Loews (L) 10-K 24 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Investments (Notes 1, 3, 4 and 5):
Fixed maturities, amortized cost of $35,824 and $34,767	$35,816	$29,451
Equity securities, cost of $943 and $1,402	1,007	1,185
Limited partnership investments	1,996	1,781
Short term investments	7,215	6,033
Total investments	46,034	38,450
Cash	190	131
Receivables (Notes 1 and 7)	10,212	11,672
Property, plant and equipment (Notes 1 and 8)	13,274	12,892
Deferred income taxes (Note 11)	627	2,928
Goodwill (Notes 1 and 2)	856	856
Other assets	1,346	1,432
Deferred acquisition costs of insurance subsidiaries (Note 1)	1,108	1,125
Separate account business (Notes 1, 4 and 5)	423	384
Total assets	74,070	69,870
Insurance reserves (Notes 1 and 9):
Claim and claim adjustment expense	26,816	27,593
Future policy benefits	7,981	7,529
Unearned premiums	3,274	3,405
Policyholders' funds	192	243
Total insurance reserves	38,263	38,770
Payable to brokers (Note 5)	540	679
Short term debt (Notes 4 and 12)	10	71
Long term debt (Notes 4 and 12)	9,475	8,187
Reinsurance balances payable (Notes 1 and 17)	281	316
Other liabilities (Notes 1, 4 and 16)	3,993	4,328
Separate account business (Notes 1, 4 and 5)	423	384
Total liabilities	52,985	52,735
Shareholders' equity (Notes 1, 2, 3, 6 and 13):
Preferred stock, $0.10 par value: Authorized - 100,000,000 shares	0	0
Common stock, $0.01 par value: Authorized - 1,800,000,000 shares Issued 425,497,522 and 435,091,667 shares	4	4
Additional paid-in capital	3,637	3,340
Retained earnings	13,693	13,375
Accumulated other comprehensive loss	(419)	(3,586)
Stockholders Equity Subtotal Before Treasury Stock, Total	16,915	13,133
Less treasury stock, at cost (427,200 shares)	(16)	0
Total shareholders' equity	16,899	13,133
Noncontrolling interests	4,186	4,002
Total equity	21,085	17,135
Total liabilities and equity	$74,070	$69,870

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Fixed maturities, amortized cost	$35,824	$34,767
Equity securities, cost	$943	$1,402
Preferred stock, par value	0.1	0.1
Preferred stock, Authorized	100,000,000	100,000,000
Common stock, par value	0.01	0.01
Common stock, Authorized	1,800,000,000	1,800,000,000
Common stock, Issued	425,497,522	435,091,667
Treasury stock, shares	427,200	0

Consolidated Statements of Inco

Consolidated Statements of Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues (Note 1):
Insurance premiums (Note 17)	$6,721	$7,150	$7,482
Net investment income (Note 3)	2,499	1,581	2,785
Investment gains (losses) (Note 3):
Other-than-temporary impairment losses	(1,657)	(1,484)	(741)
Portion of other-than-temporary impairment losses recognized in Other comprehensive income	305	0	0
Net impairment losses recognized in earnings	(1,352)	(1,484)	(741)
Transactional realized investment gains	499	188	465
Total investment losses	(853)	(1,296)	(276)
Gain on issuance of subsidiary stock (Notes 2 and 3)	0	2	141
Contract drilling revenues	3,537	3,476	2,506
Other	2,213	2,334	1,664
Total	14,117	13,247	14,302
Expenses (Note 1):
Insurance claims and policyholders' benefits (Notes 9 and 17)	5,290	5,723	6,009
Amortization of deferred acquisition costs	1,417	1,467	1,520
Contract drilling expenses	1,224	1,185	1,004
Impairment of natural gas and oil properties (Notes 1 and 8)	1,036	691	0
Impairment of goodwill (Note 1)	0	482	0
Other operating expenses	2,972	2,767	2,256
Interest	448	345	319
Total	12,387	12,660	11,108
Income before income tax	1,730	587	3,194
Income tax expense (Note 11)	345	7	995
Income from continuing operations	1,385	580	2,199
Discontinued operations, net: (Notes 1, 2 and 21)
Results of operations	(2)	351	901
Gain on disposal	0	4,362	0
Net income	1,383	5,293	3,100
Amounts attributable to noncontrolling interests	(819)	(763)	(612)
Net income attributable to Loews Corporation	564	4,530	2,488
Net income (loss) attributable to (Note 6):
Total	564	4,530	2,488
Loews Common Stock
Discontinued operations, net: (Notes 1, 2 and 21)
Net income attributable to Loews Corporation	564		1,955
Net income (loss) attributable to (Note 6):
Income (loss) from continuing operations	566		1,586
Discontinued operations, net	(2)		369
Total	564		1,955
Basic net income (loss) per share (Note 6):
Income (loss) from continuing operations	1.31		2.97
Discontinued operations, net	-0.01		0.69
Net income	1.3		3.66
Diluted net income (loss) per share (Note 6):
Income (loss) from continuing operations	1.31		2.96
Discontinued operations, net	-0.01		0.69
Net income	1.3		3.65
Basic weighted average number of shares outstanding	432.81		534.79
Diluted weighted average number of shares outstanding	433.45		536
Former Carolina Group stock
Net income (loss) attributable to (Note 6):
Discontinued operations, net	$0		$533
Basic net income (loss) per share (Note 6):
Discontinued operations, net	$0		4.92
Diluted net income (loss) per share (Note 6):
Discontinued operations, net	$0		4.91
Basic weighted average number of shares outstanding	0		108.43
Diluted weighted average number of shares outstanding	0		108.57

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income	$1,383	$5,293	$3,100
Changes in:
Net unrealized losses on investments with other-than-temporary impairments	(95)	0	0
Net other unrealized gains (losses) on investments	3,711	(3,528)	(572)
Total unrealized gains (losses) on available-for-sale investments	3,616	(3,528)	(572)
Unrealized gains (losses) on cash flow hedges	(67)	41	(65)
Foreign currency	117	(161)	35
Pension liability	6	(354)	100
Other comprehensive income (loss)	3,672	(4,002)	(502)
Comprehensive income	5,055	1,291	2,598
Amounts attributable to noncontrolling interests	(1,215)	(335)	(562)
Total comprehensive income attributable to Loews Corporation	$3,840	$956	$2,036

