Loews Posts Huge Loss In Q4 - Quick Facts

(RTTNews) - Diversified holding company Loews Corp. (L) reported a significantly wider net loss attributable to the company of $198 million, or $0.51 per share in the fourth quarter, versus a loss of $32 million, or $0.08 per share, last year. On average, 4 analysts polled by Thomson Reuters expected earnings per share of $0.72 for the quarter. Analysts' estimates typically exclude one-time items.

According to the company, results for the fourth quarter and full year of 2013 and 2012 include significant items such as a ceiling test impairment charge at HighMount Exploration & Production LLC related to the carrying value of its natural gas and oil properties of $52 million and $186 million in the fourth quarter and full year of 2013, as compared with charges of $97 million and $433 million for the 2012 periods. Goodwill impairment charges of $398 million in the recent quarter and full-year 2013 mainly related to HighMount, reflecting the continued low market prices for natural gas and natural gas liquids and recent history of negative reserve revisions, Loews added.

Including investment gains & losses, the firm clocked total revenues of $3.89 billion in the quarter, compared with $3.705 billion a year before.

Quarterly income before ceiling test and goodwill impairment charges, the impact of the LPT charge and net investment gains (losses) was $356 million in 2013, an increase from $67 million in 2012, helped by higher earnings at CNA and increased investment income at the parent company due to improved performance of equities and limited partnership investments. These increases were partially offset by lower earnings at Diamond Offshore Drilling, Inc. (DO).

CNA's earnings for the three months grew mainly from improved non-catastrophe current accident year underwriting results, higher investment income and lower catastrophe losses. These increases were partially offset by a lower level of favorable net prior year development in 2013 as compared to 2012. Diamond Offshore's earnings slid primarily due to lower utilization including downtime for scheduled surveys and shipyard projects and a $27 million charge (after noncontrolling interests) for an uncertain tax position related to Egyptian operations.