Loews Corporation Reports Net Income for the Third Quarter of 2009

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NEW YORK--(Business Wire)--
Loews Corporation (NYSE:L) today reported income from operations before
investment losses for the 2009 third quarter of $530 million compared to $235
million in the 2008 third quarter. Income from continuing operations for the
2009 third quarter was $469 million, or $1.08 per share, compared to a loss of
$144 million, or $0.33 per share, in the 2008 third quarter.

Book value per common share increased to $39.54 at September 30, 2009, as
compared to $34.60 at June 30, 2009 and $30.18 at December 31, 2008. The
increase during the third quarter of 2009 was primarily driven by a $1.7 billion
(after tax and noncontrolling interests) improvement in the fair value of our
insurance subsidiary`s fixed maturities investment portfolio reflecting a
further narrowing of credit spreads which began in the second quarter.

Net income (loss) and earnings (loss) per share information attributable to
Loews common stock and the former Carolina Group stock is summarized in the
table below:

September 30,
Three Months Nine Months
(In millions, except per share data) 2009 2008 2009 2008

Net income (loss) attributable to Loews common stock:
Income before net investment losses $ 530 $ 235 $ 712 $ 1,248
Net investment losses (61 ) (379 ) (549 ) (472 )
Income (loss) from continuing operations 469 (144 ) 163 776
Discontinued operations, net (a) (1 ) 7 (2 ) 4,501
Net income (loss) attributable to Loews common stock 468 (137 ) 161 5,277
Net income attributable to former Carolina Group stock -
Discontinued operations, net (b) 211
Net income (loss) attributable to Loews Corporation $ 468 $ (137 ) $ 161 $ 5,488

Net income (loss) per share:
Loews common stock:
Income (loss) from continuing operations $ 1.08 $ (0.33 ) $ 0.37 $ 1.58
Discontinued operations, net (a) 0.02 9.14
Net income (loss) attributable to Loews common stock $ 1.08 $ (0.31 ) $ 0.37 $ 10.72
Former Carolina Group stock - Discontinued
operations, net $ - $ 1.95
Book value per share of Loews common stock at:
September 30, 2009 $ 39.54
December 31, 2008 $ 30.18

(a) Includes a tax-free non-cash gain of $4,287 million related to the separation of Lorillard, Inc. and an after tax gain of $75 million from the sale of Bulova Corporation for the nine months ended September 30, 2008.
(b) The Carolina Group and Carolina Group stock were eliminated effective June 10, 2008 as part of the separation of Lorillard, Inc.

Income from Continuing Operations

Three Months Ended September 30, 2009 Compared with 2008

Income from continuing operations primarily reflects improved net investment
income and significantly lower impairment losses at CNA Financial Corporation,
compared to a loss from continuing operations in the prior year. Net investment
income benefited from higher limited partnership results, partially offset by
the impact of lower short-term interest rates. In addition, continued strong
results at Diamond Offshore Drilling, Inc. and higher investment income at the
holding company contributed to the improved results. Results were lower at
Boardwalk Pipeline Partners, LP due to remediation of pipeline anomalies, and at
Loews Hotels due to impairment charges related to two properties.

Income from continuing operations includes net investment losses of $61 million
(after tax and noncontrolling interests) in the third quarter of 2009 compared
to net investment losses of $379 million in the comparable prior year period.
Net investment losses in the third quarter of 2008 were primarily driven by
other-than-temporary impairment losses recognized in CNA`s available-for-sale
portfolio driven by credit related issues.

Nine Months Ended September 30, 2009 Compared with 2008

The decline in income from continuing operations in 2009 primarily reflects a
non-cash impairment charge of $660 million (after tax) recorded in the first
quarter of 2009, related to the carrying value of HighMount Exploration &
Production LLC`s natural gas and oil properties, reflecting declines in natural
gas prices. There were no comparable impairment charges in the prior year
period. Excluding this impairment charge, results improved over the comparable
period of the prior year due to the reasons discussed in the three months
comparison above, partially offset by increased impairment losses recorded in
CNA`s investment portfolio.

Net investment losses were $549 million (after tax and noncontrolling interests)
in the nine months ended September 30, 2009, compared to losses of $472 million
in the comparable prior year period.

