(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of RegulationS-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, anon-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated ~~filer” and~~filer,” “smaller reporting company,” and “emerging growth company” in Rule12b-2 of the Exchange Act. ~~(Check one):~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act).


	September 30,		December 31,
	2016		2015		June 30,			December 31,
					2017			2016
(Dollar amounts in millions, except per share data)

Assets:

Investments:
Fixed maturities, amortized cost of $38,810 and $37,407		$ 42,894		$ 39,701
Equity securities, cost of $581 and $824		586		752
Fixed maturities, amortized cost of $38,982 and $38,947					$	42,065		$	41,494
Equity securities, cost of $603 and $571						607			549
Limited partnership investments		3,293		3,313		3,254			3,220
Other invested assets, primarily mortgage loans		719		824		748			683
Short term investments		4,893		4,810		4,932			4,765

Total investments		52,385		49,400		51,606			50,711
Cash		344		440		357			327
Receivables		7,853		8,041		7,977			7,644
Property, plant and equipment		15,200		15,477		15,447			15,230
Goodwill		347		351		647			346
Other assets		1,760		1,699		2,420			1,736
Deferred acquisition costs of insurance subsidiaries		619		598		647			600

Total assets		$ 78,508		$ 76,006	$	79,101		$	76,594


Liabilities and Equity:

Insurance reserves:
Claim and claim adjustment expense		$ 22,672		$ 22,663	$	22,179		$	22,343
Future policy benefits		11,219		10,152		10,824			10,326
Unearned premiums		3,862		3,671		4,107			3,762

Total insurance reserves		37,753		36,486		37,110			36,431
Payable to brokers		451		567		478			150
Short term debt		185		1,040		192			110
Long term debt		10,737		9,520		11,094			10,668
Deferred income taxes		735		382		852			636
Other liabilities		5,241		5,201		5,269			5,238

Total liabilities		55,102		53,196		54,995			53,233


Commitments and contingent liabilities

Preferred stock, $0.10 par value:
Authorized – 100,000,000 shares
Common stock, $0.01 par value:
Authorized – 1,800,000,000 shares
Issued – 339,951,927 and 339,897,547 shares		3		3
Issued – 336,724,742 and 336,621,358 shares						3			3
Additional paid-in capital		3,207		3,184		3,178			3,187
Retained earnings		15,031		14,731		15,677			15,196
Accumulated other comprehensive income (loss)		144		(357)
Accumulated other comprehensive loss						(36	)		(223	)
						18,822			18,163
		18,385		17,561
Less treasury stock, at cost (2,992,565 shares)		(115)

Less treasury stock, at cost (123,500 shares)						(6	)
Total shareholders’ equity		18,270		17,561		18,816			18,163
Noncontrolling interests		5,136		5,249		5,290			5,198

Total equity		23,406		22,810		24,106			23,361

Total liabilities and equity		$ 78,508		$ 76,006	$	79,101		$	76,594


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
												Three Months Ended						Six Months Ended
	2016			2015			2016			2015		June 30,						June 30,
												2017			2016			2017			2016
(In millions, except per share data)

Revenues:
Insurance premiums	$	1,767		$	1,751		$	5,196		$	5,173	$	1,734		$	1,730		$	3,379		$	3,429
Net investment income		561			321			1,570			1,419		478			587			1,082			1,009
Investment gains (losses):
Other-than-temporary impairment losses		(18	)		(56	)		(56	)		(99)		(2	)		(15	)		(4	)		(38	)
Other net investment gains		63			6			74			57		45			16			81			11

Total investment gains (losses)		45			(50	)		18			(42)		43			1			77			(27	)
Contract drilling revenues		340			599			1,141			1,816		392			357			756			801
Other revenues		574			548			1,842			1,716		712			632			1,365			1,268

Total		3,287			3,169			9,767			10,082		3,359			3,307			6,659			6,480


Expenses:
Insurance claims and policyholders’ benefits		1,202			1,200			3,949			4,008		1,280			1,339			2,573			2,747
Amortization of deferred acquisition costs		314			319			926			936		312			305			617			612
Contract drilling expenses		187			276			598			971		196			198			400			411
Other operating expenses (Note 4)		898			898			3,416			3,026
Other operating expenses (Note 5)													1,085			1,611			1,931			2,518
Interest		130			128			403			393		139			130			281			273

Total		2,731			2,821			9,292			9,334		3,012			3,583			5,802			6,561

Income before income tax		556			348			475			748
Income (loss) before income tax													347			(276	)		857			(81	)
Income tax expense		(163	)		(66	)		(171	)		(170)		(69	)		(12	)		(188	)		(8	)

Net income		393			282			304			578
Net income (loss)													278			(288	)		669			(89	)
Amounts attributable to noncontrolling interests		(66	)		(100	)		60			(117)		(47	)		223			(143	)		126

Net income attributable to Loews Corporation	$	327		$	182		$	364		$	461
Net income (loss) attributable to Loews Corporation												$	231		$	(65	)	$	526		$	37


Basic and diluted net income per share	$	0.97		$	0.50		$	1.08		$	1.25
Basic and diluted net income (loss) per share												$	0.69		$	(0.19	)	$	1.56		$	0.11


Dividends per share	$	0.0625		$	0.0625		$	0.1875		$	0.1875	$	0.0625		$	0.0625		$	0.125		$	0.125


Weighted average shares outstanding:
Shares of common stock		337.18			360.91			338.33			367.74		336.91			338.72			336.90			338.91
Dilutive potential shares of common stock		0.44			0.19			0.28			0.29		0.81						0.80			0.19

Total weighted average shares outstanding assuming dilution		337.62			361.10			338.61			368.03		337.72			338.72			337.70			339.10


	Three Months Ended September 30,						Nine Months Ended September 30,
												Three Months Ended						Six Months Ended
	2016			2015			2016			2015		June 30,						June 30,
												2017			2016			2017			2016
(In millions)

Net income	$	393		$	282		$	304		$	578

Net income (loss)												$	278		$	(288	)	$	669		$	(89	)

Other comprehensive income (loss), after tax
Changes in:
Net unrealized gains (losses) on investments with other-than-temporary impairments		3			2			7			(3)
Net other unrealized gains (losses) on investments		42			(39	)		591			(292)

Total unrealized gains (losses) on available-for-sale investments		45			(37	)		598			(295)
Net unrealized gains (losses) on investments with other- than-temporary impairments																(1	)		(4	)		4
Net other unrealized gains on investments													77			321			144			549
Total unrealized gains onavailable-for-sale investments													77			320			140			553
Unrealized gains on cash flow hedges		1			1			2			5											1
Pension liability		7			4			20			51		7			5			15			13
Foreign currency		(24	)		(53	)		(58	)		(100)
Foreign currency translation													42			(48	)		53			(34	)

Other comprehensive income													126			277			208			533

Other comprehensive income (loss)		29			(85	)		562			(339)


Comprehensive income		422			197			866			239
Comprehensive income (loss)													404			(11	)		877			444

Amounts attributable to noncontrolling interests		(70	)		(91	)		(1	)		(82)		(60	)		191			(164	)		69


Total comprehensive income attributable to Loews Corporation	$	352		$	106		$	865		$	157	$	344		$	180		$	713		$	513


																							Loews Corporation Shareholders
																															Accumulated			Common
					Loews Corporation Shareholders																				Additional						Other			Stock
	Total			Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Common Stock Held in Treasury			Noncontrolling Interests					Common		Paid-in			Retained			Comprehensive			Held in			Noncontrolling
																				Total			Stock		Capital			Earnings			Income (Loss)			Treasury			Interests
(In millions)

Balance, January 1, 2015	$	24,650		$	4	$	3,481		$	15,515		$	280		$	-		$	5,370
Net income		578								461									117
Other comprehensive loss		(339	)										(304	)					(35)
Dividends paid		(207	)							(69	)								(138)
Issuance of equity securities by subsidiary		115					(2	)					1						116
Purchases of subsidiary stock from noncontrolling interests		(31	)				5												(36)
Purchases of Loews treasury stock		(633	)													(633	)
Issuance of Loews common stock		7					7
Stock-based compensation		19					17												2
Other		(6	)				(18	)		(1	)								13

Balance, September 30, 2015	$	24,153		$	4	$	3,490		$	15,906		$	(23	)	$	(633	)	$	5,409


Balance, January 1, 2016	$	22,810		$	3	$	3,184		$	14,731		$	(357	)	$	-		$	5,249	$	22,810		$	3	$	3,184		$	14,731		$	(357	)	$	-		$	5,249
Net income		304								364									(60)
Net income (loss)																					(89	)							37									(126	)
Other comprehensive income		562											501						61		533											476						57
Dividends paid		(177	)							(63	)								(114)		(136	)							(42	)								(94	)
Purchases of subsidiary stock from noncontrolling interests		(9	)				3												(12)		(9	)				3												(12	)
Purchases of Loews treasury stock		(115	)													(115	)				(98	)													(98	)
Stock-based compensation		35					33												2		24					23												1
Other		(4	)				(13	)		(1	)								10		(4	)				(13	)		(2	)								11
Balance, June 30, 2016																				$	23,031		$	3	$	3,197		$	14,724		$	119		$	(98	)	$	5,086

Balance, September 30, 2016	$	23,406		$	3	$	3,207		$	15,031		$	144		$	(115	)	$	5,136

Balance, January 1, 2017																				$	23,361		$	3	$	3,187		$	15,196		$	(223	)	$	-		$	5,198
Net income																					669								526									143
Other comprehensive income																					208											187						21
Dividends paid																					(138	)							(42	)								(96	)
Purchases of Loews treasury stock																					(6	)													(6	)
Stock-based compensation																					14					(9	)											23
Other																					(2	)							(3	)								1
Balance, June 30, 2017																				$	24,106		$	3	$	3,178		$	15,677		$	(36	)	$	(6	)	$	5,290


Nine Months Ended September 30	2016			2015

Six Months Ended June 30						2017			2016
(In millions)

Operating Activities:

Net income	$	304		$	578
Adjustments to reconcile net income to net cash provided (used) by operating activities, net		1,676			1,370
Net income (loss)						$	669		$	(89	)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities, net							614			1,389
Changes in operating assets and liabilities, net:
Receivables		(165	)		31		(223	)		(429	)
Deferred acquisition costs		(24	)		11		(41	)		(25	)
Insurance reserves		464			195		262			666
Other assets		(80	)		(81)		(108	)		(87	)
Other liabilities		9			(108)		(79	)		(106	)
Trading securities		(468	)		199		137			(548	)

Net cash flow operating activities		1,716			2,195		1,231			771


Investing Activities:

Purchases of fixed maturities		(7,472	)		(7,055)		(4,840	)		(4,874	)
Proceeds from sales of fixed maturities		4,239			3,590		3,142			3,070
Proceeds from maturities of fixed maturities		2,263			3,101		1,770			1,247
Purchases of limited partnership investments		(324	)		(120)		(47	)		(280	)
Proceeds from sales of limited partnership investments		207			156		119			124
Purchases of property, plant and equipment		(1,264	)		(1,447)		(476	)		(895	)
Acquisitions							(1,222	)		(79	)
Dispositions		277			28		69			274
Change in short term investments		104			298		(29	)		148
Other, net		124			(138)		(40	)		148

Net cash flow investing activities		(1,846	)		(1,587)		(1,554	)		(1,117	)


Financing Activities:

Dividends paid		(63	)		(69)		(42	)		(42	)
Dividends paid to noncontrolling interests		(114	)		(138)		(96	)		(94	)
Purchases of subsidiary stock from noncontrolling interests		(8	)		(29)					(8	)
Purchases of Loews treasury stock		(115	)		(617)		(6	)		(86	)
Issuance of Loews common stock					7
Proceeds from sale of subsidiary stock					114
Principal payments on debt		(2,882	)		(1,761)		(908	)		(2,352	)
Issuance of debt		3,226			1,851		1,401			2,843
Other, net		(2	)		4		(1	)		(1	)

Net cash flow financing activities		42			(638)		348			260


Effect of foreign exchange rate on cash		(8	)		(6)		5			(6	)


Net change in cash		(96	)		(36)		30			(92	)
Cash, beginning of period		440			364		327			440

Cash, end of period	$	344		$	328	$	357		$	348

Loews Corporation is a holding company. Its subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), a 90% owned subsidiary); the operation of offshore oil and gas drilling rigs (Diamond Offshore Drilling, Inc. (“Diamond Offshore”), a 53% owned subsidiary); transportation and storage of natural gas and natural gas liquids ~~and gathering and processing of natural gas~~ (Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”), a 51% owned subsidiary); ~~and~~ the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews ~~Hotels”~~Hotels & Co”), a wholly owned subsidiary); and the manufacture of rigid plastic packaging solutions (Consolidated Container Company LLC, a 99% owned subsidiary). Unless the context otherwise requires, the terms “Company,” “Loews” and “Registrant” as used herein mean Loews Corporation excluding its subsidiaries and the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders.

In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, results of operations and comprehensive income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 and changes in shareholders’ equity and cash flows for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016. Net income (loss) for the ~~third~~second quarter and first ~~nine months~~half of each of the years is not necessarily indicative of net income (loss) for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form10-K for the year ended December 31, ~~2015.~~2016.

The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Income. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. ~~Shares~~0.6 million and 4.7 million shares for the three months ended June 30, 2017 and 2016 and 0.6 million and 5.1 million shares for the six months ended June 30, 2017 and 2016 attributable to employee stock-based compensation awards ~~of 3.3 million, 5.8 million, 4.7 million and 4.5 million shares~~ were not included in the diluted weighted average shares outstanding amounts ~~for the three and nine months ended September 30, 2016 and 2015~~ because the effect would have been antidilutive.

Accounting changes –– In ~~April~~March of ~~2015,~~2016, the Financial Accounting Standards Board (“FASB”) issued Accounting ~~Standards~~Standard Update (“ASU”) ~~2015-03, “Interest-Imputation of Interest (Subtopic 835-30)~~2016-09, “Compensation-Stock Compensation (Topic 718): ~~Simplifying the Presentation of Debt Issuance Costs.~~Improvements to Employee Share-Based Payment Accounting.” The updated accounting guidance ~~requires that debt issuance costs related to a recognized debt liability be presented in~~simplifies the ~~balance sheet as a direct deduction from~~accounting for share-based payment award transactions, including income tax consequences and classification on the ~~carrying amount~~statement of ~~that debt liability, rather than as a deferred asset.~~cash flows. As ~~required,~~of January 1, 2017, the ~~Company’s Consolidated Condensed Balance Sheet has been retrospectively adjusted to reflect the effect of the adoption of~~Company adopted the updated accounting guidance ~~which resulted in~~and began recognizing excess tax benefits or deficiencies on vesting or settlement of awards as an income tax benefit or expense within net income and the related cash flows classified within operating activities. The change impacted the amount and timing of income tax expense recognition as well as the calculation of diluted earnings per share. The accounting change did not have a ~~decrease of $23 million in Other assets and Long term debt at December 31, 2015.~~material effect on the consolidated financial statements.

Recently issued ASUs –– In May of 2014, the FASB issued ASU2014-09, “Revenue from Contracts with Customers (Topic 606).” The core principle of the new accounting guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new accounting guidance provides a five-step analysis of transactions to determine when and how revenue is recognized and requires enhanced disclosures about revenue. In August of 2015, the FASB formally amended the effective date of this update to annual reporting periods beginning after December 15, 2017, including interim ~~periods, and it~~periods. The guidance can be adopted either retrospectively or with a cumulative effect adjustment at the date of adoption. The Company ~~is currently evaluating~~expects the ~~effect that adopting this new accounting~~updated guidance will not have a material effect on its consolidated financial statements.

~~In May of 2015, the FASB issued ASU 2015-09, “Financial Services~~– Insurance (Topic 944): Disclosures about Short-Duration Contracts.” The updated accounting guidance requires enhanced disclosures to provide additional information about insurance liabilities for short-duration contracts. The guidance is effective for annual periods

beginning after December 15, 2015 and for interim periods beginning after December 15, 2016. The Company is currently evaluating the effect the updated guidance will have on its financial statement disclosures, but expects to provide additional incurred and paid claims development information by accident year, quantitative information about claim frequency and the history of claims duration for significant lines of business within the annual financial statements.

In January of 2016, the FASB issued ASU2016-01, “Financial Instruments– Overall (Subtopic825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” The updated accounting guidance requires changes to the reporting model for financial instruments. The guidance is effective for interim and annual periods beginning after December 15, 2017. The Company ~~is currently evaluating the effect the guidance will have on its consolidated financial statements, and~~ expects the primary change to be the requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.

In February of 2016, the FASB issued ASU2016-02, “Leases (Topic 842).” The updated guidance requires lessees to recognize lease assets and lease liabilities for most operating leases. In addition, the updated guidance requires that lessors separate lease and nonlease components in a contract in accordance with the new revenue guidance in ASU2014-09. The updated guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the effect the ~~updated~~ guidance will have on its consolidated financial statements.

In June of 2016, the FASB issued ASU2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The updated accounting guidance requires changes to the recognition of credit losses on financial instruments not accounted for at fair value through net income. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the effect the guidance will have on its consolidated financial statements, and expects the primary changes to be the use of the expected credit loss model for the mortgage loan portfolio and reinsurance receivables and the presentation of credit losses within theavailable-for-sale fixed maturities portfolio through an allowance method rather than as a direct write-down. The expected credit loss model will require a financial asset to be presented at the net amount expected to be collected. ~~The~~Under the allowance method foravailable-for-sale debt securities ~~will allow~~ the Company towill record reversals of credit losses if the estimate of credit losses declines.

On May 22, 2017, the Company completed the previously announced acquisition of CCC Acquisition Holdings, Inc. for $1.2 billion, subject to closing adjustments. CCC Acquisition Holdings, Inc., through its wholly owned subsidiary, Consolidated Container Company LLC (“Consolidated Container”), is a rigid plastic packaging and recycled resins manufacturer that provides packaging solutions to end markets such as beverage, food and household chemicals through a network of manufacturing locations across North America. The results of Consolidated Container are included in the Consolidated Condensed Financial Statements since the acquisition date in the Corporate segment. Consolidated Container’s revenues were $91 million and, as a result of purchase accounting charges and acquisition costs, net income was not significant for the three and six months ended June 30, 2017. For the year ended December 31, 2016, Consolidated Container reported total revenues of $788 million.

The acquisition was funded with approximately $620 million of parent company cash and debt financing proceeds at Consolidated Container of $600 million, as described below. The following table summarizes the preliminary allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair value as of the acquisition date and is subject to change within the measurement period. The primary areas that are not yet finalized relate to working capital at closing and determination of tax bases of net assets acquired.

Customer relationships were valued using an income approach, which values the intangible asset at the present value of the related incremental after tax cash flows. The customer relationships intangible asset will be amortized over a useful life of 21 years. The trade name was valued using an income approach, which values the intangible asset based on an estimate of cost savings, or a relief from royalty. The trade name will be amortized over a useful life of 10 years. Goodwill includes value associated with the assembled workforce and Consolidated Container’s future growth and profitability. The assets acquired and liabilities assumed as part of the acquisition did not result in a step up of tax basis and approximately $94 million of goodwill is deductible for tax purposes.

Consolidated Container entered into a credit agreement providing for a $605 million term loan and a five year $125 million asset based lending facility (“ABL facility”) in conjunction with the acquisition. The term loan is a variable rate facility which bears interest at a floating rate equal to the London Interbank Offered Rate (“LIBOR”) plus an applicable margin of 3.5%, subject to a 1.0% floor. The term loan matures on May 22, 2024 and requires annual principal amortization of 1.0% of the original loan amount beginning December 31, 2017. Consolidated Container recorded approximately $19 million of debt issuance costs, which will be amortized over the terms of the facilities. Consolidated Container entered into interest rate swaps for a notional amount of $500 million to hedge its cash flow exposure to the variable rate debt. These swaps effectively fix the interest rate on the hedged portion of the term loan at approximately 5.6%. As of June 30, 2017, Consolidated Container had no borrowings outstanding under its ABL facility.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015		Three Months Ended June 30,						Six Months Ended June 30,
												2017			2016			2017			2016
(In millions)

Fixed maturity securities	$	457		$	449		$	1,352		$	1,344	$	457		$	449		$	912		$	895
Limited partnership investments		91			(122	)		98			88		23			47			139			7
Short term investments		3			4			8			7		4			2			8			5
Equity securities		1			3			8			9		2			4			3			7
Income (loss) from trading portfolio (a)		11			(5	)		113			(9)		(1	)		87			33			102
Other		12			9			34			26		8			13			16			22

Total investment income		575			338			1,613			1,465		493			602			1,111			1,038
Investment expenses		(14	)		(17	)		(43	)		(46)		(15	)		(15	)		(29	)		(29)

Net investment income	$	561		$	321		$	1,570		$	1,419	$	478		$	587		$	1,082		$	1,009


	Three Months Ended						Nine Months Ended
	September 30,						September 30,					Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015		2017			2016			2017			2016
(In millions)

Fixed maturity securities	$	47		$	(29	)	$	34		$	(29)	$	44		$	4		$	76		$	(13)
Equity securities		(3	)		(18	)		(5	)		(19)					3						(2)
Derivative instruments		1			(1	)		(12	)		9		(3	)		(6	)		(2	)		(13)
Short term investments and other					(2	)		1			(3)		2						3			1

Investment gains (losses) (a)	$	45		$	(50	)	$	18		$	(42)	$	43		$	1		$	77		$	(27)

The components of ~~net~~ other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015		2017		2016		2017		2016
(In millions)

Fixed maturity securities available-for-sale:
Corporate and other bonds	$	14	$	36	$	43	$	52	$	2	$	13	$	4	$	29
States, municipalities and political subdivisions								18
Asset-backed:
Residential mortgage-backed				1		1		7				1				1
Other asset-backed						3		1				1				3

Total asset-backed		-		1		4		8		-		2		-		4

Total fixed maturities available-for-sale		14		37		47		78		2		15		4		33

Equity securities available-for-sale - common stock		4		19		9		20								5
Short term investments								1

Net OTTI losses recognized in earnings	$	18	$	56	$	56	$	99	$	2	$	15	$	4	$	38


September 30, 2016	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)

June 30, 2017											Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	17,985		$1,867	$	36	$	19,816	$	(1)	$	17,823	$	1,589	$	29	$	19,383
States, municipalities and political subdivisions		11,566		1,937		2		13,501		(27)		12,461		1,380		15		13,826	$	(13	)
Asset-backed:
Residential mortgage-backed		5,174		206		15		5,365		(24)		4,835		124		38		4,921		(27	)
Commercial mortgage-backed		2,064		88		8		2,144				1,907		59		14		1,952
Other asset-backed		948		12		1		959				1,050		16		5		1,061

Total asset-backed		8,186		306		24		8,468		(24)		7,792		199		57		7,934		(27	)
U.S. Treasury and obligations of government-sponsored enterprises		68		8				76				113		4		2		115
Foreign government		415		23				438				438		12		1		449
Redeemable preferred stock		18		2				20				18		1				19

Fixed maturities available-for-sale		38,238		4,143		62		42,319		(52)
Fixed maturities available-for-sale												38,645		3,185		104		41,726		(40	)
Fixed maturities trading		572		4		1		575				337		3		1		339

Total fixed maturities		38,810		4,147		63		42,894		(52)		38,982		3,188		105		42,065		(40	)

Equity securities:
Common stock		15		6		1		20				17		5				22
Preferred stock		93		5		2		96				91		6		1		96

Equity securities available-for-sale		108		11		3		116		-		108		11		1		118		-
Equity securities trading		473		81		84		470				495		79		85		489

Total equity securities		581		92		87		586				603		90		86		607		-

Total	$	39,391		$4,239	$	150	$	43,480	$	(52)	$	39,585	$	3,278	$	191	$	42,672	$	(40	)


December 31, 2015

(In millions)
December 31, 2016

Fixed maturity securities:
Corporate and other bonds	$	17,097		$ 1,019	$	347	$	17,769			$	17,711	$	1,323	$	76	$	18,958	$	(1	)
States, municipalities and political subdivisions		11,729		1,453		8		13,174	$	(4)		12,060		1,213		33		13,240		(16	)
Asset-backed:
Residential mortgage-backed		4,935		154		17		5,072		(37)		5,004		120		51		5,073		(28	)
Commercial mortgage-backed		2,154		55		12		2,197				2,016		48		24		2,040
Other asset-backed		923		6		8		921				1,022		8		5		1,025

Total asset-backed		8,012		215		37		8,190		(37)		8,042		176		80		8,138		(28	)
U.S. Treasury and obligations of government-sponsored enterprises		62		5				67				83		10				93
Foreign government		334		13		1		346				435		13		3		445
Redeemable preferred stock		33		2				35				18		1				19

Fixed maturities available-for-sale		37,267		2,707		393		39,581		(41)		38,349		2,736		192		40,893		(45	)
Fixed maturities, trading		140				20		120

Fixed maturities trading												598		3				601
Total fixed maturities		37,407		2,707		413		39,701		(41)		38,947		2,739		192		41,494		(45	)

Equity securities:
Common stock		46		3		1		48				13		6				19
Preferred stock		145		7		3		149				93		2		4		91

Equity securities available-for-sale		191		10		4		197		-		106		8		4		110		-
Equity securities, trading		633		56		134		555

Equity securities trading												465		60		86		439
Total equity securities		824		66		138		752		-		571		68		90		549		-

Total	$	38,231		$ 2,773	$	551	$	40,453	$	(41)	$	39,518	$	2,807	$	282	$	42,043	$	(45	)

The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (“AOCI”). When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting certain long term care products ~~within CNA’s Life & Group Non-Core business~~ would result in a premium deficiency if

realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through

Other comprehensive income (“Shadow Adjustments”). As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of ~~$1.5~~$1.1 billion and ~~$996 million.~~$909 million (after tax and noncontrolling interests).

