Loews Corporation Reports Net Income for the First Quarter of 2005

Business Wire, May 3, 2005

NEW YORK -- Loews Corporation (NYSE:LTR)(NYSE:CG) today reported consolidated net income (including both the Loews Group and Carolina Group) for the 2005 first quarter of $339.7 million, compared to $44.9 million in the 2004 first quarter. Income before net investment losses attributable to Loews common stock amounted to $308.0 million in the first quarter of 2005 compared to $310.8 million in the comparable 2004 quarter. Net income attributable to Loews common stock includes net investment losses of $14.8 million (after tax and minority interest), compared to losses of $300.3 million in the comparable 2004 quarter, which included an impairment loss of $368.3 million (after tax and minority interest) for CNA's sale of its individual life insurance business.

The Company will restate its financial results for prior years to correct CNA's accounting for several reinsurance contracts, primarily with a former affiliate, and CNA's equity accounting for that affiliate. The Company will file a Form 10-K/A for 2004 reflecting the effects of the restatement, which will reduce shareholders' equity as of December 31, 2004 by $27.3 million, or 0.2%.

Net income and earnings per share information attributable to Loews common stock and Carolina Group stock is summarized in the table below.

Three Months Ended
                                                         March 31,
                                                    ------------------
(In millions, except per share data)                  2005       2004
                                                    ------- ----------
                                                            (Restated)
Net income attributable to Loews common stock:
   Income before net investment losses              $308.0     $310.8
   Net investment losses (a)                         (14.8)    (300.3)
                                                    ------- ----------
Net income attributable to Loews common stock        293.2       10.5
Net income attributable to Carolina Group stock       46.5       34.4
                                                    ------- ----------
Consolidated net income                             $339.7      $44.9
                                                    ======= ==========

Net income per share:
  Loews common stock                                 $1.58      $0.06
  Carolina Group stock                               $0.68      $0.59
=================================================== ======= ==========

Book value per share of Loews common stock
 at: March 31, 2005                                 $66.44
     December 31, 2004                              $66.56
=================================================== ======= ==========

(a) Includes an impairment loss of $368.3 (after tax and minority
    interest) in 2004 related to CNA's sale of its individual life
    insurance business.

Net income attributable to Loews common stock for the first quarter of 2005 amounted to $293.2 million or $1.58 per share, compared to $10.5 million or $0.06 per share in the comparable period of the prior year.

Net income attributable to Carolina Group stock for the first quarter of 2005 was $46.5 million or $0.68 per Carolina Group share, compared to $34.4 million, or $0.59 per Carolina Group share in the first quarter of 2004. The Company is issuing a separate press release reporting the results of the Carolina Group for the quarter ended March 31, 2005.

Consolidated revenues in the first quarter of 2005 amounted to $3.7 billion, compared to $3.5 billion in the comparable 2004 quarter.

Financial Restatement

The Company will restate its financial results for prior years to correct CNA's accounting for several reinsurance contracts, primarily with a former affiliate, and CNA's equity accounting for that affiliate. The impact of this revised accounting results in a reduction to shareholders' equity as of December 31, 2004 of $27.3 million, or 0.2%, and an increase in net income attributable to Loews common stock of $1.3 million, or $0.01 per Loews common share, for the three months ended March 31, 2004.

The Company will file a Form 10-K/A for 2004 reflecting the effects of the restatement as follows:

----------------------------------------------------------------------
      Restated Results as of and for the Year Ended December 31
----------------------------------------------------------------------

                                   2004                  2003
                           --------------------- ---------------------
                           Previously            Previously
(In millions, except per    Reported   Restated   Reported   Restated
 share data)
                           ---------- ---------- ---------- ----------

Shareholders' equity       $12,183.3  $12,156.0  $11,054.3  $11,023.0
                           ---------- ---------- ---------- ----------

Net income (loss)
 attributable to:
  Loews common stock        $1,046.8   $1,050.8    $(725.9)   $(713.8)
  Carolina Group stock         184.5      184.5      115.2      115.2
                           ---------- ---------- ---------- ----------
   Total                    $1,231.3   $1,235.3    $(610.7)   $(598.6)
                           ========== ========== ========== ==========

Net income (loss) per
 share attributable to:
  Loews common stock           $5.64      $5.66     $(3.91)    $(3.85)
  Carolina Group stock         $3.15      $3.15      $2.76      $2.76
========================== ========== ========== ========== ==========


---------------------------------------------------
                                      2002
                           ------------------------
                            Previously
(In millions, except per     Reported    Restated
 share data)
                           ------------ -----------

Shareholders' equity         $11,235.2   $11,191.8
                           ------------ -----------

Net income (loss)
 attributable to:
  Loews common stock            $771.3      $786.2
  Carolina Group stock           140.7       140.7
                           ------------ -----------
   Total                        $912.0      $926.9
                           ============ ===========

Net income (loss) per
 share attributable to:
  Loews common stock             $4.11       $4.19
  Carolina Group stock           $3.50       $3.50
========================== ============ ===========