Loews Corp. (L) fell the most since August as Chief Executive Officer James Tisch said he’s “very concerned” about the global economy after profit fell for a third-straight quarter.
Loews slumped 5.2 percent to $39.54 at 4 p.m. in New York. The company has gained 5 percent this year, compared with the 10 percent advance in the Standard & Poor’s 500 Index.
“In the United States, we’ve got 1.5 percent economic growth, the euro zone is not growing, the emerging markets are not emerging as fast as they had been before,” Tisch said today on a conference call to discuss Loews’ quarterly results. “You don’t see anybody expressing optimism about what’s going on in the economy either here in the United States or overseas.”
Loews has been pursuing growth at subsidiaries that sell insurance, manage hotels and produce energy. Second-quarter profit at the New York-based company fell 78 percent to $56 million as the company took an impairment at its HighMount Exploration & Production LLC tied to lower natural gas prices.
“I’m very concerned” about the global economy, Tisch said today. “I find it actually quite extraordinary that we find ourselves with attractive investment opportunities at the subsidiary level in view of just how poorly I think the U.S. economy and the global economy is doing.”
Insurance unit CNA Financial Corp. (CNA) completed its acquisition of Hardy Underwriting Bermuda Ltd. this month to expand internationally. In June, Loews’ hotel subsidiary bought the Renaissance Hotel & Spa in Hollywood, California, from CIM Group.
To contact the reporter on this story: Noah Buhayar in New York at email@example.com.
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org