Theavailable-for-sale securities in a gross unrealized loss position are as follows:


	Less than 12 Months				12 Months or Longer				Total				Less than 12 Months				12 Months or Longer				Total

September 30, 2016	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

June 30, 2017													Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	617	$	10	$	338	$	26	$	955	$	36	$	1,314	$	26	$	52	$	3	$	1,366	$	29
States, municipalities and political subdivisions		163		2		9				172		2		742		15		24				766		15
Asset-backed:
Residential mortgage-backed		273		6		212		9		485		15		1,722		34		141		4		1,863		38
Commercial mortgage-backed		391		7		96		1		487		8		473		8		125		6		598		14
Other asset-backed		153		1		17				170		1		159		4		14		1		173		5

Total asset-backed		817		14		325		10		1,142		24		2,354		46		280		11		2,634		57
U.S. Treasury and obligations of government-sponsored enterprises		2								2				65		2						65		2
Foreign government		16								16				109		1						109		1

Total fixed maturity securities		1,615		26		672		36		2,287		62		4,584		90		356		14		4,940		104
Equity securities:
Common stock				1								1		1								1
Preferred stock		15		2						15		2		15		1						15		1

Total equity securities														16		1		-		-		16		1
Total	$	1,630	$	29	$	672	$	36	$	2,302	$	65	$	4,600	$	91	$	356	$	14	$	4,956	$	105


December 31, 2015

(In millions)
December 31, 2016

Fixed maturity securities:
Corporate and other bonds	$	4,882	$	302	$	174	$	45	$	5,056	$	347	$	2,615	$	61	$	254	$	15	$	2,869	$	76
States, municipalities and political subdivisions		338		8		75				413		8		959		32		23		1		982		33
Asset-backed:
Residential mortgage-backed		963		9		164		8		1,127		17		2,136		44		201		7		2,337		51
Commercial mortgage-backed		652		10		96		2		748		12		756		22		69		2		825		24
Other asset-backed		552		8		5				557		8		398		5		24				422		5

Total asset-backed		2,167		27		265		10		2,432		37		3,290		71		294		9		3,584		80
U.S. Treasury and obligations of government- sponsored enterprises		4								4
U.S. Treasury and obligations of government-sponsored enterprises														5								5
Foreign government		54		1						54		1		108		3						108		3
Redeemable preferred stock		3								3

Total fixed maturity securities		7,448		338		514		55		7,962		393		6,977		167		571		25		7,548		192
Common stock		3		1						3		1
Preferred stock		13		3						13		3

Equity securities														12				13		4		25		4
Total	$	7,464	$	342	$	514	$	55	$	7,978	$	397	$	6,989	$	167	$	584	$	29	$	7,573	$	196

Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 2017 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded as of ~~September~~June 30, ~~2016.~~2017.

The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 for which a portion of an OTTI loss was recognized in Other comprehensive income.


	Three Months Ended September 30,				Nine Months Ended September 30,

	2016		2015		2016		2015		Three Months Ended June 30,						Six Months Ended June 30,
									2017			2016			2017			2016
(In millions)

Beginning balance of credit losses on fixed maturity securities	$	41	$	59	$	53	$	62	$	32		$	48		$	36		$	53
Reductions for securities sold during the period		(2)		(2)		(14)		(5)		(2	)		(7	)		(6	)		(12	)
Reductions for securities the Company intends to sell or more likely than not will be required to sell		(1)				(1)

Ending balance of credit losses on fixed maturity securities	$	38	$	57	$	38	$	57	$	30		$	41		$	30		$	41

The following table presentsavailable-for-sale fixed maturity securities by contractual maturity.


	September 30, 2016				December 31, 2015				June 30, 2017				December 31, 2016
									Cost or		Estimated		Cost or		Estimated
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value		Amortized		Fair		Amortized		Fair
									Cost		Value		Cost		Value
(In millions)

Due in one year or less	$	1,665	$	1,710	$	1,574	$	1,595	$	1,590	$	1,628	$	1,779	$	1,828
Due after one year through five years		9,052		9,584		7,738		8,082		7,732		8,098		7,566		7,955
Due after five years through ten years		14,659		15,625		14,652		14,915		15,754		16,404		15,892		16,332
Due after ten years		12,862		15,400		13,303		14,989		13,569		15,596		13,112		14,778

Total	$	38,238	$	42,319	$	37,267	$	39,581	$	38,645	$	41,726	$	38,349	$	40,893

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.

Fair value is the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy is used in selecting inputs, with the highest priority given to Level 1, as these are the most transparent or reliable:

Prices may fall within Level 1, 2 or 3 depending upon the methodology and inputs used to estimate fair value for each specific security. In general, the Company seeks to price securities using third party pricing services. Securities not priced by pricing services are submitted to independent brokers for valuation and, if those are not available, internally developed pricing models are used to value assets using a methodology and inputs the Company believes market participants would use to value the assets. Prices obtained from third-party pricing services or brokers are not adjusted by the Company.

The Company performs control procedures over information obtained from pricing services and brokers to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. Procedures may include: (i) the review of pricing service methodologies or broker pricing ~~methodologies,~~qualifications, (ii) back-testing, where past fair value estimates are compared to actual transactions executed in the market on similar dates, (iii) exception reporting, where period-over-period changes in price are reviewed and

challenged with the pricing service or broker based on exception criteria, (iv) detailed analysis, where the Company performs an independent analysis of the inputs and assumptions used to price individual securities and (v) pricing validation, where prices received are compared to prices independently estimated by the Company.

The fair values of CNA’s life settlement contracts are included in Other assets on the Consolidated Condensed Balance Sheets. Equity options purchased are included in Equity securities, and all other derivative assets are included in Receivables. Derivative liabilities are included in Payable to brokers. Assets and liabilities measured at fair value on a recurring basis are presented in the following tables:


September 30, 2016	Level 1			Level 2		Level 3		Total

June 30, 2017										Level 1			Level 2		Level 3		Total
(In millions)

Fixed maturity securities:
Corporate and other bonds				$	19,555	$	261	$	19,816				$	19,283	$	100	$	19,383
States, municipalities and political subdivisions					13,500		1		13,501					13,825		1		13,826
Asset-backed:
Residential mortgage-backed					5,286		79		5,365					4,798		123		4,921
Commercial mortgage-backed					2,120		24		2,144					1,939		13		1,952
Other asset-backed					916		43		959					979		82		1,061

Total asset-backed					8,322		146		8,468					7,716		218		7,934
U.S. Treasury and obligations of government-sponsored enterprises	$	76							76	$	115							115
Foreign government					438				438					449				449
Redeemable preferred stock		20							20		19							19

Fixed maturities available-for-sale		96			41,815		408		42,319		134			41,273		319		41,726
Fixed maturities trading					569		6		575					334		5		339

Total fixed maturities	$	96		$	42,384	$	414	$	42,894	$	134		$	41,607	$	324	$	42,065


Equity securities available-for-sale	$	97				$	19	$	116	$	99				$	19	$	118
Equity securities trading		469					1		470		488					1		489

Total equity securities	$	566		$	-	$	20	$	586	$	587		$	-	$	20	$	607


Short term investments	$	3,902		$	911			$	4,813	$	3,858		$	981			$	4,839
Other invested assets		54			5				59		60			5				65
Receivables											1							1
Life settlement contracts						$	67		67						$	1		1
Payable to brokers		(215	)						(215)		(8	)						(8	)

December 31, 2015    Level 1 Level 2    Level 3    Total

(In millions)

Fixed maturity securities:

Corporate and other bonds
   $ 17,601       $ 168       $ 17,769
States, municipalities and political subdivisions
   13,172       2       13,174
Asset-backed:

Residential mortgage-backed
   4,938       134       5,072
Commercial mortgage-backed
   2,175       22       2,197
Other asset-backed
   868       53       921

Total asset-backed
   7,981       209       8,190
U.S. Treasury and obligations of government-sponsored enterprises
   $ 66    1          67
Foreign government
   346          346
Redeemable preferred stock
   35          35

Fixed maturities available-for-sale
   101    39,101       379       39,581
Fixed maturities trading
   35       85       120

Total fixed maturities
   $ 101    $   39,136       $     464       $   39,701

Equity securities available-for-sale
   $ 177       $ 20       $ 197
Equity securities trading
   554       1       555

Total equity securities
   $ 731    $ -       $ 21       $ 752

Short term investments
   $     3,600    $ 1,134          $ 4,734
Other invested assets
   102    44          146
Receivables
   9       $ 3       12
Life settlement contracts
      74       74
Payable to brokers
   (196 )       (196)

The following tables present reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015:~~2016:


																						Unrealized																				Unrealized
																						Gains																				Gains
																						(Losses)																				(Losses)
																						Recognized in				Net Realized Gains																Recognized in
			Net Realized Gains																			Net Income				(Losses) and Net Change																Net Income
			(Losses) and Net Change																			on Level				in Unrealized Gains																(Loss) on Level
			in Unrealized Gains																			3 Assets and				(Losses)																3 Assets and
			(Losses)												Transfers		Transfers					Liabilities				Included in										Transfers		Transfers				Liabilities
	Balance,		Included in			Included in									into		out of			Balance,		Held at		Balance,		Net Income		Included in								into		out of		Balance,		Held at
2016	July 1		Net Income			OCI			Purchases		Sales		Settlements		Level 3		Level 3			September 30		September 30

2017																								April 1		(Loss)		OCI		Purchases		Sales		Settlements		Level 3		Level 3		June 30		June 30
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	242	$	1		$	7		$	16			$	(5)						$	261			$	121									$	(11)			$	(10)	$	100
States, municipalities and political subdivisions		2												(1)							1				1																1
Asset-backed:
Residential mortgage-backed		134					(1	)		5				(1)			$	(58	)		79				126	$	1	$	1						(5)						123
Commercial mortgage- backed		11								23				(8)				(2	)		24				13																13
Other asset-backed		45								34								(36	)		43				117					$	13				(2)	$	24		(70)		82

Total asset-backed		190		-			(1	)		62	$	-		(9)	$	-		(96	)		146	$	-		256		1		1		13	$	-		(7)		24		(70)		218	$	-

Fixed maturitiesavailable-for-sale		434		1			6			78				(15)				(96	)		408				378		1		1		13				(18)		24		(80)		319
Fixed maturities trading		6																			6		(1)		5																5		(1)

Total fixed maturities	$	440	$	1		$	6		$	78	$	-	$	(15)	$	-	$	(96	)	$	414	$	(1)	$	383	$	1	$	1	$	13	$	-	$	(18)	$	24	$	(80)	$	324	$	(1)


Equity securitiesavailable-for-sale	$	19	$	(1	)	$	1													$	19	$	(2)	$	19			$	1			$	(1)							$	19
Equity securities trading		2							$	(1)											1		(1)		1																1

Total equity securities	$	21	$	(1	)	$	1		$	(1)	$	-	$	-	$	-	$	-		$	20	$	(3)	$	20	$	-	$	1	$	-	$	(1)	$	-	$	-	$	-	$	20	$	-


Life settlement contracts	$	67																		$	67			$	46							$	(45)							$	1
Derivative financial instruments, net		1	$	(1	)																-


			Net Realized Gains (Losses) and Net Change in Unrealized Gains (Losses)														Transfers into Level 3		Transfers out of Level 3			Balance, September 30		Unrealized Gains (Losses) Recognized in Net Income on Level 3 Assets and Liabilities																				Unrealized
2015	Balance, July 1		Included in Net Income			Included in OCI			Purchases		Sales			Settlements			Transfers into Level 3		Transfers out of Level 3			Balance, September 30		Held at September 30
																																												Gains
																																												(Losses)
																												Net Realized Gains																Recognized in
																												(Losses) and Net Change																Net Income
																												in Unrealized Gains																(Loss) on Level
																												(Losses)																3 Assets and
																												Included in										Transfers		Transfers				Liabilities
																										Balance,		Net Income		Included in								into		out of		Balance,		Held at
2016																										April 1		(Loss)		OCI		Purchases		Sales		Settlements		Level 3		Level 3		June 30		June 30
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	141							$	27	$	(1	)	$	(11	)			$	(3	)	$	153			$	193	$	1	$	3	$	94	$	(20)	$	(7)			$	(22)	$	242
States, municipalities and political subdivisions		85																		(24	)		61				2																2
Asset-backed:
Residential mortgage-backed		207	$	2		$	(2	)		4					(7	)							204				128		1		(1)		10				(4)						134
Commercial mortgage-backed		87		5			(4	)		8					(15	)				(10	)		71
Commercial mortgage- backed																											27										(9)	$	3		(10)		11
Other asset-backed		490					(6	)		43		(20	)		(32	)				(4	)		471				50				2		35		(25)		(1)				(16)		45

Total asset-backed		784		7			(12	)		55		(20	)		(54	)	$	-		(14	)		746	$	-		205		1		1		45		(25)		(14)		3		(26)		190	$	-

Fixed maturities available-for-sale		1,010		7			(12	)		82		(21	)		(65	)				(41	)		960				400		2		4		139		(45)		(21)		3		(48)		434
Fixed maturities trading		89		(2	)							(1	)										86	$	(2)		3		4						(1)								6		4

Total fixed maturities	$	1,099	$	5		$	(12	)	$	82	$	(22	)	$	(65	)	$	-	$	(41	)	$	1,046	$	(2)	$	403	$	6	$	4	$	139	$	(46)	$	(21)	$	3	$	(48)	$	440	$	4


Equity securities available-for-sale	$	16				$	(1	)														$	15			$	19															$	19
Equity securities trading		1	$	1							$	(2	)										-	$	1		-	$	1			$	1										2	$	1

Total equity securities	$	17	$	1		$	(1	)	$	-	$	(2	)	$	-		$	-	$	-		$	15	$	1	$	19	$	1	$	-	$	1	$	-	$	-	$	-	$	-	$	21	$	1


Life settlement contracts	$	75	$	5										$	(6	)						$	74	$	2	$	72	$	6							$	(11)					$	67	$	(3)
Derivative financial instruments, net																													(2)									$	3				1		(3)


																					Unrealized																					Unrealized
																					Gains																					Gains
																					(Losses)																					(Losses)
																					Recognized in				Net Realized Gains																	Recognized in
			Net Realized Gains																		Net Income				(Losses) and Net Change																	Net Income
			(Losses) and Net Change																		on Level				in Unrealized Gains																	(Loss) on Level
			in Unrealized Gains																		3 Assets and				(Losses)																	3 Assets and
			(Losses)												Transfers		Transfers				Liabilities				Included in											Transfers		Transfers				Liabilities
	Balance,		Included in			Included in									into		out of		Balance,		Held at		Balance,		Net Income			Included in								into		out of		Balance,		Held at
2016	January 1		Net Income			OCI		Purchases		Sales			Settlements		Level 3		Level 3		September 30		September 30

2017																							January 1		(Loss)			OCI		Purchases		Sales		Settlements		Level 3		Level 3		June 30		June 30
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	168	$	1		$	14	$	163	$	(36	)	$	(15)			$	(34)	$	261			$	130				$	1	$	5	$	(1)	$	(25)			$	(10)	$	100
States, municipalities and political subdivisions		2												(1)						1				1																	1
Asset-backed:
Residential mortgage-backed		134		2			(2)		15					(10)				(60)		79				129	$	2			3						(11)						123
Commercial mortgage-backed		22							32					(17)	$	3		(16)		24				13																	13
Other asset-backed		53					2		69		(25	)		(1)		2		(57)		43				57		(1	)				51				(2)	$	52		(75)		82

Total asset-backed		209		2			-		116		(25	)		(28)		5		(133)		146	$	-		199		1			3		51		-		(13)		52		(75)		218	$	-

Fixed maturities available-for-sale		379		3			14		279		(61	)		(44)		5		(167)		408				330		1			4		56		(1)		(38)		52		(85)		319
Fixed maturities trading		85		5					2		(86	)								6		3		6		(1	)														5		(1)

Total fixed maturities	$	464	$	8		$	14	$	281	$	(147	)	$	(44)	$	5	$	(167)	$	414	$	3	$	336	$	-		$	4	$	56	$	(1)	$	(38)	$	52	$	(85)	$	324	$	(1)


Equity securities available-for-sale	$	20	$	(1	)														$	19	$	(2)	$	19				$	2	$	1	$	(3)							$	19
Equity securities trading		1		1						$	(1	)								1				1																	1

Total equity securities	$	21	$	-		$	-	$	-	$	(1	)	$	-	$	-	$	-	$	20	$	(2)	$	20	$	-		$	2	$	1	$	(3)	$	-	$	-	$	-	$	20	$	-


Life settlement contracts	$	74	$	10									$	(17)					$	67	$	2	$	58	$	6						$	(58)	$	(5)					$	1
Derivative financial instruments, net		3		(4	)					$	(2	)			$	3				-		(3)		-		1							(1)								-


																							Unrealized																				Unrealized
																							Gains																				Gains
																							(Losses)																				(Losses)
																							Recognized in				Net Realized Gains																Recognized in
			Net Realized Gains																				Net Income				(Losses) and Net Change																Net Income
			(Losses) and Net Change																				on Level				in Unrealized Gains																(Loss) on Level
			in Unrealized Gains																				3 Assets and				(Losses)																3 Assets and
			(Losses)													Transfers		Transfers					Liabilities				Included in										Transfers		Transfers				Liabilities
	Balance,		Included in			Included in										into		out of			Balance,		Held at		Balance,		Net Income		Included in								into		out of		Balance,		Held at
2015	January 1		Net Income			OCI			Purchases		Sales			Settlements		Level 3		Level 3			September 30		September 30

2016																									January 1		(Loss)		OCI		Purchases		Sales		Settlements		Level 3		Level 3		June 30		June 30
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	162	$	(1	)	$	(1	)	$	39	$	(13	)	$	(32)	$	37	$	(38	)	$	153			$	168			$	7	$	147	$	(36)	$	(10)			$	(34)	$	242
States, municipalities and political subdivisions		94		1											(10)				(24	)		61				2																2
Asset-backed:
Residential mortgage-backed		189		4			(4	)		76					(28)				(33	)		204				134	$	2		(1)		10				(9)				(2)		134
Commercial mortgage-backed		83		7			(4	)		23					(17)		17		(38	)		71
Commercial mortgage- backed																										22						9				(9)	$	3		(14)		11
Other asset-backed		655		3			4			125		(254	)		(52)				(10	)		471	$	(1)		53				2		35		(25)		(1)		2		(21)		45

Total asset-backed		927		14			(4	)		224		(254	)		(97)		17		(81	)		746		(1)		209		2		1		54		(25)		(19)		5		(37)		190	$	-

Fixed maturities available-for-sale		1,183		14			(5	)		263		(267	)		(139)		54		(143	)		960		(1)		379		2		8		201		(61)		(29)		5		(71)		434
Fixed maturities trading		90		(2	)							(2	)									86		(2)		85		5				2		(86)								6		4

Total fixed maturities	$	1,273	$	12		$	(5	)	$	263	$	(269	)	$	(139)	$	54	$	(143	)	$	1,046	$	(3)	$	464	$	7	$	8	$	203	$	(147)	$	(29)	$	5	$	(71)	$	440	$	4


Equity securities available-for-sale	$	16				$	(1	)													$	15			$	20			$	(1)											$	19
Equity securities trading		1	$	1							$	(2	)									-	$	1		1	$	1			$	1	$	(1)								2	$	1

Total equity securities	$	17	$	1		$	(1	)	$	-	$	(2	)	$	-	$	-	$	-		$	15	$	1	$	21	$	1	$	(1)	$	1	$	(1)	$	-	$	-	$	-	$	21	$	1


Life settlement contracts	$	82	$	22										$	(30)						$	74	$	1	$	74	$	10							$	(17)					$	67	$	(3)
Derivative financial instruments, net																										3		(3)					$	(2)			$	3				1		(3)

Net realized and unrealized gains and losses are reported in Net income (loss) as follows:

Securities may be transferred in or out of levels within the fair value hierarchy based on the availability of observable market information and quoted prices used to determine the fair value of the security. The availability of observable market information and quoted prices varies based on market conditions and trading volume. During the three and ~~nine~~six months ended ~~September~~June 30, 2017 and 2016 there were no transfers between Level 1 and ~~Level 2. During the three and nine months ended September 30, 2015, there were $10 million of transfers from Level 2 to Level 1 and no transfers from Level 1 to~~ Level 2. The Company’s policy is to recognize transfers between levels at the beginning of quarterly reporting periods.

