NEW YORK--(BUSINESS WIRE)--Nov. 7, 2002--Loews Corporation (NYSE:LTR) reported today Carolina Group net income for the 2002 third quarter of $191.7 million, compared to $229.6 million in 2001.
Net income attributable to the Loews Group intergroup interest for the third quarter of 2002 amounted to $147.3 million. Net income attributable to Carolina Group Stock for the third quarter of 2002 was $44.4 million, or $1.10 per share of Carolina Group tracking stock (NYSE:CG).
Carolina Group net income for the 2002 third quarter includes net investment gains of $14.3 million. Net investment gains attributable to Carolina Group Stock were $3.3 million, or $0.08 per share of Carolina Group Stock.
Carolina Group net income for the first nine months of 2002 was $521.2 million, compared to $475.4 million in the comparable period of the prior year. Net income attributable to the Loews Group intergroup interest for the first nine months of 2002 amounted to $417.4 million. Net income attributable to Carolina Group Stock for the three quarters of 2002 was $103.8 million, or $2.58 per share of Carolina Group tracking stock and reflects eight months of actual results, commencing with the initial issuance of Carolina Group Stock by Loews Corporation in February 2002.
Carolina Group net income for the first three quarters of 2002 includes net investment gains of $21.2 million, compared to $1.4 million in the comparable period of the prior year. Net investment gains attributable to Carolina Group Stock in 2002 were $4.8 million, or $0.12 per share of Carolina Group Stock.
Net income for the Carolina Group in the first nine months of 2001 included a $200.0 million pretax charge ($121.0 million after taxes) related to an agreement with the class in the Engle case.
Net sales for the Carolina Group were $3.0 billion in each of the first nine months of 2002 and 2001. Net sales in the first nine months of 2001 were restated for comparative purposes to reflect the adoption of new accounting principles related to the classification of certain sales incentives.
On a pro forma basis, assuming the Carolina Group Stock had been issued at January 1, 2001, net income attributable to Carolina Group Stock for the first nine months of 2002 was $117.8 million or $2.93 per share of Carolina Group Stock, compared to $88.9 million or $2.21 per share in the comparable period of the prior year.
This pro forma information is based on the historical financial statements of the Carolina Group, adjusted to accrue interest expense at 8% per annum on $2.5 billion of notional intergroup debt and an adjustment to income taxes for the impact of the interest expense. Per share amounts are based on income available to Carolina Group shareholders.
The Carolina Group Stock, commonly called a tracking stock, is intended to reflect the economic performance of a defined group of the Company's assets and liabilities, referred to as the Carolina Group, principally consisting of the Company's subsidiary Lorillard, Inc. The Carolina Group, a notional group, is not a separate legal entity. The purpose of this financial information is to provide investors with additional information to use in analyzing the results of operations and financial condition of the Carolina Group, and this financial information should be read in conjunction with the consolidated financial information of Loews Corporation.
As of September 30, 2002, there were 39,910,000 shares of Carolina Group Stock outstanding. During the quarter ended September 30, 2002, the Company purchased 340,000 shares of Carolina Group stock, for the account of the Carolina Group, at an aggregate cost of $7.7 million. Depending on market conditions, the Company, for the account of the Carolina Group, from time to time may purchase shares of Carolina Group stock in the open market or otherwise.
Loews Corporation has issued a separate press release reporting its consolidated results for the third quarter of 2002, which accompanies this press release.
A conference call to discuss the second quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Thursday, November 7, 2002. The call can be accessed by dialing (888) 307-7192 or by visiting the Loews Corporation website (www.loews.com), where the Company will provide an online, real-time broadcast of this call. Please go to the website at least 10 minutes before the event begins to register and to download and install any necessary audio software. An online replay will be available at the Company's website for one week following the call.
