By Will Feuer
Loews Corp. posted a drop in second-quarter profit despite a rebound in the hotel business as market volatility weighed on the CNA Financial business.
The New York City-based company, which operates insurance, energy and hotel businesses, posted net income of $180 million, compared with $754 million in the same period a year earlier. Loews said the year-ago quarter included an after-tax gain of $438 million from the sale of a stake in its Altium Packaging business.
Earnings were 73 cents a share, compared with $2.86 a share a year ago. The drop was mostly due to net investment losses recognized in the recently ended quarter, partially offset by higher property and casualty underwriting income as well as recovery in the Loews Hotels & Co. business.
Revenue fell to $3.39 billion from $4 billion a year earlier.
In CNA Financial, revenue eased to $2.93 billion from $3.03 billion while profit attributable to Loews dropped to $183 million from $330 million a year earlier.
The company’s hotel business swung to a quarterly profit of $44 million from a loss of $21 million a year earlier, mostly due to higher prices and occupancy, particularly at the company’s resort properties. Revenue in the segment more than doubled to $200 million for the quarter.
“Loews Hotels & Co achieved its highest net income quarter in over a decade and equity market volatility masked CNA’s best ever underlying combined ratio of 90.8%,” Chief Executive James Tisch said.
Write to Will Feuer at Will.Feuer@wsj.com