The following section describes the valuation methodologies and relevant inputs used to measure different financial instruments at fair value, including an indication of the level in the fair value hierarchy in which the instruments are generally classified.

Level 1 securities include highly liquid and exchange traded bonds and redeemable preferred stock, valued using quoted market prices. Level 2 securities include most other fixed maturity securities as the significant inputs are observable in the marketplace. All classes of Level 2 fixed maturity securities are valued using a methodology based on information generated by market transactions involving identical or comparable assets, a discounted cash flow methodology or a combination of both when necessary. Common inputs for all classes of fixed maturity securities include prices from recently executed transactions of similar securities, marketplace quotes, benchmark yields, spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. Specifically for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Fixed maturity securities are primarily assigned to Level 3 in cases where broker/dealer quotes are significant inputs to the valuation, and there is a lack of transparency as to whether these quotes are based on information that is observable in the marketplace. Level 3 securities also include private placement debt securities whose fair value is determined using internal models with inputs that are not market observable.

Level 1 equity securities include publicly traded securities valued using quoted market prices. Level 2 securities are primarilynon-redeemable preferred stocks and common stocks valued using pricing for similar securities, recently executed transactions and other pricing models utilizing market observable inputs. Level 3 securities are primarily priced using broker/dealer quotes and internal models with inputs that are not market observable.

Exchange traded derivatives are valued using quoted market prices and are classified within Level 1 of the fair value hierarchy. Level 2 derivatives primarily include currency forwards valued using observable market forward rates.Over-the-counter derivatives, principally interest rate swaps, total return swaps, commodity swaps, equity warrants and options, are valued using inputs including broker/dealer quotes and are classified within Level 2 or Level 3 of the valuation hierarchy, depending on the amount of transparency as to whether these quotes are based on information that is observable in the marketplace.

Securities that are actively traded or have quoted prices are classified as Level 1. These securities include money market funds and treasury bills. Level 2 primarily includes commercial paper, for which all inputs are market observable. Fixed maturity securities purchased within one year of maturity are ~~valued~~classified consistent with fixed maturity securities discussed above. Short term investments as presented in the tables above differ from the amounts presented in the Consolidated Condensed Balance Sheets because certain short term investments, such as time deposits, are not measured at fair value.

Level 1 securities include exchange tradedopen-end funds valued using quoted market prices.

~~The~~CNA accounts for its investment in life settlement contracts using the fair ~~values~~value method. Historically, the fair value of life settlement contracts ~~are~~was determined as the present value of the anticipated death benefits less anticipated premium payments based on contract terms that are distinct for each insured, as well as CNA’s own assumptions for mortality, premium expense and the rate of return that a buyer would require on the contracts.

The entire portfolio of life settlement contracts was determined to be held for sale as of December 31, 2016 as CNA reached an agreement on terms to sell the portfolio. As such, CNA adjusted the fair value to the estimated sales proceeds less cost to sell. The definitive Purchase and Sale Agreement (“PSA”) related to the portfolio was executed on March 7, 2017 (“sale date”). In connection therewith, the life settlement contracts and related sale proceeds were placed in escrow until the buyer is recognized as the owner and beneficiary of each individual life settlement contract by the life insurance company that issued the policy. All but $1 million of the contracts have been released from escrow as of June 30, 2017. CNA derecognized the released contracts and recorded the consideration, including a note receivable, which is payable over three years and is carried at amortized cost less any valuation allowance. The note receivable of $45 million is included within Other assets on the June 30, 2017 Consolidated Condensed Balance Sheet and interest income is accreted to the principal balance of the note receivable. The contracts remaining in escrow have not been derecognized, continue to be measured at the fair value per the PSA, and are expected to clear escrow in the third quarter of 2017.

The fair value of CNA’s investments in life settlement contracts were $1 million and $58 million as of June 30, 2017 and December 31, 2016, and are included in Other assets on the Consolidated Condensed Balance Sheets. Despite the sale, the contracts have been classified as Level 3 as there is not an active market for life settlement contracts. The cash receipts and payments related to the life settlement contracts prior to the sale date are included in operating activities on the Consolidated Condensed Statements of Cash Flows. Cash receipts related to the sale of the life settlement contracts as ~~no comparable market pricing data is available.~~well as principal payments on the note receivable are included in investing activities.

The following tables present quantitative information about the significant unobservable inputs utilized by the Company in the fair value measurement of Level 3 assets. Valuations for assets and liabilities not presented in the tables below are primarily based on broker/dealer quotes for which there is a lack of transparency as to inputs used to develop the valuations. The quantitative detail of unobservable inputs from these broker quotes is neither provided nor reasonably available to the Company. The valuation of life settlement contracts was based on the terms of the sale of the contracts to a third party; therefore the contracts are not included in the tables below.

For fixed maturity securities, an increase to the credit spread assumptions ~~would result in a lower fair value measurement. For life settlement contracts, an increase in the discount rate risk premium or decrease in the mortality assumption~~ would result in a lower fair value measurement.

The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial assets and liabilities which are not measured at fair value on the Consolidated Condensed Balance Sheets are presented in the following tables. The carrying amounts and estimated fair values of short term debt and long term debt exclude capital lease obligations. The carrying amounts reported on the Consolidated Condensed Balance Sheets for cash and short term investments not carried at fair value and certain other assets and liabilities approximate fair value due to the short term nature of these items.


	Carrying		Estimated Fair Value							Carrying			Estimated Fair Value
September 30, 2016	Amount		Level 1	Level 2		Level 3		Total
June 30, 2017										Amount			Level 1	Level 2			Level 3			Total
(In millions)

Assets:
Other invested assets, primarily mortgage loans	$	629				$	654	$	654		$	646						$	655		$	655

Liabilities:
Short term debt		185		$	182		3		185			190			$	154			40			194
Long term debt		10,722			10,428		646		11,074			11,075				10,074			1,217			11,291

December 31, 2015
December 31, 2016

Assets:
Other invested assets, primarily mortgage loans	$	678				$	688	$	688		$	591						$	594		$	594

Liabilities:
Short term debt		1,038		$	1,050		2		1,052			107			$	104			3			107
Long term debt		9,507			8,538		595		9,133			10,655				10,150			646			10,796

The following methods and assumptions were used in estimating the fair value of these financial assets and liabilities.

The fair ~~value~~values of mortgage loans, included in Other invested assets, ~~was~~were based on the present value of the expected future cash flows discounted at the current interest rate for similar financial instruments, adjusted for specific loan risk.

Fair value of debt was based on observable market prices when available. When observable market prices were not available, the fair value of debt was based on observable market prices of comparable instruments adjusted for differences between the observed instruments and the instruments being valued or is estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements.

During the second quarter of 2017, Diamond Offshore evaluated seven drilling rigs with indicators of impairment. Due to the continued deterioration of market fundamentals in the contract drilling industry, as well as newly-available market projections, which indicated that a full market recovery is likely to occur further in the future than had previously been estimated, Diamond Offshore determined that the carrying values of one ultra-deepwater and one deepwater semisubmersible rig were impaired.

Diamond Offshore estimated the fair value of the rigs impaired in 2017 using an income approach, whereby the fair value of each rig was estimated based on a calculation of the rig’s future net cash flows. These calculations utilized significant unobservable inputs, including estimated proceeds that may be received on ultimate disposition of the rig, and are representative of Level 3 fair value measurements due to the significant level of estimation involved and lack of transparency as to the inputs used. During the second quarter of 2017, Diamond Offshore recorded an asset impairment charge of $72 million ($23 million after tax and noncontrolling interests), which is included in Other operating expenses on the Consolidated Condensed Statements of Income.

As of June 30, 2017, there were nine rigs in Diamond Offshore’s drilling fleet for which there were no current indicators that their carrying amounts may not be recoverable and, therefore, were not evaluated for impairment at that time. If market fundamentals in the offshore oil and gas industry deteriorate further or a projected market recovery is further delayed, additional impairment losses may be required to be recognized in future periods.

Diamond Offshore recorded aggregate asset impairment charges of $672 million ($263 million after tax and noncontrolling interests), which is included in Other operating expenses on the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2016. See Note 6 of the Consolidated Financial Statements in the Company’s Annual Report on Form10-K for the year ended December 31, 2016 for further discussion of Diamond Offshore’s 2016 asset impairments.

In ~~February~~May of ~~2016, Diamond Offshore entered into~~2017, Boardwalk Pipeline sold a ~~ten-year agreement with a subsidiary of GE Oil & Gas (“GE”) to provide services with respect to certain blowout preventer~~processing plant and related well control equipment on four newly-built drillships. Such services include management of maintenance, certification and reliability with respect to such equipment. In connection with the contractual services agreement with GE, Diamond Offshore will sell the well control equipment toassets, for approximately $65 million, including customary adjustments. The sale resulted in a GE affiliate and subsequently lease back such equipment pursuant to separate ten-year operating leases. During the nine months ended September 30, 2016, Diamond Offshore completed three sale and leaseback transactions and received $158 million in proceeds, which was less than the carrying value of the

equipment. The resulting difference was recorded as prepaid rent with no gain or loss recognized on the transactions, and will be amortized over the terms of the operating leases. Future commitments under the operating leases and contractual services agreements are estimated to aggregate approximately $491 million over the term of the agreements. Diamond Offshore expects to complete the remaining sale and leaseback transaction in the fourth quarter of 2016.

During the second quarter of 2016, in response to the continuing decline in industry-wide utilization for semisubmersible rigs, further exacerbated by additional and more frequent contract cancelations by customers, declining dayrates, as well as the results of a third-party strategic review of Diamond Offshore’s long-term business plan completed in the second quarter of 2016, Diamond Offshore reassessed its projections for a recovery in the offshore drilling market. As a result, Diamond Offshore concluded that an expected market recovery is now likely further in the future than had previously been estimated. Consequently, Diamond Offshore believes its cold-stacked rigs, as well as those rigs expected to be cold-stacked in the near term after they come off contract, will likely remain cold-stacked for an extended period of time. Diamond Offshore also believes that the re-entry costs for these rigs will be higher than previously estimated, negatively impacting the undiscounted, probability-weighted cash flow projections utilized in its impairment analysis. In addition, in response to the declining market, Diamond Offshore also reduced anticipated market pricing and expected utilization of these rigs after reactivation. In the second quarter of 2016, Diamond Offshore evaluated 15 of its drilling rigs with indications that their carrying amounts may not be recoverable. Based on updated assumptions and analyses, Diamond Offshore determined that the carrying values of eight of these rigs, consisting of three ultra-deepwater, three deepwater and two mid-water semisubmersible rigs, were impaired.

Diamond Offshore estimated the fair value of the eight impaired rigs using an income approach. The fair value of each rig was estimated based on a calculation of the rig’s discounted future net cash flows over its remaining economic life, which utilized significant unobservable inputs, including, but not limited to, assumptions related to estimated dayrate revenue, rig utilization, estimated reactivation and regulatory survey costs, as well as estimated proceeds that may be received on ultimate disposition of the rig. The fair value estimates were representative of Level 3 fair value measurements due to the significant level of estimation involved and the lack of transparency as to the inputs used. During the second quarter of 2016, Diamond Offshore recognized an impairment loss of ~~$672~~$47 million ($~~263 million after tax and noncontrolling interests).~~

In the third quarter of 2016, Diamond Offshore evaluated nine of its drilling rigs with indications that their carrying amounts may not be recoverable. Based on its assumptions and analyses, Diamond Offshore determined that the carrying values of these rigs were not impaired. If market fundamentals in the offshore oil and gas industry deteriorate further, Diamond Offshore may be required to recognize additional impairment losses in future periods.

~~Diamond Offshore recognized aggregate impairment losses of $2 million ($1~~15 million after tax and noncontrolling interests) and ~~$361 million ($159 million after tax and noncontrolling interests) for the three and nine months ended September 30, 2015. See Note 6 of~~is included in Other operating expenses on the Consolidated ~~Financial~~Condensed Statements ~~in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for further discussion~~ of ~~Diamond Offshore’s 2015 asset impairments.~~Income.

CNA’s property and casualty insurance claim and claim adjustment expense reserves represent the estimated amounts necessary to resolve all outstanding claims, including ~~claims that are~~ incurred but not reported (“IBNR”) claims as of the reporting date. CNA’s reserve projections are based primarily on detailed analysis of the facts in each case, CNA’s experience with similar cases and various historical development patterns. Consideration is given to such historical patterns as ~~field~~claim reserving trends and ~~claim~~ settlement practices, loss payments, pending levels of unpaid claims and product mix, as well as court decisions, economic conditions including inflation and public attitudes. All of these factors can affect the estimation of claim and claim adjustment expense reserves.

Establishing claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves for catastrophic events that have occurred, is an estimation process. Many factors can ultimately affect the final settlement of a claim and, therefore, the necessary reserve. Changes in the law, results of litigation, medical costs,

the cost of repair materials and labor rates can all affect ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably estimable than long-tail claims, such as workers’ compensation, general liability and professional liability claims. Adjustments to prior year reserve estimates, if necessary, are reflected in the results of operations in the period that the need for such adjustments is determined. There can be no assurance that CNA’s ultimate cost for insurance losses will not exceed current estimates.

Catastrophes are an inherent risk of the property and casualty insurance business and have contributed to materialperiod-to-period fluctuations in CNA’s results of operations and/or equity. CNA reported catastrophe losses, net of reinsurance, of ~~$16~~$39 million and ~~$14~~$85 million for the three months ended ~~September~~June 30, 2017 and 2016 and ~~2015 and $137~~$73 million and ~~$103~~$121 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016. Catastrophe losses in 2017 related primarily to U.S. weather-related events. Catastrophe losses in 2016 resulted primarily from U.S. weather-related events and the Fort McMurray wildfires.

The following table presents a reconciliation between beginning and ending claim and claim adjustment expense reserves, including claim and claim adjustment expense reserves ofnon-core operations.

Changes in estimates of claim and allocated claim adjustment expense reserves and premium accruals, net of reinsurance, for prior years are defined as net prior year development. These changes can be favorable or unfavorable. The following ~~tables~~table and discussion present net prior year ~~development.~~development:


Three Months Ended September 30, 2016	Specialty		Commercial		International		Total
									Three Months Ended						Six Months Ended
									June 30,						June 30,
									2017			2016			2017			2016
(In millions)

Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(112)	$	(5)	$	(15)	$	(132)	$	(55	)	$	(98	)	$	(112	)	$	(150	)
Pretax (favorable) unfavorable premium development				(3)		(2)		(5)		(8	)		(8	)		17			(22	)

Total pretax (favorable) unfavorable net prior year development	$	(112)	$	(8)	$	(17)	$	(137)	$	(63	)	$	(106	)	$	(95	)	$	(172	)


Three Months Ended September 30, 2015


Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(130)	$	(11)	$	(34)	$	(175)
Pretax (favorable) unfavorable premium development		(2)		(5)		2		(5)

Total pretax (favorable) unfavorable net prior year development	$	(132)	$	(16)	$	(32)	$	(180)


Nine Months Ended September 30, 2016


Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(211)	$	(37)	$	(34)	$	(282)
Pretax (favorable) unfavorable premium development		(18)		(7)		(2)		(27)

Total pretax (favorable) unfavorable net prior year development	$	(229)	$	(44)	$	(36)	$	(309)


Nine Months Ended September 30, 2015


Pretax (favorable) unfavorable net prior year claim and allocated claim adjustment expense reserve development	$	(141)			$	(46)	$	(187)
Pretax (favorable) unfavorable premium development		(10)	$	(17)		16		(11)

Total pretax (favorable) unfavorable net prior year development	$	(151)	$	(17)	$	(30)	$	(198)

Premium development can occur in the property and casualty business when there is a change in exposure on auditable policies or when premium accruals differ from processed premium. Audits on policies usually occur in a period after the expiration date of the policy. See Note 10 for further information on the premium development for the Small Business multi-peril package product and workers’ compensation policies for the three and six months ended June 30, 2017.

The following table and discussion present ~~further detail~~details of the net prior year claim and allocated claim adjustment expense reserve development (“development”) ~~recorded for the Specialty segment:~~:


	Three Months Ended September 30,				Nine Months Ended September 30,
									Three Months Ended						Six Months Ended
	2016		2015		2016		2015		June 30,						June 30,
									2017			2016			2017			2016
(In millions)

Medical professional liability	$	13	$	(19)	$	(17)	$	(11)	$	3		$	(23	)	$	4		$	(30	)
Other professional liability and management liability		(48)		(37)		(98)		(41)		(37	)		(41	)		(69	)		(50	)
Surety		(63)		(70)		(63)		(69)
Warranty		2				7		1
Commercial auto													(20	)		(26	)		(35	)
General liability										(1	)		(37	)		(1	)		(52	)
Workers’ compensation										(46	)		50			(46	)		54
Other		(16)		(4)		(40)		(21)		26			(27	)		26			(37	)

Total pretax (favorable) unfavorable development	$	(112)	$	(130)	$	(211)	$	(141)	$	(55	)	$	(98	)	$	(112	)	$	(150	)

Favorable development in other professional liability and management liability was primarily due to lower than expected claim frequency in accident years 2013 through 2015 and lower than expected severity in accident years 2014 through 2016 for professional liability.

Favorable development for workers’ compensation was primarily related to decreases in frequency and severity in recent accident years, partially attributable to California reforms related to decreases in medical costs.

Unfavorable development for ~~medical professional liability~~other coverages was primarily due to higher than expected severity in accident year 2016 for property and other, higher than expected severity in accident year 2015 arising from the management liability business for other professional liability and adverse large claims experience in the Hardy political risks portfolio, relating largely to accident year 2016. This unfavorable development was partially offset by favorable development in accident years 2014 and prior for other professional liability and better than expected frequency in accident years 2014 through 2016, for property and ~~2015~~marine.

Favorable development in ~~aging services. Increased claims on a specific hospital policy in~~medical professional liability was due to lower than expected severity for individual healthcare professionals and allied facilities for accident years 2014 ~~and 2015 was also an unfavorable contributor, although more than offset by favorable development relative to expectations in accident years 2013~~ and prior.

Favorable development in other professional liability and management liability was primarily related to lower than expected frequency of claims ~~and~~in accident years 2010 through 2015, mainly driven by professional services. This was partially offset by unfavorable development in accident year 2015 related to an increase in management liability frequency of larger claims.

Favorable development for commercial auto was primarily due to favorable ~~outcomes~~settlements on ~~specific~~ claims ~~for~~in accident years 2010 through 2014.

Favorable development ~~in surety coverages~~for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013.

Unfavorable development for workers’ compensation was due to a reduction in estimated recoveries on war hazard claims for Defense Base Act contractors, which was partially offset by favorable development related to lower than expected ~~frequency of large losses~~frequencies for the small and middle market businesses in accident years ~~2014 and prior.~~2009 through 2014.

Favorable development for other coverages was primarily due to better than expected ~~claim frequency in commercial lines coverages provided to Specialty customers~~loss emergence in accident years ~~2010~~2013 through ~~2015.~~

~~Favorable development in medical professional liability was related to lower~~ for property and other, better than expected severity in accident years ~~2008~~2013 and prior for liability and better than expected severity in auto liability in accident years 2011 through ~~2013.~~2015, partially offset by unfavorable development for higher than expected large loss emergence in accident years 2011 through 2015 for other professional liability.

Favorable development in other professional liability and management liability was ~~related~~primarily due to ~~better~~favorable settlements on closed claims and a lower frequency of large losses for accident years 2011 through 2016 for professional and management liability, lower than expected ~~large loss emergence in financial institutions~~claim frequency in accident years ~~2012~~2013 through 2015 for professional liability and ~~prior. Additional favorable~~lower than expected severity in accident years 2014 through 2016 for professional liability.

Favorable development ~~related~~for commercial auto was primarily due to lower than expected severity in accident years ~~2009~~

Favorable development for ~~surety coverages~~workers’ compensation was primarily ~~due~~related to ~~lower than expected~~decreases in frequency ~~of large losses~~and severity in recent accident years, ~~2013 and prior.~~partially attributable to California reforms related to decreases in medical costs.

~~Nine Months~~The drivers of development for the six month period for other coverages were generally consistent with the three month summary above.

Favorable development for medical professional liability was primarily due to lower than expected ~~severities~~severity for individual healthcare professionals, allied facilities, and hospitals in accident years 2011 and prior. This was partially offset by unfavorable development in accident years 2012 and 2013 related to higher than expected large loss emergence in hospitals and higher than expected ~~frequency and~~ severity in accident years 2014 and 2015 in ~~CNA’s~~the aging services business.

Favorable development in other professional liability and management liability was primarily related to ~~favorable settlements on closed claims in accident years 2011 through 2013 in professional services. Additional favorable development related to~~ lower than expected frequency of claims ~~and favorable outcomes on specific claims~~ in accident years 2010 through ~~2014~~2015, mainly driven by professional services. Additional favorable development was related to favorable outcomes on larger claims in 2013 and prior in professional services. This was partially offset by unfavorable development

~~related to a specific financial institutions claim in accident year 2014, higher severities in accident year 2015 and deterioration on credit crises-related claims in accident year 2009.~~

~~Favorable development in surety coverages was primarily due to lower than expected frequency of large losses~~ in accident years 2014 and ~~prior.~~

~~Favorable development for other coverages provided to Specialty customers was due to better than expected claim frequency in property coverages in accident year~~ 2015 ~~and commercial lines coverages in accident years 2010 through 2015.~~

~~Overall, favorable development for medical professional liability was~~ related to lower than expected severity in accident years 2008 through 2013. Unfavorable development was recorded related to increased claim frequency in the aging services business for accident years 2013 and 2014.

Overall, favorable development in other professional liability and management liability related to better than expected large loss emergence in financial institutions in accident years 2012 and prior. Additional favorable development related to lower than expected severity in accident years 2009 through 2013 for directors and officers liability and lower than expected severity in accident years 2010 and prior for professional services. Unfavorable development was related to increased claim frequency on public company management liability in accident years 2012 through 2014.

~~Favorable development for surety coverages was primarily due to lower than expected frequency of large losses in accident years 2013 and prior.~~

~~Favorable development for other coverages was due to better than expected claim frequency in property coverages provided to Specialty customers in accident year 2014.~~

~~The following table and discussion present further detail of the development recorded for the Commercial segment:~~

~~Favorable development for commercial auto was primarily due to lower than expected severities in accident years 2012 through 2015.~~

~~Unfavorable development for general liability was primarily due~~ to an increase in ~~reported claims prior to the closing~~management liability frequency of ~~the three year window set forth by the Minnesota Child Victims Act in accident years 2006 and prior.~~

Favorable development for workers’ compensation was primarily driven by lower than expected frequencies in accident years 2009 through 2014, partially offset by the estimated impact of recent Florida court rulings in accident years 2008 through 2015.

~~Favorable development for property and other was primarily due to better than expected loss emergence on catastrophe events in accident year 2014.~~

Favorable development for commercial auto was primarily due to favorable settlements on claims in accident years 2010 through ~~2014 and lower than expected severities in accident years 2012 through 2015.~~2014.

