Loews Shares Drop on CNA Underwriting Loss

Loews Corp., a conglomerate controlled by the Tisch family, posted an 8% increase in second-quarter net income to $214.8 million. But excluding investment gains the company had a loss of $61.2 million due to an insurance underwriting loss and declining tobacco profit.

In the second quarter of 2002, New York-based Loews had net income of $198.8 million. Excluding investment gains, profit was $276.5 million.

The insurance unit, Chicago-based CNA Financial Corp., said it would cut 700 jobs. Bond rating companies said they might downgrade both companies’ debt.

Loews shares dropped $2.99, or 6.6%, to $42.72 on the New York Stock Exchange. Carolina Group, a tracking stock for Loews’ tobacco operations, fell $3.26, or 13%, to $21.80, also on the NYSE.

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Loews Corp., a conglomerate controlled by the Tisch family, posted an 8% increase in second-quarter net income to $214.8 million. But excluding investment gains the company had a loss of $61.2 million due to an insurance underwriting loss and declining tobacco profit.

In the second quarter of 2002, New York-based Loews had net income of $198.8 million. Excluding investment gains, profit was $276.5 million.

The insurance unit, Chicago-based CNA Financial Corp., said it would cut 700 jobs. Bond rating companies said they might downgrade both companies’ debt.

Loews shares dropped $2.99, or 6.6%, to $42.72 on the New York Stock Exchange. Carolina Group, a tracking stock for Loews’ tobacco operations, fell $3.26, or 13%, to $21.80, also on the NYSE.