Excluding realized investment losses at CNA and special charges of $1.25 billion, earnings fell well short of Wall Street forecasts, according to Reuters Estimates.

New York-based Loews, run by the billionaire Tisch family, posted a loss from continuing operations of $958 million, or $2.20 a share, compared with a profit of $295 million, or 56 cents a share, a year earlier.

A $691 million charge for reserves and a $482 million non-cash goodwill impairment charge at the natural gas unit, HighMount Exploration & Production, contributed to the loss, Loews said.

Volatile financial markets also hurt Loews' 90 percent-owned CNA, which reported investment losses of $283 million in the fourth quarter, lower net investment income, and increased its catastrophe losses from the third quarter.

Revenue fell by nearly a quarter to $2.74 billion, while expenses rose nearly 40 percent to $4.08 billion.

Excluding realized investment losses at CNA of $283 million and the special charges, Loews earned 18 cents a share, well below the average Wall Street forecast of 55 cents, according to Reuters Estimates.

Loews' businesses include financial services, tobacco, energy and hotels.

INSURANCE DRAG

Chicago-based CNA, the biggest contributor of Loews' businesses, posted a second consecutive quarterly loss and saw fourth-quarter revenue slip 19 percent to $2.02 billion.

Its quarterly net loss was $336 million, or $1.31 per share, compared with year-earlier net income of $164 million, or 60 cents per share.

Excluding investment gains and losses, CNA had a loss of 15 cents per share. Analysts' average forecast was a profit of 45 cents per share, according to Reuters Estimates.

CNA's underwriting operations were modestly profitable, spending about 89 cents for every $1 in property premium taken in, and about 98 cents for every $1 in premium at its casualty operations.

"While our core business is strong ... results reflect the impact of the severe and prolonged turmoil in the financial markets on our investment income and realized investment losses," said Thomas Motamed, a former Chubb Corp executive who became CNA's chief executive at the start of the year.

Loews shares, which have lost nearly half their value in the last 12 months, were down 18 cents to $25.16 in early trade on the New York Stock Exchange.

CNA shares, which have fallen more than 60 percent in the last year, were down 4 percent at $11.99.

(Reporting by Lilla Zuill, additional reporting by Elinor Comlay and Juan Lagorio; editing by John Wallace)