Diversified holding company Loews Corp. (L), Monday, reported a profit for the fourth quarter of fiscal 2009, compared with a loss last year. The turnaround reflected higher limited partnership results as well as investment gains at CNA.
Loews principal subsidiaries are insurer CNA Financial Corp. (CNA), a 90% owned subsidiary; drilling rigs operator Diamond Offshore Drilling, Inc. (DO), a 50.4% owned subsidiary; HighMount Exploration & Production LLC, a wholly owned subsidiary; Boardwalk Pipeline Partners, LP, a 72% owned subsidiary; and Loews Hotels, a wholly-owned subsidiary.
Fourth-quarter net income attributable to Loews was $403 million or $0.94 per share, compared with a net loss attributable to Loews of $958 million or $2.20 per share last year.
On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share. Analysts' estimates typically exclude special items.
For the preceding third quarter, Loews posted net income attributable to Loews common stock of $468 million or $1.08 per share.
New York-based Loews, run by the billionaire Tisch family, stated that the current-year quarter's results primarily reflect improved net investment income and net investment gains at CNA Financial Corp., compared to a loss from continuing operations in the prior year. Income from continuing operations included net investment gains of $46 million, compared with net investment losses of $282 million in the previous year.
Net investment gains in the fourth quarter of 2009 were driven by a $217 million realized investment gain from the sale of CNA's common stock holdings in Verisk Analytics, Inc. and lower other-than-temporary impairment, or OTTI, losses recognized in CNA's available-for-sale portfolio. The OTTI losses were primarily driven by the impact of difficult economic conditions on residential and commercial mortgage-backed securities and by credit issues in the financial sector.
The prior-year quarter's results included an after-tax non-cash impairment charge of $440 million related to the carrying value of HighMount Exploration & Production LLC's natural gas and oil properties, an after tax non-cash goodwill impairment charge of $314 million related to HighMount, and OTTI losses related to CNA's investment portfolio.
Total quarterly revenues grew to $3.82 billion from $2.74 billion in the same quarter last year.
Insurance premiums declined to $1.69 billion from $1.77 billion a year ago. Net investment income was $591 million, in comparison with $50 million in the fourth quarter of 2008. Investment gains totaled $75 million, versus investment losses of $484 million in the prior-year quarter. Contract drilling revenues declined to $873 million from $887 million in the fourth quarter of 2008. The company also reported other revenues of $597 million, up from $525 million in the previous year.
Among subsidiaries, CNA Financial earlier today reported fourth-quarter net income of $246 million or $0.81 per common share, compared to a net loss of $336 million or $1.31 per share last year. CNA's total revenues increased to $2.398 billion from $1.537 billion in the prior year.
Diamond Offshore has reported net income of $276.1 million or $1.98 per share, down from $293.3 million or $2.11 per share in the same period a year earlier. Revenue declined to $890.8 million from $903.2 million last year.
HighMount revenue was $154 million, compared with $180 million in the prior-year quarter. Boardwalk Pipeline generated revenues of $279 million, higher than last year's $207 million. Loews Hotels recorded fourth-quarter revenues of $71 million, compared with $88 million in the same quarter of fiscal 2008.
For fiscal 2009, the company reported net income attributable to Loews Corp. of $564 million or $1.30 share, compared with $4.53 billion or $9.05 share in the previous year. Full-year revenues rose to $14.12 billion from $13.25 billion a year ago.
Amongst others in the sector, American Financial Group Inc. (AFG) is slated to announce its fourth-quarter results on February 9. Wall Street analysts are of the view that the company will earn $0.98 per share in the quarter.
Another rival, property and casualty insurance provider Travelers Companies Inc. (TRV) on Tuesday reported a 60% surge in profit for the fourth quarter from last year, bolstered by a 49% increase in net investment income. The St. Paul, Minnesota-based company's net income rose to $1.29 billion or $2.36 per share from $801 million or $1.35 per share in the prior-year quarter. Total revenue advanced 11% to $6.46 billion from $5.81 billion in the previous year.
L closed Friday's trading at $35.37, up $0.04, on a volume of 3.097 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.