Loews Investor Presentation March 2013

7/27/2019 Loews Investor Presentation March 2013

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Timeless Principles,Constant Reinvention

COMPANY OVERVIEW

Updated:March 2013


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Loews Corporation CNA Diamond Boardwalk HighMount Hotels

Roadmap

LoewsCorporation

Subsidiaries

Philosophy: long-term, value focused

Structure: diversified holding company; three public

and two wholly owned subsidiaries Advantages: freedom and patience to invest

opportunistically across industries

CNA Financial: property & casualty insurance

Diamond Offshore: offshore drilling

Boardwalk Pipeline: transportation, storage, gatheringand processing of natural gas and natural gas liquids

HighMount Exploration & Production: natural gas andoil exploration and production

Loews Hotels & Resorts: luxury hotels

3


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Loewss structure is advantageous for

creating shareholder valuefreedom to invest across industries patient, long-term view

flexibility transparency one class of stock

Cash &Investments2

$3.9B

Property &casualty

insurance

Offshoredrilling

Transportation,storage,

gathering &processing ofnatural gas &

liquids

Natural

gas &Natural

gas liquidsE&P

Luxuryhotels &resorts

$7.5Bmarketcap

$6.8BLoewssstake

$9.4Bmarketcap

$4.8BLoewssstake

$5.2Bmarketcap1

$2.6BLoewssstake1

NYSE: CNA NYSE: DO NYSE: BWP

90%2 50.4%2 53% L.P. interest12% G.P. interest1

100% 100%

1. Values and ownership percentages as of December 31, 20122. Cash and investments as of December 31, 2012

Loews owns:

4


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Loews creates value in three ways

1 2 3Effectively manageand allocatecapital

Focus on opportuneinvestments andacquisitions that

position us forgrowth

Work to enhanceour subsidiaries

operating

performance andcapital structure

Strength Opportunity Value

Loews Corporation CNA Diamond Boardwalk HighMount Hotels5


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Loews has successfully built shareholder

value for over 50 years

1962 1967 1972 1977 1982 1987 1992 1997 2002 2007 201210

100

1,000

10,000

100,000

50-Year Relative Price Performance of Loews Common Stock 1(December 31, 1962 to December 31, 2012)

Loews

S&P 500


Over the past 50 years, Loews common stock has posted acompound annual growth rate of approximately 15%, comparedwith an approximate 6% growth rate for the S&P 500

1. Includes dividends reinvested6


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Loews creates value through share

repurchases

392 Million

Shares outstanding since 1971

Our history of sharebuybacks hasenhanced the long-term value of Loewscommon stock

Repurchasing ourshares over the pastfour decades hasbenefited ourshareholders by givingthem an increasedstake in Loews

1.3 Billion

= 10 million shares


1971 2012

Adjusted for stock splits7


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Opportune transactions: case studies

1989, Loews purchasedDiamond M for $65 million 1992, Loews purchased

all outstanding shares ofODECO Drilling for $372million, and formedDiamond Offshore as aholding company

1995, Diamond OffshoreIPO

Cash received by Loewssince IPO has been$3.0 billion

2003, Loews purchasedTexas Gas Transmission for$1.0 billion

2004, Loews purchasedGulf South Pipeline for$1.1 billion

2005, Boardwalk PipelinePartners was formed as aholding company and asan MLP and taken public

Total capital invested inBWP:

Invested a total of

$3.2 billion and havereceived all of ourcash back

Loews still owns 55%of Boardwalk



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Loewss liquidity, 12 month cash

roll forward

9

$3,316

68361

271 (212)

(99)

(40) (101)

$3,879

3,000

3,500

4,000

4,500


Ending cash &investments

Dec. 31, 2012

Corporate& Other

InterestExpense

Dividendson Loewscommon

stock

Sharerepurchases

Repayments from(Investments in)subsidiaries, net

InvestmentIncome

Interest &dividends

fromsubsidiaries

($ in millions)

Beginning cash& investmentsDec. 31, 2011


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Subsidiaries provide interest and dividends

to Loews


Cumulative interest & dividends since 2006($ in millions)

