Book value per common share increased to $39.54 at September 30, 2009, as compared to $34.60 at June 30, 2009 and $30.18 at December 31, 2008. The increase during the third quarter of 2009 was primarily driven by a $1.7 billion (after tax and noncontrolling interests) improvement in the fair value of our insurance subsidiary's fixed maturities investment portfolio reflecting a further narrowing of credit spreads which began in the second quarter.

Net income (loss) and earnings (loss) per share information attributable to Loews common stock and the former Carolina Group stock is summarized in the table below:

                                                                                                                 
                                                            September 30,                                        
                                                            Three Months                Nine Months              
 (In millions, except per share data)                       2009          2008          2009         2008        
                                                                                                                 
 Net income (loss) attributable to Loews common stock:                                                           
 Income before net investment losses                        $  530        $  235        $  712       $  1,248    
 Net investment losses                                         (61    )      (379   )      (549  )      (472   ) 
 Income (loss) from continuing operations                      469           (144   )      163          776      
 Discontinued operations, net (a)                              (1     )      7             (2    )      4,501    
 Net income (loss) attributable to Loews common stock          468           (137   )      161          5,277    
 Net income attributable to former Carolina Group stock -                                                        
 Discontinued operations, net (b)                                                                       211      
 Net income (loss) attributable to Loews Corporation        $  468        $  (137   )   $  161       $  5,488    
                                                                                                                 
 Net income (loss) per share:                                                                                    
 Loews common stock:                                                                                             
 Income (loss) from continuing operations                   $  1.08       $  (0.33  )   $  0.37      $  1.58     
 Discontinued operations, net (a)                                            0.02                       9.14     
 Net income (loss) attributable to Loews common stock       $  1.08       $  (0.31  )   $  0.37      $  10.72    
 Former Carolina Group stock - Discontinued                                                                      
 operations, net                                                          $  -                       $  1.95     
 Book value per share of Loews common stock at:                                                                  
 September 30, 2009                                         $  39.54                                             
 December 31, 2008                                          $  30.18                                             


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 (a)   Includes a tax-free non-cash gain of $4,287 million related to the separation of Lorillard, Inc. and an after tax gain of $75 million from the sale of Bulova Corporation for the nine months ended September 30, 2008. 
 (b)   The Carolina Group and Carolina Group stock were eliminated effective June 10, 2008 as part of the separation of Lorillard, Inc.                                                                                        


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Income from Continuing Operations

Three Months Ended September 30, 2009 Compared with 2008

Income from continuing operations primarily reflects improved net investment income and significantly lower impairment losses at CNA Financial Corporation, compared to a loss from continuing operations in the prior year. Net investment income benefited from higher limited partnership results, partially offset by the impact of lower short-term interest rates. In addition, continued strong results at Diamond Offshore Drilling, Inc. and higher investment income at the holding company contributed to the improved results. Results were lower at Boardwalk Pipeline Partners, LP due to remediation of pipeline anomalies, and at Loews Hotels due to impairment charges related to two properties.

Income from continuing operations includes net investment losses of $61 million (after tax and noncontrolling interests) in the third quarter of 2009 compared to net investment losses of $379 million in the comparable prior year period. Net investment losses in the third quarter of 2008 were primarily driven by other-than-temporary impairment losses recognized in CNA's available-for-sale portfolio driven by credit related issues.

Nine Months Ended September 30, 2009 Compared with 2008

The decline in income from continuing operations in 2009 primarily reflects a non-cash impairment charge of $660 million (after tax) recorded in the first quarter of 2009, related to the carrying value of HighMount Exploration & Production LLC's natural gas and oil properties, reflecting declines in natural gas prices. There were no comparable impairment charges in the prior year period. Excluding this impairment charge, results improved over the comparable period of the prior year due to the reasons discussed in the three months comparison above, partially offset by increased impairment losses recorded in CNA's investment portfolio.

Net investment losses were $549 million (after tax and noncontrolling interests) in the nine months ended September 30, 2009, compared to losses of $472 million in the comparable prior year period.

Discontinued Operations

In June of 2008, the Company disposed of its entire ownership interest in Lorillard, Inc. through the redemption of Carolina Group stock in exchange for Lorillard common stock and an exchange of our remaining Lorillard common stock for Loews common stock. The Carolina Group and Carolina Group stock have been eliminated. The Company also sold Bulova Corporation in January 2008. Lorillard's results of operations and the gain on disposal of Lorillard and Bulova have been classified as discontinued operations.

SHARE REPURCHASES

At September 30, 2009, there were 430,614,160 shares of Loews common stock outstanding. During the third quarter, the Company acquired 3,516,200 shares of its common stock for approximately $111 million. From October 1, 2009 through October 28, 2009, the Company acquired an additional 991,500 shares of its common stock for approximately $33 million. Depending on market conditions, the Company may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market or otherwise.

CONFERENCE CALLS

A conference call to discuss the third quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Monday, November 2, 2009. A live webcast of the call will be available online at the Loews Corporation website (www.loews.com). Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software. Those interested in participating in the question and answer session should dial (877) 692-2592, or for international callers, (973) 582-2757. The conference ID number is 33491991.

A conference call to discuss the third quarter results of CNA has been scheduled for 10:00 a.m. EST, Monday, November 2, 2009. A live webcast of the call will be available online at http://investor.cna.com. Please go to the website at least ten minutes before the event begins to register and to download and install any necessary audio software.