Loews 3Q Profit Drops on Asbestos Charges
New York-based commercial property and insurance corporation Loews (NYSE:L) reported a decline in its fiscal third quarter earnings on Monday.
The company posted a profit of $36 million, or 9 cents per share, down from $468 million, or $1.08 per share during the previous year.
Revenue dropped 1% to $3.7 billion.
The company also announced that its CNA Financial insurance division reported a loss in the quarter due to asbestos liability charges paid to Berkshire Hathaway 's (NYSE:BRK.A) National Indemnity division. Earnings from Loews’ most-recent quarter included the charge of $328 million related to the asbestos.
CNA, which is 90% owned by Loews, has also offered to pay $375 million, or $22 per share, for the 38% portion of CNA Surety not already owned. CNA itself posted a $140 million loss, or 59 cents per share, compared to profit of $263 million, or 86 cents per share last year. Thomson Reuters analysts had most recently forecast a loss of 68 cents.