Discontinued Operations

In June of 2008, the Company disposed of its entire ownership interest in
Lorillard, Inc. through the redemption of Carolina Group stock in exchange for
Lorillard common stock and an exchange of our remaining Lorillard common stock
for Loews common stock. The Carolina Group and Carolina Group stock have been
eliminated. The Company also sold Bulova Corporation in January 2008.
Lorillard`s results of operations and the gain on disposal of Lorillard and
Bulova have been classified as discontinued operations.

SHARE REPURCHASES

At September 30, 2009, there were 430,614,160 shares of Loews common stock
outstanding. During the third quarter, the Company acquired 3,516,200 shares of
its common stock for approximately $111 million. From October 1, 2009 through
October 28, 2009, the Company acquired an additional 991,500 shares of its
common stock for approximately $33 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. EST, Monday, November 2, 2009. 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 33491991.

A conference call to discuss the third quarter results of CNA has been scheduled
for 10:00 a.m. EST, Monday, November 2, 2009. A live webcast of the call will be
available online at http://investor.cna.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 (888) 378-4369, or for international callers, (719)
785-1754.

A conference call to discuss the third quarter results of Boardwalk Pipeline was
held on Monday, October 26, 2009. An online replay is available on Boardwalk
Pipeline`s website (www.bwpmlp.com).

A conference call to discuss the third quarter results of Diamond Offshore was
held on Thursday, October 22, 2009. 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; HighMount Exploration & Production LLC, a
wholly owned subsidiary; Boardwalk Pipeline Partners, LP (NYSE: BWP), a 72%
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
Financial Review
September 30,
Three Months Nine Months
2009 2008 2009 2008
(Amounts in millions, except per share data)
Revenues:
Insurance premiums $ 1,707 $ 1,799 $ 5,035 $ 5,385
Net investment income 726 355 1,908 1,531
Investment losses (100 ) (650 ) (928 ) (810 )
Contract drilling revenues 885 882 2,664 2,589
Other 520 584 1,616 1,809
Total 3,738 2,970 10,295 10,504

Expenses:
Insurance claims & policyholders` benefits (a) 1,282 1,519 3,919 4,380
Contract drilling expenses 307 314 907 872
Impairment of natural gas and oil properties (b) 1,036
Other 1,191 1,178 3,586 3,324
Total 2,780 3,011 9,448 8,576

Income (loss) before income tax 958 (41 ) 847 1,928
Income tax (expense) benefit (266 ) 56 (68 ) (537 )

Income (loss) from continuing operations 692 15 779 1,391

Discontinued operations:
Results of operations (1 ) 7 (2 ) 350
Gain on disposal (c) 4,362
Net income (loss) 691 22 777 6,103
Amounts attributable to noncontrolling interests (223 ) (159 ) (616 ) (615 )
Net income (loss) attributable to Loews Corporation $ 468 $ (137 ) $ 161 $ 5,488

Net income (loss) attributable to:
Loews common stock:
Income (loss) from continuing operations $ 469 $ (144 ) $ 163 $ 776
Discontinued operations, net (1 ) 7 (2 ) 4,501
Net income (loss) attributable to Loews common stock 468 (137 ) 161 5,277
Former Carolina Group stock - Discontinued Operations, net 211
Net income (loss) attributable to Loews Corporation $ 468 $ (137 ) $ 161 $ 5,488

Income (loss) per share attributable to Loews common stock:
Income (loss) from continuing operations $ 1.08 $ (0.33 ) $ 0.37 $ 1.58
Discontinued operations, net 0.02 9.14
Diluted net income (loss) attributable to Loews common stock $ 1.08 $ (0.31 ) $ 0.37 $ 10.72

Diluted net income per share of former Carolina Group stock
- Discontinued operations, net $ - $ 1.95

Weighted diluted number of shares:
Loews common stock 433.48 436.32 434.89 492.40
Former Carolina Group stock - 108.60

(a) Includes a gain of $94 million ($55 million after tax and noncontrolling interest), net of reinsurance for the three and nine months ended September 30, 2009, related to a legal settlement pertaining to the placement of personal accident reinsurance.
(b) The non-cash impairment charge ($660 million after tax) relates to the carrying value of HighMount's natural gas and oil properties.
(c) Includes a tax-free non-cash gain of $4,287 million related to the separation of Lorillard, Inc. and an after tax gain of $75 million from the sale of Bulova Corporation for the nine months ended September 30, 2008.

