Business Segments

12 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

Note 20. Business Segments

The Company's 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, are included in the Corporate and other segment.

CNA's 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.

CNA's 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 and A&EP.

Diamond Offshore's business primarily consists of operating 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. Diamond Offshore's fleet consists of 49 drilling rigs, including three new-build rigs which are under construction and one rig being constructed utilizing the hull of one of Diamond Offshore's cold stacked mid-water floaters. On December 31, 2011, Diamond Offshore's drilling rigs were located offshore 13 countries in addition to the United States.

HighMount's business consists primarily of natural gas exploration and production operations located primarily in the Permian Basin in Texas, with estimated proved reserves totaling approximately 1.1 trillion cubic feet equivalent.In the second quarter of 2010, HighMount sold substantially all of its exploration and production assets located in the Antrim Shale in Michigan and the Black Warrior Basin in Alabama. The Michigan and Alabama properties represented approximately 17%, in aggregate, of HighMount's total proved reserves as of December 31, 2009.

Boardwalk Pipeline is engaged in the interstate transportation and storage of natural gas.This segment consists of three interstate natural gas pipeline systems originating in the Gulf Coast region, Oklahoma and Arkansas, and extending north and east through the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio, with approximately 14,200 miles of pipeline.

Loews Hotels owns and/or operates 17 hotels, 15 of which are in the United States and two are in Canada.

The Corporate and other segment consists primarily of corporate investment income, including investment gains (losses) from non-insurance subsidiaries, corporate interest expense and other unallocated expenses.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. In addition, CNA does not maintain a distinct investment portfolio for each of its insurance segments, and accordingly, allocation of assets to each segment is not performed. Therefore, net investment income and investment gains (losses) are allocated based on each segment's carried insurance reserves, as adjusted.

The following tables set forth the Company's consolidated revenues and income (loss) by business segment:

Year Ended December 31	2011			2010			2009
(In millions)
Revenues (a):
CNA Financial:
CNA Specialty	$	3,512		$	3,516		$	3,242
CNA Commercial		4,071			4,174			4,069
Life & Group Non-Core		1,334			1,357			1,035
Other Insurance		44			161			126
Total CNA Financial		8,961			9,208			8,472
Diamond Offshore		3,334			3,361			3,653
HighMount		390			455			620
Boardwalk Pipeline		1,144			1,129			910
Loews Hotels		337			308			284
Corporate and other		(39	)		154			178
Total	$	14,127		$	14,615		$	14,117
Income (loss) before income tax and noncontrolling interests
(a)(b):
CNA Financial:
CNA Specialty	$	807		$	1,050		$	732
CNA Commercial		594			770			353
Life & Group Non-Core		(385	)		(124	)		(325	)
Other Insurance		(131	)		(575	)		(209	)
Total CNA Financial		885			1,121			551
Diamond Offshore		1,177			1,333			1,864
HighMount		99			136			(839	)
Boardwalk Pipeline		211			283			157
Loews Hotels		17			2			(52	)
Corporate and other		(157	)		27			49
Total	$	2,232		$	2,902		$	1,730
Net income (loss) (a)(b):
CNA Financial:
CNA Specialty	$	464		$	581		$	422
CNA Commercial		343			445			233
Life & Group Non-Core		(191	)		(49	)		(152	)
Other Insurance		(57	)		(322	)		(104	)
Total CNA Financial		559			655			399
Diamond Offshore		451			446			643
HighMount		62			77			(537	)
Boardwalk Pipeline		77			114			67
Loews Hotels		13			1			(34	)
Corporate and other		(98	)		14			28
Income from continuing operations		1,064			1,307			566
Discontinued operations, net					(19	)		(2	)
Total	$	1,064		$	1,288		$	564

(a) Investment gains (losses) included in Revenues, Income (loss) before income tax and noncontrolling interests and Net income (loss) are as follows:

Year Ended December 31	2011			2010			2009
Revenues and Income (loss) before income tax and noncontrolling interests:
CNA Financial:
CNA Specialty	$	(5	)	$	30		$	(186)
CNA Commercial		14			(15	)		(360)
Life & Group Non-Core		(8	)		53			(235)
Other Insurance		(20	)		18			(76)
Total CNA Financial		(19	)		86			(857)
Corporate and other		(33	)		(30	)		4
Total	$	(52	)	$	56		$	(853)
Net income (loss):
CNA Financial:
CNA Specialty	$	(3	)	$	18		$	(110)
CNA Commercial		10			(14	)		(212)
Life & Group Non-Core		(4	)		30			(138)
Other Insurance		(13	)		12			(45)
Total CNA Financial		(10	)		46			(505)
Corporate and other		(21	)		(19	)		2
Total	$	(31	)	$	27		$	(503)

(b) Income taxes and interest expense are as follows:

Year Ended December 31	2011					2010					2009
	Income Taxes			Interest Expense		Income Taxes			Interest Expense		Income Taxes			Interest Expense
CNA Financial:
CNA Specialty	$	279		$	1	$	353		$	1	$	218		$	1
CNA Commercial		209					260					79			3
Life & Group Non-Core		(172	)		23		(70	)		23		(156	)		23
Other Insurance		(68	)		161		(207	)		133		(80	)		101
Total CNA Financial		248			185		336			157		61			128
Diamond Offshore		250			73		413			91		540			50
HighMount		36			46		59			61		(302	)		80
Boardwalk Pipeline		57			173		73			151		44			132
Loews Hotels		4			9		1			10		(18	)		9
Corporate and other		(59	)		36		13			47		20			49
Total	$	536		$	522	$	895		$	517	$	345		$	448