Carolina Group
Financial Review
September 30,
-------------------------------------
Three Months Nine Months
----------------- ------------------
2002 2001 2002 2001
------- -------- -------- --------
(Amounts in millions,
except per share data)
Net sales (a) $ 963.4 $1,058.9 $2,963.4 $2,955.2
Cost of sales (a) 539.1 600.7 1,726.9 1,734.6
Selling, advertising
and administrative (b) 93.3 100.8 316.7 507.8
------- -------- -------- --------
Total operating
costs and expenses 632.4 701.5 2,043.6 2,242.4
------- -------- -------- --------
Operating income 331.0 357.4 919.8 712.8
Investment income (c) 37.1 18.9 69.5 70.0
Interest expense (50.0) (129.0)
------- -------- -------- --------
Income before income taxes 318.1 376.3 860.3 782.8
Income taxes 126.4 146.7 339.1 307.4
------- -------- -------- --------
Net income 191.7 229.6 521.2 475.4
Earnings attributable
to the Loews Group
intergroup interest (d) 147.3 229.6 417.4 475.4
------- -------- -------- --------
Income attributable to
Carolina Group shareholders (e) $ 44.4 $ - $ 103.8 $ -
======= ======== ======== ========
Per share of
Carolina Group stock (f) $ 1.10 $ 2.58
======= ======== ======== ========
Weighted number
of shares outstanding 40.19 40.23
======= ======== ======== ========
(a) Includes excise taxes of $161.5, $165.3, $518.0 and $476.4 for
the respective periods.
(b) Includes a $200.0 charge related to an agreement with the
Engle class for the nine months ended September 30, 2001.
(c) Includes $22.1, $00.0, $32.7 and $2.1 of investment gains for
the respective periods.
(d) Adjusted to reflect the Loews Group's intergroup interest in
the earnings of the Carolina Group after completion of the
February 1, 2002 offering of 40,250,000 shares of Carolina
Group stock. The Loews Group's economic interest is expressed
in share equivalents amounting to 133,500,000 shares for a
total of 173,750,000 shares and share equivalents outstanding
after the offering. As of September 30, 2002, there were
39,910,000 shares of Carolina Group stock outstanding.
(e) Represents 23.14% and 23.16% of the economic interest in the
Carolina Group for the three month and eight month period
ended September 30, 2002.
(f) Earnings per common share-assuming dilution is not presented
because securities that could potentially dilute basic
earnings per share in the future would have been insignificant
or antidilutive for the periods presented.
Carolina Group
Pro Forma Financial Review
September 30,
-------------------------------------
Three Months Nine Months
----------------- ------------------
2002 2001 2002 2001
------- -------- -------- --------
(Amounts in millions,
except per share data)
Net sales (a) $ 963.4 $1,058.9 $2,963.4 $2,955.2
Cost of sales (a) 539.1 600.7 1,726.9 1,734.6
Selling, advertising
and administrative (b) 93.3 100.8 316.7 507.8
------- -------- -------- --------
Total operating
costs and expenses 632.4 701.5 2,043.6 2,242.4
------- -------- -------- --------
Operating income 331.0 357.4 919.8 712.8
Investment income (c) 37.1 18.9 69.5 70.0
Interest expense (d) (50.0) (50.0) (150.0) (150.0)
------- -------- -------- --------
Income before income taxes 318.1 326.3 839.3 632.8
Income taxes (d) 126.4 127.7 330.9 248.9
------- -------- -------- --------
Net income 191.7 198.6 508.4 383.9
Earnings attributable
to the Loews Group
intergroup interest (e) 147.3 152.6 390.6 295.0
------- -------- -------- --------
Income available to
Carolina Group shareholders $ 44.4 $ 46.0 $ 117.8 $ 88.9
======= ======== ======== ========
Per share of
Carolina Group stock (f) $ 1.10 $ 1.14 $ 2.93 $ 2.21
======= ======== ======== ========
Weighted number
of shares outstanding 40.19 40.25 40.23 40.25
======= ======== ======== ========
(a) Includes excise taxes of $161.5, $165.3, $518.0 and $476.4 for
the respective periods.
(b) Includes a $200.0 charge related to an agreement with the
Engle class for the nine months ended September 30, 2001.
(c) Includes $22.1, $00.0, $32.7 and $2.1 of investment gains for
the respective periods.
(d) Includes pro forma adjustment to accrue interest expense at 8%
per annum on $2,500.0 of notional intergroup debt and an
adjustment to income taxes for the impact of the interest
expense.
(e) Includes pro forma adjustment to reflect the Loews Group's
intergroup interest in the earnings of the Carolina Group
after completion of the offering of 40,250,000 shares of
Carolina Group stock. The Loews Group's economic interest is
expressed in share equivalents amounting to 133,500,000 shares
for a total of 173,750,000 shares and share equivalents
outstanding after the offering. As of September 30, 2002,
there were 39,910,000 shares of Carolina Group stock
outstanding.
