Loews Corp. Revenue Hurt by Investment Returns
02 May 2016 - 9:49PM
Dow Jones News
By Austen Hufford
Loews Corp. and its insurance unit CNA Financial Corp. posted
revenue declines as decreased investment returns hurt results.
Loews owns 90% of CNA, which typically accounts for most of the
conglomerate's revenue.
Loews' other big holdings include contract driller Diamond
Offshore Drilling Inc. and oil and gas transporter Boardwalk
Pipeline Partners LP. All three and the parent company are publicly
traded.
CNA's earnings were hurt by a decline in net investment income
and realized investment losses. The investment-related declines
were partially offset by improved property and casualty
underwriting results and life and group segment results.
CNA Financial recorded a profit of $66 million, or 24 cents a
share, compared with a year-earlier profit of $233 million, or 86
cents a share.
For the latest quarter, Loews reported a net profit of $102
million down from $109 million. On a per share basis, earnings
increased to 30 cents from 29 cents as the number of shares
outstanding fell 9.1% due to share repurchases.
Revenue at Loews slid 8.8% to $3.17 billion. Revenue from
insurance premiums, its largest top line contributor, increased
0.7% to $1.7 billion.
At Diamond Offshore, revenue slid 25% to $471 million but cost
cuts helped the driller swing to a profit and beat Wall Street
estimates. Diamond also said that Kelly Youngblood would be its
next Chief Financial Officer, replacing Gary Krenek, who is
retiring after 33 years with the company and its predecessors.
At Boardwalk Pipeline revenue increased 5.2% to $347 million,
Loews said.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
May 02, 2016 07:34 ET (11:34 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Loews (NYSE:L)
Historical Stock Chart
From Apr 2024 to May 2024
Loews (NYSE:L)
Historical Stock Chart
From May 2023 to May 2024