Loews Corporation (NYSE:L) made headway after the company announced fourth-quarter financial numbers.
The company reported Q4 2019 earnings of $0.73 per share, vs. $0.72 expected. Revenues increased to $3.8 billion from $3.2 billion in the prior-year quarter. Net income amounted to $217 million. Book value per share increased to $65.71 at December 31.
CNA’s earnings increased primarily due to higher net investment income and net investment gains and higher current year underwriting income driven mainly by lower catastrophe losses for the Property & Casualty (“P&C”) business.
Earnings were partially offset by a higher net retroactive reinsurance charge recorded under the 2010 loss portfolio transfer with National Indemnity as compared with 2018. The P&C business generated gross written premium growth of 8% and net written premium growth of 6%.
Diamond Offshore’s net loss improved primarily due to higher contract drilling revenues as a result of a contractual margin commitment from a customer, significantly offset by higher rig operating expenses including contract preparation and rig activation costs and increased depreciation expense.
Boardwalk Pipelines’ operations benefited from higher firm transportation revenues from growth projects recently placed into service partially offset by the net impact of contract restructurings, expirations and renewals. Boardwalk Pipelines’ net income decreased as a result of a favorable tax adjustment recorded in 2018.
Loews Hotels & Co’s results decreased due to impairment charges totaling $89 million ($69 million after tax) related to the carrying value of hotel properties. Excluding these charges, earnings benefited from improved results at the Orlando JV properties and certain owned hotels.
Loews Corporation is a diversified company with businesses in the insurance, energy, hospitality and packaging industries.
Shares leaped $2.55, or 4.8%, in the first hour of trade to $55.80