(f) Pro forma earnings per share of Carolina Group stock assumes
the Carolina Group was a separate group as of January 1, 2001.
Pro forma earnings per common share-assuming dilution is not
presented because securities that could potentially dilute
basic earnings per share in the future would have been
insignificant or antidilutive for the periods presented.
Carolina Group
Supplemental Information
The following information regarding domestic U.S. unit volume
shipped by Lorillard Tobacco Company to its direct buying customers by
brand as follows (all units in billions):
September 30,
------------------------------------
Three Months Nine Months
---------------- ----------------
2002 2001 2002 2001
------ ------ ------ ------
Full Price Brands
Total Newport 7.626 8.620 24.276 24.468
Total Kent Family 0.330 0.418 1.041 1.266
Total True 0.233 0.281 0.721 0.832
Total Max 0.017 0.019 0.051 0.057
Total Satin 0.004 0.005 0.011 0.014
Total Triumph 0.001 0.002 0.004 0.005
------ ------ ------ ------
Total Full Price Brands 8.211 9.345 26.104 26.642
------ ------ ------ ------
Price/Value Brands
Total Old Gold 0.339 0.413 1.016 1.290
Total Maverick 0.134 0.301 0.502 1.086
------ ------ ------ ------
Total Price/Value Brands 0.473 0.714 1.518 2.376
------ ------ ------ ------
Total Domestic Cigarettes 8.684 10.059 27.622 29.018
====== ====== ====== ======
Notes:
1. This information is unaudited and is not adjusted for returns.
2. Domestic unit volume includes units sold as well as promotional
units, and excludes volumes for Puerto Rico and U.S. Possessions.
3. Unit volume for a quarter is not necessarily indicative of unit
volume for any subsequent period.
4. Unit volume is not necessarily indicative of the level of revenues
for any period.
Loews Corporation Reports Net Income for the Third Quarter of 2002
NEW YORK--Nov. 7, 2002-—Loews Corporation (NYSE:LTR;CG) today
reported consolidated net income (including both the Loews Group and
Carolina Group) for the 2002 third quarter of $240.4 million, compared
to $165.7 million in 2001.
The following table summarizes the revenues, net income (loss) and
earnings per share information.
 September 30,
-------------------------------------------
 Three Months Nine Months
(In millions, -------------------- ---------------------
except per share data) 2002 2001 2002 2001
--------- --------- --------- ---------- Consolidated: Revenues(1) $ 4,077.5 $ 4,667.4 $13,512.5 $13,736.5 Net income (loss) $ 240.4 $ 165.7 $ 655.6 $ (777.2) Per Share:(2) Â Â Â Â Income (loss) per share
of Loews Common Stock: Income (loss) from
continuing operations $ 1.06 $ 0.83 $ 3.30 $ (3.71) Discontinued operations-net 0.02 (0.16) 0.03 Cumulative effect of
changes in accounting
principles-net  (0.21) (0.27)
--------- --------- --------- --------- Net income
(loss) per share of
Loews Common Stock $ 1.06 $ 0.85 $ 2.93 $ (3.95)
========= ========= ========= ========= Net income per share
of Carolina Group Stock $ 1.10Â $ 2.58 Â
========= ========= ========= =========
(1) Revenue for the three and nine months ended 2001 has been
restated for comparative purposes to reflect the adoption of
new accounting principles related to the classification of
certain sales incentives by Lorillard. Revenue also includes
premiums of $612.0 for the three months ended 2001, and
$1,151.0 and $1,659.0 for the nine months ended 2002 and 2001,
respectively, related to the National Postal Mail Handlers
contract at CNA which was transferred on July 1, 2002.
(2) 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.
Consolidated net operating income, which excludes net investment gains and discontinued operations, for the quarter ended September 30, 2002 was $231.3 million, compared to $116.3 million in the third quarter of 2001.
Net income attributable to Loews Common Stock for the third quarter of 2002 amounted to $196.0 million or $1.06 per share, compared to $165.7 million or $0.85 per share in the comparable period of the prior year. Net income in the third quarter of 2002 includes net investment gains attributable to Loews Common Stock of $5.8 million or $0.03 per share, compared to $44.8 million or $0.23 per share in the comparable period of the prior year.
