Loews (NYSE:L) nearly halved its fourth-quarter profit on lower investment income and higher expenses, pushing its shares lower in morning trade.
The New York-based property and casualty insurer reported profit of $268 million, or 67 cents a share, compared with a year-earlier $466 million, or $1.12.The results fell widely short of average analyst estimates of 90 cents in a Thomson Reuters poll.
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Lower investment income and contract drilling revenues offset higher insurance premiums during the three months ended Dec. 31, sending revenues down 6% to $3.47 billion. Expenses climbed 8% to $2.99 billion.
The company biggest holding, CNA Financial, was hit by higher life insurance losses and reserves in its annuity business. The Chicago-based company’s profit fell to $191 million, or 71 cents a share, compared with $326 million, or $1.21, last year.
Analysts were looking for a profit of 71 cents.