Loews swings to a loss

Loews Corp. (L) and insurer CNA Financial Corp. swung to first-quarter losses, their third-straight period of red ink, as investment losses continue to pressure the companies' results.

Loews remade some of its portfolio last year by shedding its stake of cigarette maker Lorillard Inc. As such, that make the conglomerate more exposed to 90-percent owned CNA, which some critics had called among the worst-run property-and-casualty insurers.

But underwriting improved last year while unrealized investment losses mounted, as they did with many insurers in the wake of the stock market's slump. A new chief executive also came in at the start of 2009.

Loews this week reported a net loss of $647 million, or $1.49 a share, compared with a prior-year profit of $662 million, or $1.05 a share. Revenue dropped 16 percent to $3.02 billion.

Beyond investment losses, notably at CNA, Loews' latest results were hurt by another $1 billion write-down on oil-and-gas properties at its HighMount Exploration business. Loews recorded $1.17 billion in write-downs for the fourth quarter.

At CNA, it posted a loss of $195 million, or 84 cents a share, compared with a year-earlier profit of $187 million, or 69 cents a share. Excluding investment losses, earnings fell to 56 cents from 82 cents. The mean estimate of analysts surveyed by Thomson Reuters was 26 cents.

Loews is also a majority owner of Diamond Offshore Drilling Inc., which a week ago reported its first-quarter profit rose 20 percent on higher revenue and margins. The company also again declared a special cash dividend in addition to its regular dividend.