Loews Corporation reported a net loss for the second quarter ended June 30, 2016 of $65 million, or $0.19 per share.
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This compares to net income of $170 million, or $0.46 per share, in the prior year period.
Net income for the six months ended June 30, 2016 was $37 million, or $0.11 per share, compared to $279 million, or $0.75 per share, in the prior year period.
Results include asset impairment charges at Diamond Offshore Drilling, Inc. of $267 million (after tax and noncontrolling interests) for the three and six months ended June 30, 2016 and $158 million (after tax and noncontrolling interests) for the six months ended June 30, 2015.
Book value per share excluding accumulated other comprehensive income (AOCI) increased to $52.84 at June 30, 2016 from $52.72 at December 31, 2015.
Results for the three months ended June 30, 2016 decreased $235 million as compared to the prior year due to an asset impairment charge at Diamond Offshore partially offset by higher earnings at CNA Financial Corporation and improved results from the parent company investment portfolio due to higher income from equity securities.
CNA's earnings increased due to the impact of a $49 million charge (after tax and noncontrolling interests) in 2015 related to the 2010 retroactive reinsurance agreement to cede its legacy asbestos and environmental pollution liabilities (loss portfolio transfer or LPT).
CNA's earnings also benefited from increased favorable net prior year development.
Diamond Offshore's earnings decreased due to an asset impairment charge of $680 million ($267 million after tax and noncontrolling interests) related to the carrying value of eight drilling rigs.
Absent this charge, Diamond Offshore's earnings declined due to a substantial reduction in the number of rigs operating as compared to the year ago period partially offset by lower depreciation expense resulting mainly from the asset impairment charges recorded in 2015.
Boardwalk Pipeline's earnings increased partially due to new rates in effect following the Gulf South rate case and proceeds received from a one-time legal settlement.
Additionally, the Evangeline pipeline, which was placed into service in mid-2015, and new growth projects contributed to earnings.
Loews Hotels' earnings decreased due to an impairment charge related to a joint venture property. ■