Loews profit falls 12.5 percent as insurance, drilling units weigh

Mon Nov 2, 2015 7:04am EST
 
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(Reuters) - Hotel, energy and financial services conglomerate Loews Corp (L.N: Quote) reported a 12.5 percent drop in quarterly profit, hurt by lower revenue from its two major units - multiline insurer CNA Financial Corp (CNA.N: Quote) and Diamond Offshore Drilling Inc (DO.N: Quote).

Loews' net income fell to $182 million, or 50 cents per share, in the third quarter ended Sept. 30, from $208 million, or 55 cents per share, a year earlier.

Excluding items, the company earned 58 cents per share, beating analysts' average estimate of 56 cents, according to Thomson Reuters I/B/E/S.

Loews, controlled by New York's wealthy Tisch family, said total revenue fell 10 percent to $3.17 billion.

Net written premiums from property and casualty at CNA Financial, Loews' largest unit, fell 2 percent to $1.53 billion in the quarter.

Revenue at the company's second biggest unit, Diamond Offshore, declined 17.3 percent to $610 million due to lower rig utilization.

Boardwalk Pipeline Partners LP (BWP.N: Quote) and Loews Hotels & Resorts are Loews' two other subsidiaries.

Up to Friday's close of $36.46, Loews' shares had lost 13 percent this year.

(Reporting by Rachel Chitra in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)

 
James Tisch, President and Chief Executive of Loews Corporation, speaks during The Economist's Buttonwood Gathering in New York October 25, 2012.   REUTERS/Carlo Allegri