Favorable development for general liability was primarily due to better than expected claim settlements in accident years 2012 through 2014 and better than expected severity on umbrella claims in accident years 2010 through 2013. This was partially offset by unfavorable development related to an increase in reported claims prior to the closing of the three year window set forth by the Minnesota Child Victims Act in accident years 2006 and prior.

Unfavorable development for workers’ compensation was ~~primarily~~ due to ~~higher than expected severity~~a reduction in estimated recoveries on war hazard claims for Defense Base Act contractors, ~~and the estimated impact of recent Florida court rulings in accident years 2008 through 2015. This~~which was partially offset by favorable development related to lower than expected frequencies ~~related to~~for the small and middle market businesses in accident years 2009 through 2014.

Unfavorable development for property and other was primarily due to higher than expected severity from a 2015 catastrophe event. This was offset by favorable development primarily due to better than expected loss frequency in accident years 2013 through 2015.

~~Unfavorable development for workers’ compensation was primarily due to higher than expected severity related to Defense Base Act contractors in accident years 2008 through 2013.~~

Favorable development for property and other was primarily due to better than expected loss emergence from 2012 and 2014 catastrophe events and better than expected frequency of large claims in accident year 2014.

~~The nine months also included unfavorable loss development related to an extra contractual obligation loss and losses associated with premium development.~~

~~The following table and discussion present further detail of the development recorded for the International segment:~~

Favorable development for other professional liability was primarily due to favorable settlements on claims in accident years 2013 and prior. This was largely offset by higher than expected unfavorable large loss emergence in accident years 2014 and 2015.

~~Favorable development for property and marine was primarily due to favorable emergence of expected losses on a specific claim relating to the December 2015 United Kingdom (“U.K.”) Floods.~~

~~Favorable development in medical professional liability was due to better than expected loss emergence on accident years 2011 to 2013.~~

~~Favorable development in other professional liability was due to better than expected large loss emergence in accident years 2011 and prior.~~

~~Favorable development in liability was due to better than expected large loss emergence in accident years 2012 and prior.~~

~~Favorable development in property and marine was due to better than expected individual large loss emergence and favorable settlements on large claims in accident years 2013 and 2014.~~

Unfavorable development for other professional liability was primarily due to higher than expected large loss emergence in accident years 2011 through 2015, partially offset by favorable settlements on claims in accident years 2013 and prior.

~~Favorable development for liability was primarily due to better than expected severity in accident years 2013 and prior.~~

~~Favorable development for property and marine was primarily due to favorable emergence of expected losses on a specific claim relating to the December 2015 U.K. Floods.~~

Favorable development for other coverages was primarily due to better than expected claim frequency in property coverages in accident year 2015, better than expected loss emergence in accident years 2013 through 2015 for property and other, better than expected severity in accident years 2013 and prior for liability and better than expected severity in auto liability in accident years 2011 through 2015.

~~Favorable~~ This favorable development ~~in medical professional liability~~ was partially offset by unfavorable development which was primarily due to ~~better~~higher than expected ~~loss emergence on accident years 2011 to 2013.~~

~~Favorable development in~~severity from a 2015 catastrophe event for property and other ~~professional liability was due to better~~and higher than expected large loss emergence in accident years 2011 ~~and prior.~~

~~Favorable development in liability was due to better than expected large loss emergence in accident years 2012 and prior.~~

~~Favorable development in property and marine was due to better than expected individual large loss emergence and favorable settlements on large claims in accident years 2013 and 2014.~~

~~Unfavorable development in~~through 2015 for other ~~is due to higher than expected large losses in financial institutions and political risk, primarily in accident year 2014.~~professional liability.

In 2010, Continental Casualty Company (“CCC”) together with several of CNA’s insurance subsidiaries completed a transaction with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., under which substantially all of CNA’s legacy A&EP liabilities were ceded to NICO through a loss portfolio transfer ~~(loss portfolio transfer or “LPT”~~(“LPT”). At the effective date of the transaction, CNA ceded approximately $1.6 billion of net A&EP claim and allocated claim adjustment expense reserves to NICO under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion. The $1.6 billion of claim and allocated claim adjustment expense reserves ceded to NICO was net of $1.2 billion of ceded claim and allocated claim adjustment expense reserves under existing third party reinsurance contracts. The NICO LPT aggregate reinsurance limit also covers credit risk on the existing third party reinsurance related to these liabilities. CNA paid NICO a reinsurance premium of $2.0

party reinsurance receivables related to A&EP claims with a net book value of $215 million, resulting in total consideration of $2.2 billion.

~~Through December 31, 2013,~~Subsequent to the effective date of the LPT, CNA recognized ~~$0.9 billion of~~adverse prior year development on its A&EP reserves which resulted in additional amounts ceded under the LPT. As a result, the cumulative amounts ceded under the LPT exceeded the $2.2 billion consideration paid, resulting in the NICO LPT moving into a gain position, requiring ~~deferred~~retroactive reinsurance accounting. Under retroactive reinsurance accounting, ~~treatment. This~~this gain is deferred ~~gain is~~and only recognized in earnings in proportion to actual paid recoveries under the LPT. Over the life of the contract, there is no economic impact as long as any additional losses incurred are within the limit of the LPT. In a period in which CNA recognizes a change in the estimate of A&EP reserves that increases the amounts ceded ~~incurred~~under the LPT, the proportion of actual paid recoveries to total ceded losses is ~~recognized,~~impacted and the change toin the deferred gain is ~~cumulatively~~ recognized in earnings as if the revised estimate of ceded losses was available at the effective date of the LPT. The effect of the deferred retroactive reinsurance benefit is recorded in Insurance claims and policyholders’ benefits in the Consolidated Condensed Statements of Income.

The following table presents the impact of the loss portfolio transfer on the Consolidated Condensed Statements of Income.


	Three Months Ended September 30,				Nine Months Ended September 30,
									Three Months Ended						Six Months Ended
	2016		2015		2016		2015		June 30,						June 30,
									2017			2016			2017			2016
(In millions)

Net A&EP adverse development before consideration of LPT	$	-	$	-	$	200	$	150	$	-		$	-		$	60		$	200
Provision for uncollectible third party reinsurance on A&EP
Retroactive reinsurance benefit recognized										(3	)		(9	)		(43	)		(82	)
Pretax impact of A&EP reserve development and the LPT									$	(3	)	$	(9	)	$	17		$	118

Additional amounts ceded under LPT		-		-		200		150
Retroactive reinsurance benefit recognized		(12)		(4)		(94)		(75)

Pretax impact of unrecognized deferred retroactive reinsurance benefit	$	(12)	$	(4)	$	106	$	75

~~CNA completed its reserve review of A&EP reserves in the first quarter of 2016.~~ Based upon CNA’s annual A&EP reserve review, net unfavorable prior year development ~~prior to~~of $60 million and $200 million was recognized before consideration of cessions to the LPT for the six months ended June 30, 2017 and 2016. The 2017 unfavorable development was driven by modestly higher anticipated payouts on claims from known sources of ~~$200 million was recognized.~~asbestos exposure. The 2016 unfavorable development was driven by an increase in anticipated future expenses associated with determination of coverage, higher anticipated payouts associated with a limited number of historical accounts having significant asbestos exposures and higher than expected severity on pollution claims. ~~This~~While this unfavorable development was ceded to NICO under the LPT, ~~however~~ CNA’s reported earnings in both periods were negatively affected due to the application of retroactive reinsurance accounting, as only a portion of the additional amounts ceded under the LPT were recognized in that quarter. All amounts recognized related to the LPT are recorded within Insurance claims and policyholders’ benefits in the Consolidated Condensed Statement of Income.accounting.

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, the cumulative amounts ceded under the LPT were ~~$2.8~~$2.9 billion and ~~$2.6~~$2.8 billion. The unrecognized deferred retroactive reinsurance benefit was ~~$347~~$351 million and ~~$241~~$334 million as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015.~~2016.

NICO established a collateral trust account as security for its obligations to CNA. The fair value of the collateral trust account was ~~$2.5 billion and~~ $2.8 billion as of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015.~~2016. In addition, Berkshire Hathaway Inc. guaranteed the payment obligations of NICO up to the ~~full~~ aggregate reinsurance limit as well as certain of NICO’s performance obligations under the trust agreement. NICO is responsible for claims handling and billing and collection from third-party reinsurers related to CNA’s A&EP claims.

~~The components of U.S. and foreign income before income tax and a reconciliation between the federal income tax expense at statutory rates and the actual income tax expense is as follows:~~

~~The effective tax rate is impacted by the change in the relative components of earnings or losses generated in foreign tax jurisdictions with lower tax rates.~~

As of September 30, 2016, a valuation allowance of $61 million was established for the future tax benefit of foreign tax credits in the U.S. which Diamond Offshore no longer expects to be able to realize prior to their expiration.

In the first quarter of 2016, CNA completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due March 1, 2026 and used the net proceeds to repay the entire $350 million outstanding principal amount of its 6.5% senior notes due August 15, 2016.

In the first quarter of 2016, Diamond Offshore cancelled its commercial paper program and repaid the $287 million in commercial paper outstanding at December 31, 2015 with proceeds from Eurodollar loans under its revolving credit agreement. As of September 30, 2016, there was $182 million outstanding under the revolving credit agreement.

In May of 2016, Boardwalk Pipeline completed a public offering of $550 million aggregate principal amount of 6.0% senior notes due June 1, 2026 and used the proceeds to reduce borrowings under its revolving credit facility.

In March of 2016, the Company completed a public offering of $500 million aggregate principal amount of 3.8% senior notes due April 1, 2026 and repaid in full the entire $400 million aggregate principal amount of its 5.3% senior notes at maturity.

The tables below ~~display~~present the changes in ~~Accumulated other comprehensive income (“AOCI”)~~AOCI by component for the three and ~~nine~~six months ended ~~September~~June 30, ~~2015~~2016 and ~~2016:~~2017:

   OTTI Gains
(Losses)    Unrealized
Gains (Losses)
on Investments    Cash Flow
Hedges    Pension
Liability    Foreign
Currency
Translation    Total
Accumulated
Other
Comprehensive
Income (Loss)

(In millions)
Balance, January 1, 2015
   $        32             $        846             $        (6)            $        (641)            $            49             $        280
Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $1, $(19) and $0
   (3)            (321)            (2)            36             (100)            (390)
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(22), $(2), $(9) and $0
      29             7             15                51

Other comprehensive income (loss)
   (3)            (292)            5             51             (100)            (339)
Issuance of equity securities by subsidiary
            1                1
Amounts attributable to noncontrolling interests
   1             30             (2)            (4)            10             35

Balance, September 30, 2015
   $        30             $        584             $        (3)            $        (593)            $         (41)            $        (23)

Balance, January 1, 2016
   $        24             $        347             $        (3)            $        (649)            $         (76)            $      (357)
Other comprehensive income (loss) before reclassifications, after tax of $(5), $(304), $0, $0 and $0
   9             608                   (58)            559
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $12, $0, $(11) and $0
   (2)            (17)            2             20                3

Other comprehensive income (loss)
   7             591             2             20          �� (58)            562
Amounts attributable to noncontrolling interests
   (1)            (62)            (1)            (3)            6             (61)

Balance, September 30, 2016
   $        30             $        876             $        (2)            $        (632)            $       (128)            $        144


																					Total
																					Accumulated
	OTTI				Unrealized												Foreign				Other
	Gains				Gains (Losses)				Cash Flow				Pension				Currency				Comprehensive
	(Losses)				on Investments				Hedges				Liability				Translation				Income (Loss)
(In millions)

Balance, January 1, 2016		$	24			$	347			$	(3	)		$	(649	)		$	(76	)		$	(357	)
Other comprehensive income (loss) before reclassifications, after tax of $(1), $(272), $0, $0 and $0			2				539												(34	)			507
Reclassification of losses from accumulated other comprehensive income, after tax of $(1), $(1), $0, $(7) and $0			2				10				1				13								26
Other comprehensive income (loss)			4				549				1				13				(34	)			533
Amounts attributable to noncontrolling interests							(58	)							(3	)			4				(57	)
Balance, June 30, 2016		$	28			$	838			$	(2	)		$	(639	)		$	(106	)		$	119


Balance, January 1, 2017		$	27			$	576			$	(2	)		$	(646	)		$	(178	)		$	(223	)
Other comprehensive income (loss) before reclassifications, after tax of $0, $(110), $0, $0 and $0			(1	)			193				(1	)							53				244
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $24, $0, $(7) and $0			(3	)			(49	)			1				15								(36	)
Other comprehensive income (loss)			(4	)			144				-				15				53				208
Amounts attributable to noncontrolling interests							(15	)							(1	)			(5	)			(21	)
Balance, June 30, 2017		$	23			$	705			$	(2	)		$	(632	)		$	(130	)		$	(36	)

Amounts reclassified from AOCI shown above are reported in Net income (loss) as follows:

Loews purchased 0.3 million shares of CNA common stock at an aggregate cost of $8 million during the nine months ended September 30, 2016. The Company’s percentage ownership interest in CNA remained unchanged as a result of these transactions, at 90%. The Company’s purchase price of the shares was lower than the carrying value of its investment in CNA, resulting in an increase to Additional paid-in capital (“APIC”) of $3 million.

The Company repurchased ~~3.0~~0.1 million and ~~16.3~~2.6 million shares of Loews common stock at aggregate costs of ~~$115~~$6 million and ~~$633~~$98 million during the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016.

The Company has severalnon-contributory defined benefit plans and postretirement benefit plans covering eligible employees and retirees.

The following table presents the components of net periodic benefit cost for the plans:


	Pension Benefits

	Three Months Ended September 30,				Nine Months Ended September 30,				Pension Benefits
									Three Months Ended				Six Months Ended
	2016		2015		2016		2015		June 30,				June 30,
									2017		2016		2017		2016
(In millions)

Service cost	$	2	$	2	$	6	$	10	$	2	$	2	$	4	$	4
Interest cost		33		31		97		95		29		32		59		64
Expected return on plan assets		(45)		(48)		(133)		(145)		(43)		(44)		(86)		(88)
Amortization of unrecognized net loss		11		9		34		32		11		12		22		23
Settlement charge		1		2		3		2		1		1		3		2

Net periodic benefit cost	$	2	$	(4)	$	7	$	(6)	$	-	$	3	$	2	$	5


	Other Postretirement Benefits

	Three Months Ended September 30,				Nine Months Ended September 30,				Other Postretirement Benefits
									Three Months Ended				Six Months Ended
	2016		2015		2016		2015		June 30,				June 30,
									2017		2016		2017		2016
(In millions)

Service cost	$	1	$	1	$	1	$	1
Interest cost		1		1		2		2					$	1	$	1
Expected return on plan assets		(1)		(1)		(3)		(3)	$	(1)	$	(1)		(2)		(2)
Amortization of unrecognized prior service benefit		(1)		(3)		(3)		(8)				(1)		(1)		(2)
Amortization of unrecognized net loss								1

Net periodic benefit cost	$	-	$	(2)	$	(3)	$	(7)	$	(1)	$	(2)	$	(2)	$	(3)

The Company’s segments are CNA Financial’s core property and casualty commercial insurance operations which include Specialty, Commercial and International; CNA’s Other Non-Core operations; Diamond Offshore; Boardwalk Pipeline; Loews Hotels; and Corporate and other. The Company’s reportable segments are primarily based on its individual operating subsidiaries. Each of the principal operating subsidiaries is 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. For additional disclosures regarding the composition of the Company’s segments see Note 20 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

~~The following tables present the Company’s consolidated revenues and income (loss) by business segment:~~

~~(a)~~

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

In September of 2016, a class action lawsuit was filed against CCC, Continental Assurance Company (“CAC”), CNA, the Investment Committee of the CNA 401(k) Plus Plan, The Northern Trust Company and John Does1-10 ~~(“Defendants”~~ (collectively “Defendants”) ~~over~~related to the CNA 401(k) Plus Plan. The complaint alleges that Defendants breached fiduciary duties to the CNA 401(k) Plus Plan and caused prohibited transactions in violation of ~~The~~the Employee Retirement Income Security Act of 1974 when the CNA 401(k) Plus Plan’s Fixed Income Fund’s annuity contract with CAC was canceled. The plaintiff alleges he and a proposed class of the CNA 401(k) Plus Plan participants who had invested in the Fixed Income Fund suffered lower returns in their CNA 401(k) Plus Plan investments as a consequence of these alleged violations and seeks relief on behalf of the putative class. ~~CNA has only recently begun evaluating the lawsuit as this~~This litigation is in its ~~preliminary~~early stages, and as of yet no class has been certified. CCC and the other ~~Defendants~~defendants are contesting the ~~case and the Company currently is unable~~case. The parties are scheduled to ~~predict the final outcome or the impact on its financial condition, results~~attend a mediation in September of ~~operations or cash flows. As of September 30, 2016,~~2017.

CNA believes the likelihood of loss is reasonably ~~possible, but~~possible; however, given the ~~amount~~status of the litigation, the novel issues raised by the allegations and the uncertainty as to how to assess potential damages, management is currently unable to predict the final outcome. The Plan trustees have provided notice to their fiduciary coverage insurance carriers. Based on CNA’s current assessment and consideration of available insurance coverage, CNA does not believe that the ultimate resolution of this matter will have a material impact on its condensed consolidated financial statements; however, the timing of recognition of loss, if any, ~~cannot be estimated at this stage of the litigation.~~and insurance recovery, if any, may differ.

The Company and its subsidiaries are parties to other litigation arising in the ordinary course of business. The outcome of this litigation will not, in the opinion of management, materially affect the Company’s results of operations or equity.

In the course of selling business entities and assets to third parties, CNA agreed to guarantee the performance of certain obligations of a previously owned ~~subsidiary~~subsidiaries and to indemnify purchasers for losses arising out of breaches of representations and warranties with respect to the business entities or assets sold, including, in certain cases, losses arising from undisclosed liabilities or certain named litigation. Such guarantee and indemnification agreements in effect for sales of business entities, assets and third party loans may include provisions that survive

indefinitely. As of ~~September~~June 30, ~~2016,~~2017, the aggregate amount related to quantifiable guarantees was ~~$375~~$434 million and the aggregate amount related to quantifiable indemnification agreements was ~~$258~~$254 million. ~~Should~~In certain cases, should CNA be required to make payments under ~~the~~any such guarantee, it would have the right to seek reimbursement ~~in certain cases~~ from an affiliate of a previously owned subsidiary.

In addition, CNA has agreed to provide indemnification to third party purchasers for certain losses associated with sold business entities or assets that are not limited by a contractual monetary amount. As of ~~September~~June 30, ~~2016,~~2017, CNA had outstanding unlimited indemnifications in connection with the sales of certain of its business entities or assets that included tax liabilities arising prior to a purchaser’s ownership of an entity or asset, defects in title at the time of sale, employee claims arising prior to closing and in some cases losses arising from certain litigation and undisclosed liabilities. Certain provisions of the indemnification agreements survive indefinitely while others survive until the applicable statutes of limitation expire, or until the agreed upon contract terms expire.

CNA also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary. As of ~~September~~June 30, ~~2016,~~2017, the potential amount of future payments CNA could be required to pay under these guarantees was approximately ~~$1.9~~$1.8 billion, which will be paid over the lifetime of the annuitants. CNA does not believe any payment is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.

In prior quarters, CNA identified rating errors related to its multi-peril package product and workers’ compensation policies within its Small Business unit and CNA is in the process of voluntarily issuing premium refunds related to affected policies. After the rating errors were identified, written and earned premium have been reported net of any impact from the premium rate adjustments. Premium development recognized as a result of the rating errors was favorable of $1 million and adverse of $37 million for the three and six months ended June 30, 2017.

The estimated refund liability for the multi-peril product and workers’ compensation policies as of June 30, 2017 was $96 million. CNA has reduced pretax income by $1 million and $6 million for the three and six months ended June 30, 2017 for interest due to policyholders on the aggregate refund amounts.

The amount of the refund and corresponding liability will continue to increase until required changes to the automated rating processes are fully implemented. The required changes were implemented in the second quarter of 2017 for the multi-peril product and are expected to be implemented by the end of the third quarter of 2017 for workers’ compensation policies. Any fines or penalties related to the foregoing are reasonably possible, but are not expected to be material to the Company’s financial statements.

The Company has five reportable segments comprised of its four individual operating subsidiaries, CNA, Diamond Offshore, Boardwalk Pipeline and Loews Hotels & Co; and the Corporate segment. Each of the 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. The operations of Consolidated Container since the acquisition date are included in the Corporate segment. For additional disclosures regarding the composition of the Company’s segments, see Note 20 of the Consolidated Financial ~~Information~~Statements in the Company’s Annual Report on Form10-K for the year ended December 31, 2016.

The following ~~schedules~~tables present the Company’s consolidating balance sheet information at September 30, 2016 and December 31, 2015, and consolidating statements of income information for the nine months ended September 30, 2016 and 2015. These schedules present the individual subsidiariesreportable segments of the Company and their contribution to the Consolidated Condensed ~~Financial Statements.~~Statements of Income. 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.

~~Consolidating Balance Sheet Information~~Statements of Income by segment are presented in the following tables.

