Profile: Loews Corp (L.N)
7 Mar 2014
Loews Corporation, incorporated on November 12, 1969, is a holding company. The Company’s subsidiaries are engaged in commercial property and casualty insurance, operation of offshore oil and gas drilling rigs, exploration, production and marketing of natural gas and oil (including condensate and natural gas liquids), interstate transportation and storage of natural gas and operation of hotels. The Company’s subsidiaries include CNA Financial Corporation, which is a 90% owned subsidiary; Diamond Offshore Drilling, Inc., which is a 50.4% owned subsidiary; HighMount Exploration & Production LLC; Boardwalk Pipeline Partners, LP, which is a 61% owned subsidiary, and Loews Hotels Holding Corporation. On June 10, 2011, CNA acquired all of the publicly traded shares of common stock of CNA Surety Corporation (CNA Surety). In November of 2011, CNA completed the sale of its 50% ownership interest in First Insurance Company of Hawaii (FICOH). In February 2013, its Loews Hotels & Resorts completed the acquisition of the 225-room Back Bay Hotel in Boston.
During the year ended December 31, 2011, HighMount acquired working interests in undeveloped oil and gas properties located on approximately 74,000 net acres in Oklahoma and approximately 12,000 net acres in the Texas Panhandle. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipeline and BPHC, acquired seven salt dome natural gas storage caverns and associated assets in Mississippi.
CNA Financial Corporation
CNA Financial Corporation (together with its subsidiaries, CNA) is an insurance holding company. CNA’s property and casualty and remaining life and group insurance operations are primarily conducted by Continental Casualty Company (CCC), and The Continental Insurance Company (CIC) and certain other affiliates. CNA’s insurance products primarily include commercial property and casualty coverages, including surety. CNA’s services include risk management, information services, warranty and claims administration. CNA’s products and services are primarily marketed through independent agents, brokers and managing general underwriters to a range of customers, including small, medium and large businesses, associations, professionals and other groups. CNA’s core business, commercial property and casualty insurance operations, is reported in two business segments: CNA Specialty and CNA Commercial. CNA’s non-core businesses are managed in two business segments: Life & Group Non-Core and Other Insurance.
CNA’s property and casualty field structure consists of 48 underwriting locations across the United States. CNA Specialty provides professional and management liability and other coverages through property and casualty products and services, both domestically and abroad, through a network of brokers, independent agencies and managing general underwriters. CNA Specialty provides solutions for managing the risks of its clients, including architects, lawyers, accountants, health care professionals, financial intermediaries and public and private companies. Product offerings also include surety and fidelity bonds and warranty services. CNA Specialty includes Professional & Management Liability, International, Surety and Warranty and Alternative Risks.
Professional & Management Liability provides management and professional liability insurance and risk management services and other specialized property and casualty coverages in the United States. This group provides professional liability coverages to various professional firms, including architects, real estate agents, small and mid-sized accounting firms, law firms and technology firms. Professional & Management Liability also provides directors and officers (D&O), employment practices, fiduciary and fidelity coverages. Specific areas of focus include small and mid-size firms, as well as privately held firms and not-for-profit organizations, where tailored products for this client segment are offered.
Products within Professional & Management Liability are distributed through brokers, independent agents and managing general underwriters. Professional & Management Liability, through CNA HealthPro, also offers insurance products to serve the health care industry. Products include professional liability and associated standard property and casualty coverages, and are distributed on a national basis through brokers, independent agents and managing general underwriters. Key customer segments include long term care facilities, allied health care providers, life sciences, dental professionals and mid-size and large health care facilities.
International provides similar management and professional liability insurance and other specialized property and casualty coverages in Canada and Europe. Surety offers small, medium and large contract and commercial surety bonds. CNA Surety provides surety and fidelity bonds in all 50 states through a network of independent agencies. Warranty and Alternative Risks provides extended service contracts and related products that provide protection from the financial burden associated with mechanical breakdown and other related losses, primarily for vehicles and portable electronic communication devices. These products are distributed through and administered by CNA’s wholly owned subsidiary, CNA National Warranty Corporation, or through third party administrators.
CNA Commercial works with an independent agency distribution system and a network of brokers to market a range of property and casualty insurance products and services to small, middle-market and large businesses and organizations domestically and abroad. Property products include standard and excess property coverages, as well as marine coverage, and boiler and machinery. Casualty products include standard casualty insurance products, such as workers’ compensation, general and product liability, commercial auto and umbrella coverages.
These property and casualty products are offered as part of CNA’s Small Business, Commercial and International insurance groups. CNA’s Small Business insurance group serves its smaller commercial accounts and the Commercial insurance group serves CNA’s middle markets and its larger risks. In addition, CNA Commercial provides total risk management services relating to claim and information services to the large commercial insurance marketplace, through a wholly owned subsidiary, CNA ClaimPlus, Inc., a third party administrator. The International insurance group primarily consists of the commercial product lines of CNA’s operations in Europe and Canada. Also included in CNA Commercial is CNA Select Risk (Select Risk), which includes CNA’s excess and surplus lines coverages. Select Risk provides specialized insurance for selected commercial risks on both an individual customer and program basis.
