Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
Insurance firm $L reported a 52% fall in 3Q17 profit, owing to higher operating expenses, mainly related to its CNA Financial and Diamond Offshore units. Earnings per share dropped to $0.46 from $0.97 last year, despite revenue growing 7% to $3.5Bil. Excluding special items, profit rose $25MM YoY, helped by strong contribution from core operations.
For $L, the book value per share increased to $55.90 at June 30, 2017 from $53.96 at December 31, 2016. For 2Q17, net investment gains were $26MM, up from $2MM a year ago, and CNA Financial posted a net income of $244MM on a revenue of $2.37Bil.
$L foresees nearly a double digit cash on cash return in the first year from the acquisition of Consolidated Container Co. (CCC). In April 2017, the company entered into packaging business by acquiring CCC in a deal valued at $1.2Bil. The company added that this deal has not impacted the buyback in 1Q17.
In 1Q17, $L recorded net investment gains of $20MM vs. losses of $17MM a year ago. Income generated by the parent company investment portfolio improved to $38MM from a loss of $8MM, helped by limited partnership investments and equities. Book value per share rose to $54.91 at Mar. 31, 2017, from $53.96 at Dec. 31, 2016.
$L's revenue inched 4% up to $3.6Bil in 1Q17, as the New York-based conglomerate's net attributable income almost tripled to $295MM from last year's $102MM. Earnings jumped to $0.87 per diluted share from last year's $0.30 a share, helped by higher earnings from its units and higher income from its investment portfolio.
$L acquired Consolidated Container Company (CCC), a leading rigid plastic packaging manufacturer, from Bain Capital Private Equity for approx. $1.2Bil. CCC will be a part of a newly-created segment called Loews Packaging Group. The transaction is expected to close in 2Q17, and will be funded with approx. 50% cash-on-hand and 50% debt at CCC.
On a segment basis, $L's revenue from CNA Financial for 4Q16 rose 5.77% to $2.4Bil from $2.26Bil a year ago, while Diamond Offshore revenue fell 30.48% to $390MM from $561MM. Revenue from Boardwalk Pipeline rose 7.9% to $355MM from $329MM in the year ago quarter, while revenue from Loews Hotels grew 1.31% to $154MM.
Commercial property and casualty insurance company $L posted a net income for 4Q16 as compared to a net loss for the year ago quarter. Net income attributable to the company was $268MM or $0.79 per share vs. a net loss of $201MM or $0.58 per share a year ago. Revenue for the quarter rose marginally by 0.15% to $3.34Bil from $3.33Bil in 4Q15.