WASHINGTON (dpa-AFX) - Diversified holding company Loews Corp. (L) reported Monday a decline in first-quarter profit as higher results in its 90 percent owned subsidiary CNA Financial Corp. (CNA) could not offset a decline in other two divisions. CNA's earnings growth mainly reflected lower catastrophe losses. Loews' revenues increased in the quarter mainly with higher revenues from CNA.
Loews' first-quarter net income attributable to the company declined to $367 million, from $379 million in the 2011 first quarter.
The decrease in net income was due to lower earnings at 50.4 percent owned subsidiary Diamond Offshore Drilling, Inc. (DO) and a loss in its wholly owned unit HighMount Exploration & Production LLC.
Earnings per share for the quarter was $0.92, unchanged from last year. The latest quarter results included $9 million gain on the sale of a jack-up rig offset by a non-cash impairment charge of $28 million related to the carrying value of HighMount's natural gas and oil properties.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
Commercial insurance writer and property and casualty firm CNA Financial's net income climbed to $250 million or $0.93 per share from $220 million or $0.82 per share last year.
CNA Financial's net operating income rose to $226 million or $0.84 per share from $213 million or $0.79 per share a year ago, helped by lower catastrophe losses and higher net investment income mainly in Property & Casualty Operations. Analysts expected the company to report earnings of $0.69 per share.
In the quarter, Loews' total revenues rose to $3.74 billion from $3.67 billion in the prior year quarter. CNA Financial's revenues were $2.37 billion, higher than prior year's $2.30 billion. Both Diamond Offshore and HighMount posted lower revenues in the quarter.
CNA Financial Chairman and Chief Executive Officer Thomas Motamed said, 'We are pleased to report our first quarter results, which include improved earnings and continued progress as we work to improve the scale and profitability of our core P&C business. We are encouraged by the continuation of favorable rate trends and premium growth across both of our P&C segments.'
The company noted that property & casualty operations' combined ratio for the first quarter was 102 percent, higher than 102.1 percent in 2011.
CNA Financial also announced the declaration of a quarterly dividend of $0.15 per share, payable May 30, 2012 to stockholders of record on May 14, 2012.
Loews shares are currently trading at $40.97, down $0.04 or 0.10 percent, while CNA shares are currently at $30.69, up $0.54 or 1.79 percent.
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