Net operating income attributable to Loews Common Stock, which excludes net investment gains and discontinued operations, for the quarter ended September 30, 2002, was $190.2 million or $1.03 per share, compared to $116.3 million or $0.60 per share in the comparable period of the prior year.
Net income attributable to Carolina Group Stock for the 2002 third quarter amounted to $44.4 million or $1.10 per Carolina Group share. The Company is issuing a separate press release reporting the actual and pro forma results of the Carolina Group for the quarter and nine months ended September 30, 2002 and 2001.
Nine Months Ended September 30, 2002 compared with 2001
For the nine months ended September 30, 2002 consolidated net income (including both the Loews Group and Carolina Group) amounted to $655.6 million, compared to a net loss of $777.2 million in the comparable period of the prior year.
The first nine months of 2002 included a loss for discontinued operations at CNA of $31.0 million or $0.16 per share of Loews Common Stock, compared to income from discontinued operations of $6.7 million or $0.03 per share of Loews Common Stock in the comparable period of the prior year. The first nine months of 2002 also included a charge for accounting changes of $39.6 million or $0.21 per share of Loews Common Stock, related to accounting for goodwill and other intangible assets, compared to a charge of $53.3 million or $0.27 per share of Loews Common Stock in the comparable period of the prior year, related to accounting for derivative instruments at CNA.
Consolidated net operating income, which excludes net investment gains (losses), discontinued operations and accounting changes, was $819.2 million in the first nine months of 2002, compared to a loss of $1,285.0 million in the comparable period of the prior year.
Net operating income attributable to Loews Common Stock, which excludes net investment (losses) gains, discontinued operations and accounting changes, for the first nine months of 2002, was $720.2 million or $3.82 per share, compared to a loss of $1,285.0 million or $6.54 per share in the comparable period of the prior year.
Net income attributable to Carolina Group Stock for the first nine months of 2002 amounted to $103.8 million or $2.58 per Carolina Group share.
At September 30, 2002, the book value per share of Loews Common Stock was $61.09, compared to $50.39 at December 31, 2001. The increase in book value per share of Loews Common Stock is primarily due to proceeds from the issuance of the Carolina Group Stock in February 2002 and the Loews Group’s net economic interest in the notional intergroup debt receivable from the Carolina Group.
As of September 30, 2002, there were 185,441,200 shares of Loews Common Stock outstanding. During the three and nine months ended September 30, 2002, the Company purchased 664,000 and 6,065,600 shares of Loews Common Stock at an aggregate cost of $33.4 and $343.5 million, respectively. During the three and nine months ended September 30, 2002, the Company purchased 53,500 and 2,717,876 shares of CNA common stock at an aggregate cost of $1.4 and $73.1 million, respectively. The Company also purchased 340,000 shares of Carolina Group stock during the three months ended September 30, 2002, for the account of the Carolina Group, at an aggregate cost of $7.7 million. Depending on market conditions, the Company from time to time purchases shares of its, and its subsidiaries’, outstanding common stock in the open market or otherwise.
In February 2002 the Company created a second class of common stock, called Carolina Group Stock, a tracking stock intended to reflect the economic performance of a group of the Company’s assets and liabilities, called the Carolina Group, principally consisting of the Company’s subsidiary Lorillard, Inc., and in an initial public offering the Company issued shares of Carolina Group Stock representing 23.17% of the economic performance of the Carolina Group. Loews Common Stock will continue to represent the economic performance of the Company’s remaining assets, including the interest in the Carolina Group not represented by Carolina Group Stock.
A conference call to discuss the third quarter results of Loews Corporation has been scheduled for 11:00 a.m. EST, Thursday, November 7, 2002. The call can be accessed by dialing (888) 307-7192 or by visiting the Loews Corporation website (www.loews.com), where the Company will provide an online, real-time broadcast of this call. Please go to the website at least 10 minutes before the event begins to register and to download and install any necessary audio software. An online replay will be available at the Company’s website for one week following the call.
A conference call to discuss the third quarter results of CNA has been scheduled for 10:00 a.m. EST, Thursday, November 7, 2002. The call can be accessed by dialing (800) 289-0493 or by visiting the CNA website (http://investors.cna.com), where CNA will provide an online, real-time broadcast of its call. Please go to the website at least 10 minutes before the event begins to register and to download and install any necessary audio software. An online replay will be available at CNA’s website for one week following the call or by dialing (888) 203-1112, passcode 360508.
Loews Corporation and Subsidiaries
Financial Review
September 30,
------------------------------------------
Three Months Nine Months
------------------------------------------
2002 2001 2002 2001
--------- --------- --------- ---------
(Amounts in millions, except per share data)
Revenues:
Insurance premiums and
net investment income(a) $ 2,684.7 $ 3,102.1 $ 9,177.6 $ 9,224.9
Manufactured products(b) 1,004.1 1,093.6 3,076.4 3,052.7
Other 388.7 471.7 1,258.5 1,458.9
--------- --------- --------- ---------
Total 4,077.5 4,667.4 13,512.5 13,736.5
--------- --------- --------- ---------
Expenses:
Insurance claims
& policyholders' benefits 1,850.1 2,420.3 6,542.4 8,765.9
Cost of manufactured
products sold(b) 552.7 612.0 1,760.0 1,765.4
Other(c) 1,259.7 1,349.0 3,970.6 4,383.5
--------- --------- --------- ---------
Total 3,662.5 4,381.3 12,273.0 14,914.8
--------- --------- --------- ---------
415.0 286.1 1,239.5 (1,178.3)
--------- --------- --------- ---------
Income tax expense (benefit) 157.6 113.7 453.6 (326.2)
Minority interest 17.0 11.3 59.7 (121.5)
--------- --------- --------- ---------
Total 174.6 125.0 513.3 (447.7)
--------- --------- --------- ---------
Income (loss) from
continuing operations 240.4 161.1 726.2 (730.6)
Discontinued
operations-net 4.6 (31.0) 6.7
Cumulative effect of
change in accounting
principles-net(d) (39.6) (53.3)
--------- --------- --------- ---------
Net income (loss) $ 240.4 $ 165.7 $ 655.6 $ (777.2)
======== ========= ========= =========
Net income (loss)
attributable to:
Loews Common Stock:
Income (loss) from
continuing operations $ 196.0 $ 161.1 $ 622.4 $ (730.6)
Discontinued operations-net 4.6 (31.0) 6.7
Cumulative effect of
change in accounting
principles-net(d) (39.6) (53.3)
--------- --------- --------- ---------
Loews Common Stock 196.0 165.7 551.8 (777.2)
Carolina Group Stock (e) 44.4 103.8
--------- --------- --------- ---------
$ 240.4 $ 165.7 $ 655.6 $ (777.2)
======== ========= ========= =========
Income (loss) per
Loews common stock(f):
Income (loss) from
continuing operations $ 1.06 $ 0.83 $ 3.30 $ (3.71)
Discontinued operations-net 0.02 (0.16) 0.03
Cumulative effect of
changes in
accounting principles-net(d) (0.21) (0.27)
--------- --------- --------- ---------
Net income (loss) $ 1.06 $ 0.85 $ 2.93 $ (3.95)
======== ========= ========= =========
Net income per Carolina
Group common stock(f) $ 1.10 $ 2.58
======== ========= ========= =========
Weighted number
of shares outstanding:
Loews Common Stock 185.71 195.41 188.31 196.62
Carolina Group Stock 40.19 40.23
(a) Includes investment gains (losses) of $26.5, $72.2, $(145.0)
and $1,063.8 for the respective periods.
(b) Includes excise taxes of $161.5, $165.3, $518.0 and $476.4
paid on sales of manufactured products for the respective
periods.
(c) Includes a $200.0 charge related to an agreement with the
Engle class for the nine months ended September 30, 2001.
(d) 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.
(e) Represents 23.14% and 23.16% of the economic interest in the
Carolina Group for the three month and eight month period
ended September 30, 2002 from the February 2002 initial public
offering of Carolina Group Stock.
(f) 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.
Loews Corporation and Subsidiaries
Additional Financial Information
September 30,
------------------------------------------
Three Months Nine Months
-------------------- --------------------
2002 2001 2002 2001
--------- --------- --------- ---------
(In millions)
Revenues:
CNA Financial $ 2,767.1 $ 3,125.3 $ 9,693.9 $ 8,464.2
Lorillard (a) 977.8 1,078.4 3,000.0 3,027.1
Loews Hotels 70.4 71.1 229.6 247.1
Diamond Offshore 180.4 244.1 572.3 707.8
Bulova 40.9 35.4 114.5 100.0
Investment income-net
and other (b) 14.4 40.9 47.2 126.5
--------- --------- --------- ---------
4,051.0 4,595.2 13,657.5 12,672.7
--------- --------- --------- ---------
Investment (losses) gains:
CNA Financial 23.9 0.3 (137.4) 938.1
Corporate and other 2.6 71.9 (7.6) 125.7
--------- --------- --------- ---------
26.5 72.2 (145.0) 1,063.8
--------- --------- --------- ---------
Total $ 4,077.5 $ 4,667.4 $13,512.5 $13,736.5
========= ========= ========= =========
Income (Loss) Before Taxes:
CNA Financial (c) $ 58.1 $ (235.7) $ 440.9 $(3,232.3)
Lorillard (d) (e) 277.0 376.8 791.8 781.2
Loews Hotels (0.4) (0.4) 19.4 23.4
Diamond Offshore 8.3 71.4 44.6 175.7
Bulova 4.5 2.7 12.1 10.3
Investment
income-net and other (b) (27.5) (0.9) (88.4) (0.4)
--------- --------- --------- ---------
320.0 213.9 1,220.4 (2,242.1)
--------- --------- --------- ---------
Investment (losses) gains:
CNA Financial 23.9 0.3 (137.4) 938.1
Corporate and other (2.5) 71.9 (15.0) 125.7
--------- --------- --------- ---------
21.4 72.2 (152.4) 1,063.8
--------- --------- --------- ---------
Loews Common Stock 341.4 286.1 1,068.0 (1,178.3)
Carolina Group Stock (f) 73.6 171.5
--------- --------- --------- ---------
Total $ 415.0 $ 286.1 $ 1,239.5 $(1,178.3)
========= ========= ========= =========
Net Income (Loss):
CNA Financial (c) $ 36.9 $ (137.3) $ 266.1 $(1,835.4)
Lorillard (d) (e) 165.9 229.9 478.6 474.4
Loews Hotels (0.1) 0.1 12.6 15.2
Diamond Offshore 2.8 22.7 13.2 55.2
Bulova 2.3 1.5 6.5 5.7
Investment income-net
and other (b) (17.6) (0.6) (56.8) (0.1)
--------- --------- --------- ---------
190.2 116.3 720.2 (1,285.0)
--------- --------- --------- ---------
Investment (losses) gains:
CNA Financial 14.8 0.1 (76.9) 478.7
Corporate and other (9.0) 44.7 (20.9) 75.7
--------- --------- --------- ---------
5.8 44.8 (97.8) 554.4
--------- --------- --------- ---------
Income (loss) from
continuing operations 196.0 161.1 622.4 (730.6)
Discontinued operations-net 4.6 (31.0) 6.7
Cumulative effect of
changes in accounting
principles-net (39.6) (53.3)
--------- --------- --------- ---------
Loews Common Stock 196.0 165.7 551.8 (777.2)
Carolina Group Stock (f) 44.4 103.8
--------- --------- --------- ---------
Total $ 240.4 $ 165.7 $ 655.6 $ (777.2)
========= ========= ========= =========
(a) Includes excise taxes of $161.5, $165.3, $518.0 and $476.4
paid on sales of manufactured products for the respective
periods.
(b) Consists primarily of corporate investment income, interest
expenses and other unallocated expenses.
(c) Includes charges of $467.7 ($264.6 after taxes and minority
interest) for the three and nine months ended September 30,
2001 related to the World Trade Center attack, and $3,200.0
($1,809.8 after taxes and minority interest) for the nine
months ended September 30, 2001 related to a change in
estimate of prior year net loss and allocated loss adjustment
expense reserves and retrospective premium accruals.
(d) Represents the Loews Group's intergroup interest in the
earnings of the Carolina Group.
(e) Includes a $200.0 charge ($121.0 after taxes) related to an
agreement with the Engle class for the nine months ended
September 30, 2001.
(f) Represents 23.14% and 23.16% of the economic interest in the
Carolina Group for the three month and eight month period
ended September 30, 2002 from the February 2002 initial public
offering of Carolina Group Stock.
--30--mj/ny*
| CONTACT: | Loews Corporation, New York |
|---|---|
| Peter W. Keegan, 212/521-2950 | |
| Candace Leeds, 212/521-2416 | |
| or | |
| For Investor Relations: | |
| Joshua E. Kahn, 212/521-2788 | |