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CNA Financial

(CNA) - Get CNA Financial Corporation Report

continues to rot the quarterly results of its parent company,


(L) - Get Loews Corporation Report


On Monday, Loews badly missed Wall Street targets with its second-quarter earnings, largely because CNA holds mortgage-backed securities that continue to decline in value. Loews, which owns 90% of CNA, said investment losses at the property-and-casualty insurer cost it $178 million in the second quarter.

Overall, Loews said it earned $340M, or 78 cents a share, in the period. Analysts were looking for 98 cents a share.

A year ago, boosted by a huge gain from the sale of its Lorillard cigarette business, Loews posted earnings of $4.96 billion, or $9.54 a share.

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On its top line, Loews' revenue came in at $3.5 billion, down 10% from the year-ago period's $3.92 billion.

Investors pushed shares of the company higher Monday nonetheless. The stock was trading in morning action at $31.33, up 4%, on volume of about 700,000 shares. Average daily turnover is 3.7 million.

CNA also released results Monday, posting profit of $105 million, or 27 cents a share, down from last year's $181 million, or 67 cents a share. Investment losses ballooned to nearly $200 million from the year-ago quarter's $71 million.

CNA shares were also riding high Monday, gaining more than 12% to $19.18, on heavy volume.

Loews, based in New York, also owns large chunks of

Diamond Offshore Drilling

(DO) - Get Diamond Offshore Drilling, Inc. Report


Boardwalk Pipeline Partners


. Last week, Diamond said its earnings in the second quarter were down nearly 7% from the year-earlier period.

-- Reported by Scott Eden in New York.

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