Consolidated Statements of Equi

Consolidated Statements of Equity (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Beginning Balance	$17,135	$21,502	$19,387
Adjustment to initially apply updated accounting guidance on reporting noncontrolling interests in Consolidated Financial Statements	(206)
Adjustment to initially apply updated guidance on accounting for convertible debt instruments that may be settled in cash upon conversion			49
Restated Beginning Balance	16,929		19,436
Adjustment to initially apply updated accounting guidance which amended the other-than-temporary impairment loss model for fixed maturity securities	0
Purchase of subsidiary shares from noncontrolling interests	(7)	(111)
Issuance of equity securities by subsidiary	169	247	853
Adjustments related to purchase of subsidiary units		131
Net income	1,383	5,293	3,100
Other comprehensive income (loss)	3,672	(4,002)	(502)
Dividends paid	(756)	(732)	(785)
Issuance of Loews common stock	8	4	5
Purchase of Loews treasury stock	(348)	(33)	(672)
Retirement of treasury stock	0	0	0
Redemption of former Carolina Group stock		(542)
Issuance of former Carolina Group stock			3
Exchange of Lorillard common stock for Loews common stock		(4,650)
Stock-based compensation	22	26	28
Other	13	2	7
Tax benefit related to settlement of imputed interest on convertible debentures			29
Ending Balance	21,085	17,135	21,502
Additional Paid-in Capital
Beginning Balance	3,340	4,024	4,018
Adjustment to initially apply updated accounting guidance on reporting noncontrolling interests in Consolidated Financial Statements	330
Adjustment to initially apply updated guidance on accounting for convertible debt instruments that may be settled in cash upon conversion			57
Restated Beginning Balance	3,670		4,075
Purchase of subsidiary shares from noncontrolling interests	10
Issuance of equity securities by subsidiary	18
Issuance of Loews common stock	8	4	5
Retirement of treasury stock	(86)	(710)	(111)
Issuance of former Carolina Group stock			3
Stock-based compensation	18	22	23
Other	(1)
Tax benefit related to settlement of imputed interest on convertible debentures			29
Ending Balance	3,637	3,340	4,024
Retained Earnings
Beginning Balance	13,375	13,642	12,096
Adjustment to initially apply updated guidance on accounting for convertible debt instruments that may be settled in cash upon conversion			(45)
Restated Beginning Balance	13,375		12,051
Adjustment to initially apply updated accounting guidance which amended the other-than-temporary impairment loss model for fixed maturity securities	109
Net income	564	4,530	2,488
Dividends paid	(108)	(219)	(331)
Retirement of treasury stock	(246)	(3,972)	(561)
Redemption of former Carolina Group stock		(602)
Other	(1)	(4)	(5)
Ending Balance	13,693	13,375	13,642
Accumulated Other Comprehensive Income (Loss)
Beginning Balance	(3,586)	(65)	387
Restated Beginning Balance	(3,586)		387
Adjustment to initially apply updated accounting guidance which amended the other-than-temporary impairment loss model for fixed maturity securities	(109)
Other comprehensive income (loss)	3,276	(3,574)	(452)
Redemption of former Carolina Group stock		53
Ending Balance	(419)	(3,586)	(65)
Common Stock Held in Treasury
Beginning Balance	0	(8)	(8)
Restated Beginning Balance	0		(8)
Purchase of Loews treasury stock	(348)	(33)	(672)
Retirement of treasury stock	332	4,683	672
Redemption of former Carolina Group stock		8
Exchange of Lorillard common stock for Loews common stock		(4,650)
Ending Balance	(16)	0	(8)
Loews Common Stock
Beginning Balance	4	5	5
Retirement of treasury stock		(1)
Ending Balance	4	4	5
Former Carolina Group stock
Beginning Balance	0	1	1
Redemption of former Carolina Group stock		(1)
Ending Balance		0	1
Noncontrolling Interests
Beginning Balance	4,002	3,903	2,888
Adjustment to initially apply updated accounting guidance on reporting noncontrolling interests in Consolidated Financial Statements	(536)
Adjustment to initially apply updated guidance on accounting for convertible debt instruments that may be settled in cash upon conversion			37
Restated Beginning Balance	3,466		2,925
Purchase of subsidiary shares from noncontrolling interests	(17)	(111)
Issuance of equity securities by subsidiary	151	247	853
Adjustments related to purchase of subsidiary units		131
Net income	819	763	612
Other comprehensive income (loss)	396	(428)	(50)
Dividends paid	(648)	(513)	(454)
Stock-based compensation	4	4	5
Other	15	6	12
Ending Balance	$4,186	$4,002	$3,903

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities:
Net income	$1,383	$5,293	$3,100
Adjustments to reconcile net income to net cash provided (used) by operating activities:
(Income) loss from discontinued operations	2	(4,713)	(901)
Investment losses	853	1,294	135
Undistributed earnings	(220)	451	(107)
Amortization of investments	(199)	(299)	(266)
Depreciation, depletion and amortization	784	692	471
Impairment of natural gas and oil properties	1,036	691	0
Impairment of goodwill	0	482	0
Provision for deferred income taxes	139	(378)	18
Other non-cash items	39	(41)	(1)
Changes in operating assets and liabilities-net:
Reinsurance receivables	829	928	1,258
Other receivables	(76)	(86)	13
Federal income tax	(62)	(308)	(18)
Deferred acquisition costs	17	36	29
Insurance reserves	(612)	(590)	(830)
Reinsurance balances payable	(35)	(85)	(138)
Other liabilities	(95)	(131)	241
Trading securities	760	(84)	1,797
Other, net	71	77	(26)
Net cash flow operating activities - continuing operations	4,614	3,229	4,775
Net cash flow operating activities - discontinued operations	(23)	142	896
Net cash flow operating activities - total	4,591	3,371	5,671
Investing Activities:
Purchases of fixed maturities	(24,189)	(48,404)	(73,157)
Proceeds from sales of fixed maturities	19,245	41,749	69,012
Proceeds from maturities of fixed maturities	3,448	4,092	4,744
Purchases of equity securities	(269)	(210)	(236)
Proceeds from sales of equity securities	905	221	340
Purchases of property, plant and equipment	(2,529)	(3,997)	(2,247)
Proceeds from sales of property, plant and equipment	85	87	37
Change in collateral on loaned securities and derivatives	(5)	(57)	(3,539)
Change in short term investments	(1,620)	2,942	2,151
Acquisition of business, net of cash acquired	0	0	(4,029)
Other, net	43	(260)	(214)
Net cash flow investing activities - continuing operations	(4,886)	(3,837)	(7,138)
Net cash flow investing activities - discontinued operations, including proceeds from dispositions	23	623	323
Net cash flow investing activities - total	(4,863)	(3,214)	(6,815)
Financing Activities:
Dividends paid	(108)	(219)	(331)
Dividends paid to noncontrolling interests	(648)	(513)	(454)
Purchases of treasury shares	(334)	(33)	(672)
Purchases of subsidiary treasury shares	(2)	(70)	0
Issuance of common stock	8	4	8
Proceeds from subsidiaries' equity issuances	180	247	535
Principal payments on debt	(902)	(1,282)	(5)
Issuance of debt	2,128	2,285	2,142
Receipts of investment contract account balances	4	3	3
Return of investment contract account balances	(15)	(608)	(122)
Excess tax benefits from share-based payment arrangements	2	3	7
Other, net	8	10	11
Net cash flow financing activities - continuing operations	321	(173)	1,122
Net cash flow financing activities - discontinued operations	0	0	3
Net cash flow financing activities - total	321	(173)	1,125
Effect of foreign exchange rate on cash - continuing operations	10	(13)	5
Net change in cash	59	(29)	(14)
Net cash transactions from:
Continuing operations to discontinued operations	0	785	1,259
Discontinued operations to continuing operations	0	(785)	(1,259)
Cash, beginning of year	131	160	174
Cash, end of year	190	131	160
Cash, end of year:
Continuing operations	190	131	140
Discontinued operations	0	0	20
Cash, end of year	$190	$131	$160

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Summary of Significant Accounting Policies	Note 1.Summary of Significant Accounting Policies Basis of presentation Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (CNA), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (Diamond Offshore), a 50.4% owned subsidiary); exploration, production and marketing of natural gas and natural gas liquids (HighMount Exploration Production LLC (HighMount), a wholly owned subsidiary); the operation of interstate natural gas pipeline systems (Boardwalk Pipeline Partners, LP (Boardwalk Pipeline), a 72% owned subsidiary); and the operation of hotels (Loews Hotels Holding Corporation (Loews Hotels), a wholly owned subsidiary). Unless the context otherwise requires, the terms Company, Loews and Registrant as used herein mean Loews Corporation excluding its subsidiaries and the term Net income (loss) Loews used herein means Net income (loss) attributable to Loews Corporation. The Companys management evaluated subsequent events through February24, 2010. In June of 2008, the Company disposed of its entire ownership interest in its wholly owned subsidiary, Lorillard, Inc. (Lorillard). The Consolidated Financial Statements have been reclassified to reflect Lorillard as a discontinued operation. Accordingly, Lorillards assets, liabilities, revenues, expenses and cash flows have been excluded from the respective captions in the Consolidated Balance Sheets, Consolidated Statements of Income, and Consolidated Statements of Cash Flows and have been included in Assets and Liabilities of discontinued operations, Discontinued operations, net and Net cash flows - discontinued operations. Principles of consolidation The Consolidated Financial Statements include all significant subsidiaries and all material intercompany accounts and transactions have been eliminated. The equity method of accounting is used for investments in associated companies in which the Company generally has an interest of 20% to 50%. Accounting estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes. Actual results could differ from those estimates. Accounting changes In December of 2007, the Financial Accounting Standards Board (FASB) issued updated accounting guidance on reporting of Noncontrolling Interests in Consolidated Financial Statements. The updated accounting guidance requires all entities to report noncontrolling (minority) interests in subsidiaries as a component of equity in the Consolidated Financial Statements. Therefore, the Noncontrolling interest in the equity section includes the appropriate reclassification of balances for CNA, Diamond Offshore and Boardwalk Pipeline formerly recognized as Minority interest liability on the Consolidated Balance Sheets. Moreover, the updated accounting guidance requires that transactions between an entity

