Loews Corporation reported income from continuing operations for the 2014 fourth quarter of $215 million, or $0.57 per share, compared to $248 million, or $0.64 per share, in Q4 2013.
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Income from continuing operations for the year ended December 31, 2014 was $962 million, or $2.52 per share, compared to $1.1 billion, or $2.95 per share, in the prior year period.
Net income for the three months ended December 31, 2014 was $208 million, or $0.55 per share, compared to a net loss of $198 million, or $0.51 per share, in the prior year period.
Net income for the year ended December 31, 2014 was $591 million, or $1.55 per share, compared to $595 million, or $1.53 per share, in the prior year. Net income includes discontinued operations reflecting the sale of both HighMount Exploration & Production, LLC and CNA Financial Corporation's annuity and pension deposit business.
Book value per share excluding accumulated other comprehensive income (AOCI) increased to $50.95 at December 31, 2014 from $49.38 at December 31, 2013.
Income from continuing operations decreased primarily due to a decline in parent company investment income attributable to equity and limited partnership investments.
CNA's earnings were impacted by a $49 million charge (after tax and noncontrolling interests) related to a lump sum pension plan settlement. Results were also unfavorably impacted by lower net investment income, driven by limited partnerships.
These decreases were offset by improved current accident year underwriting results, lower catastrophe losses, increased favorable net prior year development, and the prior year impact of a $111 million charge (after tax and noncontrolling interests) related to retroactive reinsurance accounting for the Loss Portfolio Transfer (LPT) transaction.
Diamond Offshore Drilling, Inc.'s earnings improved primarily due to the absence of a prior year tax provision of $27 million (after noncontrolling interests) for an uncertain tax position related to its Egyptian operations almost wholly offset by lower rig utilization and increased depreciation expense.
Boardwalk Pipeline Partners, LP's earnings increase stemmed from the impact in 2013 of a goodwill charge of $16 million (after tax and noncontrolling interests). Absent this charge, earnings decreased primarily due to higher maintenance costs and expenses related to the Evangeline ethylene pipeline system acquired in October of 2014.
Loews Hotels' earnings increased primarily due to higher equity earnings from joint venture properties as a result of improved performance of the Universal Orlando properties.
Discontinued operations in 2013 included the following charges at HighMount: an impairment charge of $22 million (after tax) related to gathering pipelines; a ceiling test impairment charge of $52 million (after tax); and a goodwill impairment charge of $382 million (after tax). ■