Loews Corporation (NYSE:L) stock moved slightly above the flatline Monday on surpassing previous earnings for the first quarter of 2019.
The New York-based Loews reported net income of $394 million, or $1.27 per share, for the three months ended March 31, 2019, compared to $293 million, or $0.89 per share, in the prior year period.
Net income increased due to higher earnings contributed by CNA Financial Corporation and Boardwalk Pipeline Partners, LP as well as higher parent company net investment income. These increases were partially offset by an income decline at Diamond Offshore Drilling, Inc.
Book value per share increased to $62.31 at March 31, 2019 from $59.34 at December 31, 2018. Book value per share excluding accumulated other comprehensive income (AOCI) increased to $63.59 at March 31, 2019 from $62.16 at December 31, 2018.
CNA's earnings increased primarily due to higher net investment income and net investment gains. Returns on limited partnership and equity investments drove the increase in net investment income.
Earnings in the 2019 period also increased due to a net retroactive reinsurance benefit under the 2010 loss portfolio transfer with National Indemnity as compared to a net retroactive reinsurance charge recorded in the 2018 period. Partially offsetting these increases was lower underwriting income reflecting higher catastrophe losses and lower favorable prior year development.
At March 31, 2019, there were 305.5 million shares of Loews common stock outstanding. For the three months ended March 31, 2019, the Company repurchased 6.8 million shares of its common stock at an aggregate cost of $322 million.
Shares acquired a mere seven cents early Monday to $50.25
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