Divestitures

Divestitures
	12 Months Ended Dec. 31, 2009
Acquisition/Divestitures	Note 2. Acquisition/Divestitures HighMount Acquisition On July31, 2007, HighMount acquired, through its subsidiaries, certain exploration and production assets and assumed certain related obligations, from subsidiaries of Dominion Resources, Inc. for $4.0 billion, funded with approximately $2.4 billion in cash and $1.6 billion of debt. The acquired business consisted primarily of natural gas exploration and production operations located in the Permian Basin in Texas, the Antrim Shale in Michigan and the Black Warrior Basin in Alabama, with estimated proved reserves totaling approximately 2.5 trillion cubic feet equivalent (unaudited) at the date of acquisition. These properties produce predominantly natural gas and related natural gas liquids and are characterized by long reserve lives and high well completion success rates. The amount of tax deductible goodwill was $1.0 billion. The allocation of purchase price to the assets and liabilities acquired was as follows: (In millions) Property, plant and equipment $ 2,961 Deferred income taxes 15 Goodwill and other intangibles 1,066 Other assets 43 Other liabilities (55 ) $ 4,030 Subsequent to the acquisition, as a result of recording ceiling test impairments on natural gas and oil properties, the Company tested its goodwill for impairment. As a result, a non-cash impairment charge of $482 million ($314 million after tax) was recorded in 2008. See Note 8 for additional information. Separation of Lorillard The Company disposed of Lorillard through the following two integrated transactions, collectively referred to as the Separation: On June10, 2008, the Company distributed 108,478,429 shares, or approximately 62%, of the outstanding common stock of Lorillard in exchange for and in redemption of all of the 108,478,429 outstanding shares of the Companys former Carolina Group stock, in accordance with the Companys Restated Certificate of Incorporation (the Redemption); and On June16, 2008, the Company distributed the remaining 65,445,000 shares, or approximately 38%, of the outstanding common stock of Lorillard in exchange for 93,492,857 shares of Loews common stock, reflecting an exchange ratio of 0.70 (the Exchange Offer). As a result of the Separation, Lorillard is no longer a subsidiary of Loews and Loews no longer owns any interest in the outstanding stock of Lorillard. As of the completion of the Redemption, the former Carolina Group and former Carolina Group stock have been eliminated. In addition, at that time all outstanding stock options and stock appreciation rights (SARs) awarded under the Companys former Carolina Group 2002 Stock Option Plan were assumed by Lorillard and converted into stock options and SARs which are exercisable for shares of Lorillard common stock. The Loews common stock acquired by the Company in the Exchange Offer was recorded as a decrease in Shareholders equity, reflecting the market value of the shares of Loews common stock delivered in the Exchange Offer. This decline was offset by a $4.3 billion gain to the Company from t

Investments

Investments
	12 Months Ended Dec. 31, 2009
Investments	Note 3.Investments Year Ended December31 2009 2008 2007 (In millions) Net investment income consisted of: Fixed maturity securities $ 1,941 $ 1,984 $ 2,047 Short term investments 42 162 303 Limited partnerships 324 (379 ) 183 Equity securities 49 80 25 Income (loss) from Trading portfolio 187 (234 ) 207 Other 6 19 73 Total investment income 2,549 1,632 2,838 Investment expenses (50 ) (51 ) (53 ) Net investment income $ 2,499 $ 1,581 $ 2,785 Investment gains (losses) are as follows: Fixed maturity securities $ (1,167 ) $ (831 ) $ (478 ) Equity securities 243 (490 ) 117 Derivative instruments 51 (19 ) 64 Short term investments 14 35 9 Other 6 9 12 Investment losses (a) $ (853 ) $ (1,296 ) $ (276 ) Year Ended December31 2009 2008 2007 (In millions) Net change in unrealized gains (losses) in investments is as follows: Fixed maturity securities $ 5,278 $ (5,137 ) $ (847 ) Equity securities 156 (347 ) (47 ) Other (4 ) 5 2 Total net change in unrealized gains (losses) on investments $ 5,430 $ (5,479 ) $ (892 ) (a) Includes gross realized gains of $973, $554 and $632 and gross realized losses of $1,897, $1,875 and $993 on available-for-sale securities for the years ended December31, 2009, 2008 and 2007. The components of OTTI losses recognized in earnings by asset type are as follows: Year Ended December31 2009 2008 2007 (In millions) Fixed maturity securities available-for-sale: U.S. Treasury securities and obligations of government agencies $ 29 $ 53 Asset-backed securities: Residential mortgage-backed securities $ 461 222 209 Commercial mortgage-backed securities 193 208 65 Other asset-backed securities 31 35 37 Total asset-backed securities 685 465 311 States, municipalities and political subdivisions-tax-exempt securities 79 1 50 Corporate and other taxable bonds 357 585 260 Redeemable preferred stock 9 1 42 Total fixed maturities available-for-sale 1,130 1,081 716 Equity securities available-for-sale: Common stock 5 140 24 Preferred stock 217 263 1 Total equity securities available-for-sale 222 403 25 Net OTTI losses recognized in earnings $ 1,352 $ 1,484 $ 741 A security is impaired if the fair value of the security is less than its cost adjusted for accretion, amorti

Fair Value

Fair Value
	12 Months Ended Dec. 31, 2009
Fair Value	Note 4.Fair Value Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable: Level 1 Quoted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 Valuations derived from valuation techniques in which one or more significant inputs are not observable. The Company attempts to establish fair value as an exit price in an orderly transaction consistent with normal settlement market conventions. The Company is responsible for the valuation process and seeks to obtain quoted market prices for all securities. When quoted market prices in active markets are not available, the Company uses a number of methodologies to establish fair value estimates, including discounted cash flow models, prices from recently executed transactions of similar securities or broker/dealer quotes, utilizing market observable information to the extent possible. In conjunction with modeling activities, the Company may use external data as inputs. The modeled inputs are consistent with observable market information, when available, or with the Companys assumptions as to what market participants would use to value the securities. The Company also uses pricing services as a significant source of data. The Company monitors all the pricing inputs to determine if the markets from which the data is gathered are active. As further validation of the Companys valuation process, the Company samples its past fair value estimates and compares the valuations to actual transactions executed in the market on similar dates. The fair values of CNAs life settlement contracts investments are included in Other assets. The fair values of discontinued operations investments are included in Other liabilities. Assets and liabilities measured at fair value on a recurring basis are summarized in the tables below: December31, 2009 Level1 Level 2 Level3 Total (In millions) Fixed maturity securities: U.S. Treasury securities and obligations of government agencies $ 145 $ 54 $ 199 Asset-backed securities: Residential mortgage-backed securities 6,309 $ 629 6,938 Commercial mortgage-backed securities 461 123 584 Other asset-backed securities 484 348 832 Total asset-backed securities 7,254 1,100 8,354 States, municipalities and political subdivisions-tax-exempt securities 6,237 756 6,993 Corporate and other taxable bonds 139

Derivative Financial Instrument

Derivative Financial Instruments
	12 Months Ended Dec. 31, 2009
Derivative Financial Instruments	Note 5.Derivative Financial Instruments The Company invests in certain derivative instruments for a number of purposes, including: (i)asset and liability management activities, (ii)income enhancements for its portfolio management strategy, and (iii)to benefit from anticipated future movements in the underlying markets. If such movements do not occur as anticipated, then significant losses may occur. Monitoring procedures include senior management review of daily detailed reports of existing positions and valuation fluctuations to ensure that open positions are consistent with the Companys portfolio strategy. The Company does not believe that any of the derivative instruments utilized by it are unusually complex, nor do these instruments contain embedded leverage features which would expose the Company to a higher degree of risk. The Company uses derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk, equity stock price risk, commodity price risk and foreign currency risk) stemming from various assets and liabilities and credit risk (the ability of an obligor to make timely payment of principal and/or interest). The Companys principal objective under such risk strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment. CNAs use of derivatives is limited by statutes and regulations promulgated by the various regulatory bodies to which it is subject, and by its own derivative policy. The derivative policy limits the authorization to initiate derivative transactions to certain personnel. Derivatives entered into for hedging, regardless of the choice to designate hedge accounting, shall have a maturity that effectively correlates to the underlying hedged asset or liability. The policy prohibits the use of derivatives containing greater than one-to-one leverage with respect to changes in the underlying price, rate or index. The policy also prohibits the use of borrowed funds, including funds obtained through securities lending, to engage in derivative transactions. The Company has exposure to economic losses due to interest rate risk arising from changes in the level of, or volatility of, interest rates. The Company attempts to mitigate its exposure to interest rate risk in the normal course of portfolio management, which includes rebalancing its existing portfolios of assets and liabilities. In addition, various derivative financial instruments are used to modify the interest rate risk exposures of certain assets and liabilities. These strategies include the use of interest rate swaps, interest rate caps and floors, options, futures, forwards and commitments to purchase securities. These instruments are generally used to lock interest rates or market values, to shorten or lengthen durations of fixed maturity securities or investment contracts, or to hedge (on an economic basis) interest rate risks associated with investments and variable rate debt. The Company infrequently designates these types of instruments as hedges against specific assets or liabilities. The Company is ex

