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Loews Corporation Reports Net Income Of $177 Million, Or $0.45 Per Share, For The Third Quarter Of 2012

Loews Corporation, a holding company, is one of the largest diversified corporations in the United States. Its principal subsidiaries are CNA Financial Corporation (NYSE: CNA), a 90% owned subsidiary; Diamond Offshore Drilling, Inc. (NYSE: DO), a 50.4% owned subsidiary; Boardwalk Pipeline Partners, LP (NYSE: BWP), a 55% owned subsidiary; HighMount Exploration & Production LLC, a wholly owned subsidiary; and Loews Hotels, a wholly owned subsidiary.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release which are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website ( www.loews.com). Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

             
Loews Corporation and Subsidiaries Selected Financial Information by Segment
                       
September 30,
(In millions) Three Months     Nine Months
      2012         2011         2012         2011  
Revenues:
CNA Financial $ 2,457 $ 2,203 $ 7,050 $ 6,688
Diamond Offshore (a) 730 881 2,319 2,582
Boardwalk Pipeline 271 269 862 843
HighMount 74 95 219 297
Loews Hotels 98 82 272 251
Investment income (loss) and other   78         (65 )       66         (28 )
      3,708         3,465         10,788         10,633  
Investment gains (losses):
CNA Financial 8 (27 ) 62 14
Corporate and other   (1 )             (3 )       1  
      7         (27 )       59         15  
Total $ 3,715       $ 3,438       $ 10,847       $ 10,648  
 
Income (Loss) Before Income Tax:
CNA Financial $ 306 $ 154 $ 851 $ 624
Diamond Offshore (a) 234 335 732 974
Boardwalk Pipeline (b) 58 46 216 141
HighMount
Operations 13 25 28 78
Ceiling test impairment charge (261 ) (527 )
Loews Hotels (1 ) (1 ) 17 13
Investment income (loss), net 79 (64 ) 70 (23 )
Other (c)   (26 )       (29 )       (82 )       (78 )
      402         466         1,305         1,729  
Investment gains (losses):
CNA Financial 8 (27 ) 62 14
Corporate and other   (1 )             (3 )       1  
      7         (27 )       59         15  
Total $ 409       $ 439       $ 1,364       $ 1,744  
 
Net Income (Loss) Attributable to Loews Corporation:
CNA Financial $ 195 $ 84 $ 540 $ 372
Diamond Offshore (a) 83 121 264 363
Boardwalk Pipeline (b) (d) 20 18 80 56
HighMount
Operations 8 16 17 50
Ceiling test impairment charge (166 ) (336 )
Loews Hotels (1 ) 9 8
Investment income (loss), net 53 (41 ) 47 (13 )
Other (c)   (19 )       (21 )       (56 )       (54 )
      173         177         565         782  
Investment gains (losses):
CNA Financial 5 (15 ) 37 9
Corporate and other   (1 )             (2 )      
      4         (15 )       35         9  
Net income attributable to Loews Corporation $ 177       $ 162       $ 600       $ 791  
 
  (a)   Includes a $76 million gain ($32 million after tax and noncontrolling interests) for the nine months ended September 30, 2012 related to the sale of jack-up rigs.
(b) Includes an impairment charge of $29 million ($11 million after tax and noncontrolling interests) for the nine months ended September 30, 2011 related to the carrying value of certain steel pipe materials.
(c) Consists primarily of corporate interest expense and other unallocated expenses.
(d) Represents a 59.2%, 64.0%, 60.7% and 65.0% ownership interest in Boardwalk Pipeline for the respective periods.
 
 

Loews Corporation and Subsidiaries Consolidated Financial Review

                                 
      September 30,
(In millions, except per share data) Three Months       Nine Months
        2012       2011       2012       2011
Revenues:                  
Insurance premiums $ 1,781 $ 1,732 $ 5,098 $ 4,942
Net investment income 682 333 1,794 1,513
Investment gains (losses) 7 (27 ) 59 15
Contract drilling revenues 714 861 2,195 2,520
Other       531           539           1,701           1,658  
Total       3,715           3,438           10,847           10,648  
 
Expenses:
Insurance claims & policyholders’ benefits 1,435 1,400 4,164 4,131
Contract drilling expenses 358 392 1,160 1,142
Other (a)       1,513           1,207           4,159           3,631  
Total       3,306           2,999           9,483           8,904  
 
Income before income tax 409 439 1,364 1,744
Income tax expense       (99 )         (123 )         (337 )         (462 )
 
Net income 310 316 1,027 1,282
Amounts attributable to noncontrolling interests       (133 )         (154 )         (427 )         (491 )
Net income attributable to Loews Corporation     $ 177         $ 162         $ 600         $ 791  
 
Diluted income per share attributable to Loews Corporation     $ 0.45         $ 0.40         $ 1.51         $ 1.94  
 
Weighted diluted number of shares       395.29           401.73           396.64           408.05  
 
(a)   Includes non-cash impairment charges of $261 million ($166 million after tax) and $527 million ($336 million after tax) for the three and nine months ended September 30, 2012 related to the carrying value of HighMount's natural gas and oil properties.
 




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