$243

$117

$140

$328

$273

$543

$455

$454

$972

$577

$725

$1,533

$653

$1,001

$1,901

$750

$1,283

$2,146

$895

$1,576

$2,391

CNA

BWP

DO

2012

20112010

2009

2008

2007

2006

Note: Does not include capital contributions or loans from Loews to subsidiaries during that

time period

10


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Sum of Loewss public and non-public

assets exceeds Loewss stock price

Loews Hotels

HighMount

BoardwalkPipeline: General

Partner Class B units

+

compared

to

$44.08NYSE:L

Non-public holdings

include:

Cash & Investments:$8.11

BWP: $7.19

DO: $13.64

CNA: $19.67

Per share value of Loewss stake in shares of CNA, DO, and BWP basedon New York Stock Exchange closing prices on February 1, 2013 andLoewss net cash and investments at December 31, 2012

New York Stock Exchangeclosing price of Loewscommon stock as ofFebruary 1, 2013


$48.61TOTAL

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Roadmap

LoewsCorporation

Subsidiaries





CNA Financial: property & casualty insurance Diamond Offshore: offshore drilling






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CNA Snapshot


7th largest commercialinsurance writer, 13thlargest P&C insurance

company in U.S.1 Offices across the United

States, as well as inCanada and Europe

By the Numbers(year ended Dec. 31, 2012, $ in millions)

Revenue $9,547Net income $628

Net income attributableto Loews $570

Employees 7,500Agents & brokers 3,400Field offices 65Invested assets $47,636L ownership 90%

Construction Financial institutionsHealthcare Manufacturing

Professional services Small businessTechnology

Key Segments

CNASpecialty

CNACommercial

$2.9 billion2012 netwrittenpremiums

$3.4 billion

Predominantlyprofessionalandmanagementliability, and

surety

Property &casualtyinsurancefor small andmid-size

businesses

Overview

1. Based on 2010 net written premium, A.M. Best

13

1 Post acquisition premiums (acquired July 2012)

Run-off

Operations(Life, Group,Corporate &

Other)

$0.6 billion

Long-termcare,payoutannuities, andother

discontinued

HardyUnderwriting

$0.1 billion1

SpecializedLloydsunderwriter


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CNA Strategy Generating premium growth while improving underwriting performance

through risk selection and pricing discipline

CNA is sharply focused on customer segments where it has in-depth

underwriting knowledge and can assess and price risk effectively Investing in businesses aligned with CNAs strategic focus

Acquired publicly held minority interest of CNA Surety (2011)

Acquired Hardy Underwriting, a specialized Lloyds underwriter (2012)

Strengthened branch and field capabilities (ongoing)

Simplifying scope of operations

Sold its 50% interest in First Insurance Co. of Hawaii (2011)

Reduced risk through loss portfolio transfer, effectively eliminatinglegacy asbestos and pollution risks (2010)



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Insurance Market Premium rates for many

commercial propertyand casualty insurers

stabilized and beganimproving during 2011

Rate increases helpoffset recent challengesfaced by insurers Low interest rates Rising claim costs Escalation of catastrophes

in the U.S. and elsewhere

CNAs rate increases acceleratedover the past two years


CNA property & casualty rates

6%

6%

8%

-6%

-3%

0%

3%

6%

9%

10Q1 10Q2 10Q3 10Q4 11Q1 11Q2 11Q3 11Q4 12Q1 12Q2 12Q3 12Q4

P&C Specialty Commercial

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CNA Performance Book value per common

share increased 120% since2008

Over the last five years, CNAhas narrowed the gapbetween its combined ratioand the industry leaderscombined ratios

CNA has positive outlooks onits financial strength ratingsfrom both Moodys and S&P

Improvement in underlying

loss ratio (excludingcatastrophes anddevelopment)


$20.65

$35.64$40.44 $42.66

$45.71

2008 2009 2010 2011 2012

Book value per common share

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Roadmap

LoewsCorporation

Subsidiaries










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Diamond Snapshot Provides drilling services

to the energy industryglobally

Leader in deepwaterdrilling

5th largest offshore fleetin the world


Revenue $3,072Net income $720


Rig fleet 44Employees 5,300Dividend yield 5.2%L ownership 50.4%


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

W

aterDepth

Jack-upRigs (7) Semisubmersible Rigs (32)

Drillships(5)

Complete

Under Construction

Diamond Offshore Fleet

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Diamond's Strategy: flexible,

conservative asset management Take advantage of cyclicality

of industry to acquire rigs Since 2009, Diamond has made

commitments to purchase or rebuild 9units for $4.3 billion Ocean Valor& Ocean Courage

purchased at distressed prices Ocean Onyx and Ocean Apex being

constructed utilizing hulls of Diamondlegacy floaters, resulting in significantly

higher expected IRR Ocean Patriot will be upgraded andenhanced to work in the North Sea bysecond quarter 2014.