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009
Earnings Per Share	Note 6.Earnings Per Share Companies with complex capital structures are required to present basic and diluted earnings per share. Basic earnings per share excludes dilution and is computed by dividing net income attributable to each class of common stock by the weighted average number of common shares of each class of common stock outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Prior to the disposal of its entire ownership interest in Lorillard, the Company had two classes of common stock: former Carolina Group stock, a tracking stock intended to reflect the economic performance of a group of the Companys assets and liabilities, called the former Carolina Group, principally consisting of Lorillard, Inc. and Loews common stock, representing the economic performance of the Companys remaining assets, including the interest in the former Carolina Group not represented by former Carolina Group stock. The attribution of income to each class of common stock was as follows: Year Ended December31 2009 2008 2007 (In millions, except %) Loews common stock: Consolidated net income - Loews $ 564 $ 4,530 $ 2,488 Less income attributable to former Carolina Group stock 211 533 Income attributable to Loews common stock $ 564 $ 4,319 $ 1,955 Former Carolina Group stock: Income available to former Carolina Group stock $ 339 $ 855 Weighted average economic interest of the former Carolina Group 62.4 % 62.4 % Income attributable to former Carolina Group stock $ - $ 211 $ 533 The following is a reconciliation of basic weighted shares outstanding to diluted weighted shares: Year Ended December31 2009 2008 2007 (In millions) Loews common stock: Weighted average shares outstanding-basic 432.81 477.23 534.79 Stock options and SARs 0.64 1.21 Weighted average shares outstanding-diluted 433.45 477.23 536.00 Former Carolina Group stock: Weighted average shares outstanding-basic 108.47 108.43 Stock options and SARs 0.13 0.14 Weighted average shares outstanding-diluted - 108.60 108.57 Certain options and SARs were not included in the diluted weighted average shares amount due to the exercise price being greater than the average stock price for the respective periods. For the year ended December31, 2008, common equivalent shares, consisting solely of stock options and SARs, are not included in diluted weighted average shares as their effects are antidilutive. The number of weighted average shares not included in the diluted computations is as follows: Year Ended December31 2009 2008 2007 Loews common stock 3,435,780 5,252,011 352,583 F

Receivables

Receivables
	12 Months Ended Dec. 31, 2009
Receivables	Note 7.Receivables December31 2009 2008 (In millions) Reinsurance $ 6,932 $ 7,761 Insurance 1,858 2,039 Receivable from brokers 221 936 Accrued investment income 417 360 Federal income taxes 352 382 Other, primarily customer accounts 1,046 844 Total 10,826 12,322 Less: allowance for doubtful accounts on reinsurance receivables 351 366 allowance for other doubtful accounts 263 284 Receivables $ 10,212 $ 11,672

Property, Plant and Equipment

Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009
Property, Plant and Equipment	Note 8.Property, Plant and Equipment December31 2009 2008 (In millions) Pipeline equipment (net of accumulated DDA of $528 and $325) $ 6,325 $ 3,955 Offshore drilling equipment (net of accumulated DDA of $2,611 and $2,268) 4,405 3,399 Natural gas and oil proved and unproved properties (net of accumulated DDA of $2,061 and $915) 1,450 2,430 Other (net of accumulated DDA of $859 and $956) 860 898 Construction in process 234 2,210 Property, plant and equipment, net $ 13,274 $ 12,892 DDA expense and capital expenditures are as follows: Year Ended December31 2009 2008 2007 DDA Capital Expend. DDA Capital Expend. DDA Capital Expend. (In millions) CNA Financial $ 75 $ 65 $ 66 $ 104 $ 53 $ 160 Diamond Offshore 350 1,355 291 683 241 647 HighMount 119 196 177 519 67 185 Boardwalk Pipeline 207 588 127 2,812 80 1,214 Loews Hotels 26 36 26 15 26 27 Corporate and other 7 2 5 30 4 14 Total $ 784 $ 2,242 $ 692 $ 4,163 $ 471 $ 2,247 Capitalized interest related to the construction and upgrade of qualifying assets amounted to approximately $29 million, $113 million and $56 million for the years ended December31, 2009, 2008 and 2007. Diamond Offshore Acquisitions During 2009, Diamond Offshore acquired the Ocean Courage and the Ocean Valor, two newbuild, semisubmersible drilling rigs for an aggregate cost of $950 million, exclusive of final commissioning and initial mobilization costs, drill string and other necessary capital spares. HighMount Impairment of Natural Gas and Oil Properties At March31, 2009 and December31, 2008, HighMount recorded non-cash ceiling test impairment charges of $1,036 million ($660 million after tax) and $691 million ($440 million after tax), related to its carrying value of natural gas and oil properties. The impairments were recorded as credits to Accumulated depreciation, depletion, and amortization. The write-downs were the result of declines in commodity prices at March31, 2009 and December31, 2008. Had the effects of HighMounts cash flow hedges not been considered in calculating the ceiling limitation, the impairments would have been $1,230 million ($784 million after tax) in 2009 and $873 million ($555 million, after tax) in 2008. No such impairment was required during the year ended December31, 2007. Costs Not Being Amortized HighMount excludes from amortization the cost of unproved properties, the cost of exploratory wells in progress, and major development projects in progress. Natural gas and oil property and equipment costs not being amortized as of December31, 2009, are as follows, by the year in which such costs were incurred: Total 2009 2008 2007 (In millions) Acquisition costs $ 295 $ 5

Claim and Claim Adjustment Expe

Claim and Claim Adjustment Expense Reserves
	12 Months Ended Dec. 31, 2009
Claim and Claim Adjustment Expense Reserves	Note 9.Claim and Claim Adjustment Expense Reserves CNAs property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including claims that are incurred but not reported(IBNR) as of the reporting date. CNAs reserve projections are based primarily on detailed analysis of the facts in each case, CNAs experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as field reserving trends and claims settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves. Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to material period-to-period fluctuations in the Companys results of operations and/or equity. CNAs reported catastrophe losses, net of reinsurance, of $89 million, $358 million and $78 million for the years ended December31, 2009, 2008 and 2007 for events occurring in those years. Catastrophe losses in 2009 related primarily to tornadoes, floods, hail and wind. The catastrophe losses in 2008 related primarily to Hurricanes Gustav and Ike. There can be no assurance that CNAss ultimate cost for catastrophes will not exceed current estimates. The table below provides a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves of the life company. Year Ended December31 2009 2008 2007 (In millions) Reserves, beginning of year: Gross $ 27,593 $ 28,588 $ 29,636 Ceded 6,288 7,056 8,191 Net reserves, beginning of year 21,305 21,532 21,445 Net incurred claim and claim adjustment expenses: Provision for insured events of current year 4,793 5,193 4,939 (Decrease) inc

Leases

Leases
	12 Months Ended Dec. 31, 2009
Leases	Note 10.Leases Leases cover office facilities, machinery and computer equipment. The Companys hotels in some instances are constructed on leased land. Rent expense amounted to $95 million, $98 million and $79 million for the years ended December31, 2009, 2008 and 2007. The table below presents the future minimum lease payments to be made under non-cancelable operating leases along with lease and sublease minimum receipts to be received on owned and leased properties. FutureMinimumLease Year Ended December31 Payments Receipts (In millions) 2010 $ 67 $ 3 2011 62 3 2012 53 3 2013 42 2 2014 20 Thereafter 38 Total $ 282 $ 11

