November 2, 2015 / 11:21 AM / 3 years ago

Loews profit falls 12.5 percent as insurance, drilling units weigh

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

(Reuters) - Hotel, energy and financial services conglomerate Loews Corp (L.N) 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) and Diamond Offshore Drilling Inc (DO.N).

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 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

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