Loews Corporation Reports Net Income for the Third Quarter of 2005

Business Wire, Oct 27, 2005

NEW YORK -- Loews Corporation (NYSE:LTR;CG) today reported consolidated net income (including both the Loews Group and Carolina Group) for the 2005 third quarter of $300.0 million, compared to $278.5 million in the 2004 third quarter. Net income attributable to Loews common stock includes net investment gains of $34.0 million (after tax and minority interest) compared to net investment losses of $30.2 million (after tax and minority interest) in the comparable period of the prior year.

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

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                                           September 30,
                              ----------------------------------------
                                  Three Months        Nine Months
                              ----------------------------------------
(In millions, except per share
 data)                          2005      2004      2005      2004
                              ----------------------------------------
                                        (Restated)          (Restated)
Net income attributable to
 Loews common stock:
  Income before net investment
   gains (losses)                $198.5    $255.3    $865.1    $836.0
  Net investment gains
   (losses) (a)                    34.0     (30.2)     38.7    (230.5)
                              ----------------------------------------
Net income attributable to
 Loews common stock               232.5     225.1     903.8     605.5
Net income attributable to
 Carolina Group stock              67.5      53.4     169.7     128.4
                              ----------------------------------------
Consolidated net income          $300.0    $278.5  $1,073.5    $733.9
                              ========================================

Net income per share:
  Loews common stock              $1.25     $1.21     $4.86     $3.26
  Carolina Group stock            $0.99     $0.92     $2.49     $2.21
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 Book value per share of Loews
  common stock at:
   September 30, 2005            $69.68
   December 31, 2004             $66.56
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    (a) Includes a loss of $352.9 (after tax and minority interest)
        for the nine months ended September 30, 2004 related to CNA's
        sale of its individual life insurance business.

Impact of Hurricanes on Third Quarter Results

Net income for the three months ended September 30, 2005 includes a loss of $263.3 million as a result of Hurricanes Katrina, Rita, Dennis and Ophelia which impacted the third quarter of 2005 results of Loews's CNA, Diamond Offshore and Boardwalk Pipelines subsidiaries. CNA incurred catastrophe losses of $268.3 million (after tax and minority interest) for the three and nine months ended September 30, 2005 primarily as a result of the third quarter hurricanes, as compared with losses from hurricanes of $158.8 million (after tax and minority interest) for the three and nine months ended September 30, 2004. Diamond Offshore recorded a gain of $8.9 million (after tax and minority interest) for the three months ended September 30, 2005 as a result of an insurance settlement for a rig destroyed by Hurricane Katrina offset by losses incurred for damage caused to other rigs located in the Gulf of Mexico during the third quarter hurricanes. Boardwalk Pipelines incurred losses of $3.9 million (after taxes) as a result of various damage and disruption, primarily to its Gulf South pipeline, as a result of the hurricanes.

Three Months Ended September 30, 2005 Compared With 2004

Net income attributable to Loews common stock for the third quarter of 2005 amounted to $232.5 million or $1.25 per share, compared to $225.1 million or $1.21 per share in the comparable period of the prior year.

Net income attributable to Carolina Group stock for the third quarter of 2005 was $67.5 million or $0.99 per Carolina Group share, compared to $53.4 million or $0.92 per Carolina Group share in the third quarter of 2004. The Company is issuing a separate press release reporting the results of the Carolina Group for the third quarter of 2005.

Consolidated revenues in the third quarter of 2005 amounted to $4.1 billion compared to $3.8 billion in the comparable 2004 quarter.

Nine Months Ended September 30, 2005 Compared With 2004

Loews consolidated net income (including both the Loews Group and Carolina Group) for the first nine months of 2005 was $1,073.5 million, compared to $733.9 million in the comparable period of the prior year.

Net income attributable to Loews common stock for the first nine months of 2005 amounted to $903.8 million or $4.86 per share, compared to $605.5 million or $3.26 per share in the comparable period of the prior year. Net income attributable to Loews common stock includes net investment gains of $38.7 million (after tax and minority interest) compared to net investment losses of $230.5 million (after tax and minority interest) in the comparable period of the prior year due primarily to a 2004 loss of $352.9 million (after tax and minority interest) for CNA's sale of its individual life insurance business. The results for the nine months ended September 30, 2005 include a benefit of $109.2 million related to a federal income tax settlement due primarily to net refund interest and the release of federal income tax reserves at CNA.