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009
Income Taxes	Note 11.Income Taxes The Company and its eligible subsidiaries file a consolidated federal income tax return. The Company has entered into a separate tax allocation agreement with CNA, a majority-owned subsidiary in which its ownership exceeds 80%. The agreement provides that the Company will: (i)pay to CNA the amount, if any, by which the Companys consolidated federal income tax is reduced by virtue of inclusion of CNA in the Companys return, or (ii)be paid by CNA an amount, if any, equal to the federal income tax that would have been payable by CNA if it had filed a separate consolidated return. The agreement may be canceled by either of the parties upon thirty days written notice. Since 2007, the Company has participated in the Compliance Assurance Process (CAP), which is a voluntary program for a limited number of large corporations. Under CAP, the Internal Revenue Service (IRS) conducts a real-time audit and works contemporaneously with the Company to resolve any issues prior to the filing of the tax return. The Company believes this approach should reduce tax-related uncertainties, if any. The Companys 2006 tax year remains subject to examination and the 2008 tax year is under examination by the IRS. Although the outcome of tax audits are always uncertain, the Company believes that any adjustments resulting from audits will not have a material impact on its results of operations, financial position and cash flows. The Company and/or its subsidiaries also file income tax returns in various state, local and foreign jurisdictions. These returns, with few exceptions, are no longer subject to examination by the various taxing authorities before 2005. Diamond Offshore, which is not included in the Companys consolidated federal income tax return, files income tax returns in the U.S. federal, various state and foreign jurisdictions. Diamond Offshores 2007 and 2008 U.S. federal income tax returns remain subject to examination. Tax years that remain subject to examination by the various other jurisdictions include years 2000 to 2008. The current and deferred components of income tax expense (benefit), excluding taxes on discontinued operations, are as follows: Year Ended December31 2009 2008 2007 (In millions) Income tax expense (benefit): Federal: Current $ 3 $ 195 $ 876 Deferred 149 (368 ) 12 State and city: Current 7 22 22 Deferred (9 ) (10 ) 6 Foreign 195 168 79 Total $ 345 $ 7 $ 995 A reconciliation between the federal income tax expense at statutory rates and the actual income tax expense is as follows: Year Ended December31 2009 2008 2007 Income before income tax: U.S. $ 989 $ 29 $ 2,772 Foreign 741 558 422 Total $ 1,730 $ 587 $ 3,194 Income tax expense at statutory rate $ 606 $ 205 $ 1,117 Increase (decrease) in i

Debt

Debt
	12 Months Ended Dec. 31, 2009
Debt	Note 12.Debt December31, 2009 Principal Unamortized Discount Net ShortTerm Debt LongTerm Debt (In millions) Loews Corporation $ 875 $8 $ 867 $ 867 CNA Financial 2,317 14 2,303 2,303 Diamond Offshore 1,504 13 1,491 $4 1,487 HighMount 1,600 1,600 1,600 Boardwalk Pipeline 3,114 14 3,100 3,100 Loews Hotels 224 224 6 218 Elimination of intercompany debt (100 ) (100 ) (100 ) Total $ 9,534 $49 $ 9,485 $10 $ 9,475 December31 2009 2008 (In millions) Loews Corporation (Parent Company): Senior: 8.9% debentures due 2011 (effective interest rate of 9.0%) (authorized, $175) $ 175 $ 175 5.3% notes due 2016 (effective interest rate of 5.4%) (authorized, $400) (a) 400 400 6.0% notes due 2035 (effective interest rate of 6.2%) (authorized, $300) (a) 300 300 CNA Financial: Senior: 6.0% notes due 2011 (effective interest rate of 6.1%) (authorized, $400) 400 400 8.4% notes due 2012 (effective interest rate of 8.6%) (authorized, $100) 70 70 Variable rate revolving credit facility due 2012 (effective interest rate of 2.7%) 150 250 5.9% notes due 2014 (effective interest rate of 6.0%) (authorized, $549) 549 549 6.5% notes due 2016 (effective interest rate of 6.6%) (authorized, $350) 350 350 7.0% notes due 2018 (effective interest rate of 7.1%) (authorized, $150) 150 150 7.4% notes due 2019 (effective interest rate of 7.5%) (authorized, $350) 350 7.3% debentures due 2023 (effective interest rate of 7.3%) (authorized, $250) 243 243 5.1% debentures due 2034 (effective interest rate of 5.1%) (authorized, $31) 31 31 Other senior debt (effective interest rates approximate 5.3% and 5.0%) 24 24 Diamond Offshore: Senior: 5.2% notes due 2014 (effective interest rate of 5.2%) (authorized, $250) (a) 250 250 4.9% notes due 2015 (effective interest rate of 5.0%) (authorized, $250) (a) 250 250 5.9% notes due 2019 (effective interest rate of 6.0%) (authorized, $500) (a) 500 Zero coupon convertible debentures due 2020, net of discount of $2 and $2 (effective interest rate of 3.6%) 4 4 5.7% notes due 2039 (effective interest rate of 5.8%) (authorized $500) (a) 500 HighMount: Senior: Variable rate term loans due 2012 (effective interest rate of 5.8%) 1,600 1,600 Variable rate revolving credit facility due 2012 (effective interest rate of 0.8% and 3.3%) 115 Boardwalk Pipeline: Senior: Variable rate revolving credit facility due 2012 (effective interest rate

Comprehensive Income

Comprehensive Income (Loss)
	12 Months Ended Dec. 31, 2009
Comprehensive Income (Loss)	Note 13.Comprehensive Income (Loss) The components of Accumulated other comprehensive income (loss) are as follows: Unrealized Gains(Losses) onInvestments OTTI Losses CashFlow Hedges Foreign Currency Pension Liability Accumulated Other Comprehensive Income (Loss) (In millions) Balance, January1, 2007 $ 579 $ 5 $ 86 $ (283 ) $ 387 Unrealized holding losses on investments, after tax of $224 and $34 (413 ) (65 ) (478 ) Adjustment for items included in Net income, after tax of $87 (159 ) (159 ) Foreign currency translation adjustment 35 35 Pension liability adjustment, after tax of $(52) 100 100 Amounts attributable to noncontrolling interests 61 4 (4 ) (11 ) 50 Balance, December31, 2007 68 (56 ) 117 (194 ) (65 ) Unrealized holding losses on investments, after tax of $1,949 and $15 (3,558 ) (29 ) (3,587 ) Adjustment for items included in Net income, after tax of $(16), $(39) and $(20) 30 70 34 134 Foreign currency translation adjustment (161 ) (161 ) Pensionliabilityadjustment,aftertaxof$201 (388 ) (388 ) Disposalofdiscontinuedoperations, aftertaxof$(33) 53 53 Amountsattributabletononcontrollinginterests 368 (1 ) 16 45 428 Balance, December31, 2008 (3,092 ) (16 ) (28 ) (450 ) (3,586 ) Adjustment to initially apply accounting guidance for other-than-temporary impairmentlosses,aftertaxof$(31)and$(34) (58 ) $ (64 ) (122 ) Unrealized holding gains (losses) on investments,aftertaxof$(1,756),$103and$(26) 3,212 (190 ) 49 3,071 Adjustment for items included in Net income, after tax of $(269), $(51) and $63 499 95 (116 ) 478 Foreign currency translation adjustment 117 117 Pensionliabilityadjustment,aftertaxof$(7) 6 6 Amounts attributable to noncontrolling interests (388 ) 15 2 (12 ) (383 ) Balance, December31, 2009 $ 173 $ (144 ) $ (81 ) $ 77 $ (444 ) $ (419 )

Statutory Accounting Practices

Statutory Accounting Practices (Unaudited)
	12 Months Ended Dec. 31, 2009
Statutory Accounting Practices (Unaudited)	Note 14.Statutory Accounting Practices (Unaudited) CNAs domestic insurance subsidiaries maintain their accounts in conformity with accounting practices prescribed or permitted by insurance regulatory authorities, which vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, the more significant adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in shareholders equity relating to certain fixed maturity securities. CNAs insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions insurance regulators. Prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (NAIC) as well as state laws, regulations and general administrative rules. At December31, 2009, CCC follows a permitted practice related to the statutory provision for reinsurance, or the uncollectible reinsurance reserve. This permitted practice allows CCC to record an additional uncollectible reinsurance reserve amount through a different financial statement line item than the prescribed statutory convention. This permitted practice had no effect on CCCs statutory surplus at December31, 2009. In December 2009, the NAIC modified the prescribed statutory accounting guidance allowing a greater portion of deferred tax assets to be admitted. This newly prescribed guidance resulted in an approximate $623 million increase in the combined statutory surplus of CCC and its subsidiaries at December31, 2009 as compared to the amount which would have resulted using the previously prescribed accounting guidance. CCC had previously been granted a permitted practice for the reporting periods ending December31, 2008 through September30, 2009. This permitted practice allowed CCC to admit a greater portion of its deferred tax assets than what was allowed under the prescribed accounting guidance. This permitted practice resulted in an approximate $700 million increase in CCCs statutory surplus at December31, 2008. CNAs ability to pay dividends and other credit obligations is significantly dependent on receipt of dividends from its subsidiaries. The payment of dividends to CNA by its insurance subsidiaries without prior approval of the insurance department of each subsidiarys domiciliary jurisdiction is limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective state insurance departments. Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (the Department), may be paid only from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December31, 2009, CCC is in a positive earned surplus position, enabling CCC to pay approximately $934 million of dividend payments during