Focus on ultra-deepwater

drilling Eight units capable of operatingin ultra-deepwater

Four additional ultra-deepwater drillshipsunder construction


BlackRhino BlackHawk BlackHornet

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APEXAPEX


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Offshore Drilling Market Demand for ultra-deepwater

units in West Africa, Brazil, U.S.Gulf of Mexico and other

regions has led to tightmarkets

Dayrates for UDW approach$600,000 for term contracts

These market tailwinds areimportant as Diamond seeksto contract its three units with2014 deliveries Three units with 2013 deliveries

have been contracted.


Ultra-deepwater dayrates

(Source: IHS-Petrodata, RigLogix, ISI Group)

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Diamond Offshore Performance

Diamond Offshores return on

capital employed of 31.9%from 2007 to 2011 is thehighest in the industry


31.9%

0.0%

10.0%

20.0%

30.0%

40.0%

DO ESV NE RDC RIG SDRL

Return on capital employed(Average 2007-2011)

Diamond Offshores 10 yeartotal return is 12.7%

(Source: Bloomberg as of 8/3/2012, 10 year total return not available for SDRL)

12.7%

0.0%

5.0%

10.0%

15.0%

DO ESV NE RDC RIG

10 year total return(Source: Credit Suisse)

21Note: 2012 numbers will be available by April of 2013


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Roadmap

LoewsCorporation

Subsidiaries



HighMount Exploration & Production:natural gas andoil exploration and production







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Boardwalk Snapshot


Transportation, storage,gathering & processing ofnatural gas and NGLs

Carried approximately 12%of the nations averagedaily consumption ofnatural gas in 20121

LoewsCorporation

Boardwalk Pipeline Partners, LP(Master Limited Partnership, NYSE: BWP)

Boardwalk Pipelines, LP

53% L.P. interest2% G.P. interest*

Gulf SouthPipeline

Texas GasTransmission

HP Storage Gulf CrossingPipeline

* In addition to the general partners 2% interest, the general partnerowns all of the incentive distribution rights the right to receive anincreasing percentage of quarterly distributions of available cash

after target distribution levels have been achieved

Field Services

BoardwalkMidstream, LLC

23

BoardwalkLouisiana

Midstream, LLC

BoardwalkAcquisition

Company, LLC

1

Based on Nov. 2011-Oct. 2012 data

By the Numbers(year ended Dec. 31, 2012, $ in millions)Revenue $1,184Net income $308


Average daily throughput 6.8 Bcf

Total miles of pipeline 14,410Underground storage fields 20Storage capacity 201 BcfEmployees 1,200Distribution Yield (Dec. 2012)L ownership

8.5%55%


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Boardwalk Strategy

Loews Corporation CNA Diamond Boardwalk HighMount Hotels 24

Boardwalk is steadily advancingplans to generate growth by: Leveraging its core pipeline and

storage assets Diversifying its services and expanding

its geographic footprint Controlling its cost structure


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Natural Gas Market After remaining relatively flat

for nearly a decade, demandfor natural gas is expected to

increase by 2.1% annuallybetween 2012 and 2026

Boardwalk is well positioned tobenefit from the increaseddomestic natural gas supplyand the facilities that will beneeded to accommodate it

Boardwalk believes the majority ofdemand over the next decadewill come from the electric powergeneration, industrial, andtransportation sectors


U.S. Demand for Natural Gas

(Source: EIA; Wood Mackenzie)

-

10.020.030.040.050.060.070.080.0

90.0100.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2016

2021

2026

Bcfd

0.6%CAGR

2.1%CAGR

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Boardwalk Performance Since the IPO in 2005, the company

has paid a cash distribution eachquarter

Since 2007, EBITDA and distributable

cash flow increased at compoundannual growth rates of 20.1% and16.3% respectively

A significant portion of 2012 revenue derivedfrom firm, long-term contracts with credit-worthy customers