~~Loews Corporation~~


Three Months Ended June 30, 2016	CNA Financial			Diamond Offshore			Boardwalk Pipeline			Loews Hotels & Co			Corporate			Total
(In millions)

Revenues:

Insurance premiums	$	1,730														$	1,730
Net investment income		502											$	85			587
Investment gains (losses)		13		$	(12	)											1
Contract drilling revenues					357												357
Other revenues		103			33		$	308		$	189			(1	)		632
Total		2,348			378			308			189			84			3,307

Expenses:

Insurance claims and policyholders’ benefits		1,339															1,339
Amortization of deferred acquisition costs		305															305
Contract drilling expenses					198												198
Other operating expenses		376			825			198			180			32			1,611
Interest		38			24			45			5			18			130
Total		2,058			1,047			243			185			50			3,583
Income (loss) before income tax		290			(669	)		65			4			34			(276	)
Income tax (expense) benefit		(80	)		99			(16	)		(3	)		(12	)		(12	)	��
Net income (loss)		210			(570	)		49			1			22			(288	)
Amounts attributable to noncontrolling interests		(21	)		276			(32	)								223
Net income (loss) attributable to Loews Corporation	$	189		$	(294	)	$	17		$	1		$	22		$	(65	)

~~Consolidating Balance Sheet Information~~


Six Months Ended June 30, 2017	CNA Financial			Diamond Offshore			Boardwalk Pipeline			Loews Hotels & Co			Corporate			Total
(In millions)

Revenues:

Insurance premiums	$	3,379														$	3,379
Net investment income		1,020		$	1								$	61			1,082
Investment gains		77															77
Contract drilling revenues					756												756
Other revenues		219			19		$	686		$	348			93			1,365
Total		4,695			776			686			348			154			6,659

Expenses:

Insurance claims and policyholders’ benefits		2,573															2,573
Amortization of deferred acquisition costs		617															617
Contract drilling expenses					400												400
Other operating expenses		707			305			455			296			168			1,931
Interest		83			55			90			13			40			281
Total		3,980			760			545			309			208			5,802

Income (loss) before income tax		715			16			141			39			(54	)		857
Income tax (expense) benefit		(182	)		21			(28	)		(19	)		20			(188	)
Net income (loss)		533			37			113			20			(34	)		669
Amounts attributable to noncontrolling interests		(55	)		(18	)		(70	)								(143	)
Net income (loss) attributable to Loews Corporation	$	478		$	19		$	43		$	20		$	(34	)	$	526


Nine Months Ended September 30, 2015	CNA Financial		Diamond Offshore		Boardwalk Pipeline		Loews Hotels		Corporate and Other		Eliminations		Total

Six Months Ended June 30, 2016															CNA Financial			Diamond Offshore			Boardwalk Pipeline			Loews Hotels & Co			Corporate			Total
(In millions)

Revenues:

Insurance premiums	$	5,173											$	5,173	$	3,429														$	3,429
Net investment income		1,412	$	2	$	1			$	4				1,419		937											$	72			1,009
Intercompany interest and dividends										733	$	(733)		-
Investment losses		(42)												(42)		(15	)	$	(12	)											(27	)
Contract drilling revenues				1,816										1,816					801												801
Other revenues		289		49		924	$	452		2				1,716		200			60		$	655		$	352			1			1,268

Total		6,832		1,867		925		452		739		(733)		10,082		4,551			849			655			352			73			6,480


Expenses:

Insurance claims and policyholders’ benefits		4,008												4,008		2,747															2,747
Amortization of deferred acquisition costs		936												936		612															612
Contract drilling expenses				971										971					411												411
Other operating expenses		1,058		867		628		412		61				3,026		756			974			403			328			57			2,518
Interest		117		71		134		15		56				393		88			50			88			11			36			273

Total		6,119		1,909		762		427		117		-		9,334		4,203			1,435			491			339			93			6,561

Income (loss) before income tax		713		(42)		163		25		622		(733)		748		348			(586	)		164			13			(20	)		(81	)
Income tax (expense) benefit		(162)		(6)		(33)		(10)		41				(170)		(71	)		100			(35	)		(9	)		7			(8	)

Net income (loss)		551		(48)		130		15		663		(733)		578		277			(486	)		129			4			(13	)		(89	)
Amounts attributable to noncontrolling interests		(56)		14		(75)								(117)		(28	)		235			(81	)								126

Net income (loss) attributable to Loews Corporation	$	495	$	(34)	$	55	$	15	$	663	$	(733)	$	461	$	249		$	(251	)	$	48		$	4		$	(13	)	$	37

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Management’s discussion and analysis of financial condition and results of operations (“MD&A”) should be read in conjunction with our Consolidated Condensed Financial Statements included inunder Item 1 of this Report, Risk Factors included inunder Part II, Item 1A of this Report, and the Consolidated Financial Statements, Risk Factors, and MD&A included in our Annual Report on Form10-K for the year ended December 31, ~~2015.~~2016. This MD&A is comprised of the following sections:

~~We are a holding company. Our subsidiaries are engaged in the following lines of business:~~

Unless the context otherwise requires, references in this Report to “Loews Corporation,” “the Company,” “Parent Company,” “we,” “our,” “us” or like terms refer to the business of Loews Corporation excluding its subsidiaries.

Net income for the three months ended September 30, 2016 was $327 million, or $0.97 per share, compared to net income of $182 million, or $0.50 per share, in the prior year period. Net income for the nine months ended September 30, 2016 was $364 million, or $1.08 per share, compared to $461 million, or $1.25 per share, in the prior year period.

Results include asset impairment charges at Diamond Offshore of $267 million (after tax and noncontrolling interests) for the nine months ended September 30, 2016 and $159 million (after tax and noncontrolling interests) for the nine months ended September 30, 2015.

~~Book value per share increased to $54.22 at September 30, 2016 from $51.67 at December 31, 2015.~~

Net income attributable to Loews Corporation for the three months ended September 30, 2016 increased $145 million as compared to the prior year period due to higher earnings at CNA and improved results from the parent company investment portfolio. These increases were partially offset by lower earnings at Diamond Offshore and Boardwalk Pipeline.

CNA’s earnings increased due to higher net investment income driven by limited partnership investments as well as realized investment gains in the third quarter of 2016 compared to losses in the prior year period. These increases were partially offset by lower favorable net prior year reserve development and higher underwriting expenses, which included certain non-recurring costs related to information technology and employee termination costs.

Diamond Offshore’s earnings decreased due to a substantial reduction in the number of rigs operating as compared to the year ago period and significant unscheduled rig downtime, partially offset by lower depreciation expense resulting mainly from the asset impairment charges incurred in prior periods.

Boardwalk Pipeline’s earnings were lower due to a non-recurring franchise tax refund received in last year’s third quarter. Excluding the tax refund, Boardwalk Pipeline’s earnings were higher due to revenues from new growth projects recently placed in service and an increase in storage and parking and lending revenues, partially offset by an increase in interest expense.

~~Loews Hotels’ earnings increased primarily due to higher earnings from joint venture properties.~~

~~Income generated by the parent company investment portfolio improved due to higher income from limited partnership investments and equity securities.~~

Net income attributable to Loews Corporation for the nine months ended September 30, 2016 decreased primarily due to lower earnings at Diamond Offshore partially offset by improved results at CNA, Boardwalk Pipeline and from the parent company investment portfolio.

CNA’s earnings increased due to higher net investment income driven by limited partnership investments, realized investment gains in 2016 as compared to losses in 2015, and higher favorable net prior year reserve development, partially offset by higher underwriting expenses.

Diamond Offshore’s earnings decreased primarily due to increased asset impairment charges. Excluding these impairment charges, year-over-year earnings decreased as a result of a substantial reduction in the number of operating rigs, partially offset by revenue earned by newbuild drillships and lower depreciation expense as a result of the asset impairment charges.

Boardwalk Pipeline’s earnings increased due to new rates in effect following the Gulf South rate case, the return to service of the Evangeline pipeline, and growth projects recently placed in service.

~~Loews Hotels’ results decreased primarily due to an impairment charge related to a joint venture property.~~

~~Income generated by the parent company investment portfolio improved due to higher income from equity securities.~~

We are a holding company and ~~derive substantially all~~have five reportable segments comprised of our ~~cash flow from~~four individual operating subsidiaries, CNA Financial Corporation (“CNA”), Diamond Offshore Drilling, Inc. (“Diamond Offshore”), Boardwalk Pipeline Partners, LP (“Boardwalk Pipeline”) and Loews Hotels Holding Corporation (“Loews Hotels & Co”); and our ~~subsidiaries.~~ Corporate segment. The results of operations of Consolidated Container Company LLC since the acquisition date are included in the Corporate segment. Each of our operating subsidiaries is 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.

We rely upon our invested cash balances and distributions from our subsidiaries to generate the funds necessary to meet our obligations and to declare and pay any dividends to our shareholders. The ability of our subsidiaries to pay dividends is subject to, among other things, the availability of sufficient earnings and funds in such subsidiaries, applicable state laws, including in the case of the insurance subsidiaries of CNA, laws and rules governing the payment of dividends by regulated insurance companies (see Note 13 of the Consolidated Financial Statements in our Annual Report on Form10-K for the year ended December 31, 2016) and compliance with covenants in their respective loan agreements. Claims of creditors of our subsidiaries will generally have priority as to the assets of such subsidiaries over our claims and those of our creditors and shareholders.

The following table summarizes net income (loss) attributable to ~~make judgments that affect~~Loews Corporation by segment and net income (loss) per share attributable to Loews Corporation for the ~~amounts reflected~~three and six months ended June 30, 2017 and 2016:

Net income attributable to Loews Corporation for the three months ended June 30, 2017 was $231 million, or $0.69 per share, compared to a net loss of $65 million, or $0.19 per share in the ~~Consolidated Condensed Financial Statements. Such estimates and judgments necessarily involve varying, and possibly significant, degrees of uncertainty. Accordingly, certain amounts currently recorded~~2016 period. Net income attributable to Loews Corporation for the six months ended June 30, 2017 was $526 million, or $1.56 per share, compared to $37 million, or $0.11 per share, in the ~~financial statements will likely be adjusted~~2016 period. The results for the three and six months ended June 30, 2017 include asset impairment charges at Diamond Offshore of $23 million as compared with $267 million (both after tax and noncontrolling interests) in the ~~future based on new available information~~2016 periods.

Excluding the impairment charges at Diamond Offshore, net income attributable to Loews Corporation increased $52 million and changes in other facts and circumstances. See the Critical Accounting Estimates section and the Results of Operations by Business Segment – CNA Financial – Reserves – Estimates and Uncertainties section of our MD&A included under Item 7 of our Annual Report on Form 10-K$245 million for the ~~year~~three and six months ended ~~December 31, 2015 for further information.~~

~~RESULTS OF OPERATIONS BY BUSINESS SEGMENT~~June 30, 2017 as compared with the 2016 periods due to higher earnings at CNA, Diamond Offshore and Loews Hotels & Co. These increases were partially offset by lower earnings at Boardwalk Pipeline and lower income generated by the parent company investment portfolio.

Unless the context otherwise requires, references herein to net operating income (loss), net realized investment results and net income (loss) reflect amounts attributable to Loews Corporation shareholders.

On May 22, 2017, we completed the previously announced acquisition of CCC Acquisition Holdings, Inc. for $1.2 billion, subject to closing adjustments. CCC Acquisition Holdings, Inc., through its wholly owned subsidiary, Consolidated Container Company LLC (“Consolidated Container”), is a rigid plastic packaging and recycled resins manufacturer and provides packaging solutions to end markets such as beverage, food and household chemicals through a network of manufacturing locations across North America.

The following table summarizes the results of operations for CNA for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 as presented in Note 1311 of the Notes to Consolidated Condensed Financial Statements included inunder Item 1 of this Report. For further discussion of Net investment income and Net realized investment results, see the Investments section of this MD&A.


	Three Months Ended September 30,						Nine Months Ended September 30,
												Three Months Ended						Six Months Ended
	2016			2015			2016			2015		June 30,						June 30,
												2017			2016			2017			2016
(In millions)

Revenues:
Insurance premiums	$	1,767		$	1,751		$	5,196		$	5,173	$	1,734		$	1,730		$	3,379		$	3,429
Net investment income		524			354			1,461			1,412		475			502			1,020			937
Investment gains (losses)		45			(50	)		30			(42)		43			13			77			(15	)
Other revenues		97			98			297			289		114			103			219			200

Total		2,433			2,153			6,984			6,832		2,366			2,348			4,695			4,551

Expenses:
Insurance claims and policyholders’ benefits		1,202			1,200			3,949			4,008		1,280			1,339			2,573			2,747
Amortization of deferred acquisition costs		314			319			926			936		312			305			617			612
Other operating expenses		402			361			1,158			1,058		364			376			707			756
Interest		39			39			127			117		40			38			83			88

Total		1,957			1,919			6,160			6,119		1,996			2,058			3,980			4,203

Income before income tax		476			234			824			713		370			290			715			348
Income tax expense		(132	)		(55	)		(203	)		(162)		(98	)		(80	)		(182	)		(71	)

Net income		344			179			621			551		272			210			533			277
Amounts attributable to noncontrolling interests		(36	)		(18	)		(64	)		(56)		(28	)		(21	)		(55	)		(28	)

Net income attributable to Loews Corporation	$	308		$	161		$	557		$	495	$	244		$	189		$	478		$	249

Three Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

Net income increased ~~$147~~$55 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period, ~~in 2015. The increase was~~ primarily due to improved current accident year underwriting results and higher net realized investment ~~income and investment gains~~results, driven by ~~increased limited partnership returns,~~ higher net realized investment gains on sales of securities and lower ~~other than temporary~~other-than-temporary impairment (“OTTI”) ~~losses. In addition, there were improved results~~losses recognized in ~~the long term care business.~~earnings. These increases were partially offset by lower ~~favorable~~net investment income driven primarily by limited partnership investments. Favorable net prior year ~~reserve~~ development of ~~$137~~$63 million ~~for~~and $106 million was recorded in the three months ended ~~September~~June 30, ~~2016 as compared~~2017 and 2016. Further information on net prior year development is included in Note 6 of the Notes to ~~$180 million in 2015 and higher underwriting expenses.~~Consolidated Condensed Financial Statements included under Item 1.

In the third quarter of 2016, CNA completed a comprehensive organization review intended to improve effectiveness and efficiency. Termination costs associated with headcount reductions increased third quarter expenses, primarily underwriting expenses, as well as unallocated loss adjustment expenses by an aggregate amount of $11 million. The annual savings from this reduction of salaries and related costs is estimated to be approximately $50 million. CNA expects this reduction in expenses to contribute to a half of a point reduction in its 2017 property and casualty expense ratio.

~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

Net income increased ~~$62~~$229 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period ~~in 2015~~ primarily due to higher net investment income, driven by limited partnership investments and improved underwriting results despite less favorable net prior year loss reserve development. In addition, results reflect the favorable period over period effect of foreign currency exchange gains and losses and lower adverse prior year reserve development ~~of $309 million for~~in the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 under the 2010 A&EP loss portfolio transfer as compared ~~to $198 million in 2015. Net income~~with the 2016 period. Earnings also ~~increased due to higher~~benefited from improved net realized investment ~~gains~~results driven by higher net realized investment gains on sales of securities and lower OTTI losses recognized in ~~earnings~~earnings. Favorable net prior year development of $95 million and ~~improved results~~$172 million was recorded in the six months ended June 30, 2017 and 2016.

CNA’s core business is its property and casualty insurance operations that include its Specialty, Commercial and International lines of business. CNA’snon-core operations include its long term care ~~business. Results~~business that is in ~~2016~~run-off, certain corporate expenses, including interest on CNA’s corporate debt, and ~~2015 were negatively affected by~~certain property and casualty businesses inrun-off, including CNA Re and A&EP. CNA’s products and services are primarily marketed through independent agents, brokers and managing general underwriters to a ~~$74 million (after tax~~wide variety of customers, including small, medium and ~~noncontrolling interests) charge~~large businesses, insurance companies, associations, professionals and ~~a $49 million (after tax~~other groups. We believe the presentation of CNA as one reportable segment is appropriate in accordance with applicable accounting standards on segment reporting. However, for purposes of this discussion and noncontrolling interests) charge related to the application of retroactive reinsurance accounting to adverse reserve development ceded under the 2010 asbestos and environmental pollution (“A&EP”) loss portfolio transfer, as further discussed in Note 5analysis of the ~~Notes~~results of operations, we provide greater detail with

respect to ~~Consolidated Condensed Financial Statements included under Item 1. Net income also decreased due~~CNA’s core andnon-core operations to ~~higher underwriting expenses, a higher level~~enhance the reader’s understanding and to provide further transparency into key drivers of ~~large losses and catastrophe losses and $17 million of costs associated with~~CNA’s financial results.

In assessing CNA’s insurance operations, the ~~organization review discussed in the three month comparison above.~~

~~CNA~~Company utilizes the net operating income (loss) financial ~~measure to monitor its operations.~~measure. Net operating income (loss) is calculated by excluding from net income (loss) the after tax and noncontrolling interests effects of (i) net realized investment gains or losses, (ii) income or loss from discontinued operations and (iii) any cumulative effects of changes in accounting guidance. The calculation of net operating income excludes net realized investment gains or losses because net realized investment gains or losses are largely discretionary, except for some losses related to OTTI, and are generally driven by economic factors that are not necessarily consistent with key drivers of underwriting performance, and are therefore not considered an indication of trends in insurance operations. Net operating income (loss) is deemed to be anon-GAAP financial ~~measure. Unless the context otherwise requires, references~~measure and management believes this measure is useful to ~~net operating income (loss), net realized investment results and net income (loss) reflect amounts attributable~~investors as management uses this measure to ~~Loews Corporation shareholders.~~assess financial performance.

Three of CNA’s business segments: Specialty, Commercial and International, are aggregated and reported as CNA’s property and casualty insurance operations; CNA’s Life & Group Non-Core and Corporate & Other Non-Core operations are aggregated and reported as Other Non-Core.

In evaluating the results of the property and casualty ~~businesses,~~operations, CNA utilizes the loss ratio, the expense ratio, the dividend ratio and the combined ratio. These ratios are calculated using GAAP financial results. The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums. The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums. The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums. The combined ratio is the sum of the loss, expense and dividend ratios. In addition, CNA also utilizes renewal premium change, rate, retention and new business in evaluating operating trends. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. Rate represents the average change in price on policies that renew excluding exposure change. Exposure represents the measure of risk used in the pricing of the insurance product. Retention represents the percentage of premium dollars renewed in comparison to the expiring premium dollars from policies available to renew. Rate, renewal premium change and retention presented for the prior year is updated to reflect subsequent activity on policies written in the period. New business represents premiums from policies written with new customers and additional policies written with existing customers.

The following tables summarize the results of CNA’s property and casualty ~~insurance~~ operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015:~~2016:


Three Months Ended September 30, 2016	Specialty		Commercial		International		Total

Three Months Ended June 30, 2017									Specialty			Commercial			International			Total
(In millions, except %)

Net written premiums	$	733	$	684	$	207	$	1,624	$	716		$	767		$	219		$	1,702
Net earned premiums		704		719		210		1,633		689			705			206			1,600
Net investment income		140		175		13		328		120			143			13			276
Net operating income		175		102		18		295		121			104			9			234
Net realized investment gains		5		8		4		17		9			11			5			25
Net income		180		110		22		312		130			115			14			259

Other performance metrics:
Loss and loss adjustment expense ratio		46.8%		62.2%		55.4%		54.7%		57.7	%		60.0	%		62.8	%		59.4	%
Expense ratio		32.5		37.1		37.8		35.2		32.0			34.5			37.3			33.8
Dividend ratio		0.6		0.5				0.5		0.2			0.6						0.3

Combined ratio		79.9%		99.8%		93.2%		90.4%		89.9	%		95.1	%		100.1	%		93.5	%


Rate		0%		0%		(1)%		0%		1%			0%			0%			0%
Renewal premium change										1			2			4			2
Retention		87		83		70		83		88			82			78			84
New business (a)	$	66	$	135	$	67	$	268

Three Months Ended September 30, 2015


Net written premiums	$	707	$	642	$	180	$	1,529
Net earned premiums		706		705		203		1,614
Net investment income		76		82		13		171
Net operating income		161		65		9		235
Net realized investment losses		(14)		(16)				(30)
Net income		147		49		9		205

Other performance metrics:
Loss and loss adjustment expense ratio		43.5%		60.6%		52.4%		52.1%
Expense ratio		30.8		35.2		38.0		33.5
Dividend ratio		0.1						0.1

Combined ratio		74.4%		95.8%		90.4%		85.7%


Rate		1%		1%		(1)%		1%
Retention		87		76		75		80
New business (a)	$	67	$	135	$	23	$	225
New business									$	66		$	153		$	73		$	292

Nine Months Ended September 30, 2016                  Specialty      Commercial    International            Total

(In millions, except %)
Net written premiums
               $ 2,108           $ 2,172           $ 637           $ 4,917
Net earned premiums
   2,088           2,103           605           4,796
Net investment income
   380           465           38           883
Net operating income (loss)
   436           251           (1)          686
Net realized investment gains
   1           1           10           12
Net income
   437           252           9           698
Other performance metrics:

Loss and loss adjustment expense ratio
   52.6%       64.6%       65.2%       59.4 %
Expense ratio
   32.0           36.7           38.2           34.9
Dividend ratio
   0.3           0.4              0.3

Combined ratio
   84.9%       101.7%       103.4%       94.6 %

Rate
   1%          0%       (1)%       0%
Retention
   87              84           76           84
New business (a)
               $ 192              $ 418           $ 189           $ 799
Nine Months Ended September 30, 2015


Net written premiums
               $ 2,077           $ 2,118           $ 641           $ 4,836
Net earned premiums
   2,075           2,086           601           4,762
Net investment income
   365           455           40           860
Net operating income
   405           244           36           685
Net realized investment gains (losses)
   (11)          (13)          1           (23 )
Net income
   394           231           37           662
Other performance metrics:

Loss and loss adjustment expense ratio
   55.5%       66.5%       55.9%       60.4 %
Expense ratio
   30.9          35.4          37.6          33.7
Dividend ratio
   0.2          0.2             0.2

Combined ratio
   86.6%       102.1%       93.5%       94.3 %

Rate
   1%          2%          (1)%          1%
Retention
   86              77             77              80
New business (a)
               $   206              $ 422             $ 83              $   711

Three Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

~~Net~~Total net written premiums increased ~~$95~~$77 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period in 2015.~~2016 period. Net written premiums for Specialty, Commercial and International increased $25 million, $27 million and $25 million for the three months ended June 30, 2017 as compared with the 2016 period. The renewal premium change was positive, retention remained strong and new business was modestly higher and broad-based in Specialty. The increase for Commercial ~~and Specialty,~~was driven by higher new business within Middle Markets and positive renewal premium change, offset by slightly lower retention. The change for International was due to higher new business, improved retention and new business in middle markets in Commercial and growth in warranty and surety and continued steady retention in Specialty. Excluding the effect of foreign currency exchange rates and timing of reinsurance purchases, net written premiums increased 15% in International.positive renewal premium change. The majority of the growth in International came from middle market products in the United Kingdom (“U.K.”) and Continental Europe and from product lines which are now being delivered across all of the international platforms, such as healthcare and technology. The increasechange in net earned premiums was consistent with the trend in net written ~~premiums.~~premiums in recent quarters.

~~Net~~Total net operating income increased ~~$60~~$28 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period in 2015.~~2016 period. The increase in net operating income was primarily due to ~~an increase in net investment income in Specialty and Commercial and~~ improved ~~net accident year non-catastrophe~~ underwriting results and ~~lower~~the favorable period over period effect of foreign currency exchange gains and losses ~~in International. These increases were~~ partially offset by lower ~~favorable~~ net prior year reserve development in Specialty and International, higher underwriting costs in Specialty and higher net loss and loss adjustment expenses and an increase in underwriting expenses in Commercial.investment income. Catastrophe losses were ~~$10~~$21 million (after tax and noncontrolling interests) for the three months ended ~~September~~June 30, ~~2016 as~~2017 compared to ~~catastrophe losses of $9~~$52 million (after tax and noncontrolling interests) ~~for~~in the ~~same period in 2015.~~2016 period.

Favorable net prior year development of ~~$137~~$63 million and ~~$180~~$106 million was recorded for the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016. For the three months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Specialty recorded favorable net prior year development of ~~$112~~$28 million and ~~$132~~$72 million, Commercial recorded favorable net prior year development of $8$33 million and ~~$16~~$20 million and International recorded favorable net prior year development of ~~$17~~$2 million and ~~$32~~$14 million. Further information on net prior year development is included in Note 56 of the Notes to Consolidated Condensed Financial Statements included under Item 1.

Specialty’s combined ratio increased ~~5.5~~4.5 points for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period in 2015.~~2016 period. The loss ratio increased ~~3.3~~3.8 points ~~due to~~driven by lower favorable net prior year ~~reserve development and a higher non-catastrophe current accident year~~ loss ratio. The expense ratio increased 1.7 points for the three months ended September 30, 2016 as compared with the same period in 2015. Approximately half of this increase was due to non-recurring underwriting expenses related to the transition to a new service provider for CNA’s information technology (“IT”) infrastructure and costs resulting from the organization review discussed above. The remainder was driven by higher IT spending primarily related to new underwriting platforms.

Commercial’s combined ratio increased 4.0 points for the three months ended September 30, 2016 as compared with the same period in 2015. The loss ratio increased 1.6 points due to an increase in the current accident year loss ratio and lower favorable net prior year development. The expense ratio increased 1.9 points for the three months ended September 30, 2016 as compared with the same period in 2015, primarily due to non-recurring underwriting expenses related to the transition to a new IT service provider and costs resulting from the organization review. The expense ratio also increased due to higher IT spending primarily related to a new underwriting platform.

International’s combined ratio increased 2.8 points for the three months ended September 30, 2016 as compared with the same period in 2015. The loss ratio increased 3.0 points due to lower favorable net prior year reserve development partially offset by an improved ~~non-catastrophe~~ current accident year loss ratio. ~~The~~Specialty’s expense ratio ~~improved 0.2~~increased 0.7 points for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period in 2015.~~2016 period.

~~Net written premiums increased $81 million~~Commercial’s combined ratio improved 8.4 points for the ~~nine~~three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period. The loss ratio improved 7.4 points due to an improved current accident year loss ratio and higher favorable net prior year loss reserve development. The expense ratio improved 1.2 points for the three months ended June 30, 2017 as compared with the 2016 period ~~in 2015.~~due to lower employee costs.

International’s combined ratio improved 18.5 points for the three months ended June 30, 2017 as compared with the 2016 period. The ~~increase was~~loss ratio improved 17.0 points due to an improved current accident year loss ratio driven by a lower level of large and catastrophe losses, partially offset by lower favorable net prior year loss reserve development. International’s expense ratio improved 1.5 points primarily due to higher ~~retention in Commercial and growth in warranty and surety, continued steady retention and positive rate in Specialty. Excluding the effect of foreign currency exchange rates~~net earned premiums.

Total net written premiums increased 4%$41 million for ~~International.~~the six months ended June 30, 2017 as compared with the 2016 period. Net written premiums for International increased $27 million for the six months ended June 30, 2017 as compared to the prior year period primarily due to higher new business and positive renewal premium change. Net written premiums for Specialty increased $20 million for the six months ended June 30, 2017 as compared with the 2016 period, driven by positive renewal premium change. Net written premiums for Commercial decreased $6 million for the six months ended June 30, 2017 as compared with the 2016 period due to unfavorable premium development driven by a premium rate adjustment within its Small Business unit as discussed in Note 10 to the Consolidated Condensed Financial Statements under Item 1. This was mostly offset by higher new business within Middle Markets, positive renewal premium change and higher retention. The ~~increase~~change in net earned premiums ~~for Commercial and Specialty~~ was consistent with the trend in net written premiums ~~and after excluding the effect of premium development, the decrease for International was consistent with the trend~~ in ~~net written premiums.~~recent quarters.

~~Net~~Total net operating income ~~was flat~~increased $83 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period~~2016 period. The increase in ~~2015~~net operating income was primarily due to higher net investment income, improved underwriting results despite less favorable net prior year loss reserve ~~development in Specialty~~development. In addition, results reflect the favorable period over period effect of foreign currency exchange gains and ~~Commercial and higher net investment income in Specialty, offset by higher underwriting expenses in Specialty and Commercial and a higher level of catastrophe and large losses in International.~~losses. Catastrophe losses were ~~$85~~$43 million (after tax and noncontrolling interests) for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared to catastrophe losses of ~~$61~~$73 million (after tax and noncontrolling interests) for the ~~same period in 2015.~~2016 period.

Favorable net prior year development of ~~$309~~$95 million and ~~$198~~$172 million was recorded for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015.~~2016. For the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015,~~2016, Specialty recorded favorable net prior year development of ~~$229~~$64 million and ~~$151~~$117 million, Commercial recorded favorable net prior year loss reserve development of ~~$44~~$58 million and ~~$17~~unfavorable premium development of $38 million as compared with favorable net prior year loss reserve development of $32 million and favorable premium development of $4 million and International recorded favorable net prior year development of ~~$36~~$11 million and ~~$30~~$19 million. Further information on net prior year development is included in Note 56 of the Notes to Consolidated Condensed Financial Statements included under Item 1.

Specialty’s combined ratio ~~improved 1.7~~increased 2.7 points for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same period in 2015.~~2016 period. The loss ratio ~~improved 2.9~~increased 2.4 points ~~primarily due to higher~~driven by lower favorable net prior year loss reserve development partially offset by ~~a higher~~an improved current accident year loss ratio. ~~The~~Specialty’s expense ratio increased ~~1.1~~0.4 points for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the same period in 2015 primarily due to non-recurring underwriting expenses related to the transition to a new IT service provider and costs resulting from the organization review. The expense ratio also increased due to higher IT spending primarily related to new underwriting platforms.2016 period.

Commercial’s combined ratio improved ~~0.4~~2.9 points for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period driven by an improved current accident year loss ratio. Excluding the impact of the Small Business premium rate adjustment on the ratios for both periods, the combined ratio decreased 6.6 points, driven by a 4.7 point decrease in ~~2015.~~the loss ratio primarily due to improved current accident year loss ratio and a 2.0 point decrease in the expense ratio primarily due to lower employee costs.

International’s combined ratio improved 11.1 points for the six months ended June 30, 2017 as compared with the 2016 period. The loss ratio improved ~~1.9~~9.9 points due to favorable net prior year reserve development. The expense ratio increased 1.3 points for the nine months ended September 30, 2016 as compared with the same period in 2015, primarily due to non-recurring underwriting expenses related to the transition to a new IT service provider and costs resulting from the organization review. The expense ratio also increased due to higher IT spending primarily related to a new underwriting platform.

~~International’s combined ratio increased 9.9 points for the nine months ended September 30, 2016 as compared with the same period in 2015. The loss ratio increased 9.3 points primarily due to~~ an ~~increase in the~~improved current accident year loss ratio driven by a lower level of large and catastrophe ~~losses and large losses related to political risk, property and financial institutions. The~~losses. International’s expense ratio ~~increased 0.6~~improved 1.2 points ~~for the nine months ended September 30, 2016 as compared with the same period in 2015,~~ primarily due to higher ~~underwriting expenses.~~net earned premiums.

~~Referendum on the United Kingdom’s Membership in the European Union~~Non-Core Operations

On June 23, 2016, the U.K. held a referendum in which voters approved an exit from the European Union (“E.U.”), commonly referred to as “Brexit.” As a result of the referendum, it is currently expected that the British government will formally commence the process to leave the E.U. and begin negotiating the terms of treaties that will govern the U.K.’s future relationship with the E.U. in the first quarter of 2017. Although the terms of any future treaties are unknown, changes in CNA’s international operating platform may be required to allow CNA to continue to write business in the E.U. after the completion of Brexit. As a result of these changes, the complexity and cost of regulatory compliance of CNA’s European business is likely to increase.

~~Other Non-Core primarily includes~~The following table summarizes the results of CNA’s long term care business that is in run-off, which is part of Life & Group Non-Core, and also includes certain corporate expenses, including interest on corporate debt, and the results of property and casualty business in run-off, including CNA Re and A&EP, which is part of Other.

~~The following tables summarize the results of CNA’s Other Non-Core~~non-core operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015:~~2016:


Nine Months Ended September 30, 2016	Life & Group Non-Core		Other			Other Non-Core
								Three Months Ended June 30,						Six Months Ended June 30,

								2017			2016			2017			2016

(In millions)

Net earned premiums	$	401				$	401	$	135		$	136		$	268		$	267
Net investment income		567	$	11			578		199			192			401			382
Net operating loss				(145	)		(145)		(16	)		(23	)		(42	)		(131)
Net realized investment gains		3		1			4
Net income (loss)		3		(144	)		(141)

Nine Months Ended September 30, 2015

Net earned premiums	$	412				$	412
Net investment income		540	$	12			552
Net operating loss		(64)		(108)			(172)
Net realized investment gains		5					5
Net realized investment gains (losses)									1		��	(3	)		6			(6)
Net loss		(59)		(108)			(167)		(15	)		(26	)		(36	)		(137)

Three Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

The net loss ~~decreased $40~~was $15 million for the three months ended ~~September~~June 30, ~~2016~~2017, an improvement of $11 million as compared with the ~~same period in 2015.~~ 2016 period. This improvement was primarily driven by improved long term care morbidity.

The net loss was ~~generally~~$36 million for the six months ended June 30, 2017, an improvement of $101 million as compared with the 2016 period. This improvement was primarily driven by lower adverse prior year reserve development in ~~line with expectations,~~2017 for A&EP under the loss portfolio transfer. During the six months ended June 30, 2017 and 2016, CNA recorded net unfavorable development of $60 million and $200 million related to its A&EP reserves. This unfavorable development was ceded to NICO under the loss portfolio transfer; however CNA’s earnings were negatively affected by charges of $12 million (after tax and noncontrolling interests) and $74 million (after tax and noncontrolling interests) related to the application of retroactive reinsurance accounting, as further discussed in Note 6 of the ~~impact of~~Notes to Consolidated Condensed Financial Statements included under Item 1. In addition, the net loss benefited from favorable morbidity ~~was~~ partially offset by unfavorable persistency in the long term care business.

Due to the recognition of the premium deficiency and resetting of actuarial assumptions in the fourth quarter of 2015, the operating results for CNA’s long term care business in 2016 now reflect the variance between actual experience and the expected results contemplated in CNA’s best estimate reserves as of December 31, 2015. In 2015, results of CNA’s long term care business reflected variances between actual experience and actuarial assumptions that were locked-in at policy issuance. As a result of the reserve assumption unlocking, the 2016 and 2015 results for the long term care business are not comparable.

The net loss decreased $26 million for the nine months ended September 30, 2016 as compared with the same period in 2015 primarily due to the results of the long term care business which were generally consistent with CNA’s reset assumptions. Results in 2016 and 2015 were negatively affected by a $74 million (after tax and noncontrolling interests) charge and a $49 million (after tax and noncontrolling interests) charge related to the application of retroactive reinsurance accounting to adverse reserve development ceded under the 2010 A&EP loss portfolio transfer, as further discussed in Note 5 of the Notes to Consolidated Condensed Financial Statements included under Item 1.

Diamond Offshore provides contract drilling services worldwide with a fleet of 24 offshore drilling rigs. Diamond Offshore’s current fleet consists of four drillships, 19 semisubmersibles and one jack-up rig. Diamond Offshore has four additional jack-up rigs being marketed for sale. In October of 2016, Diamond Offshore sold one of two retired semisubmersible rigs for scrap and expects to complete the sale of the remaining retired rig by the end of 2016. The~~Ocean GreatWhite~~ ~~is expected to be available for customer acceptance shortly.~~

Oil prices, which had fallen to a 12-year low of less than $30 per barrel in January of 2016, rebounded into the low $50 per barrel range by the end of the third quarter of 2016, but continue to exhibit day-to-day volatility due to multiple factors, including fluctuations in the current and expected level of global oil inventories. As a result, overallOverview

Overall fundamentals in the offshore oil and gas industry have not yet improved ~~and,~~from those described in ~~some markets,~~the Results of Operations – Diamond Offshore section of our MD&A included under Item 7 of our Annual Report on Form10-K for the year ended December 31, 2016. Production cuts by the Organization of the Petroleum Exporting Countries (“OPEC”), which have ~~deteriorated further. Despite~~now been extended until the ~~increase in~~end of the first quarter of 2018, initially buoyed oil prices ~~during~~from previous lows in 2016; however, the ~~third quarter~~favorable price impact of ~~2016, industry reports indicate that utilization~~the OPEC cuts is currently being negated by increased production by U.S. shale producers and othernon-OPEC producing countries, resulting in volatile commodity prices. Capital spending for ~~floaters continues~~offshore exploration and development has continued to ~~fall and cancelation of contracts for deepwater rigs has persisted. Prospective customers for contract drilling services are currently formulating their~~decline, with 2017 capital spending ~~programs,~~estimated by some industry analysts to decrease up to 20% from 2016 levels. If these market estimates are realized, it would represent three consecutive years of decline in offshore spending. Some industry analysts have also reported that there has been and ~~it is unlikely that~~may continue to be a shift in capital spending ~~for exploration and development will exceed 2016 levels, assuming commodity prices remain at current levels. Customer~~towards land-based activity. However, customer inquiries ~~for rig availability~~ and new tenders have ~~continued~~increased in 2017, compared to ~~decline in~~ 2016, ~~as compared~~

~~to prior years, although recently there has been a slight increase in~~for offshore rig ~~tendering activity, primarily for projects commencing~~availability in 2018 and ~~later.~~beyond.

~~The oversupply~~Competition among offshore drillers remains intense as rig supply exceeds demand, despite the cold stacking and retirement of ~~drilling~~numerous rigs in the floater markets continues to persist. Industry analysts report that 65 floater rigs have been cold stacked since the beginning of 2016 and an additional 17 floaters have been scrapped year-to-date, with an additional three units estimated to be scrapped by year end. Despite these events, the number of available rigs continues to growduring 2016. Additionally, based on industry data as ~~contracted rigs come off contract and newly-built rigs are delivered. As~~ of the date of this ~~report, industry data indicates that~~Report, there are ~~approximately 36 competitive, or non-owner-operated, newbuild floaters~~in excess of 30 floater rigs currently on order, with scheduled deliveries from 2017 through 2021. The majority of ~~which only three~~these rigs are ~~reported to be~~not currently contracted for future work. Of the 36 rigs on order, nine and 16 rigs are scheduled for delivery in the remainder of 2016 and in 2017. The remaining 11 rigs are scheduled for delivery between 2018 and 2020. Industry analysts predict that delivery dates may shiftwork, which further ~~as newbuild owners negotiate with their respective shipyards.~~

Competition for the limited number of drilling jobs continues to be intense. In some cases, dayrates have been negotiated at break-even levels, or below, to provide for the recovery of a portion of operating costs for rigs that would otherwise be uncontracted or cold stacked. In addition, customer discussions indicate a preference for “hot” rigs rather than the reactivation of cold-stacked rigs. This preference incentivizes the drilling contractor to contract rigs at lower rates to maintain the rigs in an active state and allow for at least partial cost recovery. Industryincreases competition. Some industry analysts have predicted that ~~the offshore contract~~demand for drilling ~~market may remain depressed with further declines in dayrates and utilization likely into 2017.~~

As a result of the continuing and worsening market conditions for the offshore drilling industry and continued pessimistic outlook for the near term, certain of Diamond Offshore’s customers, as well as those of its competitors, have attempted to renegotiate or terminate existing drilling contracts. Such renegotiations could include requests to lower the contract dayrate, lowering of a dayrate in exchange for additional contract term, shortening the term on one contracted rig in exchange for additional term on another rig, early termination of a contract in exchange for a lump sum payout and many other possibilities. In addition to the potential for renegotiations, some of Diamond Offshore’s drilling contracts permit the customer to terminate the contract early after specified notice periods, usually resulting in a requirement for the customer to pay a contractually specified termination amount, which may not fully compensate Diamond Offshore for the loss of the contract. As a result of these depressed market conditions, certain customers have also utilized such contract clauses to seek to renegotiate or terminate a drilling contract or claim that Diamond Offshore has breached provisions of its drilling contracts in order to avoid their obligations to Diamond Offshore under circumstances where Diamond Offshore believes it is in compliance with the contracts.

Particularly during depressed market conditions, the early termination of a contract may result in a rig being idle for an extended period of time, which could adversely affect Diamond Offshore’s business. When a customer terminates a contract prior to the contract’s scheduled expiration, Diamond Offshore’s contract backlog is also adversely impacted.

~~The continuation of these conditions for an extended period could result in more of Diamond Offshore’s~~ rigs being without contracts and/or cold stacked or scrapped and could further materially and adversely affect its business. When Diamond Offshore cold stacks or expects to scrap a rig, Diamond Offshore evaluates the rig for impairment. Diamond Offshore currently expects that these adverse market conditions will continue for the foreseeable future. As of October 1, 2016, ten rigs in Diamond Offshore’s fleet were cold stacked and an additional four jack-up rigs are currently being marketed for sale. Diamond Offshore has two retired semisubmersible rigs, which it expects to sell for scrap value in the fourth quarter of 2016.

~~Diamond Offshore’s results of operations and cash flows for the three and nine months ended September 30, 2016 have been negatively impacted by the continuing and worsening market conditions~~ in the offshore ~~drilling industry, as discussed above. For further discussion see Note 4 of the Notes~~market will slowly improve, but utilization growth will not be significant enough to ~~Consolidated Condensed Financial Statements in Item 1 of this report.~~impact dayrates for some time.

~~The following table reflects~~ Diamond Offshore’s contract drilling backlog was $2.9 billion and $3.6 billion as of ~~October~~July 1, ~~2016~~2017 (based on contract information known at that time) and ~~February 16, 2016 (based on contract information known at that time, as~~January 1, 2017 (the date reported in our Annual Report on Form10-K for the year ended December 31, ~~2015)~~2016). The contract drilling backlog by year as of July 1, 2017 is $0.7 billion in 2017 (for thesix-month period beginning July 1, 2017), $1.1 billion in 2018, $0.9 billion in 2019 and $0.2 billion in 2020.

Contract drilling backlog includes $75 million and $119 million for 2017 and 2018 attributable to contracted work for theOcean Valorunder a contract that Petróleo Brasileiro S.A. (“Petrobras”) has attempted to terminate, which is currently in effect pursuant to an injunction granted by a Brazilian court. Petrobras appealed the granting of the injunction, but in March of 2017, the court ruled against Petrobras’ appeal and upheld the injunction. As a result of the favorable ruling, both the injunction and theOcean Valor contract remain in effect. Petrobras has the right to seek to appeal the ruling to the Superior Court of Justice. Diamond Offshore intends to continue to defend its rights under the contract, which is estimated to conclude in accordance with its terms in October of 2018. However, litigation is inherently unpredictable, and there can be no assurance as ~~presented below~~to the ultimate outcome of this matter. The rig is currently on standby earning a reduced dayrate.

Contract drilling backlog includes only firm commitments (typically represented by signed contracts) and is calculated by multiplying the contracted operating dayrate by the firm contract period. Diamond Offshore’s calculation also assumes full utilization of its drilling equipment for the contract period (excluding scheduled shipyard and survey days); however, the amount of actual revenue earned and the actual periods during which revenues are earned will

be different than the amounts and periods ~~shown in the tables below~~stated above due to various ~~factors. Utilization rates, which generally approach 92% - 98% during contracted periods, can be adversely impacted by downtime due to various operating~~ factors ~~including, but not limited to,~~affecting utilization such as weather conditions and unscheduled repairs and maintenance. Contract drilling backlog excludes revenues for mobilization, demobilization, contract preparation and customer reimbursables. ~~No revenue is generally earned during periods of downtime for regulatory surveys.~~ Changes in Diamond Offshore’s contract drilling backlog between periods are generally a function of the performance of work on term contracts, as well as the extension or modification of existing term contracts and the execution of additional contracts. In addition, under certain circumstances, Diamond Offshore’s customers may seek to terminate or renegotiate its contracts, which could adversely affect its reported backlog.

~~In October of 2016, BP notified Diamond Offshore that they would no longer pursue a drilling campaign in the Great Australian Bight where the~~~~Ocean GreatWhite~~ ~~was to be the primary drilling rig for the campaign. BP has confirmed that its decision will not impact the contract for the rig. BP is exploring alternative locations for the~~~~Ocean GreatWhite~~.

~~In August of 2016, Diamond Offshore’s subsidiary received notice of termination of its drilling contract from Petróleo Brasileiro S.A., (“Petrobras”), the customer for the~~~~Ocean Valor~~. In August of 2016, Diamond Offshore filed a lawsuit in Brazil, claiming that Petrobras’ purported termination of the contract was unlawful and requesting an injunction to prohibit the contract termination. In September of 2016, a Brazilian court issued a preliminary injunction, suspending Petrobras’ purported termination of the contract and ordering that the contract remain in effect until the end of the term or further court order. Petrobras has appealed the granting of the injunction. The drilling contract provides for a dayrate of approximately $455,000 and was estimated to conclude in accordance with its terms in October of 2018. The rig is currently on standby earning a reduced dayrate. Diamond Offshore does not believe that Petrobras had a valid or lawful basis for terminating the contract, and intends to continue to defend its rights under the contract; however, litigation is inherently unpredictable, and there can be no assurance as to the ultimate outcome of this matter.

~~The following table reflects the amount of Diamond Offshore’s contract drilling backlog by year as of October 1, 2016:~~

The following table reflects the percentage of rig days committed by year as of October 1, 2016. The percentage of rig days committed is calculated as the ratio of total days committed under contracts, as well as scheduled shipyard, survey and mobilization days for all rigs in Diamond Offshore’s fleet, to total available days (number of rigs, including cold-stacked rigs, multiplied by the number of days in a particular year).

The following table summarizes the results of operations for Diamond Offshore for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 as presented in Note 1311 of the Notes to Consolidated Condensed Financial Statements included inunder Item 1 of this Report:


	Three Months Ended					Nine Months Ended
	September 30,					September 30,					Three Months Ended June 30,						Six Months Ended June 30,

	2016			2015		2016			2015		2017			2016			2017			2016

(In millions)

Revenues:
Contract drilling revenues	$	340		$	599	$	1,141		$	1,816	$	392		$	357		$	756		$	801
Net investment income		1			1		1			2		1						1
Investment losses							(12	)							(12	)					(12)
Other revenues		9			8		69			49		6			33			19			60

Total		350			608		1,199			1,867		399			378			776			849

Expenses:
Contract drilling expenses		187			276		598			971		196			198			400			411
Other operating expenses
Impairment of assets					2		680			361		72			680			72			680
Other expenses		108			169		402			506		113			145			233			294
Interest		19			22		69			71		27			24			55			50

Total		314			469		1,749			1,909		408			1,047			760			1,435

Income (loss) before income tax		36			139		(550	)		(42)		(9	)		(669	)		16			(586)
Income tax (expense) benefit		(22	)		(28)		78			(6)
Income tax benefit												23			99			21			100
Amounts attributable to noncontrolling interests		(7	)		(64)		228			14		(7	)		276			(18	)		235

Net income (loss) attributable to Loews Corporation	$	7		$	47	$	(244	)	$	(34)	$	7		$	(294	)	$	19		$	(251)

Three Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

Contract drilling revenue ~~decreased $259~~increased $35 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015~~2016 period, primarily ~~due~~related to ~~continued low demand for contract drilling services, resulting in a decrease in revenue earning days.~~

Revenue generated by ultra-deepwater floaters decreased $159 million for the three months ended September 30, 2016 as compared with the 2015 period, primarily as a result of decreased utilization of $146 million and lower average daily revenue of $13 million. Revenue earning days in the third quarter of 2016 decreased as compared with the third quarter of 2015, primarily due to fewer revenue earning days for rigs under contract during the 2015 period that have subsequently been cold stacked, the~~Ocean Clipper, which was sold in November 2015, the~~~~Ocean BlackRhino~~, which is currently between contracts and unplanned downtime for contracted rigs, including downtime associated with an unplanned retrieval of a blowout preventer on one of Diamond Offshore’s drillships. The decrease in revenue earning days was partially offset by increased revenue earning days for the~~Ocean BlackLion~~, which was placed in service in the third quarter of 2015. Average daily revenue decreased during the third quarter of 2016 as compared with the prior year period, primarily due to a lower dayrate earned by the~~Ocean Courage~~.