Supplemental Natural Gas and Oi

Supplemental Natural Gas and Oil Information (Unaudited)
	12 Months Ended Dec. 31, 2009
Supplemental Natural Gas and Oil Information (Unaudited)	Note 15. Supplemental Natural Gas and Oil Information (Unaudited) Users of this information should be aware that the process of estimating quantities of proved and proved developed natural gas, NGLs and crude oil reserves is very complex, requiring significant subjective decisions in the evaluation of all available geological, engineering and economic data for each reservoir. The data for a given reservoir may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history and continual reassessment of the viability of production under varying economic conditions. As a result, revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure reserve estimates reported represent the most accurate assessments possible, the subjective decisions and variances in available data for various reservoirs make these estimates generally less precise than other estimates included in the financial statement disclosures. Proved reserves represent quantities of natural gas, NGLs and oil which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be recoverable in the future from known reservoirs under existing economic conditions, operating methods and government regulations. Proved developed reserves are proved reserves which can be expected to be recovered through existing wells with existing equipment, infrastructure and operating methods. Estimates of reserves as of December31, 2009, 2008 and 2007 are based upon studies for each of HighMounts properties prepared by HighMount staff engineers. Calculations were prepared using standard geological and engineering methods generally accepted by the petroleum industry and in accordance with SEC guidelines. Ryder Scott Company, L.P., an independent third party petroleum engineering consulting firm, has audited HighMounts reserve estimates in accordance with the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers. All proved reserves are located in the United States of America. Reserves Estimated net quantities of proved natural gas and oil (including condensate and NGLs) reserves at December31, 2009, 2008 and 2007 and changes in the reserves during 2009, 2008 and 2007 are shown in the schedule below: Proved Developed and Undeveloped Reserves Natural Gas(a) NGLs and Oil NaturalGas Equivalents (Bcf) (thousands of barrels) (Bcfe) January1, 2007 - - - Changes in reserves: Extensions, discoveries and other additions 62 3,877 85 Revisions of previous estimates (b) (51 ) 2,164 (38 ) Production (34 ) (1,627 ) (43 ) Purchases of reserves in place 1,919 91,868 2,470 December31, 2007 1,896 96,282 2,474 Changes in reserves: Extensions, discoveries and other additions 56 3,140 75 Revisions of previous estimates (c

Benefit Plans

Benefit Plans
	12 Months Ended Dec. 31, 2009
Benefit Plans	Note 16. Benefit Plans Pension Plans The Company has several non-contributory defined benefit plans for eligible employees. Benefits for certain plans are determined annually based on a specified percentage of annual earnings (based on the participants age or years of service) and a specified interest rate (which is established annually for all participants) applied to accrued balances. The benefits for another plan which covers salaried employees are based on formulas which include, among others, years of service and average pay. The Companys funding policy is to make contributions in accordance with applicable governmental regulatory requirements. Other Postretirement Benefit Plans The Company has several postretirement benefit plans covering eligible employees and retirees. Participants generally become eligible after reaching age 55 with required years of service. Actual requirements for coverage vary by plan. Benefits for retirees who were covered by bargaining units vary by each unit and contract. Benefits for certain retirees are in the form of a Company health care account. Benefits for retirees reaching age 65 are generally integrated with Medicare. Other retirees, based on plan provisions, must use Medicare as their primary coverage, with the Company reimbursing a portion of the unpaid amount; or are reimbursed for the Medicare Part B premium or have no Company coverage. The benefits provided by the Company are basically health and, for certain retirees, life insurance type benefits. The Company funds certain of these benefit plans and accrues postretirement benefits during the active service of those employees who would become eligible for such benefits when they retire. The Company uses December31 as the measurement date for its plans. Weighted-average assumptions used to determine benefit obligations: Pension Benefits OtherPostretirementBenefits December31 2009 2008 2007 2009 2008 2007 Discount rate 5.7 % 6.3 % 6.0 % 5.6 % 6.3 % 6.0 % Rate of compensation increase 3.0%to5.5 % 3.0%to5.8 % 4.0%to7.0 % Weighted-average assumptions used to determine net periodic benefit cost: PensionBenefits OtherPostretirementBenefits Year Ended December31 2009 2008 2007 2009 2008 2007 Discount rate 6.3 % 6.0 % 5.7 % 6.3 % 5.9 % 5.6 % Expected long term rate of return on plan assets 7.5%to8.0 % 7.5%to8.0 % 7.0%to8.0 % 5.4 % 6.2 % 6.2 % Rate of compensation increase 3.0%to5.8 % 4.0%to7.0 % 4.0%to7.0 % The long term rate of return for plan assets is determined based on widely-accepted capital market principles, long term return analysis for global fixed income and equity markets as well as the active total return oriented portfolio management style. Long term trends are evaluated relative to market factors such as inflation, interest rates and fiscal and monetary policies, in order to assess the capital market assumptions as applied to the plan. Con

Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009
Reinsurance	Note 17. Reinsurance CNA cedes insurance to reinsurers to limit its maximum loss, provide greater diversification of risk, minimize exposures on larger risks and to exit certain lines of business. The ceding of insurance does not discharge the primary liability of CNA. Therefore, a credit exposure exists with respect to property and casualty and life reinsurance ceded to the extent that any reinsurer is unable to meet its obligations or to the extent that the reinsurer disputes the liabilities assumed under reinsurance agreements. Property and casualty reinsurance coverages are tailored to the specific risk characteristics of each product line and CNAs retained amount varies by type of coverage. Reinsurance contracts are purchased to protect specific lines of business such as property and workers compensation. Corporate catastrophe reinsurance is also purchased for property and workers compensation exposure. Most reinsurance contracts are purchased on an excess of loss basis. CNA also utilizes facultative reinsurance in certain lines. In addition, CNA assumes reinsurance as a member of various reinsurance pools and associations. Reinsurance accounting allows for contractual cash flows to be reflected as premiums and losses, as compared to deposit accounting, which requires cash flows to be reflected as assets and liabilities. To qualify for reinsurance accounting, reinsurance agreements must include risk transfer. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. The following table summarizes the amounts receivable from reinsurers: December31 2009 2008 (In millions) Reinsurance receivables related to insurance reserves: Ceded claim and claim adjustment expense $ 5,594 $ 6,288 Ceded future policy benefits 859 903 Ceded policyholders funds 39 39 Reinsurance receivables related to paid losses 440 531 Reinsurance receivables 6,932 7,761 Less allowance for uncollectible reinsurance 351 366 Reinsurance receivables, net of allowance for uncollectible reinsurance $ 6,581 $ 7,395 CNA has established an allowance for uncollectible reinsurance receivables. The expense (release) for uncollectible reinsurance was $4 million, $(47) million and $1 million for the years ended December31, 2009, 2008 and 2007. Changes in the allowance for uncollectible reinsurance receivables are presented as a component of Insurance claims and policyholders benefits on the Consolidated Statements of Income. CNA attempts to mitigate its credit risk related to reinsurance by entering into reinsurance arrangements with reinsurers that have credit ratings above certain levels and by obtaining collateral. The primary methods of obtaining collateral are through reinsurance trusts, letters of credit and funds withheld balances. Such collateral was approximately $1.9 billion and $2.1 billion at December31, 2009 and 2008. On a more limited basis, CNA may

Quarterly Financial Data

Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009
Quarterly Financial Data (Unaudited)	Note 18. Quarterly Financial Data (Unaudited) 2009 Quarter Ended Dec.31 Sept.30 June30 March31 (In millions, except per share data) Total revenues $ 3,822 $ 3,738 $ 3,534 $ 3,023 Income (loss) attributable to: Loews common stock: Income (loss) from continuing operations 403 469 341 (647 ) Per share-basic 0.94 1.08 0.79 (1.49 ) Per share-diluted 0.94 1.08 0.78 (1.49 ) Discontinued operations, net - (1 ) (1 ) - Per share-basic - - - - Per share-diluted - - - - Net income (loss) (a) 403 468 340 (647 ) Per share-basic 0.94 1.08 0.79 (1.49 ) Per share-diluted 0.94 1.08 0.78 (1.49 ) 2008 Quarter Ended Total revenues $ 2,743 $ 2,970 $ 3,922 $ 3,612 Income attributable to: Loews common stock: Income from continuing operations (958 ) (144 ) 511 409 Per share-basic (2.20 ) (0.33 ) 1.00 0.77 Per share-diluted (2.20 ) (0.33 ) 1.00 0.77 Discontinued operations, net - 7 4,348 146 Per share-basic - 0.02 8.56 0.28 Per share-diluted - 0.02 8.54 0.28 Net income (b) (958 ) (137 ) 4,859 555 Per share-basic (2.20 ) (0.31 ) 9.56 1.05 Per share-diluted (2.20 ) (0.31 ) 9.54 1.05 Former Carolina Group stock: Discontinued operations, net - - 104 107 Per share-basic - - 0.97 0.98 Per share-diluted - - 0.96 0.98 The sum of the quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of weighted average shares outstanding and the effects of rounding for each period. (a) Net income attributable to Loews common stock for the fourth quarter of 2009 includes an investment gain at CNA of $217 (after tax and noncontrolling interest) related to the sale of its holdings of Verisk Analytics Inc. Additionally, CNA recognized OTTI losses of $114 (after tax and noncontrolling interest) in earnings primarily in the asset-backed bonds, tax-exempt and corporate and other taxable bond sectors. (b) Net loss attributable to Loews common stock for the fourth quarter of 2008 includes a $440 after tax non-cash impairment charge related to the carrying value of HighMounts natural gas and oil properties reflecting commodity prices at December31, 2008, a $314 after tax non-cash goodwill impairment charge related to HighMount and OTTI losses at CNA