A portion of firm transportation contracts

expire each year. Capacity expiring in 2013is greater than in recent years, and includescapacity from earlier major expansionprojects

Boardwalks base gas transportationbusiness is negatively impacting futurerevenues, due to a number of factors --including compressed basis differentials


Firmcapacity

reservationcharges

83%

Utilization

chargesunder firmcontracts

11%

Contract type(Year-ended December 31, 2012)

$1.890$1.970

$2.050$2.105 $2.130

2008 2009 2010 2011 2012

Annual distributions per unit

Interruptibleservice

charges6%

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Roadmap

LoewsCorporation

Subsidiaries










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HighMount Snapshot


Exploration,development, andproduction of oil and

gas 1.1 million gross acres in

West Texas, TexasPanhandle, andOklahoma

2012 Production by Component

Expertise in large-scale field operations, horizontal drillingand completion, and unconventional resource plays

Active driller in 2012 in two of the top tier oil plays in theU.S.

Wolfcamp / Permian and Mississippian Lime

Hedges in place as of December 31, 2012 covered

approximately 59.5% of its total estimated 2013 naturalgas equivalent production

Natural gas production - 9.2 billion cubic feet at an averagerealized price of $4.60 per thousand cubic feet

Natural gas liquids production - ~552.5 thousand barrels, at anaverage realized price of $37.63 per barrel

Oil production - ~187.3 thousand barrels, at an average

realized price of $88.82 per barrel


Revenue $297Net incomeattributable to Loews1 $(407)

Net proved reserves 825 BcfeNet producing wells 5,874Average daily production 154 MmcfeEmployees 400L ownership 100%

Natural Gas, 70%

Natural Gas Liquids, 25%

Oil, 5%

1. Net income as of December 31,2012 includes a non-cashafter-tax impairment charge of $433 mill ion in 2012 due tolower commodity prices.


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HighMount Strategy


Areas of Operation

29

Diversify business by acquiringand developing acreage withliquids-rich resources, which

currently offer better returnsthan natural gas Acquired core position in the

Mississippian Lime oil play inOklahoma

Position in the Texas Panhandle Pursuing opportunities in existing

acreage anticipated to producehigher oil volumes


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Roadmap

LoewsCorporation

Subsidiaries










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Loews Hotels & Resorts Snapshot


19 hotels in U.S. andCanada

Unique, localexperience Looking to grow in

gateway cities and keyresort markets


Revenue $397Net incomeattributable to Loews $7

Hotels 19Guest rooms 8,669Employees 3,600Chain-wide Hotel RevenueL ownership

$779100%

In 2012, Chain-wide RevPAR grewby 8%, significantly outperformingthe U.S. industry average

Growth in Revenue Per Available Room

31

$143.58

$159.76

$171.75

2010 2011 2012


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Loews Hotels & Resorts Strategy Over the next several years, LoewsHotels & Resorts expects tobroaden its customer base by: Looking to grow in gateway

cities and resort markets eitherthrough acquisition or byconsidering new constructionin key markets where barriersto entry are high

Improving the performanceand profitability of existingproperties

Transforming its existingproperties -- renovations areeither underway or imminentat several current hotels andgrowth opportunities arebeing continually reviewed


Chain ExpansionLoews Boston Back Bay, MA Acquired in Feb 2013 225 guestrooms

The Madison Hotel, DC Acquired in December 2012 356 guestrooms

Loews Regency, NY

2013 project

Transforming Existing Properties

Loews Chicago, IL Opens in 2015 400 guestrooms

Cabana Bay Beach Resort, FL Opens in 2014 900 standard guestrooms 900 family suites

Loews Philadelphia, PA

2012 / 2013 project

M f L H t l R t


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Map of Loews Hotels & ResortsLocations


Miami

St. Pete Beach

Orlando (3)New Orleans

San Diego Tucson

Santa Monica

Annapolis

New YorkPhiladelphia

Montreal

Quebec City

Nashville

Atlanta

Hollywood

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Washington D.C.

Chicago

Orlando

Under DevelopmentNew Acquisitions

Boston


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In Summary

Loews owns great businesses Loews is a patient value investor always on the

lookout for new opportunities Loews is focused on generating superior long-

term returns for our shareholders

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Loews Investor Presentation March 2013

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