Loews, CNA boosted by strong investment income

By Reuters
Posted Feb. 7 at 9:45 a.m.

Loews Corp. reported its best quarter of the year as strong investment income from its biggest holding, CNA Financial, helped the conglomerate post a better-than-expected 16 percent increase in quarterly profit.

New York-based Loews, run by the billionaire Tisch family, said net investment income rose 20 percent to $711 million for the fourth quarter.

Net income for the fourth quarter was $466 million, or $1.12 per share, compared with net income of $403 million, or $0.94 per share, in the same quarter last year.

The hotels, energy and financial services conglomerate earned $1.17 a share, excluding items, compared with analysts’ expectations of 88 cents a share, according to Thomson Reuters I/B/E/S.

Commercial insurer CNA Financial, also reported better-than-expected results, helped by strong investment income from its property and casualty operations.

Apart from CNA, Loews has stakes in Diamond Offshore and Boardwalk Pipeline Partners LP.

CNA Financial resumed its quarterly dividend and said it will pay 10 cents as quarterly dividend on March 2, to shareholders of record on February 16.

Chicago-based CNA Financial’s net operating income was $326 million, or $1.21 a share, compared with $197 million, or 73 cents a share, in the year-ago period.

According to analysts polled by Thomson Reuters I/B/E/S, the company earned $1.06 versus Wall Street view of 69 cents a share.

Apart from property and casualty insurance, CNA also offers risk management, information services, underwriting, risk control and claims administration.

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