Revenue generated by deepwater floaters decreased $71 million for the three months ended September 30, 2016 as compared with the 2015 period, primarily due to decreased utilization of $58 million combined with lower average daily revenue of $13 million. Revenue earning days decreased for the third quarter of 2016 primarily due to incremental downtime associated with cold-stacked rigs that had previously operated during the third quarter of 2015 and the~~Ocean Valiant, which completed its contract in August of 2016 and is now preparing for its next contract, partially offset by~~ incremental revenue earning days for theOcean ~~Apex~~GreatWhite, which began its first contract in the first quarter of 2017, and theOcean BlackRhino, which was between contracts during the prior year quarter and less unplanned downtime for repairs to other rigs. These increases were partially offset by decreases in contract drilling revenue primarily related to theOcean Monarch, which was in the shipyard for a survey and contract modifications during the second quarter of 2017 prior to beginning a new contract in June at a lower dayrate, theOcean Valor earning a reduced, standby dayrate during 2017, the warm stacking of theOcean Guardian after completion of its contract in early April of 2017, theOcean Scepterearning a reduced dayrate, which began operating under a new contract offshore Mexico in 2017 and the sale of rigs since the second quarter of 2016. ~~Average daily revenue~~

Contract drilling expense decreased ~~during the third quarter of 2016 primarily due to a lower dayrate earned by the~~~~Ocean Valiant~~.

~~Revenue generated by mid-water floaters decreased $13~~$2 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015 period, primarily due to decreased utilization of $17 million, partially offset by higher average daily revenue of $4 million. Revenue earnings days decreased in the third quarter of~~ 2016 ~~due to the absence of revenue earning days for rigs that have been retired, partially offset by the absence of planned downtime associated with the~~~~Ocean Guardian~~’s survey during the prior year quarter. Since the first quarter of 2015, Diamond Offshore has sold ten mid-water floaters, reducing the mid-water fleet to five drilling rigs, three of which are currently cold stacked, and two rigs that are under contract until various times in 2017. One additional mid-water rig, the~~Ocean Quest,has been retired and is expected to be sold in the fourth quarter of 2016.~~

Revenue generated by jack-up rigs decreased $16 million for the three months ended September 30, 2016 as compared with the 2015 period. Diamond Offshore had no jack-up rigs under contract during the third quarter of 2016, compared to two rigs under contract in the third quarter of 2015. The~~Ocean Scepteris scheduled to commence operations under a new contract in Mexico, beginning in the first quarter of 2017. Diamond Offshore’s four remaining jack-up rigs are being marketed for sale.~~

Contract drilling expense for ultra-deepwater floaters decreased $32 million during the three months ended September 30, 2016 as compared with the 2015 period, primarily due to reduced costs for cold-stacked ultra-deepwater rigs, including the retired~~Ocean Clipper~~ ~~and the deferral of costs associated with contract preparation activities for the~~~~Ocean BlackRhino~~. Contract drilling expense in the third quarter of 2016 reflected lower costs associated with labor and personnel of $32 million, mobilization of rigs of $16 million, repairs and maintenance of $3 million and other of $13 million. Cost reductions in the third quarter of 2016 were partially offset by incremental contract drilling expense for the~~Ocean BlackLion~~ of $21 million and costs associated with the operating leases and service agreements related to the sale and leaseback transactions discussed in Note 4 of the Notes to Consolidated Condensed Financial Statements included in Item 1 of this Report.

Contract drilling expense incurred by deepwater floaters decreased $31 million during the three months ended September 30, 2016 as compared with the 2015 period, primarily due to reduced operating costs for cold-stacked deepwater rigs of $35 million, partially offset by incremental contract drilling expense for three active rigs.

Contract drilling expense for mid-water floaters decreased $18 million during the three months ended September 30, 2016 as compared with the 2015 period, primarily due to reduced operating costs for cold-stacked and retired mid-water rigs of $16 million.

Contract drilling expense for the jack-up fleet decreased $11 million during the three months ended September 30, 2016 as compared with the 2015 period. Diamond Offshore had no jack-up rigs under contract during the third quarter of 2016, compared to two rigs under contract in the third quarter of 2015.

Net income decreased $40 million for the three months ended September 30, 2016 as compared with the 2015 period, primarily due to the decreases in revenues and expenses as discussed above, including the negative effect of lower utilization of the fleet. These decreases were partially offset by lower depreciation expense and the absence of a $20 million impairment charge in 2015 to write-off all goodwill associated with the Company’s investment in Diamond Offshore.

Contract drilling revenue decreased $675 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily as a result of fewer revenue earning days across the entire fleet combined with the negative effect of lower average daily revenue earned by deepwater floaters.

Revenue generated by ultra-deepwater floaters decreased $186 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily as a result of decreased utilization of $184 million. Revenue earning days decreased primarily due to fewer revenue earning days for rigs that had operated during the first nine months of 2015 and are now cold stacked, as well as the~~Ocean Clipper, which was sold in late 2015. The aggregate decrease in revenue earning days was partially offset by incremental revenue earning days for the~~~~Ocean BlackLion, w~~~~hich began operating under contract after the third quarter of 2015, and the~~~~Ocean Monarch~~~~, which was warm stacked during the 2015 period.~~

Revenue generated by deepwater floaters decreased $264 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily due to decreased utilization of $192 million and lower average daily revenue of $72 million. Revenue earning days decreased primarily due to the cold stacking of three rigs that had operated during the first nine months of 2015, partially offset by incremental revenue earning days for rigs with contracts that commenced in the middle of the second quarter of 2015 and in 2016. Average daily revenue decreased as a result of lower amortized mobilization and contract preparation fees combined with lower dayrates earned by the~~Ocean Valiant~~ ~~and~~~~Ocean Apex~~~~during 2016.~~

Revenue generated by mid-water floaters decreased $182 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily due to decreased utilization of $194 million, partially offset by higher average daily revenue of $12 million. Comparing the periods, only three of the mid-water floaters operated during both periods.

Revenue generated by jack-up rigs decreased $43 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily due to the cold stacking of four rigs that operated under contract during the 2015 period and an early contract termination for the~~Ocean Scepter~~ ~~in 2016.~~

Contract drilling expense for ultra-deepwater floaters, excluding the newbuild drillships, decreased $97 million, during the nine months ended September 30, 2016 as compared with the 2015 period, reflecting lower expenses for labor and personnel of $79 million, maintenance and inspections of $32 million, mobilization of $23 million, freight of $8 million and other rig operating and overhead costs of $27 million. These reductions in contract drilling expense were primarily due to lower costs for cold-stacked rigs and the retired~~Ocean Clipper, as well as cost reduction initiatives implemented in 2015. Incremental contract drilling expense for four drillships operating in the Gulf of Mexico was $72 million.~~

~~Contract drilling expense incurred by deepwater floaters decreased $99 million during the nine months ended September 30, 2016 as compared with the 2015~~ period, primarily due to a net reduction in costs attributable to various factors, including rigs that were sold after the 2016 period, reduced costs incurred by theOcean Guardian and implementation of other cost control measures, partially offset by incremental contract drilling costs associated with ~~labor~~the drillships and ~~personnel~~theOcean GreatWhite. Interest expense increased $3 million for the three months ended June 30, 2017 as compared with the 2016 period primarily due to lower capitalized interest for construction projects.

Net results increased $301 million for the three months ended June 30, 2017 as compared with the 2016 period, primarily due to an asset impairment charge of ~~$41~~$23 million ~~mobilization~~(after taxes and noncontrolling interests) in the 2017 period, as compared with $267 million (after taxes and noncontrolling interests) in the 2016 period, as discussed in Note 5 of ~~rigs~~the Consolidated Condensed Financial Statements included under Item 1. In addition, results in 2017 benefited from the favorable impact of ~~$21 million, repairs~~higher utilization of the fleet, as discussed above, and ~~maintenance~~lower depreciation, primarily due to a lower depreciable asset base in the second quarter of ~~$15 million, shorebase support and overhead of $10 million and other operating costs of $13 million, primarily~~2017, compared to the 2016 period, as a result of the ~~cold stacking of rigs.~~

~~Contract drilling expense for mid-water floaters decreased $135 million~~asset impairments taken in the nine months ended September 30, 2016 as compared with the 2015 period, reflecting lower costs for labor and personnel of $65 million, maintenance and repairs of $15 million, shorebase support and overhead of $16 million, mobilization of $8 million, inspections of $5 million and other of $27 million.

Contract drilling expense for the jack-up fleet decreased $40 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily due to the cold stacking of four rigs that operated under contract during the 2015 period and an early contract termination for the~~Ocean Scepter~~ in 2016.

~~Net~~ The results decreased $210 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily reflecting the impact of a $267 million asset impairment charge (after tax and noncontrolling interests) for the nine months ended September 30, 2016, as compared with the 2015 period when Diamond Offshore recorded a $159 million asset impairment charge (after tax and noncontrolling interests). Results were also impacted by the ~~decrease in revenues and expenses as discussed above. In addition, during 2016 Diamond Offshore sold its investment in privately-held corporate bonds for~~absence of a ~~total recognized loss of~~ $12 million ($4 million after tax and noncontrolling interests)~~. Results~~ loss on an investment in privately-held corporate bonds sold in the 2016 period. These favorable variances were partially offset by the absence of $15 million in net reimbursable revenue related to the completion of theOcean Endeavor’s demobilization from the Black Sea in the 2016 period.

Contract drilling revenue decreased $45 million for the six months ended June 30, 2017 as compared with the 2016 period, primarily due to the absence of $40 million in demobilization revenue recognized in the first quarter of 2016 for theOcean Endeavor.In addition, contract drilling revenue decreased due to incremental downtime for theOcean Monarch, which was in the shipyard for a survey and contract modifications during much of the first half of 2017, the completion of the final contract for theOcean Ambassador in March of 2016 prior to the rig being sold, decreased revenue from theOcean Scepter, which had been idle since completion of its contract in Mexico during May 2016, commenced operations offshore Mexico in February 2017 under a new contract and the cold stacking and sale of other rigs. The decrease in contract drilling revenue also reflects lower dayrates earned under new contracts for both theOcean Monarchand Ocean BlackRhinoand a lower dayrate being earned by theOcean Valiant under its current contract in the North Sea, which commenced in the fourth quarter of 2016. These decreases were partially offset by increases in contract drilling revenue primarily related to incremental revenue earning days for theOcean GreatWhite and theOcean BlackRhino,which was warm stacked for much of the prior year period, theOcean Apex, which operated through the first six months of 2017 under a contract that commenced in the second quarter of 2016 and reduced downtime for repairs.

Contract drilling expense decreased $11 million for the six months ended June 30, 2017 as compared with the 2016 period, primarily due to a net reduction in costs attributable to various factors, including the cold stacking of rigs, reduced costs related to theOcean Ambassadorand implementation of other cost control measures, partially offset by incremental contract drilling costs associated with the drillships and theOcean GreatWhite. Interest expense increased $5 million for the six months ended June 30, 2017 as compared with the 2016 period primarily due to lower capitalized interest for construction projects.

Net results increased $270 million for the six months ended June 30, 2017 as compared with the 2016 period, primarily due to an asset impairment charge of $23 million (after taxes and noncontrolling interests) in the 2017 period as compared with $267 million (after taxes and noncontrolling interests) in the 2016 period and lower depreciation, ~~expense and~~primarily due to a lower depreciable asset base in 2017, compared to the 2016 period, as a result of the asset impairments taken in 2016. The results were also impacted by the absence of a ~~$20~~$12 million ~~impairment charge in 2015 to write-off all goodwill associated with the Company’s~~($4 million after tax and noncontrolling interests) loss on an investment in ~~Diamond Offshore. In addition, results~~privately-held corporate bonds sold in the 2016 ~~reflect~~period. These favorable variances were partially offset by the ~~recognition~~absence of $40 million in demobilization revenue and $15 million in net reimbursable revenue related to the completion of theOcean ~~Endeavor’~~Endeavors’s demobilization from the Black ~~Sea.~~

The transportation rates that Boardwalk Pipeline is able to charge customers are heavily influenced by longer-term market trends, affecting the amount and geographical location of natural gas production and demand for gas by end users such as power plants, petrochemical facilities and liquefied natural gas (“LNG”) export facilities. Changes in certain longer term trends such as the development of gas production from the Marcellus and Utica production areas locatedSea in the ~~northeastern U.S.~~2016 period.

Firm Transportation Contracts and changes to related pipeline infrastructure have resulted in a sustained narrowing of basis differentials corresponding to traditional flow patterns on Boardwalk Pipeline’s natural gas pipeline systems (generally south to north and west to east). On portions of Boardwalk Pipeline’s natural gas pipeline systems, the effect has been a reduction of transportation rates and an adverse impact on other contract terms that Boardwalk Pipeline can negotiate with its customers for available transportation capacity and for some contracts due for renewal for Boardwalk Pipeline’s transportation services.Growth Projects

Each year a portion of Boardwalk Pipeline’s firm ~~natural gas~~ transportation ~~and storage contracts~~agreements expire and need to be renewed or ~~replaced. Over~~replaced as reported in the ~~past several years,~~Results of Operations – Boardwalk Pipeline ~~has renewed many expiring contracts at lower rates and~~section of our MD&A included under Item 7 of our Annual Report on Form10-K for ~~shorter terms than in~~ the past, or not at all. Boardwalk Pipeline expects this trend to continue, and therefore, Boardwalk Pipeline may not be able to sell all of its available capacity, extend expiring contracts with existing customers or obtain replacement contracts at attractive rates or for a similar term as the expiring contracts. These sustained conditions have had, and Boardwalk Pipeline expects will continue to have, a materially adverse effect on Boardwalk Pipeline’s revenues, earnings and distributable cash flows.year ended December 31, 2016.

Natural gas producers account for a significant portion of Boardwalk Pipeline’s revenues, with approximately 50% of its 2015 revenues generated from contracts with natural gas producers. During 2015, the price of oil and natural gas continued to decline as a result of increasing gas supplies, mainly from shale production areas in the U.S., which has adversely impacted the businesses of certain of Boardwalk Pipeline’s producer customers, including those that have contracted with Boardwalk Pipeline for capacity on some of its growth projects. Although oil and natural gas prices have recovered slightly from the lows seen earlier in 2016, they remain lower than before the decline began. If natural gas prices remain low, or decline further, for a sustained period of time, the businesses of Boardwalk Pipeline’s producer customers will be further adversely affected, which could reduce the demand for Boardwalk Pipeline’s services, result in the non-renewal of contracted capacity, or renewal at lower rates or on less attractive terms, or lead some customers, particularly customers that are experiencing financial difficulties, to default on their obligations to Boardwalk Pipeline or seek to terminate or renegotiate existing contracts. Should any such customers file for bankruptcy protection, they may also seek to have their contracts with Boardwalk Pipeline rejected in the bankruptcy proceeding.

A majority of Boardwalk Pipeline’s customers are rated investment-grade by at least one of the major credit rating agencies, however, the ratings of several of Boardwalk Pipeline’s oil and gas producer customers, including some of those supporting its growth projects, have been downgraded in the past year. The downgrades further restrict liquidity for those customers and may result in nonperformance of their contractual obligations, including failure to make future payments or, for customers supporting Boardwalk Pipeline’s growth projects, failure to post required letters of credit or other collateral as construction progresses.

Boardwalk Pipeline is currently engaged in a number of growth projects having an aggregate estimated cost of approximately $1.2 billion. During the second and third quarters of 2016, several growth projects were placed into service at an aggregate cost which was approximately $30 million lower than the $350 million originally expected. The remainder of the projects are subject to the risk that they may not be completed, may be impacted by significant cost overruns or may be materially changed prior to completion as a result of future developments or circumstances that Boardwalk Pipeline cannot predict at this time.

In early 2016, a customer on Boardwalk Pipeline’s Northern Supply Access project, which had contracted for 100,000 million British thermal units per day (“MMBtu/d”) of capacity, filed for bankruptcy protection and rejected Boardwalk Pipeline’s transportation contract. Boardwalk Pipeline has an unsecured claim in the bankruptcy proceedings for an amount that was determined by agreement between Boardwalk Pipeline and that customer. As a result of the 100,000 MMBtu/d reduction in customer volume commitments resulting from the bankruptcy, Boardwalk Pipeline has reduced the scope of this project by 100,000 MMBtu/d, reducing capacity to 284,000 MMBtu/d and reducing the estimated capital cost from $310 million to $230 million. In April 2016, another customer that contracted for 30,000 MMBtu/d of capacity on this project failed to increase its letter of credit in default of its obligations under a credit support agreement. In October 2016, the default was remedied. The transportation agreement with this customer remains in place.

In October of 2014, Boardwalk Pipeline’s Gulf South subsidiary filed a rate case with the Federal Energy Regulatory Commission (“FERC”) pursuant to Section 4 of the Natural Gas Act (Docket No. RP15-65), requesting, among other things, a reconfiguration of the transportation rate zones on the Gulf South system and, in general, an increase in its tariff rates for those customers whose agreements are at maximum tariff rates. An uncontested settlement was reached with Gulf South’s customers and the FERC, which became final effective March 1, 2016. In April 2016, Gulf South settled a $17 million rate refund liability through a combination of cash payments and invoice credits. Also,Partially as a result of the ~~rate case,~~increase in overall gas supplies, demand markets, primarily in the Gulf Coast area, are growing due to new natural gas export facilities, power plants and petrochemical facilities and increased exports to Mexico. These developments have resulted in significant growth projects for Boardwalk Pipeline, several of which were placed into service during 2016. These include the Ohio to Louisiana Access project, the Southern Indiana Lateral, the Western Kentucky Market Lateral, a project to serve a power plant in South ~~implemented~~Texas, and, in March of 2017, the Northern Supply Access Project. Boardwalk Pipeline has an additional $1.1 billion of growth projects under development that are expected to be placed into service in 2017 through 2019, and through June 30, 2017, Boardwalk Pipeline has invested $425 million of capital in these projects. These new projects have lengthy planning and construction periods. As a ~~fuel tracker which went~~result, these projects will not contribute to Boardwalk Pipeline’s earnings and cash flows until they are placed into ~~effect April 1, 2016. All issues associated with~~service over the ~~rate case have been resolved.~~next several years.

The following table summarizes the results of operations for Boardwalk Pipeline for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 as presented in Note 1311 of the Notes to Consolidated Condensed Financial Statements included under Item 1 of this Report:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended June 30,						Six Months Ended June 30,

	2016		2015		2016		2015		2017			2016			2017			2016

(In millions)

Revenues:
Other revenue, primarily operating	$	306	$	296	$	961	$	925	$	318		$	308		$	686		$	655

Total		306		296		961		925		318			308			686			655

Expenses:
Operating		212		205		615		628		251			198			455			403
Interest		48		43		136		134		44			45			90			88

Total		260		248		751		762		295			243			545			491

Income before income tax		46		48		210		163		23			65			141			164
Income tax expense		(9)		(12)		(44)		(33)		(5	)		(16	)		(28	)		(35	)
Amounts attributable to noncontrolling interests		(23)		(18)		(104)		(75)		(12	)		(32	)		(70	)		(81	)

Net income attributable to Loews Corporation	$	14	$	18	$	62	$	55	$	6		$	17		$	43		$	48

Three Months Ended ~~September~~June 30, ~~2016~~2017 Compared to ~~2015~~2016

Total revenues increased $10 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015~~2016 period. Excluding ~~proceeds~~the $13 million of income from the settlement of a ~~business interruption claim of $3 million~~legal matter in ~~2015~~the 2016 period and items offset in fuel and transportation expense, primarily retained fuel, operating revenues increased ~~$18~~$21 million. The increase was driven by an increase in transportation revenues of $20 million, which resulted from growth projects recently placed into service, partially offset by contract expirations.

Operating expenses increased $53 million for the three months ended June 30, 2017 as compared with the 2016 period. Excluding items offset in operating revenues and the $47 million loss on the sale of a processing plant, as discussed in Note 5 to the Consolidated Condensed Financial Statements under Item 1, operating costs and expenses increased $3 million primarily due to an increase in maintenance activities.

Net income decreased $11 million for the three months ended June 30, 2017 as compared with the 2016 period, primarily due to the changes discussed above.

Total revenues increased $31 million for the six months ended June 30, 2017 as compared with the 2016 period. Excluding income from the settlement of a legal matter in the 2016 period and items offset in fuel and transportation expense, primarily retained fuel, operating revenues increased $44 million. The increase was driven by an increase in transportation revenues of $35 million, which resulted from growth projects recently placed into service. ~~In addition, storage~~Storage and parking and lending ~~(“PAL”)~~ revenues were higher by $6$4 million primarily from the effects of favorable market conditions on time period price spreads.

Operating expenses increased $7$52 million for the ~~three~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015~~2016 period. Excluding ~~receipt of a franchise tax refund of $10 million in 2015 and~~ items offset in operating revenues and the $47 million loss on the sale of a processing plant, operating costs and expenses increased ~~$2 million primarily due to an increase in employee-related costs partially offset by lower maintenance activities.~~$3 million. Interest expense increased $5$2 million primarily due to higher average debt ~~balances and~~levels at higher ~~average interest rates compared with the 2015 period.~~borrowing rates.

Net income decreased $5 million for the ~~three~~six months ended ~~September~~June 30, ~~2016 decreased $4 million~~2017 as compared with the ~~2015~~2016 period, primarily due to the ~~franchise tax refund received in 2015 and higher interest expense in 2016 partially offset by the impact of higher revenues as~~changes discussed above.

Total revenues increased $36 million for the nine months ended September 30, 2016 as compared with the 2015 period. Excluding proceeds received from the settlement of a legal claim of $13 million in 2016, the receipt of business interruption proceeds of $9 million in 2015 and items offset in fuel and transportation expense, primarily retained fuel, operating revenues increased $55 million. The increase was driven by an increase in transportation revenues of $53 million, which resulted from growth projects recently placed into service, incremental revenues from the Gulf South rate case and the return to service of the Evangeline pipeline in mid-2015, partially offset by the effects of market conditions on contract renewals discussed above. Storage and PAL revenues were higher by $13 million primarily from the effects of favorable market conditions on time period price spreads. Boardwalk Pipeline’s

~~gathering and processing revenues were unfavorably impacted by $4 million related to its Flag City processing plant and a $3 million decrease in net fuel.~~

Operating expenses decreased $13 million for the nine months ended September 30, 2016 as compared with the 2015 period. Excluding receipt of a franchise tax refund of $10 million in 2015 and items offset in operating revenues, operating costs and expenses increased $4 million primarily due to higher employee related costs, partially offset by decreases in maintenance activities and depreciation expense.