The Life & Group Non-Core segment primarily includes the results of the life and group lines of business that are in run-off. CNA services its existing individual long term care commitments, its payout annuity business and its pension deposit business. CNA also retains a block of group reinsurance and life settlement contracts. Other Insurance primarily includes certain CNA corporate expenses, including interest on CNA corporate debt, and the results of certain property and casualty business in run-off, including CNA Re and asbestos and environmental pollution (A&EP).
Diamond Offshore Drilling, Inc.
Diamond Offshore Drilling, Inc. (Diamond Offshore) is engaged, through its subsidiaries, in the business of owning and operating drilling rigs that are used in the drilling of offshore oil and gas wells on a contract basis for companies engaged in exploration and production of hydrocarbons. Diamond Offshore owns 49 offshore rigs, consisting of 32 semisubmersible rigs, 13 jack-ups and four dynamically positioned drillships, three of which are under construction. Diamond Offshore’s diverse fleet offers a range of services worldwide in both the floater market (ultra-deepwater, deepwater and mid-water) and the non-floater, or jack-up, market. A floater rig is a mobile offshore drilling unit that floats and does not rest on the seafloor. This asset class includes self-propelled drillships and semisubmersible rigs. Semisubmersible rigs consist of an upper working and living deck resting on vertical columns connected to lower hull members.
Diamond Offshore’s jack-ups are used for drilling in water depths from 20 feet to 350 feet. The principal markets for Diamond Offshore’s contract drilling services include South America, principally offshore Brazil; Australia and Asia, including Malaysia, Indonesia, Thailand and Vietnam; the Middle East, including Kuwait, Qatar and Saudi Arabia; Europe, principally in the United Kingdom and Norway; East and West Africa; the Mediterranean Basin, including Egypt, and the Gulf of Mexico, including the United States and Mexico. Diamond Offshore provides offshore drilling services to a customer base that includes major and independent oil and gas companies and government-owned oil companies.
HighMount Exploration & Production LLC
HighMount is engaged in the exploration, production and marketing of natural gas and oil, including condensate and natural gas liquids (NGLs)). HighMount’s proved reserves and production are primarily located in the Sonora field, a tight sands gas formation within the Permian Basin in West Texas. HighMount holds mineral rights on over 700,000 net acres in the Permian Basin, with over 6,000 producing wells. HighMount owns and operates approximately 3,000 miles of gathering lines and over 75,000 horsepower of compression, which are used to transport natural gas and NGLs principally from HighMount’s producing wells to processing plants and pipelines owned by third parties.
As of December 31, 2011, HighMount owned 1.1 trillion cubic feet of natural gas equivalent of net proved reserves, of which 75% were classified as proved developed reserves. HighMount’s estimated total proved reserves consist of 819.4 billion cubic feet of natural gas, 48.3 million barrels of NGLs, and four million barrels of oil and condensate. HighMount produced approximately 173 million cubic feet of natural gas equivalent per day of net natural gas, NGLs and oil, during 2011. During 2011, HighMount participated in the drilling of 63 wells of which 56 (or 88.9%) are productive wells. As of December 31, 2011, HighMount had proved undeveloped reserves of 283 billion cubic feet of natural gas equivalent. As of December 31, 2011, HighMount had an interest in 6,352 gross producing wells (5,839 net producing wells) located primarily in the Permian Basin. Wells located in the Permian Basin have a well depth in the range of 6,000 to 9,000 feet.
Boardwalk Pipeline Partners, LP
Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas. A wholly owned subsidiary of the Company, Boardwalk Pipelines Holding Corp. (BPHC), is the general partner and holds all of Boardwalk Pipeline’s incentive distribution rights. Boardwalk Pipeline owns and operates three interstate natural gas pipelines, with approximately 14,200 miles of interconnected pipelines, directly serving customers in 12 states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. During 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Boardwalk Pipeline’s natural gas storage facilities consists of 11 underground storage fields located in four states with aggregate working gas capacity of approximately 167 billion cubic feet.
Boardwalk Pipeline serves a range of customers, including producers, local distribution companies, marketers, electric power generators, direct industrial users and interstate and intrastate pipelines located throughout the Gulf Coast, Midwest and Northeast regions of the United States. The pipeline systems of Boardwalk Pipeline consist of the Gulf Crossing pipeline system, the Gulf South pipeline system and the Texas Gas pipeline system. The Gulf Crossing pipeline system, which originates in Texas and proceeds into Louisiana, operates approximately 360 miles of natural gas pipeline.
The Gulf South pipeline system runs approximately 7,600 miles along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. Gulf South has two natural gas storage facilities with 83 billion cubic feet of working gas storage capacity. The Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs for approximately 6,100 miles north and east through Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas owns nine natural gas storage fields with 84 billion cubic feet of working gas storage capacity.
Loews Hotels Holding Corporation
The subsidiaries of Loews Hotels Holding Corporation (Loews Hotels) operate 17 hotels. During 2011, Loews Hotels accounted for 2.4% of its total revenue.
667 Madison Avenue
NEW YORK NY 10065-8087