12.

Consolidating Financial Information

The following schedules present the Company’s consolidating balance sheet information at September 30, 2012 and December 31, 2011, and consolidating statements of income information for the nine months ended September 30, 2012 and 2011. These schedules present the individual subsidiaries of the Company and their contribution to the consolidated condensed financial statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, many of the Company’s 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 company’s investment in its subsidiaries, invested cash portfolio and corporate long term debt. The elimination adjustments are for intercompany assets and liabilities, interest and dividends, the parent company’s 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

CNA

Diamond

Boardwalk

Loews

Corporate

September 30, 2012

Financial

Offshore

Pipeline

HighMount

Hotels

and Other

Eliminations

Total

(In millions)

Assets:

Investments

47,788

1,468

3,611

52,914

Cash

129

169

Receivables

8,458

468

564

(195

)

9,474

Property, plant and equipment

285

4,841

6,658

1,226

505

13,564

Deferred income taxes

683

(701

)

—

Goodwill

117

215

584

939

Investments in capital stocks of subsidiaries

17,366

(17,366

)

—

Other assets

810

371

311

1,546

Deferred acquisition costs of insurance subsidiaries

603

Separate account business

345

Total assets

58,553

7,192

7,265

2,597

606

21,603

(18,262

)

79,554

Liabilities and Equity:

Insurance reserves

39,151

Payable to brokers

700

808

Short term debt

Long term debt

2,557

1,489

3,163

760

285

694

(100

)

8,848

Deferred income taxes

529

583

657

(701

)

1,122

Other liabilities

3,163

609

373

116

215

(95

)

4,400

Separate account business

345

Total liabilities

45,934

2,627

4,120

891

358

1,658

(896

)

54,692

Total shareholders’ equity

11,368

2,313

1,625

1,706

248

19,945

(17,366

)

19,839

Noncontrolling interests

1,251

2,252

1,520

5,023

Total equity

12,619

4,565

3,145

1,706

248

19,945

(17,366

)

24,862

Total liabilities and equity

58,553

7,192

7,265

2,597

606

21,603

(18,262

)

79,554


	CNA		Diamond		Boardwalk				Loews		Corporate
December 31, 2011	Financial		Offshore		Pipeline		HighMount		Hotels		and Other		Eliminations			Total
(In millions)

Assets:

Investments	$	44,372	$	1,206	$	10	$	85	$	71	$	3,284				$	49,028
Cash		75		30		13				10		1					129
Receivables		8,302		594		114		109		33		226	$	(119	)		9,259
Property, plant and equipment		272		4,674		6,713		1,576		338		45					13,618
Deferred income taxes		444						499						(943	)		—
Goodwill		86		20		215		584		3							908
Investments in capital stocks of subsidiaries												16,807		(16,807	)		—
Other assets		544		453		307		19		23		11					1,357
Deferred acquisition costs of insurance subsidiaries		552															552
Separate account business		417															417

Total assets	$	55,064	$	6,977	$	7,372	$	2,872	$	478	$	20,374	$	(17,869	)	$	75,268


Liabilities and Equity:

Insurance reserves	$	37,554														$	37,554
Payable to brokers		72	$	8	$	1	$	36			$	45					162
Short term debt		83							$	5							88
Long term debt		2,525		1,488		3,398		700		208		694	$	(100	)		8,913
Deferred income taxes				530		493				51		491		(943	)		622
Other liabilities		2,971		594		373		104		20		266		(19	)		4,309
Separate account business		417															417

Total liabilities		43,622		2,620		4,265		840		284		1,496		(1,062	)		52,065

Total shareholders’ equity		10,315		2,209		1,951		2,032		194		18,878		(16,807	)		18,772
Noncontrolling interests		1,127		2,148		1,156											4,431

Total equity		11,442		4,357		3,107		2,032		194		18,878		(16,807	)		23,203

Total liabilities and equity	$	55,064	$	6,977	$	7,372	$	2,872	$	478	$	20,374	$	(17,869	)	$	75,268

Loews Corporation

Consolidating Statement of Income Information

Nine Months Ended September 30, 2012

CNA
Financial

Diamond
Offshore

Boardwalk
Pipeline

HighMount

Loews
Hotels

Corporate
and Other

Eliminations

Total

(In millions)

Revenues:

Insurance premiums

5,098

Net investment income

1,719

1,794

Intercompany interest and dividends

512

(512

)

—

Investment gains (losses)

)

Contract drilling revenues

2,195

Other

233

120

862

219

271

)

1,701

Total

7,112

2,319

859

219

272

584

(518

)

10,847

Expenses:

Insurance claims and policyholders’ benefits

4,164

Amortization of deferred acquisition costs

937

Contract drilling expenses

1,160

Other operating expenses

970

390

521

709

247

)

2,891

Interest

128

125

)

331

Total

6,199

1,587

646

718

255

(12

)

9,483

Income (loss) before income tax

913

732

213

(499

)

494

(506

)

1,364

Income tax (expense) benefit

(272

)

(188

)

(52

)

180

)

(337

)

Net income (loss)

641

544

161

(319

)

497

(506

)

1,027

Amounts attributable to noncontrolling interests

(64

)

(280

)

(83

)

(427

)

Net income (loss) attributable to Loews Corporation

577

264

(319

)

497

(506

)

600


Nine Months Ended September 30, 2011	CNA Financial			Diamond Offshore			Boardwalk Pipeline			HighMount			Loews Hotels			Corporate and Other			Eliminations			Total
(In millions)

Revenues:

Insurance premiums	$	4,942																				$	4,942
Net investment income		1,531		$	4								$	1		$	(23	)					1,513
Intercompany interest and dividends																	467		$	(467	)		—
Investment gains		14			1																		15
Contract drilling revenues					2,520																		2,520
Other		215			58		$	843		$	297			250			(1	)		(4	)		1,658

Total		6,702			2,583			843			297			251			443			(471	)		10,648


Expenses:

Insurance claims and policyholders’ benefits		4,131																					4,131
Amortization of deferred acquisition costs		880																					880
Contract drilling expenses					1,142																		1,142
Other operating expenses		911			406			569			183			231			49			(4	)		2,345
Interest		142			60			133			36			7			34			(6	)		406

Total		6,064			1,608			702			219			238			83			(10	)		8,904

Income before income tax		638			975			141			78			13			360			(461	)		1,744
Income tax (expense) benefit		(199	)		(229	)		(35	)		(28	)		(5	)		34						(462	)

Net income		439			746			106			50			8			394			(461	)		1,282
Amounts attributable to noncontrolling interests		(58	)		(383	)		(50	)														(491	)

Net income attributable to Loews Corporation	$	381		$	363		$	56		$	50		$	8		$	394		$	(461	)	$	791