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Loews Corporation Announces Revision to Fourth Quarter and Year-End 2002 Results

NEW YORK--(BUSINESS WIRE)--March 19, 2003--Loews Corporation (NYSE:LTR;CG) today announced a revision to its previously reported fourth quarter and year-end 2002 results to reflect an additional $28.9 million of impairment losses on equity securities at the Company's CNA Financial Corporation subsidiary.

The revised consolidated net income for the year ended December 31, 2002, is $912.0 million, or $4.11 per Loews common share, compared to the previously reported amount of $940.9 million, or $4.27 per Loews common share. The revised consolidated net income for the quarter ended December 31, 2002 is $261.3 million, or $1.21 per Loews common share, compared to the previously reported amount of $290.2 million, or $1.37 per Loews common share. The additional impairment losses had no impact on net income attributable to Carolina Group stock or on the Company's previously reported net operating income, equity and book value per share.

The Company noted that CNA's decision to record additional impairment losses was made in relation to discussions with the Staff of the Division of Corporation Finance of the Securities and Exchange Commission in the course of a routine review of CNA's periodic filings, including the timing and amount of other-than-temporary impairment losses in CNA's available-for-sale fixed maturity and equity securities investments.


======================================================================
                                          December 31,
                         ---------------------------------------------
                              Three Months           Year Ended
                         ---------------------------------------------
                                    2002 As                2002 As
                                    Previously             Previously
(In millions, except per            Reported               Reported
 share data)              2002 (a)     (b)       2002 (a)     (b)
                         ---------------------------------------------

Consolidated:
  Revenues               $ 3,971.7  $ 4,021.9  $ 17,495.4  $ 17,545.6
  Net income             $   261.3  $   290.2  $    912.0  $    940.9

Per Share: (c)
  Loews common stock:
   Income from continuing
    operations           $    1.21  $    1.37  $     4.49  $     4.65
   Discontinued 
    operations-net                                  (0.17)      (0.17)
   Cumulative effect of
    change in accounting
    principle-net                                   (0.21)      (0.21)
                         ---------------------------------------------

   Net income            $    1.21  $    1.37  $     4.11  $     4.27
                         =============================================

   Book value                                  $    61.68  $    61.68
                         =============================================

   Net income of Carolina
    Group stock          $    0.92  $    0.92  $     3.50  $     3.50
======================================================================

(a) Revised to reflect additional impairment losses on equity
    securities in CNA's available-for-sale portfolio.
(b) As previously reported in the Company's February 13, 2003 press
    release.
(c) The Company has two classes of common stock, Loews common stock
    and Carolina Group stock, issued in February 2002. Earnings per
    share data are presented for each class of common stock for the
    periods they are outstanding.




Loews Corporation and Subsidiaries
Financial Review
                                          December 31,
                         ---------------------------------------------
                              Three Months           Years Ended
                         ---------------------------------------------
                          2002 (a)   2001 (b)    2002 (a)    2001 (b)
                         ---------------------------------------------
                         (Amounts in millions, except per share data)

Revenues:
 Insurance premiums and 
  net investment 
  income (c)             $ 2,690.5  $ 3,554.4  $ 11,868.1  $ 12,779.3
 Manufactured 
  products (d)               886.3      958.6     3,963.5     4,011.9
 Other                       394.9      486.0     1,663.8     1,978.4
                         ---------------------------------------------
       Total               3,971.7    4,999.0    17,495.4    18,769.6
                         ---------------------------------------------

Expenses:
 Insurance claims &
  policyholders' benefits  1,849.6    2,513.9     8,392.0    11,279.8
 Cost of manufactured
  products sold (d)          465.1      516.8     2,226.5     2,282.9
 Other (e)                 1,241.0    1,610.7     5,229.8     6,029.1
                         ---------------------------------------------
       Total               3,555.7    4,641.4    15,848.3    19,591.8
                         ---------------------------------------------

                             416.0      357.6     1,647.1      (822.2)
                         ---------------------------------------------

 Income tax expense 
 (benefit)                   131.6      150.7       582.2      (176.0)
 Minority interest            23.1       18.6        82.3      (103.0)
                         ---------------------------------------------
       Total                 154.7      169.3       664.5      (279.0)
                         ---------------------------------------------

Income (loss) from
 continuing operations       261.3      188.3       982.6      (543.2)
Discontinued 
 operations-net                           2.7       (31.0)        9.4
Cumulative effect of 
 change in accounting 
 principles-net (f)                                 (39.6)      (53.3)
                         ---------------------------------------------
Net income (loss)        $   261.3  $   191.0  $    912.0  $   (587.1)
                         =============================================

Net income (loss)
 attributable to:
 Loews common stock:
  Income (loss) from
   continuing operations $   224.4  $   188.3  $    841.9  $   (543.2)
  Discontinued 
   operations-net                         2.7       (31.0)        9.4
  Cumulative effect of 
   change in accounting 
   principles-net (f)                               (39.6)      (53.3)
                         ---------------------------------------------
 Loews common stock          224.4      191.0       771.3      (587.1)
 Carolina Group stock (g)     36.9                  140.7
                         ---------------------------------------------
                         $   261.3  $   191.0  $    912.0  $   (587.1)
                         =============================================

Income (loss) per Loews
 common stock (h):
 Income (loss) from
  continuing operations  $    1.21  $    0.98  $     4.49  $    (2.79)
 Discontinued 
  operations-net                         0.01       (0.17)       0.05
 Cumulative effect of 
  changes in accounting 
  principles-net (f)                                (0.21)      (0.27)
                         ---------------------------------------------
 Net income (loss)       $    1.21  $    0.99  $     4.11  $    (3.01)
                         =============================================

Net income per share of
 Carolina Group stock (h)$    0.92             $     3.50
                         =============================================

Weighted number of shares
 outstanding:
 Loews common stock         185.44     191.49      187.59      195.33
 Carolina Group stock        39.91                  40.15

(a) Revised to reflect additional impairment losses on equity
    securities in CNA's available-for-sale portfolio.
(b) Restated to reflect an adjustment to the Company's historical
    accounting for CNA's investment in life settlement contracts and
    the related revenue recognition.
(c) Includes investment (losses) gains of $(63.7), $326.6, $(208.7)
    and $1,390.4 for the respective periods.
(d) Includes excise taxes of $149.6, $141.7, $667.6 and $618.1 paid on
    sales of manufactured products for the respective periods.
(e) Includes a $200.0 charge related to an agreement with the Engle
    class for the year ended December 31, 2001.
(f) Adoption of SFAS No. 142, accounting for goodwill and other
    intangible assets in 2002 and SFAS No. 133, accounting for
    derivative instruments and hedging activities in 2001, at the CNA
    subsidiary.
(g) Represents 23.01% and 23.12% of the economic interest in the
    Carolina Group for the three month and eleven month period ended
    December 31, 2002 from the February 2002 initial public offering
    of Carolina Group stock.
(h) Earnings per common share-assuming dilution is not presented
    because securities that could potentially dilute basic earnings
    per common share in the future would have been insignificant or
    antidilutive for the periods presented.

CONTACT: Loews Corporation, New York
Peter W. Keegan, 212/521-2950
Candace Leeds, 212/521-2416
or
Investor Relations:
Joshua E. Kahn, 212/521-2788