Loews Corporation (L) experienced a 3Q08 net loss from continuing operations came of $0.33 per share, the result of higher-than-expected catastrophe losses and investment losses at CNA Financial Corporation (CNA), which more than offset the improved results at the energy and drilling subsidiaries -- HighMount Exploration, Diamond Offshore Drilling, Inc. (DO) and Boardwalk Pipeline Partners LP (BWP).

The spin-off of Lorillard in 2Q08 eliminated the company's overhang from tobacco litigation, permitting an increased focuses on broadening hydrocarbon interests. While the company has announced large capital investments (which would benefit results in the future), we reiterate our Hold recommendation as of now.

CNA Financial is the 14th largest property-casualty insurer in the U.S., providing standard commercial lines, specialty lines (specialty property-casualty, professional and financial), surety, marine, and other property and casualty coverage as well as life, and group insurance coverage. CNA is 90.0% owned by Loews. This insurance provider contributed 55.5% of the $18.4 billion of the 2007 revenues reported by Loews.

Diamond Offshore owns and operates 45 offshore drilling rigs on a contract basis for oil and gas exploration and production companies. Loews currently owns a 50.4% stake in DO, which accounted for 14.2% of the company s 2007 revenues.

Boardwalk approximately 74.0% owned by Loews, is engaged through its subsidiaries in the operation of interstate natural gas pipeline systems. The company derived 3.7% of its 2007 revenues from these operations.