Loews Corporation reported net income of $231 million, or $0.69 per share, for the second quarter ended June 30, 2017, compared to a net loss of $65 million, or $0.19 per share, in the prior year period.
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Net income for the six months ended June 30, 2017 was $526 million, or $1.56 per share, compared to $37 million, or $0.11 per share, in the prior year period.
The results for the three and six months ended June 30, 2017 and 2016 include asset impairment charges at Diamond Offshore Drilling, Inc. of $23 million and $267 million (both after tax and noncontrolling interests).
Book value per share increased to $55.90 at June 30, 2017 from $53.96 at December 31, 2016.
Book value per share excluding accumulated other comprehensive income (AOCI) increased to $56.01 at June 30, 2017 from $54.62 at December 31, 2016.
Excluding the asset impairment charges at Diamond Offshore in 2017 and 2016, net income for the three months ended June 30, 2017 increased $52 million as compared to the prior year due to higher earnings at CNA Financial Corporation, Diamond Offshore and Loews Hotels & Co.
These increases were partially offset by lower earnings at Boardwalk Pipeline Partners, LP and reduced results from the parent company investment portfolio.
CNA's earnings increased due to improved current accident year underwriting results from its core P&C business and higher realized investment gains in 2017 as compared to 2016. These increases were partially offset by lower net investment income driven by lower returns from limited partnership investments.
Excluding the asset impairment charges in 2017 and 2016, Diamond Offshore's earnings increased due to higher fleet utilization, lower depreciation expense resulting mainly from the asset impairment charges taken in 2016 that reduced the depreciable asset base and a lower income tax rate due to the mix of domestic and international earnings.
Boardwalk Pipeline's earnings were lower due to a $47 million ($15 million after tax and noncontrolling interests) loss on the sale of a processing facility. Earnings in 2016 benefited from proceeds received from a one-time legal settlement. Excluding these two items, earnings increased due to revenues from new growth projects recently placed in service.
Loews Hotels' earnings increased primarily due to the prior year impact of an $8 million impairment charge (after tax) related to a joint venture investment in a hotel property. Excluding this charge, earnings increased due to higher equity income from Universal Orlando joint venture properties.
Income generated by the parent company investment portfolio decreased $54 million primarily due to lower performance from gold-related equities and other equity strategies. ■