Loews profit falls on losses tied to CNA's pension business sale

(Reuters) — Hotel, energy and financial services conglomerate Loews Corp reported a 75% 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.

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% to $3.74 billion, while net investment income fell nearly 4% 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, 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% since the company last reported its quarterly earnings in February.

CNA shares, which have gained about 3% since reporting its previous quarter results, closed at $42.71 on Friday.