Loews Corp. (L, Financial) released its first-quarter 2021 earnings before the opening bell on May 3.
The New York-based conglomerate posted a first-quarter net profit of $261 million, translating to earnings per share of $0.97. That compares with a net loss of $632 million, or $2.20 per share, reported in the same period a year earlier. Adjusted earnings stood at $0.81 per share. Revenue surged to $3.62 billion from $3.1 billion in the prior-year quarter.
Reflecting on the latest quarter, Loews' CEO James Tisch commented:
"Loews had a great first quarter, with excellent results from CNA Financial leading the way. CNA's underlying combined ratio of 91.9% declined nearly two points from the prior year quarter. Premium growth was strong, driven by continuing rate increases and robust new business. Additionally, Loews Hotels & Co, the subsidiary hardest hit by the pandemic, is showing signs of progress. With over two-thirds of its rooms located in resort destinations, we think Loews Hotels is well positioned to benefit from this leisure-led recovery."
Segment performance
Income attributable to the CNA Financial division increased on a year-over-year basis to $279 million, reflecting higher property and casualty underwriting income resulting from a rise in premiums and underlying combined ratio. In addition, positive net investment income coupled with higher investment gains helped the segment's overall result. This was partially offset by higher net catastrophe losses, which included Coronavirus-related expenses.
Likewise, earnings in the Boardwalk Pipeline business rose to $85 million, up from $65 million, courtesy of higher revenue from growth projects.
In the Hotels segment, the company posted a loss of $43 million, which is worse than the loss of $25 million reported last year. Occupancy rates remained significantly lower as compared with the same quarter in 2020.
In the Corporate segment, the company attributed the net loss to the recognition of a $35 million deferred tax liability as a result of the Altium Packaging transaction. The company's Diamond Offshore division did not provide sales and income details.
Share repurchases
For the quarter ended March 31, the company repurchased 5.6 million shares at an average cost of $274 million. The company said that it would, at intervals, repurchase its shares as well as its subsidiaries' outstanding common stock in the open market or otherwise.
Disclosure: I do not hold any positions in the stocks mentioned.
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