Loews Corporation Reports Net Income of $177 Million, or $0.45 Per Share, for the Third Quarter of 2012

  Loews Corporation Reports Net Income of $177 Million, or $0.45 Per Share,
  for the Third Quarter of 2012

  Book Value Per Share of $50.41, an Increase of 6.5% from December 31, 2011

Business Wire

NEW YORK -- October 29, 2012

Loews Corporation (NYSE:L) today reported net income for the 2012 third
quarter of $177 million, or $0.45 per share, compared to $162 million, or
$0.40 per share, in the 2011 third quarter. Net income for the nine months
ended September 30, 2012 was $600 million, or $1.51 per share, compared to
$791 million, or $1.94 per share, in the prior year period.

Net income for the three and nine months ended September 30, 2012 includes
after tax non-cash ceiling test impairment charges of $166 million and $336
million at HighMount Exploration & Production LLC related to the carrying
value of its natural gas and oil properties reflecting declines in natural gas
and NGL prices.

Book value per share increased to $50.41 at September 30, 2012 from $47.33 at
December 31, 2011 and $47.58 at September 30, 2011.

CONSOLIDATED HIGHLIGHTS

                       
(In millions, except      September 30,
per share data)           Three Months                Nine Months
                         2012       2011      2012      2011
                                                              
Income before net
investment gains          $ 339           $ 177          $ 901          $ 782
(losses) and
impairment charges
Non-cash ceiling test       (166  )                        (336 )
impairment charges
Net investment gains     4          (15  )     35        9
(losses)
Net income
attributable to Loews   $ 177       $ 162      $ 600      $ 791
Corporation
                                                                        
Net income per share    $ 0.45      $ 0.40     $ 1.51     $ 1.94
Book value per share
at:
September 30, 2012        $ 50.41
December 31, 2011           47.33
September 30, 2011       47.58                           
                                                                        

Three Months Ended September 30, 2012 Compared to 2011

Income before net investment gains (losses) and impairment charges in 2012 was
$339 million, as compared to $177 million in the 2011 third quarter. The
increase is due primarily to higher earnings at CNA Financial Corporation and
higher parent company investment income due primarily to increased performance
of equity and limited partnership investments. These increases were partially
offset by lower earnings at Diamond Offshore Drilling, Inc.

CNA’s earnings increased due to higher net investment income and lower
catastrophe losses. Increased investment income reflects improved performance
of limited partnership investments.

Diamond Offshore’s earnings decreased due to lower rig utilization and a
decrease in average dayrate.

Nine Months Ended September 30, 2012 Compared to 2011

Income before net investment gains and impairment charges in 2012 was $901
million, as compared to $782 million in the 2011 period. The increase is due
primarily to the reasons discussed above in the three month comparison and
improved earnings from Boardwalk Pipeline Partners, LP, primarily due to the
contribution from Boardwalk HP Storage Company which was acquired in December
2011 as well as the prior year impact of an impairment charge related to steel
pipe materials.

SHARE REPURCHASES

At September 30, 2012, there were 393.6 million shares of Loews common stock
outstanding. During the three months and nine months ended September 30, 2012,
the Company purchased 2.2 million and 3.5 million shares of its common stock
at an aggregate cost of $88 million and $139 million. Depending on market
conditions, the Company may from time to time purchase shares of its and its
subsidiaries’ outstanding common stock in the open market or otherwise.

CONFERENCE CALLS

A conference call to discuss the third quarter results of Loews Corporation
has been scheduled for 11:00 a.m. EDT, today. A live webcast of the call will
be available online at the Loews Corporation website (www.loews.com). Please
go to the website at least ten minutes before the event begins to register and
to download and install any necessary audio software. Those interested in
participating in the question and answer session should dial (877) 692-2592,
or for international callers, (973) 582-2757. The conference ID number is
36605643. An online replay will also be available on the Loews Corporation’s
website following the call.

A conference call to discuss the third quarter results of CNA has been
scheduled for 10:00 a.m. EDT, today. A live webcast will be available at
http://investor.cna.com. Those interested in participating in the question and
answer session should dial (888) 417-8465, or for international callers, (719)
457-2627. Please go to the website at least ten minutes before the event
begins to register and to download and install any necessary audio software.

A conference call to discuss the third quarter results of Boardwalk Pipeline
has been scheduled for 9:00 a.m. EDT, today. A live webcast will be available
at www.bwpmlp.com. Those interested in participating in the question and
answer session should dial (800) 299-7089 or for international callers, (617)
801-9714. The conference ID number is 29246984. Please go to the website at
least ten minutes before the event begins to register and to download and
install any necessary audio software.

A conference call to discuss the third quarter results of Diamond Offshore was
held on Thursday, October 18, 2012. An online replay is available on Diamond
Offshore’s website (www.diamondoffshore.com).

ABOUT LOEWS CORPORATION

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)  78        (65   )    66         (28    )
and other
                        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    (261  )                     (527   )
charge
Loews Hotels               (1    )       (1    )       17             13
Investment income          79            (64   )       70             (23    )
(loss), net
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)     20            18            80             56
(d)
HighMount
Operations                 8             16            17             50
Ceiling test impairment    (166  )                     (336   )
charge
Loews Hotels               (1    )                     9              8
Investment income          53            (41   )       47             (13    )
(loss), net
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  $ 177      $ 162      $ 600       $ 791    
to Loews Corporation
                                                                             

        Includes a $76 million gain ($32 million after tax and noncontrolling
 (a)  interests) for the nine months ended September 30, 2012 related to the
        sale of jack-up rigs.
        Includes an impairment charge of $29 million ($11 million after tax
  (b)   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         Three Months                   Nine Months
share data)
               2012          2011          2012          2011
Revenues:                                                   
Insurance          $ 1,781          $ 1,732          $ 5,098          $ 4,942
premiums
Net investment       682              333              1,794            1,513
income
Investment           7                (27    )         59               15
gains (losses)
Contract
drilling             714              861              2,195            2,520
revenues
Other             531         539         1,701       1,658  
Total             3,715       3,438       10,847      10,648 
                                                                      
Expenses:
Insurance
claims &             1,435            1,400            4,164            4,131
policyholders’
benefits
Contract
drilling             358              392              1,160            1,142
expenses
Other (a)         1,513       1,207       4,159       3,631  
Total             3,306       2,999       9,483       8,904  
                                                                      
Income before        409              439              1,364            1,744
income tax
Income tax        (99    )     (123   )     (337   )     (462   )
expense
                                                                      
Net income           310              316              1,027            1,282
Amounts
attributable
to                (133   )     (154   )     (427   )     (491   )
noncontrolling
interests
Net income
attributable     $ 177        $ 162        $ 600        $ 791    
to Loews
Corporation
                                                                      
Diluted income
per share
attributable     $ 0.45       $ 0.40       $ 1.51       $ 1.94   
to Loews
Corporation
                                                                      
Weighted
diluted number    395.29      401.73      396.64      408.05 
of shares
                                                                               

      Includes non-cash impairment charges of $261 million ($166 million after
(a)  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.
      

Contact:

Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Mary Skafidas, 212-521-2788
Investor and Public Relations
 
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