Loews, CNA Financial Post Lower Q1 Profit, Boardwalk Earnings Rise

(RTTNews) - Diversified holding company Loews Corp. (L) as well as its 90 percent owned property and casualty insurance unit CNA Financial Corp. (CNA) Monday reported decline in profit for the first quarter, while Loews' 53 percent owned unit Boardwalk Pipeline Partners, LP. (BWP) posted growth in both profit and revenue.

Loews reported improved profit from continuing operations, while CNA Financial incurred higher catastrophe losses and recorded impairment loss of $214 million.

Net income attributable to Loews declined to $59 million or $0.15 per share from $242 million or $0.62 per share in the prior year.

Earnings from continuing operations increased to $0.63 per share from $0.60 per share reported a year ago. The company attributed this increase to higher parent company investment income as a result of improved performance of the trading portfolio, and lower ceiling test impairment charges at HighMount Exploration & Production LLC.

These increases were partially offset by a $55 million charge related to the write-off of all previously capitalized costs incurred by the company and Boardwalk Pipeline for the proposed Bluegrass project.

On average, three analysts polled by Thomson Reuters expected the company to earn $0.70 per share for the quarter. Analysts' estimates typically exclude special items.

The latest results included a loss from discontinued operations of $186 million related to CNA Financial Corp.'s (CNA) pending sale of its annuity and pension deposit business.

Total revenues for the quarter increased to $3.74 billion from $3.69 billion in the preceding year.

Meanwhile, CNA Financial reported a sharp plunge in first-quarter 2014 net income to $13 million or $0.05 a share from $250 million or $0.93 a share last year.

For the quarter, net operating income fell to $0.70 per share from or $0.83 per share.

Six analysts polled by Thomson Reuters expected earnings per share of $0.84 for the quarter.

Property & Casualty Operations' reported lower net operating income due to decreased net investment income, higher catastrophe losses and lower favorable net prior year development.

Catastrophe losses climbed to $48 million from $25 million, primarily due to U.S. winter weather-related events. These unfavorable items were partially offset by improved non-catastrophe current accident year underwriting results.

Additionally, the company declared a quarterly dividend of $0.25 per share, payable on May 28 to stockholders of record on May 12.

Separately, Boardwalk Pipeline Partners reported a rise in net earnings as well as revenues for the first quarter.

Net earnings increased to $110.2 million or $0.44 per share from $101.4 million or $0.42 per share a year ago. Thirteen analysts polled by Thomson Reuters expected earnings of $0.31 per share. Analysts estimates typically exclude special items.

Revenues grew to $356.9 million from $328.5 million in the same period last year. Analysts estimates revenues of $303.09 million.

The firm said its results benefited from the favorable revenues associated with the cold winter conditions and the recent completion of growth projects.

However, these favorable impacts were partially offset by lower firm transportation revenues due to contract expirations and renewals at lower rates and a charge related to the Bluegrass Project.

The board has recommended a quarterly cash distribution of $0.10 per common unit, payable May 15 to shareholders on record May 8.

L closed down 0.7 percent at $44.14 on Friday. CNA settled up 0.3 percent at $42.71 and BWP ended marginally lower at $16.16.