(Reuters) - Hotel, energy and financial services conglomerate Loews Corp (L.N) reported a 75 percent drop in quarterly profit as it booked a loss related to the pending sale of the annuity and pension deposit business of CNA Financial Corp (CNA.N).
Loews, controlled by the billionaire Tisch family, said first-quarter net income attributable to the company fell to $59 million, or 15 cents per share, from $242 million, or 62 cents per share, a year earlier.
The latest quarterly results included a loss from discontinued operations of $186 million, or 48 cents per share.
CNA, which is the largest subsidiary of Loews, said in February that it was selling its life and group insurance business for about $615 million as the returns from the business were low.
Loews’ revenue rose about 2 percent to $3.74 billion, while net investment income fell nearly 4 percent to $577 million.
Separately, insurer CNA said net income fell to $13 million, or 5 cents per share, in the first quarter, from $250 million, or 93 cents per share, a year earlier.
Loews also controls Diamond Offshore Drilling Inc (DO.N), one of the world’s top five offshore rig contractors. The company reported a better-than-expected adjusted profit last week as it cut costs and secured higher rates for its upgraded fleet.
Loews’ shares closed at $44.14 on the New York Stock Exchange on Friday. The stock has risen about 2 percent since the company last reported its quarterly earnings in February.
CNA shares, which have gained about 3 percent since reporting its previous quarter results, closed at $42.71 on Friday.
Reporting by Amrutha Gayathri in Bangalore; Editing by Maju Samuel