million, or $0.29 per share, compared to $59 million, or $0.15 per share, in the prior year period. Net income in 2014 included a loss from discontinued operations of $206 million reflecting the disposition of both HighMount Exploration & Production, LLC and CNA Financial Corporation's annuity and pension deposit business.

Income from continuing operations for the three months ended March 31, 2015 was $109 million, or $0.29 per share, compared to $265 million, or $0.68 per share, in the 2014 first quarter. Excluding asset impairment charges of $158 million (after tax and noncontrolling interests) in 2015 at Diamond Offshore Drilling, Inc. and $55 million (after tax and noncontrolling interests) in 2014 at Boardwalk Pipeline Partners, LP, income from continuing operations, as adjusted, in 2015 was $267 million as compared to $320 million in the prior year period.

Book value per share excluding accumulated other comprehensive income (AOCI) increased to $51.18 at March 31, 2015 from $50.95 at December 31, 2014 and $49.43 at March 31, 2014.

CONSOLIDATED HIGHLIGHTS


Three Months Ended March 31,

(In millions, except per share data)

2015

2014




Income before net investment gains

$ 101

$ 241

Net investment gains

8

24

Income from continuing operations

109

265

Discontinued operations, net


(206)

Net income attributable to °ϲʿ¼

$ 109

$ 59

Net income per share:



Income from continuing operations

$ 0.29

$ 0.68

Discontinued operations, net


(0.53)

Net income per share

$ 0.29

$ 0.15


March 31,

Year Ended
December 31, 2014


2015

2014

Book value per share

$ 51.98

$ 50.89

$ 51.70

Book value per share excluding AOCI

51.18

49.43

50.95

Income from continuing operations decreased primarily due to lower earnings at Diamond Offshore and less favorable performance of the parent company trading portfolio.

CNA's earnings increased primarily due to higher investment income driven by limited partnerships and improved current accident year underwriting results including lower catastrophe losses, partially offset by lower realized investment gains.

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

°ϲʿ¼ Hotels' earnings increased primarily due to improved performance of recently acquired properties and higher equity income from joint venture properties.

Discontinued operations in 2014 included an impairment charge related to the sale of CNA's annuity and pension deposit business and a ceiling test impairment charge at HighMount.

SHARE REPURCHASES

At March 31, 2015, there were 371.4 million shares of °ϲʿ¼ common stock outstanding. During the first quarter of 2015, the Company repurchased 1.8 million shares of its common stock at an aggregate cost of $71 million. During the first quarter of 2015, the Company also purchased 0.9 million shares of Diamond Offshore's common stock at an aggregate cost of $24 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.

CONFERENCE CALLS

A conference call to discuss the first quarter results of °ϲʿ¼ has been scheduled for today at 11:00 a.m. ET. A live webcast of the call will be available online at the °ϲʿ¼ website (). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 20554874. An online replay will also be available on the °ϲʿ¼'s website following the call.

A conference call to discuss the first quarter results of CNA has been scheduled for today at 10:00 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (888) 551-9020, or for international callers, (719) 457-2638.

A conference call to discuss the first quarter results of Boardwalk Pipeline has been scheduled for today at 9:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (855) 793-3255 or for international callers, (631) 485-4925. The conference ID number is 21218946.

A conference call to discuss the first quarter results of Diamond Offshore has been scheduled for today at 8:30 a.m. ET. A live webcast will be available at . Those interested in participating in the question and answer session should dial (800) 247-9979, or for international callers, (973) 321-1100. The conference ID number is 22913137.

°ϲʿ¼ LOEWS CORPORATION

°ϲʿ¼ 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, °ϲʿ¼ Hotels & Resorts. For more information please visit .

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website (). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.



°ϲʿ¼ and Subsidiaries




Selected Financial Information














Three Months Ended March 31,


(In millions)

2015

2014


Revenues:




CNA Financial

$ 2,342

$ 2,421


Diamond Offshore

627

710


Boardwalk Pipeline

330

357


°ϲʿ¼ Hotels

139

105


Investment income and other

30

53




3,468

3,646


Investment gains - CNA Financial

10

42


Total

$ 3,478

$ 3,688


Income (Loss) Before Income Tax:




CNA Financial

$ 304

$ 259


Diamond Offshore (a)

(287)

168


Boardwalk Pipeline (b)

77

23


°ϲʿ¼ Hotels

10

5


Investment income, net

29

51


Other (c)

(38)

(34)




95

472


Investment gains - CNA Financial

10

42


Total

$ 105

$ 514


Net Income (Loss) Attributable to °ϲʿ¼:




CNA Financial

$ 202

$ 176


Diamond Offshore (a)

(126)

69


Boardwalk Pipeline (b)

25

(18)


°ϲʿ¼ Hotels

5

3


Investment income, net

19

34


Other (c)

(24)

(23)




101

241


Investment gains - CNA Financial

8

24


Income from continuing operations

109

265


Discontinued operations, net (d)


(206)


Net income attributable to °ϲʿ¼

$ 109

$ 59












(a)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs.


(b)

Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project.


(c)

Consists primarily of corporate interest expense and other unallocated expenses.


(d)

See table on page six for a summary of items comprising discontinued operations for 2014.



°ϲʿ¼ and Subsidiaries


Consolidated Financial Review














Three Months Ended March 31,


(In millions, except per share data)

2015

2014


Revenues:




Insurance premiums

$ 1,687

$ 1,806


Net investment income

588

577


Investment gains

10

42


Contract drilling revenues

600

685


Other

593

578


Total

3,478

3,688







Expenses:




Insurance claims & policyholders' benefits

1,339

1,446


Contract drilling expenses

351

370


Other (a) (b)

1,683

1,358


Total

3,373

3,174







Income before income tax

105

514


Income tax expense

(56)

(103)


Income from continuing operations

49

411


Discontinued operations, net of income tax


(227)


Net income

49

184


Amounts attributable to noncontrolling interests

60

(125)


Net income attributable to °ϲʿ¼

$ 109

$ 59







Net income attributable to °ϲʿ¼:




Income from continuing operations

$ 109

$ 265


Discontinued operations, net (c)


(206)


Net income

$ 109

$ 59







Diluted income per share:




Income from continuing operations

$ 0.29

$ 0.68


Discontinued operations, net


(0.53)


Diluted income per share attributable to °ϲʿ¼

$ 0.29

$ 0.15







Weighted diluted number of shares

373.19

388.07






(a)

Includes an asset impairment charge of $359 million ($158 million after tax and noncontrolling interests) for the three months ended March 31, 2015 related to the carrying value of eight drilling rigs.


(b)

Includes a loss of $94 million ($55 million after tax and noncontrolling interests) for the three months ended March 31, 2014 to write off all capitalized costs associated with the Bluegrass project.


(c)

See table on page six for a summary of items comprising discontinued operations for 2014.


°ϲʿ¼ and Subsidiaries


Discontinued Operations Review












Three Months Ended


(In millions)

March 31, 2014


CNA Financial



Continental Assurance Company (῝CAC῞) operations

$ 7


Impairment loss on sale of CAC

(193)


CNA Financial - Discontinued operations, net

(186)





HighMount



Operations

(1)


Ceiling test impairment


(19)


HighMount - Discontinued operations, net

(20)






Discontinued operations, net

$ (206)

SOURCE °ϲʿ¼

CONTACT: Mary Skafidas, Investor and Public Relations, (212) 521-2788

Web Site: