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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 25, 2002
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LOEWS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-6541 13-2646102
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
667 Madison Avenue, New York, N.Y. 10021-8087
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (212) 521-2000
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NOT APPLICABLE
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(Former Name or Former Address, if Changed Since Last Report)
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Page 1
Item 5. Other Events
On January 25, 2002, Registrant's 89% owned subsidiary, CNA Financial
Corporation issued a press release announcing the preliminary fourth quarter
and year end results.
A copy of the press release is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
Exhibit No. Description
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99.1 Press Release issued by CNA Financial Corporation,
announcing the preliminary fourth quarter and year
end results
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LOEWS CORPORATION
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Dated: January 25, 2002 By: /s/ Barry Hirsch
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Barry Hirsch,
Senior Vice President,
General Counsel and
Secretary
Page 2
Exhibit 99.1
Document is copied.
[CNA LOGO] INSURANCE IN TOUCH WITH BUSINESS
FOR IMMEDIATE RELEASE
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CONTACT:
MEDIA: ANALYSTS:
Charles M. Boesel, 312/822-2592 Robert V. Deutsch, 312/822-4242
Katrina W. Parker, 312/822-5167 Donald P. Lofe, Jr., 312/822-3993
CNA FINANCIAL ANNOUNCES
PRELIMINARY 4th QUARTER AND YEAR END RESULTS
CHICAGO, ILLINOIS, January 25, 2002 --- CNA Financial Corporation (NYSE: CNA)
today announced that it expects a 2001 fourth quarter net loss between $20
million and $35 million, compared with net income of $193 million for the same
quarter in 2000. Included in the 2001 fourth quarter net loss are the
previously disclosed restructuring and other related charges of $125 million
after-tax and $52 million after-tax of Enron related losses, net of
anticipated reinsurance recoveries. CNA has also recorded a $69 million after-
tax reserve strengthening charge, primarily for the current accident year, in
CNA's London-based primary commercial and marine operations.
Total net operating loss, which excludes realized investment gains, for the
2001 fourth quarter is expected to be between $288 million and $303 million
compared with net operating income of $114 million in the 2000 fourth quarter.
Total net realized investment gains for the 2001 fourth quarter were $268
million compared with $79 million for the 2000 fourth quarter.
The 2001 fourth quarter net operating loss includes a $160 million after-tax
charge to strengthen the prior year loss reserves of its London-based
reinsurance operation, CNA Reinsurance Company Limited (CNA Re U.K.). Net
realized investment gains for the 2001 fourth quarter includes a $160 million
after-tax adjustment to reduce the second quarter $285 million after-tax
estimated impairment loss related to the anticipated sale of CNA Re U.K. The
fourth quarter adjustment is based on a revaluation of the estimated
impairment losses and is reflected as an after-tax realized gain. There is no
net effect on equity or net income from these two items.
- more -
CNA/2
Total net loss for the year ended December 31, 2001 is expected to be $1.6
billion compared with net income of $1.2 billion for the year ended December
31, 2000. Total net operating loss, which excludes realized investment gains,
for the year ended December 31, 2001 is expected to be $2.4 billion compared
with net operating income of $544 million for the year ended December 31,
2000. Included in the December 31, 2001 net operating loss is the $2.1 billion
after-tax charge recorded in the second quarter related to a change in
estimate of prior year loss reserves and premium accruals, $304 million after-
tax losses from the September 11, 2001 World Trade Center attack and related
events recorded in the third quarter, and fourth quarter restructuring and
other related charges, Enron related losses, and fourth quarter reserve
strengthening discussed above.
CNA Financial Corporation is scheduled to issue its full quarterly earnings
press release and financial supplement before the opening of the market on
Thursday, February 14, 2002. CNA management will host its quarterly conference
call and webcast at 10:00 E.S.T. on the same day.
CNA is a leading insurance organization offering a broad range of insurance
products and insurance-related services in the property and casualty, life,
group and reinsurance markets. Visit CNA at www.cna.com. CNA is a registered
service mark, trade name and domain name of CNA Financial Corporation.
FORWARD LOOKING STATEMENT
The statements contained in this press release, which are not historical
facts, are forward-looking statements. When included in this press release,
the words "believes," "expects," "intends," "anticipates," "estimates," and
analogous expressions are intended to identify forward-looking statements.
Forward looking statements include expected losses in the Company's insurance
business, including losses for asbestos, environmental pollution and mass tort
claims; the Company's expectations concerning its revenues, earnings, expenses
and investment activities; expected cost savings and other results from the
Company's restructuring activities; and expected proceeds and terms of, and
other matters concerning, the Company's anticipated disposition of its U.K.-
based reinsurance business; and the Company's proposed actions in response to
trends in its business.
Such statements, and the financial condition and results of operations of the
Company and the price of the Company's common stock, inherently are subject to
a variety of risks and uncertainties. These risks and uncertainties could
cause actual results to differ materially from those projected. Such risks and
uncertainties include, among others, the impact of competitive products,
policies and pricing and the competitive environment in which the Company
operates; product and policy demand and market responses; development of
claims and the effect on loss reserves; exposure to liabilities due to claims
made by insureds and others relating to asbestos remediation and health-based
asbestos impairments, and exposure to liabilities for environmental pollution
and mass tort claims; the sufficiency of the Company's loss reserves and the
possibility of future increases in reserves; the performance of reinsurance
companies under contracts with the Company; general economic and business
conditions; changes in financial markets (interest rate, credit, currency,
commodities and stocks); changes in foreign, political social and economic
conditions; regulatory limitations and restrictions upon the Company and its
insurance subsidiaries; regulatory initiatives and compliance with
governmental regulations; judicial decisions and rulings; the possibility of
downgrades in the Company's ratings by ratings agencies and changes in rating
agency policies and practices; the results of financing efforts; changes in
the Company's composition of operating segments; the actual closing of
contemplated transactions and agreements and various other matters and risks
(many of which are beyond the Company's control) detailed in the Company's
Securities and Exchange Commission filings.
These forward-looking statements speak only as of the date of this press
release. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statement
contained herein to reflect any change in the Company's expectations with
regard thereto or any change in events, conditions or circumstances on which
any statement is based.
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