Segments

6 Months Ended

Jun. 30, 2020

Segments [Abstract]

Segments

14. Segments

Loews Corporation has five reportable segments comprised of three individual consolidated operating subsidiaries, CNA, Boardwalk Pipelines and Loews Hotels & Co; the Corporate segment and Diamond Offshore. The Corporate segment is primarily comprised of Loews Corporation excluding its subsidiaries and the operations of Altium Packaging. Diamond Offshore was deconsolidated during the second quarter of 2020. See Note 2 for further information on the deconsolidation of Diamond Offshore. Each of the operating subsidiaries and Diamond Offshore are headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. For additional disclosures regarding the composition of Loews Corporation’s segments, see Note 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.

The following tables present the reportable segments and their contribution to the Consolidated Condensed Financial Statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests.

Total assets by segment are presented in the following tables.

June 30, 2020	CNA Financial		Boardwalk Pipelines		Loews Hotels & Co		Corporate		Diamond Offshore		Total
(In millions)
Total assets	$	62,055	$	9,321	$	1,697	$	5,366	$	-	$	78,439
December 31, 2019
Total assets	$	60,583	$	9,248	$	1,728	$	4,850	$	5,834	$	82,243

Statements of Operations by segment are presented in the following tables.

Three Months Ended June 30, 2020	CNA Financial			Boardwalk Pipelines			Loews Hotels & Co			Corporate			Diamond Offshore (a)			Total
(In millions)
Revenues:
Insurance premiums	$	1,850														$	1,850
Net investment income		534								$	110						644
Investment gains (losses)		69									(1,211	)					(1,142	)
Non-insurance warranty revenue		308															308
Operating revenues and other		5		$	296		$	34			244		$	71			650
Total		2,766			296			34			(857	)		71			2,310
Expenses:
Insurance claims and policyholders’ benefits		1,642															1,642
Amortization of deferred acquisition costs		342															342
Non-insurance warranty expense		285															285
Operating expenses and other		283			210			123			260			116			992
Interest		31			41			8			32			11			123
Total		2,583			251			131			292			127			3,384
Income (loss) before income tax		183			45			(97	)		(1,149	)		(56	)		(1,074	)
Income tax (expense) benefit		(32	)		(11	)		25			241			5			228
Net income (loss)		151			34			(72	)		(908	)		(51	)		(846	)
Amounts attributable to noncontrolling interests		(16	)											27			11
Net income (loss) attributable to Loews Corporation	$	135		$	34		$	(72	)	$	(908	)	$	(24	)	$	(835	)

(a) Amounts presented for Diamond Offshore reflect the periods prior to the deconsolidation.

Three Months Ended June 30, 2019	CNA Financial			Boardwalk Pipelines			Loews Hotels & Co			Corporate			Diamond Offshore (a)			Total
(In millions)
Revenues:
Insurance premiums	$	1,824														$	1,824
Net investment income		515					$	1		$	33		$	2			551
Investment gains		2															2
Non-insurance warranty revenue		285															285
Operating revenues and other		4		$	327			185			223			222			961
Total		2,630			327			186			256			224			3,623
Expenses:
Insurance claims and policyholders’ benefits		1,352															1,352
Amortization of deferred acquisition costs		338															338
Non-insurance warranty expense		263															263
Operating expenses and other		279			209			163			245			335			1,231
Interest		55			46			5			27			31			164
Total		2,287			255			168			272			366			3,348
Income (loss) before income tax		343			72			18			(16	)		(142	)		275
Income tax (expense) benefit		(64	)		(19	)		(6	)		3			36			(50	)
Net income (loss)		279			53			12			(13	)		(106	)		225
Amounts attributable to noncontrolling interests		(30	)											54			24
Net income (loss) attributable to Loews Corporation	$	249		$	53		$	12		$	(13	)	$	(52	)	$	249

Six Months Ended June 30, 2020	CNA Financial			Boardwalk Pipelines			Loews Hotels & Co			Corporate			Diamond Offshore (a)			Total
(In millions)
Revenues:
Insurance premiums	$	3,719														$	3,719
Net investment income (loss)		863								$	(56	)					807
Investment losses		(147	)								(1,211	)					(1,358	)
Non-insurance warranty revenue		609															609
Operating revenues and other		13		$	637		$	176			501		$	305			1,632
Total		5,057			637			176			(766	)		305			5,409
Expenses:
Insurance claims and policyholders’ benefits		3,067															3,067
Amortization of deferred acquisition costs		686															686
Non-insurance warranty expense		566															566
Operating expenses and other		583			421			290			528			1,196			3,018
Interest		62			83			16			63			43			267
Total		4,964			504			306			591			1,239			7,604
Income (loss) before income tax		93			133			(130	)		(1,357	)		(934	)		(2,195	)
Income tax (expense) benefit		(4	)		(34	)		33			284			26			305
Net income (loss)		89			99			(97	)		(1,073	)		(908	)		(1,890	)
Amounts attributable to noncontrolling interests		(9	)											432			423
Net income (loss) attributable to Loews Corporation	$	80		$	99		$	(97	)	$	(1,073	)	$	(476	)	$	(1,467	)

Six Months Ended June 30, 2019	CNA Financial			Boardwalk Pipelines			Loews Hotels & Co			Corporate			Diamond Offshore (a)			Total
(In millions)
Revenues:
Insurance premiums	$	3,627														$	3,627
Net investment income		1,086					$	1		$	117		$	4			1,208
Investment gains		33															33
Non-insurance warranty revenue		566															566
Operating revenues and other		13		$	673			365			439			456			1,946
Total		5,325			673			366			556			460			7,380
Expenses:
Insurance claims and policyholders’ benefits		2,709															2,709
Amortization of deferred acquisition costs		680															680
Non-insurance warranty expense		523															523
Operating expenses and other		563			404			319			476			618			2,380
Interest		89			91			10			54			61			305
Total		4,564			495			329			530			679			6,597
Income (loss) before income tax		761			178			37			26			(219	)		783
Income tax (expense) benefit		(141	)		(46	)		(12	)		(5	)		42			(162	)
Net income (loss)		620			132			25			21			(177	)		621
Amounts attributable to noncontrolling interests		(66	)											88			22
Net income (loss) attributable to Loews Corporation	$	554		$	132		$	25		$	21		$	(89	)	$	643