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
 
December 31,
(In millions) Three Months       Years Ended
          2012     2011       2012     2011
Revenues:
CNA Financial $ 2,437 $ 2,294 $ 9,487 $ 8,982
Diamond Offshore (a) 753 752 3,072 3,334
Boardwalk Pipeline 325 301 1,187 1,144
HighMount 78 93 297 390
Loews Hotels 125 86 397 337
Investment income (loss) and other           (11 )       22           55         (6 )
            3,707         3,548           14,495         14,181  
Investment gains (losses):
CNA Financial (2 ) (33 ) 60 (19 )
Corporate and other                 (34 )         (3 )       (33 )
            (2 )       (67 )         57         (52 )
Total         $ 3,705       $ 3,481         $ 14,552       $ 14,129  
 
Income (Loss) Before Income Tax:
CNA Financial (b) $ (31 ) $ 274 $ 820 $ 898
Diamond Offshore (a) (c) 185 203 917 1,177
Boardwalk Pipeline (d) 88 70 304 211
HighMount
Operations 16 21 44 99
Ceiling test impairment charge (153 ) (680 )
Loews Hotels (3 ) 4 14 17
Investment income (loss), net (9 ) 24 61 1
Other (e)           (56 )       (47 )         (138 )       (125 )
            37         549           1,342         2,278  
Investment gains (losses):
CNA Financial (2 ) (33 ) 60 (19 )
Corporate and other                 (34 )         (3 )       (33 )
            (2 )       (67 )         57         (52 )
Total         $ 35       $ 482         $ 1,399       $ 2,226  
 
Net Income (Loss) Attributable to Loews Corporation:
CNA Financial (b) $ (5 ) $ 195 $ 535 $ 567
Diamond Offshore (a) (c) 73 88 337 451
Boardwalk Pipeline (d) (f) 31 21 111 77
HighMount
Operations 9 12 26 62
Ceiling test impairment charge (97 ) (433 )
Loews Hotels (2 ) 5 7 13
Investment income (loss), net (6 ) 16 41 3
Other (e)           (33 )       (26 )         (89 )       (80 )
            (30 )       311           535         1,093  
Investment gains (losses):
CNA Financial (2 ) (19 ) 35 (10 )
Corporate and other                 (21 )         (2 )       (21 )
            (2 )       (40 )         33         (31 )
Net income (loss) attributable to Loews Corporation         $ (32 )     $ 271         $ 568       $ 1,062  
   
(a) Includes a $76 million gain ($32 million after tax and noncontrolling interests) for the year ended December 31, 2012 related to the sale of jack-up rigs.
(b) Includes catastrophe losses of $268 million and $391 million ($171 million and $243 million after tax and noncontrolling interests) for the three months and year ended December 31, 2012 primarily related to Storm Sandy.
(c) Includes an impairment charge of $62 million ($19 million after tax and noncontrolling interests) for the three months and year ended December 31, 2012 related to the carrying value of three semisubmersible rigs.
(d) Includes an impairment charge of $29 million ($11 million after tax and noncontrolling interests) for the year ended December 31, 2011 related to the carrying value of steel pipe materials.
(e) Consists primarily of corporate interest expense and other unallocated expenses.
(f) Represents a 55.5%, 64.0%, 59.3% and 64.7% ownership interest in Boardwalk Pipeline for the respective periods.
                       
 
Loews Corporation and Subsidiaries
Consolidated Financial Review
 
December 31,
(In millions, except per share data) Three Months       Years Ended
          2012     2011       2012     2011
Revenues:
Insurance premiums $ 1,784 $ 1,661 $ 6,882 $ 6,603
Net investment income 555 550 2,349 2,063
Investment gains (losses) (2 ) (67 ) 57 (52 )
Contract drilling revenues 741 734 2,936 3,254
Other           627         603           2,328         2,261  
Total           3,705         3,481           14,552         14,129  
 
Expenses:
Insurance claims & policyholders’ benefits 1,732 1,358 5,896 5,489
Contract drilling expenses 377 407 1,537 1,549
Other (a)           1,561         1,234           5,720         4,865  
Total           3,670         2,999           13,153         11,903  
 
Income before income tax 35 482 1,399 2,226
Income tax (expense) benefit           48         (70 )         (289 )       (532 )
 
Net income 83 412 1,110 1,694
Amounts attributable to noncontrolling interests           (115 )       (141 )         (542 )       (632 )
Net income (loss) attributable to Loews Corporation         $ (32 )     $ 271         $ 568       $ 1,062  
 
 
Diluted income (loss) per share attributable to Loews Corporation         $ (0.08 )     $ 0.68         $ 1.43       $ 2.62  
 
Weighted diluted number of shares           392.85         397.31           395.87         405.32  
   
(a) Includes non-cash impairment charges of $153 million ($97 million after tax) and $680 million ($433 million after tax) for the three months and year ended December 31, 2012 related to the carrying value of HighMount's natural gas and oil properties.
 

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