Legal Proceedings

Legal Proceedings
	12 Months Ended Dec. 31, 2009
Legal Proceedings	Note 19. Legal Proceedings On August1, 2005, CNA and certain insurance subsidiaries were joined as defendants, along with other insurers and brokers, in multidistrict litigation pending in the United States District Court for the District of New Jersey, In re Insurance Brokerage Antitrust Litigation, Civil No.04-5184 (FSH). The plaintiffs allege bid rigging and improprieties in the payment of contingent commissions in connection with the sale of insurance that violated federal and state antitrust laws, the federal Racketeer Influenced and Corrupt Organizations (RICO) Act and state common law. After discovery, the District Court dismissed the federal antitrust claims and the RICO claims, and declined to exercise supplemental jurisdiction over the state law claims. The plaintiffs have appealed the dismissal of their complaint to the Third Circuit Court of Appeals. The parties have filed their briefs on the appeal. Oral argument was held on April21, 2009, and the Court took the matter under advisement. CNA believes it has meritorious defenses to this action and intends to defend the case vigorously. The extent of losses beyond any amounts that may be accrued are not readily determinable at this time. However, based on facts and circumstances presently known, in the opinion of management, an unfavorable outcome will not materially affect the equity of the Company, although results of operations may be adversely affected. CNA is also a party to litigation and claims related to AE cases arising in the ordinary course of business. See Note 9 for further discussion. The Company has been named as a defendant in the following three cases alleging substantial damages based on alleged health effects caused by smoking cigarettes, exposure to tobacco smoke or exposure to asbestos fibers incorporated into filter material used in one brand of cigarette that ceased manufacture more than 50 years ago, all of which also name a former subsidiary, Lorillard or one of its subsidiaries, as a defendant. In Cypret vs. The American Tobacco Company, Inc. et al. (1998, Circuit Court, Jackson County, Missouri), the Company would contest jurisdiction and make use of all available defenses in the event it receives personal service of this action. In Clalit vs. Philip Morris, Inc., et al. (1998, Jerusalem District Court of Israel), the court initially permitted plaintiff to serve the Company outside the jurisdiction but it cancelled the leave of service in response to the Companys application, and plaintiffs appeal is pending. In Young vs. The American Tobacco Company, Inc. et al. (1997, Civil District Court, Orleans Parish, Louisiana), the Company filed an exception for lack of personal jurisdiction during 2000, which remains pending. The Company was voluntarily dismissed from two other cases, Burns v. Hollingsworth Vose Co., et al. (2009, Superior Court, Middlesex County, Massachusetts) and Hartzell v. Hollingsworth Vose Co., et al. (2009, Superior Court, Middlesex County, Massachusetts), during 2010. The Company does not believe it is a proper defendant in any tobacco related cases and as a result, does not believe the outcome will have a material affect on

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009
Commitments and Contingencies	Note 20. Commitments and Contingencies Guarantees In the course of selling business entities and assets to third parties, CNA has agreed to indemnify purchasers for losses arising out of breaches of representation and warranties with respect to the business entities or assets being sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such indemnification provisions generally survive for periods ranging from nine months following the applicable closing date to the expiration of the relevant statutes of limitation. As of December31, 2009, the aggregate amount of quantifiable indemnification agreements in effect for sales of business entities, assets and third party loans was $819million. In addition, CNA has agreed to provide indemnification to third party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of December31, 2009, CNA had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchasers ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. These indemnification agreements survive until the applicable statutes of limitation expire, or until the agreed upon contract terms expire. Boardwalk Pipeline Purchase Commitments Boardwalk Pipeline is engaged in expansion and growth projects that will require the investment of significant capital resources. As of December31, 2009, Boardwalk Pipeline had capital commitments representing binding commitments under purchase orders for materials ordered but not received and firm commitments under binding construction contracts of $48 million.

Discontinued Operations

Discontinued Operations
	12 Months Ended Dec. 31, 2009
Discontinued Operations	Note 21. Discontinued Operations The results of discontinued operations are as follows: Year Ended December31 2009 2008 2007 (In millions) Revenues: Net investment income $ 6 $ 22 $ 120 Manufactured products 1,750 4,176 Investment gains 3 9 Other 1 Total (a) 6 1,775 4,306 Expenses: Insurance related expenses 8 10 25 Cost of manufactured products sold 1,039 2,408 Other operating expenses 175 478 Total 8 1,224 2,911 Income (loss) before income tax (2 ) 551 1,395 Income tax expense (200 ) (494 ) Results of discontinued operations (2 ) 351 901 Gain on disposal (after tax of $51) 4,362 Net income (loss) from discontinued operations (2 ) 4,713 901 Amounts attributable to noncontrolling interests (1 ) 1 Net income (loss) from discontinued operations - Loews $ (2 ) $ 4,712 $ 902 (a) Lorillards revenues amounted to 99.4% and 94.7% of total revenues of discontinued operations for the years ended December31, 2008 and 2007. Lorillards pretax income amounted to 100% and 99.1% of total pretax income of discontinued operations for the years ended December31, 2008 and 2007. Net liabilities of discontinued operations included in Other liabilities in the Consolidated Balance Sheets are as follows: December31 2009 2008 (In millions) Assets: Investments $ 141 $ 157 Receivables 4 6 Other assets 2 1 Total Assets $ 147 $ 164 Liabilities: Insurance reserves $ 140 $ 162 Other liabilities 8 8 Total Liabilities 148 170 Net liabilities of discontinued operations (a) $ (1 ) $ (6 ) (a) The net liabilities of CNAs discontinued operations totaling $1 million and $6 million as of December31, 2009 and December31, 2008 are included in Other liabilities in the Consolidated Balance Sheets. At December31, 2009 and December31, 2008, the insurance reserves are net of discounts of $56 million and $75 million. Lorillard As discussed in Note 2, in June of 2008, the Company disposed of its entire ownership interest in Lorillard. The Consolidated Financial Statements have been reclassified to reflect Lorillard as a discontinued operation. Accordingly, revenues and expenses and cash flows of Lorillard have been excluded from the respective captions in the Consolidated Statements of Income, and Consolidated Statements of Cash Flows, and have been included in Discontinued operations, net and Net cash flows - discontinued operations. CNA CNA has discontinued operations, which consist of run-off insurance and reinsurance operations acquired in its merger with The Continental C

