Loews misses on drilling co profit drop

NEW YORK (Reuters) - Conglomerate Loews Corp (L.N) reported a fourth-quarter profit on Monday, but it fell short of analysts' expectations as profit dipped at its oil and gas drilling company, and its shares lost about 1 percent in morning trading.

Diamond Offshore Drilling (DO.N), in which Loews has a 50.4 percent stake, last week reported a 6 percent drop in fourth-quarter results due to weak demand for shallow-water rigs and a higher tax bill.

New York-based Loews, run by the billionaire Tisch family, posted income from continuing operations of $403 million, or 94 cents a share, compared with a year-earlier loss of $958 million, or $2.20 a share.

Excluding investment gains of 11 cents a share, Loews reported a profit of 83 cents a share, below three analysts' average forecast of 95 cents, according to Thomson Reuters

I/B/E/S.

The conglomerate said it bought back 5.8 million shares in the quarter for about $205 million.

Loews' commercial insurer CNA Financial Corp (CNA.N) was a bright spot for the company, as investment gains helped it reverse a year earlier loss. CNA on Monday reported fourth-quarter net operating income of $246 million, or 81 cents a share, compared with a loss of $336 million, or $1.31 a share, a year earlier.

Chicago-based CNA, 90-percent owned by Loews, reported a pickup in investment income and lower catastrophe losses, but noted that it wrote fewer premiums in the fourth quarter.

"The sluggish economy and competitive insurance marketplace continue to put pressure on revenues and margins across our P&C portfolio," Chief Executive Officer Thomas Motamed said in a statement.

CNA shares fell $3.65 percent to $22.72.

Shares in Loews, which also has hotel and energy businesses, fell about 1 percent to $35.02 in morning trading on the New York Stock Exchange.

(Reporting by Elinor Comlay, additional reporting by Abhinav Sharma in Bangalore; Editing by John Wallace and Maureen Bavdek)