Loews Swings to Fourth-Quarter Loss on Charges

NEW YORK -- Conglomerate Loews Corp. (L Quote) on Monday said it posted a loss in the fourth quarter because of charges and heavy investment losses at its majority-owned insurance subsidiary CNA Financial Corp.

Loews reported a net loss of $958 million, or $2.20 per share, for the October-December period compared with a profit of $512 million, or 72 cents per share, a year earlier.

Revenue fell 24% to $2.74 billion from $3.59 billion.

Insurance subsidiary CNA Financial posted a $283 million loss because of "prolonged and severe disruptions" in the debt and equity markets, bankruptcies, and global economic weakness.

The company also recorded a $440 million non-cash impairment charge and a $314 million goodwill impairment charge in the most recent quarter.

For the year, Loews earned $4.53 billion, or $9.05 per share, compared with $2.49 billion, or $3.65 per share, last year.

Sales declined 7% to $13.25 billion from $14.3 billion a year ago.

In addition to a 90% stake in CNA Financial, Loews owns all or part of Loews Hotels, Diamond Offshore Drilling Inc., HighMount Exploration & Production LLC and Boardwalk Pipeline Partners LP.

Loews shares rose 13 cents to $25.11 in midday trading.