Business Segments

Business Segments
	12 Months Ended Dec. 31, 2009
Business Segments	Note 22. Business Segments The Companys reportable segments are primarily based on its individual operating subsidiaries. Each of the principal operating subsidiaries are headed by a chief executive officer who is responsible for the operation of its business and has the duties and authority commensurate with that position. Investment gains (losses) and the related income taxes, excluding those of CNA Financial, are included in the Corporate and other segment. As a result of the realignment of management responsibilities, CNA has revised its property and casualty segments in the fourth quarter of 2009. There was no change in CNAs Life Group Non-Core and Other Insurance segments. Prior period segment disclosures have been conformed to the current year presentation. The new segment structure reflects the way management currently reviews results and makes business decisions. CNAs core property and casualty commercial insurance operations are reported in two business segments: CNA Specialty and CNA Commercial. CNA Specialty provides a broad array of professional, financial and specialty property and casualty products and services, primarily through insurance brokers and managing general underwriters. CNA Commercial includes property and casualty coverages sold to small businesses and middle market entities and organizations primarily through an independent agency distribution system. CNA Commercial also includes commercial insurance and risk management products sold to large corporations primarily through insurance brokers. Previously, CNAs international operations were treated as a separate business unit within CNA Specialty. The products sold through CNAs international operations are now reflected within CNA Specialty and CNA Commercial in a manner that aligns with the products within each segment. Additionally, CNAs excess and surplus lines, which were previously included in CNA Specialty, are now included in CNA Commercial, as part of CNA Select Risk. CNAs non-core operations are managed in two segments: Life Group Non-Core and Other Insurance. Life Group Non-Core primarily includes the results of the life and group lines of business that are in run-off. Other Insurance primarily includes certain corporate expenses, including interest on corporate debt, and the results of certain property and casualty business primarily in run-off, including CNA Re. This segment also includes the results related to the centralized adjusting and settlement of AE. Diamond Offshores business primarily consists of operating 47 offshore drilling rigs that are chartered on a contract basis for fixed terms by companies engaged in exploration and production of hydrocarbons. Offshore rigs are mobile units that can be relocated based on market demand. On December31, 2009, these rigs were located offshore in 12 countries in addition to the United States. HighMounts business consists primarily of natural gas exploration and production operations located in the Permian Basin in Texas, the Antrim Shale in Michigan, and the Black Warrior Basin in Alabama, with estimated proved reserves totaling approximately 2.0 trillion cubic feet equivalent. Boardwalk Pip

Consolidating Financial Informa

Consolidating Financial Information
	12 Months Ended Dec. 31, 2009
Consolidating Financial Information	Note 23. Consolidating Financial Information The following schedules present the Companys consolidating balance sheet information at December31, 2009 and 2008, and consolidating statements of income information for the years ended December31, 2009, 2008 and 2007. These schedules present the individual subsidiaries of the Company and their contribution to the consolidated financial statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Companys subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, many of the Companys subsidiaries use a classified balance sheet which also leads to differences in amounts reported for certain line items. The Corporate and Other column primarily reflects the parent companys investment in its subsidiaries, invested cash portfolio, assets and liabilities of discontinued operations of Lorillard and Bulova and corporate long term debt. The elimination adjustments are for intercompany assets and liabilities, interest and dividends, the parent companys investment in capital stocks of subsidiaries, and various reclasses of debit or credit balances to the amounts in consolidation. Purchase accounting adjustments have been pushed down to the appropriate subsidiary. Loews Corporation Consolidating Balance Sheet Information December31, 2009 CNA Financial Diamond Offshore HighMount Boardwalk Pipeline Loews Hotels Corporate andOther Eliminations Total (In millions) Assets: Investments $ 41,996 $ 739 $ 80 $ 46 $ 61 $ 3,112 $ 46,034 Cash 140 39 3 4 2 2 190 Receivables 9,104 794 97 110 27 202 $ (122 ) 10,212 Property, plant and equipment 304 4,442 1,778 6,348 362 40 13,274 Deferred income taxes 1,368 636 (1,377 ) 627 Goodwill 86 20 584 163 3 856 Investments in capital stocks of subsidiaries 15,276 (15,276 ) - Other assets 712 220 47 343 19 5 1,346 Deferred acquisition costs of insurance subsidiaries 1,108 1,108 Separate account business 423 423 Total assets $ 55,241 $ 6,254 $ 3,225 $ 7,014 $ 474 $ 18,637 $ (16,775 ) $ 74,070 Liabilities and Equity: Insurance reserves $ 38,263 $ 38,263 Payable to brokers 253 $ 196 $ 91 540 Short term debt $ 4 $ 6 10 Long term debt 2,303 1,487 1,600 $ 3,100 218 867 $ (100 ) 9,475 Reinsurance balances payable 281

SCHEDULE I Condensed Financial

SCHEDULE I Condensed Financial Information of Registrant
	12 Months Ended Dec. 31, 2009
SCHEDULE I Condensed Financial Information of Registrant	SCHEDULE I Condensed Financial Information of Registrant LOEWS CORPORATION BALANCE SHEETS ASSETS December31 2009 2008 (In millions) Current assets, principally investment in short term instruments $ 2,369 $ 1,805 Investments in securities 775 973 Investments in capital stocks of subsidiaries, at equity 15,276 11,980 Other assets 19 21 Total assets $ 18,439 $ 14,779 LIABILITIES AND SHAREHOLDERS EQUITY Accounts payable and accrued liabilities $ 202 $ 465 Long term debt 867 866 Deferred income tax and other 471 315 Total liabilities 1,540 1,646 Shareholders equity 16,899 13,133 Total liabilities and shareholders equity $ 18,439 $ 14,779 STATEMENTS OF INCOME Year Ended December31 2009 2008 2007 (In millions) Revenues: Equity in income (loss) of subsidiaries (a) $ 601 $ (12 ) $ 1,424 Investment gains 4 3 Gain on issuance of subsidiary stock 2 141 Interest and other 160 (42 ) 293 Total 765 (52 ) 1,861 Expenses: Administrative 77 82 81 Interest 55 56 55 Total 132 138 136 633 (190 ) 1,725 Income tax (expense) benefit (69 ) 8 (139 ) Income (loss) from continuing operations 564 (182 ) 1,586 Discontinued operations, net: Results of operations 350 902 Gain on disposal 4,362 Net income $ 564 $ 4,530 $ 2,488 STATEMENTS OF CASH FLOWS Year Ended December31 2009 2008 2007 (In millions) Operating Activities: Net income $ 564 $ 4,530 $ 2,488 Adjustments to reconcile net income to net cash provided (used) by operating activities: Income from discontinued operations (4,712 ) (902 ) Undistributed losses of affiliates 418 1,312 460 Investment gains (4 ) (2 ) (144 ) Provision for deferred income taxes 101 (62 ) 8 Changes in operating assets and liabilitiesnet: Receivables 21 (2 ) 20 Accounts payable and accrued liabilities 34 5 (661 ) Federal income taxes (84 ) 40 (74 ) Trading securities 924 (728 ) 1,180 Other, net 24 5 10 1,998 386 2,385 Investing Activities: Investments and advances to subsidiaries (218 ) (2,548 ) (2,440 ) Change in investments, primarily short term (1,599 ) 2,156 1,810 Change in collateral on loaned securi

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009
Valuation and Qualifying Accounts	SCHEDULE II LOEWS CORPORATION AND SUBSIDIARIES Valuation and Qualifying Accounts Column A ColumnB Column C Column D ColumnE Additions Description Balanceat Beginning of Period Chargedto Costs and Expenses Charged to Other Accounts Deductions Balanceat End of Period (In millions) For the Year Ended December 31, 2009 Deducted from assets: Allowance for doubtful accounts $ 650 $ 14 $ 9 $ 59 $ 614 Total $ 650 $ 14 $ 9 $ 59 $ 614 For the Year Ended December 31, 2008 Deducted from assets: Allowance for doubtful accounts $ 798 $ 10 $ 158 $ 650 Total $ 798 $ 10 $ - $ 158 $ 650 For the Year Ended December 31, 2007 Deducted from assets: Allowance for doubtful accounts $ 859 $ 32 $ 2 $ 95 $ 798 Total $ 859 $ 32 $ 2 $ 95 $ 798

Supplemental Information Concer

Supplemental Information Concerning Property and Casualty Insurance Operations
	12 Months Ended Dec. 31, 2009
Supplemental Information Concerning Property and Casualty Insurance Operations	SCHEDULE V LOEWS CORPORATION AND SUBSIDIARIES Supplemental Information Concerning Property and Casualty Insurance Operations Consolidated Property and Casualty Operations December31 2009 2008 (In millions) Deferred acquisition costs $ 1,108 $ 1,125 Reserves for unpaid claim and claim adjustment expenses 26,712 27,475 Discount deducted from claim and claim adjustment expense reserves above (based on interest rates ranging from 3.0% to 7.5%) 1,595 1,620 Unearned premiums 3,274 3,406 Year Ended December31 2009 2008 2007 (In millions) Net written premiums $ 6,713 $ 7,090 $ 7,382 Net earned premiums 6,720 7,149 7,481 Net investment income 2,110 1,547 2,180 Incurred claim and claim adjustment expenses related to current year 4,788 5,189 4,937 Incurred claim and claim adjustment expenses related to prior years (241 ) (7 ) 220 Amortization of deferred acquisition costs 1,417 1,467 1,520 Paid claim and claim adjustment expenses 4,841 5,327 5,282

Document Information

Document Information
	12 Months Ended Dec. 31, 2009
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Trading Symbol	L
Entity Registrant Name	LOEWS CORP
Entity Central Index Key	0000060086
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		422,433,635
Entity Public Float			$8,943,000,000