Loews Corporation and Subsidiaries
Additional Financial Information
September 30,
Three Months Nine Months
2009 2008 2009 2008
(In millions)
Revenues:
CNA Financial $ 2,440 $ 2,310 $ 7,003 $ 7,075
Diamond Offshore 919 868 2,762 2,630
HighMount 144 200 466 590
Boardwalk Pipeline 206 222 631 641
Loews Hotels 67 90 213 292
Investment income and other 62 (70 ) 148 86
3,838 3,620 11,223 11,314
Investment gains (losses):
CNA Financial (100 ) (651 ) (929 ) (813 )
Corporate and other - 1 1 3
(100 ) (650 ) (928 ) (810 )
Total $ 3,738 $ 2,970 $ 10,295 $ 10,504

Income (Loss) Before Income Tax:
CNA Financial (a) $ 490 $ 113 $ 1,121 $ 797
Diamond Offshore 474 446 1,445 1,441
HighMount (b) 66 74 (894 ) 225
Boardwalk Pipeline 16 73 85 226
Loews Hotels (c) (26 ) 7 (49 ) 57
Investment income, net 64 (87 ) 149 69
Other (d) (26 ) (17 ) (82 ) (77 )
1,058 609 1,775 2,738
Investment gains (losses):
CNA Financial (100 ) (651 ) (929 ) (813 )
Corporate and other - 1 1 3
(100 ) (650 ) (928 ) (810 )
Total $ 958 $ (41 ) $ 847 $ 1,928

Net Income (Loss) Attributable to Loews Corporation:
CNA Financial (a) $ 304 $ 76 $ 722 $ 503
Diamond Offshore 170 145 514 475
HighMount (b) 40 47 (572 ) 142
Boardwalk Pipeline (e) 9 31 39 98
Loews Hotels (c) (15 ) 6 (30 ) 36
Investment income, net 41 (57 ) 97 45
Other (d) (19 ) (13 ) (58 ) (51 )
530 235 712 1,248
Investment gains (losses):
CNA Financial (61 ) (379 ) (549 ) (473 )
Corporate and other 1
(61 ) (379 ) (549 ) (472 )

Income (loss) from continuing operations 469 (144 ) 163 776
Discontinued operations, net (f) (1 ) 7 (2 ) 4,501
Net income (loss) attributable to Loews common stock 468 (137 ) 161 5,277
Former Carolina Group stock - Discontinued operations, net 211
Net income (loss) attributable to Loews Corporation $ 468 $ (137 ) $ 161 $ 5,488

(a) Includes a gain of $94 million ($55 million after tax and noncontrolling interest), net of reinsurance for the three and nine months ended September 30, 2009, related to a legal settlement pertaining to the placement of personal accident reinsurance.
(b) Reflects a non-cash impairment charge of $1,036 million ($660 million after tax) for the nine months ended September 30, 2009 related to the carrying value of HighMount's natural gas and oil properties.
(c) Includes an impairment charge of $27 million ($16 million after tax) for the nine months ended September 30, 2009 related to the writedown of Loews Hotels' entire investment in a hotel property. Also reflects a $20 million ($12 million after tax) charge related to two hotel properties for the three and nine months ended September 30, 2009.
(d) Consists primarily of corporate interest expense and other unallocated expenses.
(e) Represents a 73.1%, 70.3%, 73.6% and 70.3% ownership interest in Boardwalk Pipeline for the respective periods.
(f) Includes a tax-free non-cash gain of $4,287 million related to the separation of Lorillard, Inc. and an after tax gain of $75 million from the sale of Bulova Corporation for the nine months ended September 30, 2008.

Loews Corporation
Peter W. Keegan, 212-521-2950
Chief Financial Officer
or
Darren Daugherty, 212-521-2788
Investor Relations
or
Candace Leeds, 212-521-2416
Public Affairs

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