Net income for the nine months ended September 30, 2016 increased $7 million as compared with the 2015 period, primarily due to higher revenues partially offset by higher employee related costs and the franchise tax refund received in 2015 as discussed above.

The following table summarizes the results of operations for Loews Hotels & Co for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 as presented in Note 1311 of the Notes to Consolidated Condensed Financial Statements included inunder Item 1 of this Report:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended June 30,						Six Months Ended June 30,

	2016		2015		2016		2015		2017			2016			2017			2016

(In millions)

Revenues:
Operating revenue	$	132	$	127	$	426	$	394	$	154		$	156		$	290		$	294
Revenues related to reimbursable expenses		29		19		87		58		27			33			58			58

Total		161		146		513		452		181			189			348			352

Expenses:
Operating		120		118		372		353		128			129			251			252
Reimbursable expenses		29		19		87		58		27			33			58			58
Depreciation		17		14		47		39		15			15			31			30
Equity income from joint ventures		(15)		(11)		(27)		(38)
Equity (income) loss from joint ventures										(15	)		3			(44	)		(12)
Interest		6		5		17		15		6			5			13			11

Total		157		145		496		427		161			185			309			339

Income before income tax		4		1		17		25		20			4			39			13
Income tax (expense) benefit		(1)		1		(10)		(10)
Income tax expense										(10	)		(3	)		(19	)		(9)

Net income attributable to Loews Corporation	$	3	$	2	$	7	$	15	$	10		$	1		$	20		$	4

~~Income before~~Operating revenues decreased $2 million and $4 million for the three and six months ended June 30, 2017 as compared with the 2016 periods primarily due to a decrease in revenue as a result of renovation activities.

Equity income ~~tax~~from joint ventures increased $3$18 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015 period,~~2016 period. The increase was primarily due to ~~increased~~the absence of a $13 million impairment charge related to an equity interest in a joint venture hotel property in the 2016 period and the opening of a new joint venture hotel in the third quarter of 2016. Equity income from joint ~~venture properties. Operating revenues and expenses were impacted by the acquisition of a hotel in January of 2016.~~

~~Income before income tax decreased $8~~ventures increased $32 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015~~2016 period. ~~Operating revenues and expenses were impacted by~~The increase was primarily due to the ~~acquisition~~$25 million gain on the sale of ~~one~~an equity interest in the Loews Don CeSar Hotel, a joint venture hotel ~~during~~property, in February of 2017, the ~~first nine months~~absence of ~~2016 and two hotels during 2015. In addition, results in 2016 were impacted by~~ a $13 million impairment charge related to an equity interest in a joint venture hotel property in the 2016 period and the opening of a new joint venture hotel in 2016, partially offset by a $15 million impairment charge in 2017 related to an equity interest in a joint venture hotel property.

Net income increased $1$9 million and ~~decreased $8~~$16 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015~~2016 periods primarily due to the changes discussed above. ~~Results for the nine months in 2016 were also impacted by an increase in the effective tax rate due to a higher state tax provision for the increased ratio of Florida based income.~~

Corporate operations consist primarily of investment income at the Parent Company, operating results of Consolidated Container from the May 22, 2017 acquisition date, corporate interest expenses and other corporate administrative costs. Investment income includes earnings on cash and short term investments held at the Parent Company to meet current and future liquidity needs, as well as results of limited partnership investments and the trading portfolio.

The following table summarizes the results of operations for Corporate ~~and Other~~ for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 and ~~2015~~2016 as presented in Note 1311 of the Notes to Consolidated Condensed Financial Statements included inunder Item 1 of this Report:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,				Three Months Ended June 30,						Six Months Ended June 30,

	2016		2015		2016		2015		2017			2016			2017			2016

(In millions)

Revenues:
Net investment income (loss)	$	36	$	(35)	$	108	$	4
Net investment income									$	2		$	85		$	61		$	72
Other revenues		1		1		2		2		93			(1	)		93			1

Total		37		(34)		110		6		95			84			154			73

Expenses:
Operating		25		21		82		61		130			32			168			57
Interest		18		19		54		56		22			18			40			36

Total		43		40		136		117		152			50			208			93

Loss before income tax		(6)		(74)		(26)		(111)
Income tax benefit		1		28		8		41
Income (loss) before income tax										(57	)		34			(54	)		(20)
Income tax (expense) benefit										21			(12	)		20			7

Net loss attributable to Loews Corporation	$	(5)	$	(46)	$	(18)	$	(70)
Net income (loss) attributable to Loews Corporation									$	(36	)	$	22		$	(34	)	$	(13)

Net investment income ~~increased~~decreased by ~~$71~~$83 million and $11 million for the three and six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015 period,~~2016 periods, primarily due to ~~improved performance of limited partnership investments and~~lower results from equity based investments in the trading portfolio. Net investment income increased by $104 million for the nine months ended September 30, 2016 as compared with the 2015 period, primarily due to improved performance of equity based investments and fixed income investments in the trading portfolio, partially offset by ~~lower results from~~improved performance of limited partnership investments.

Other revenues increased $94 million and $92 million for the three and six months ended June 30, 2017 as compared with the 2016 periods, primarily due to $91 million of revenue from Consolidated Container’s operations since the acquisition date.

Operating expenses increased $98 million and $111 million for the three and six months ended June 30, 2017 as compared with the 2016 periods, primarily due to $89 million of expenses, inclusive of expenses resulting from purchase accounting, for Consolidated Container’s operations since the acquisition date. In addition, operating expenses increased due to the timing of compensation accruals and costs related to the acquisition of Consolidated Container, partially offset by the absence of prior year expenses related to the implementation of the 2016 Incentive Compensation Plan. Interest expense increased $4 million for the three and six months ended June 30, 2017 as compared with the 2016 periods, primarily due to interest expense associated with Consolidated Container’s $605 million term loan from the date of acquisition of Consolidated Container.

Net results decreased $58 million and $21 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~2015 periods primarily due to expenses related to the~~ 2016 ~~Incentive Compensation Plan, which was approved by shareholders on May 10, 2016 and increased corporate overhead expenses.~~

~~The net loss decreased $41 million and $52 million for the three and nine months ended September 30, 2016 as compared with the 2015~~ periods, primarily due to the changes discussed above.

Parent Company cash and investments, net of receivables and payables, at ~~September~~June 30, 2017 and December 31, 2016 totaled $5.0 ~~billion, as compared to $4.3 billion at December 31, 2015.~~billion. During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we received ~~$706~~$633 million in dividends from our subsidiaries, including a special dividend from CNA of $485 million. Cash outflows included the payment of ~~$115~~$620 million to fund ~~treasury stock purchases, $8~~the acquisition of Consolidated Container, which was in addition to approximately $600 million of debt financing proceeds at the subsidiary level as discussed in Note 2 to ~~purchase shares~~the Consolidated Condensed Financial Statements under Item 1. In addition, cash outflows included the payment of ~~CNA, $63~~$42 million of cash dividends to our shareholders and ~~net cash contributions of approximately $35~~$6 million to ~~Loews Hotels.~~fund treasury stock purchases. As a holding company we depend on dividends from our subsidiaries and returns on our investment portfolio to fund our obligations. We are not responsible for the liabilities and obligations of our subsidiaries and there are no Parent Company guarantees.

In March of 2016, we completed a public offering of $500 million aggregate principal amount of 3.8% senior notes due April 1, 2026 and repaid in full the entire $400 million aggregate principal amount of our 5.3% senior notes at maturity. The net remaining proceeds are being used for general corporate purposes.

As of ~~September 30, 2016,~~July 21, 2017, there were ~~336,959,362~~336,601,242 shares of Loews common stock outstanding. Depending on market and other conditions, we may purchase our shares and shares of our ~~subsidiaries’~~subsidiaries outstanding common stock in the open market or otherwise. During the ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, we purchased ~~3.0~~0.1 million shares of Loews common ~~stock and 0.3 million shares of CNA common~~ stock.

In March of 2016, Moody’s Investment Services, Inc. (“Moody’s”) downgraded our unsecured debt rating from A2 to A3 and the outlook remains stable. Our current unsecured debt ratings are A+ for S&P Global Ratings (“S&P”) and A for Fitch Ratings, Inc., with a stable outlook for both. We have an effective Registration Statement on FormS-3 on file with the Securities and Exchange Commission (“SEC”) registering the future sale of an unlimited amount of our debt and equity securities.

In April of 2017, Fitch Ratings, Inc. affirmed our unsecured debt rating at A, with the rating outlook revised to negative from stable and in June of 2017, S&P Global Ratings (“S&P”) lowered our corporate credit and senior debt ratings from A+ to A with a stable outlook. Our current unsecured debt rating is A3 for Moody’s Investors Service, Inc. (“Moody’s”), with a stable outlook. Should one or more rating agencies downgrade our credit ratings from current levels, or announce that they have placed us under review for a potential downgrade, our cost of capital could increase and our ability to raise new capital could be adversely affected.

We continue to pursue conservative financial strategies while seeking opportunities for responsible growth. ~~These~~Future uses of our cash may include ~~the expansion~~investing in our subsidiaries, new acquisitions and/or repurchases of ~~existing businesses, full or partial acquisitions~~our and ~~dispositions, and opportunities for efficiencies and economies of scale.~~our subsidiaries’ outstanding common stock.

CNA’s cash provided by operating activities was ~~$1.1 billion~~$515 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with ~~$1.0 billion~~$613 million for the ~~same period in 2015.~~2016 period. Cash provided by operating activities reflected ~~increased receipts relating to the returns~~a lower level of distributions on ~~invested capital for~~ limited partnerships ~~and lower income taxes paid, partially offset by lower net premiums collected~~ and higher net claim payments partially offset by an increase in premiums collected and ~~expense payments.~~lower salaries and related expenses paid.

CNA declared and paid dividends of ~~$2.75~~$2.50 per share ofon its common stock, including a special dividend of $2.00 per share during the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. On ~~October~~July 28, ~~2016,~~2017, CNA’s Board of Directors declared a quarterly dividend of ~~$0.25~~$0.30 per share on its common stock, payable ~~November~~August 30, ~~2016~~2017 to shareholders of record on ~~November~~August 14, ~~2016.~~2017. CNA’s declaration and payment of future dividends is at the discretion of its Board of Directors and will depend on many factors, including CNA’s earnings, financial condition, business needs and regulatory constraints. The payment of dividends by CNA’s insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is generally limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective insurance regulator.

Dividends from the Continental Casualty Company (“CCC”), a subsidiary of CNA, are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval by the Illinois Department of Insurance (“Department”), are determined based on the greater of the prior year’s statutory net income or 10% of statutory surplus as of the end of the prior year, as well as the timing and amount of dividends paid in the preceding twelve months. Additionally, ordinary dividends may only be paid from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of ~~September~~June 30, ~~2016,~~2017, CCC was in a positive earned surplus position. The maximum allowable dividend CCC could pay during ~~2016~~2017 that would not be subject to the Department’s prior approval is approximately $1.1 billion, less dividends paid during the preceding twelve months measured at that point in time. CCC paid dividends of ~~$100~~$200 million during the ~~three~~six months ended December 31, ~~2015~~2016 and ~~$665~~$775 million during the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. As of ~~September~~June 30, ~~2016,~~2017, CCC is able to pay approximately ~~$314~~$100 million of dividends that would not be subject to prior approval of the Department. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company.

Diamond Offshore’s cash provided by operating activities for the ~~nine~~six months ended ~~September~~June 30, ~~2016 increased $25~~2017 decreased $129 million as compared ~~with~~to the ~~2015~~2016 period, primarily due to lower cash receipts from contract drilling services of $203 million, partially offset by a net decrease in cash payments for contract drilling ~~and general and administrative~~ expenses, including personnel-related, repairs and maintenance and other rig operating costs of ~~$499 million, partially offset by lower cash receipts from contract drilling services of $490~~$74 million. The decline in both cash receipts and cash payments related to the performance of contract drilling services reflects continuing depressed market conditions in the ~~continued decline in contract~~offshore drilling ~~activity during the nine months ended September 30, 2016~~industry, as well as ~~the~~ positive results of Diamond Offshore’s continuing ~~efforts to control~~focus on controlling costs.

For ~~2016,~~2017, Diamond Offshore has budgeted approximately ~~$625~~$145 million for capital ~~expenditures, including construction costs for the~~~~Ocean GreatWhite~~ ~~and ongoing capital maintenance and replacement programs. Shipyard construction of the~~~~Ocean GreatWhite~~~~, a 10,000 foot dynamically positioned, harsh environment semisubmersible drilling rig has been completed and in June of 2016~~expenditures. Diamond Offshore ~~made the final payment of $403 million. The~~~~Ocean GreatWhite~~ ~~was delivered by the shipyard in mid-July of 2016.~~

~~During the nine months ended September~~has no other purchase obligations for major rig upgrades at June 30, 2016, Diamond Offshore completed three sale and leaseback transactions and received $158 million in proceeds, which was less than the carrying value of the equipment. The resulting difference was recorded as prepaid rent with no gain or loss recognized on the transactions. For further information about these transactions, see Note 4 of the Notes to Consolidated Condensed Financial Statements in Item 1 of this report.2017.

As of ~~September~~June 30, ~~2016,~~2017, Diamond Offshore had ~~$182 million in~~no outstanding borrowings ~~outstanding~~ under its credit agreement and iswas in compliance with all covenant requirements thereunder. As of ~~October~~July 27, ~~2016,~~2017, Diamond Offshore had ~~$222 million in borrowings outstanding and an additional $1.3~~$1.5 billion available under its credit agreement to provide ~~short term~~ liquidity for payment obligations.

In ~~February~~July of ~~2016,~~2017, Moody’s downgraded Diamond Offshore’s ~~senior unsecured~~corporate credit rating to ~~Ba2~~Ba3 with a negative outlook from ~~Baa2,~~Ba2 with a stable ~~outlook, and also downgraded its short-term~~outlook. Diamond Offshore’s current corporate credit rating ~~to sub-prime. In July of 2016,~~by S&P ~~downgraded Diamond Offshore’s senior unsecured credit rating to BBB from BBB+~~remainsBB- with a negative outlook. Market conditions and other factors, many of which are outside of Diamond Offshore’s control, could cause its credit ratings to be lowered. A downgrade in Diamond Offshore’s credit ratings could adversely impact its cost of issuing additional debt and the amount of additional debt that it could issue, and could further restrict its access to capital markets and ~~Diamond Offshore’s~~its ability to raise funds by issuing additional debt. As a consequence, Diamond Offshore may not be able to issue additional debt in amounts and/or with terms that it considers to be reasonable. One or more of these occurrences could limit Diamond Offshore’s ability to pursue other business opportunities.

Diamond Offshore will make periodic assessments of its capital spending programs based on industry conditions and will make adjustments if it determines they are required. Diamond Offshore, may, from time to time, issue debt or equity securities, or a combination thereof, to finance capital expenditures, the acquisition of assets and businesses or for general corporate purposes. Diamond Offshore’s ability to access the capital markets by issuing debt or equity securities will be dependent on its results of operations, current financial condition, current credit ratings, current market conditions and other factors beyond its control.

Boardwalk Pipeline’s cash provided by operating activities increased ~~$24~~$43 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 compared to the ~~2015~~2016 period primarily due to ~~increased~~the change in net income, excluding the effects ofnon-cash items such as depreciation, amortization and ~~amortization, partially offset by timing~~the loss on the sale of ~~accruals and~~operating assets. The increase also reflects the settlement of the Gulf South rate ~~refund.~~refund in the 2016 period.

~~For~~In the ~~nine months ended September 30,~~second quarters of 2017 and 2016, ~~and 2015,~~ Boardwalk Pipeline declared and paid quarterly distributions to its common unitholders of record of ~~$0.30~~$0.10 per common unit and an amount to the general partner on behalf of its 2% general partner interest. In ~~October~~July of ~~2016, the Partnership~~2017, Boardwalk Pipeline declared a quarterly cash distribution to unitholders of record of $0.10 per common unit.

~~For the nine months ended September 30, 2016 and 2015, Boardwalk Pipeline’s capital expenditures were $432 million and $241 million, consisting~~In January of ~~a combination of growth and maintenance capital.~~2017, Boardwalk Pipeline ~~expects total capital expenditures~~completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due July 15, 2027 and plans to ~~be approximately $700 million in 2016, primarily related~~use the proceeds to ~~growth projects~~refinance future maturities of debt and ~~pipeline system maintenance expenditures. Boardwalk Pipeline expects~~ to ~~finance remaining 2016~~fund growth capital ~~expenditures through existing capital resources, including Boardwalk Pipeline’s cash on hand,~~expenditures. Initially, the proceeds were used to reduce outstanding borrowings under its revolving credit ~~facility, and cash flows from operating activities.~~

facility. As of ~~October 28, 2016,~~June 30, 2017, Boardwalk Pipeline had no outstanding borrowings under its revolving credit ~~facility and had available the full borrowing capacity~~facility. In July of ~~$1.5 billion. During the third quarter of 2016,~~2017, Boardwalk Pipeline extended the maturity date of ~~the~~its revolving credit facility by one year to May 26, ~~2021.~~2022. Boardwalk Pipeline has in place a subordinated loan agreement with a subsidiary of the Company under which it could borrow up to $300 ~~million. During the third quarter of 2016, the borrowing period of the subordinated loan agreement was extended by two years to~~million until December 31, 2018. As of ~~September 30, 2016 and October~~July 28, ~~2016~~2017, Boardwalk Pipeline had no outstanding borrowings under the subordinated loan agreement. ~~In addition,~~

For the six months ended June 30, 2017 and 2016, Boardwalk Pipeline’s capital expenditures were $303 million and $259 million, consisting of a combination of growth and maintenance capital expenditures. Boardwalk Pipeline ~~has entered~~expects total capital expenditures to be approximately $790 million in 2017, primarily related to growth projects and pipeline system maintenance. This reflects a ~~new equity distribution agreement under its shelf registration statement filed~~$60 million reduction in ~~December~~Boardwalk Pipeline’s expected growth capital expenditures for 2017, resulting from both a delay in the timing of ~~2015, which will allow it to issue equity from time to time under~~the expenditures and an ~~at-the-market program. Based on the current forecast and planned projects,~~ overall reduction in spending.

Boardwalk Pipeline ~~does not anticipate~~anticipates that its existing capital resources, including its revolving credit facility, subordinated loan agreement and cash flows from operating activities, will be adequate to fund its operations for 2017. Boardwalk Pipeline may seek to access the ~~need~~capital markets to ~~issue~~fund some or all capital expenditures for growth projects, acquisitions or for general business purposes. Boardwalk Pipeline’s ability to access the capital markets for equity ~~for the remainder of 2016.~~

Investment activities ofnon-insurance subsidiaries primarily include investments in fixed income securities, including short term investments. The Parent Company portfolio also includes equity securities, including short sales and derivative instruments, and investments in limited partnerships. These types of investments generally present greater volatility, less liquidity and greater risk than fixed income investments and are included within ~~the Corporate and Other segment.~~Results of Operations – Corporate.

We enter into short sales and invest in certain derivative instruments that are used for asset and liability management activities, income enhancements to our portfolio management strategy and to benefit from anticipated future movements in the underlying markets. If such movements do not occur as anticipated, then significant losses may occur. Monitoring procedures include senior management review of daily ~~detailed~~ reports of existing positions and valuation fluctuations to seek to ensure that open positions are consistent with our portfolio strategy.

Credit exposure associated withnon-performance by ~~the~~ counterparties to our derivative instruments is generally limited to the uncollateralized change in fair value of the derivative instruments recognized in the Consolidated Condensed Balance Sheets. We mitigate the risk ofnon-performance by monitoring the creditworthiness of counterparties and diversifying derivatives toby using multiple counterparties. We occasionally require collateral from our derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty.

CNA maintains a large portfolio of fixed maturity and equity securities, including large amounts of corporate and government issued debt securities, residential and commercial mortgage-backed securities, and other asset-backed securities and investments in limited partnerships which pursue a variety of long and short investment strategies across a broad array of asset classes. CNA’s investment portfolio supports its obligation to pay future insurance claims and provides investment returns which are an important part of CNA’s overall profitability.

The significant components of CNA’s Net investment income are presented in the following table:


	Three Months Ended September 30,				Nine Months Ended September 30,

	2016		2015		2016		2015		Three Months Ended June 30,						Six Months Ended June 30,
									2017			2016			2017			2016
(In millions)

Fixed maturity securities:
Taxable	$	354	$	346	$	1,048	$	1,040	$	351		$	349		$	698		$	694
Tax-exempt		103		103		304		304		106			100			214			201

Total fixed maturity securities		457		449		1,352		1,344		457			449			912			895
Limited partnership investments		65		(93)		97		69		16			46			106			32
Other, net of investment expense		2		(2)		12		(1)		2			7			2			10

Net investment income before tax	$	524	$	354	$	1,461	$	1,412	$	475		$	502		$	1,020		$	937

Net investment income after tax and noncontrolling interests	$	333	$	238	$	940	$	911	$	308		$	325		$	656		$	608


Effective income yield for the fixed maturity securities portfolio, before tax		4.8%		4.8%		4.8%		4.8%		4.8	%		4.8	%		4.8	%		4.8	%
Effective income yield for the fixed maturity securities portfolio, after tax		3.4%		3.5%		3.4%		3.5%		3.4	%		3.5	%		3.4	%		3.4	%

Net investment income after tax and noncontrolling interests for the three months ended ~~September~~June 30, ~~2016 increased $95~~2017 decreased $17 million as compared with the ~~same period in 2015.~~2016 period. The ~~increase~~decrease was driven by limited partnership investments, which returned ~~2.6%~~0.7% in 2017 as compared with ~~(3.2)%~~1.8% in the 2016 period. Income from fixed maturity securities, after tax and noncontrolling interests, for the ~~same~~three months ended June 30, 2017 increased $4 million as compared with the 2016 period, primarily due to an increase in ~~2015.~~the invested asset base.

Net investment income after tax and noncontrolling interests for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 increased ~~$29~~$48 million as compared with the ~~same period in 2015.~~2016 period. The increase was driven by limited partnership investments, which returned ~~3.8%~~4.5% in 2017 as compared with ~~2.2%~~1.2% in the prior year period. Income from fixed maturity securities after tax and noncontrolling interests for the six months ended June 30, 2017 increased $11 million as compared with the 2016 period, primarily due to an increase in the invested asset base.

The components of CNA’s Net realized investment gains (losses) are presented in the following table:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,						Six Months Ended June 30,

	2016		2015		2016		2015		2017			2016			2017			2016

(In millions)

Realized investment gains (losses):
Fixed maturity securities:
Corporate and other bonds	$	18	$	(27)	$	10	$	(11)	$	39		$	7		$	68		$	(8)
States, municipalities and political subdivisions		20		(7)		23		(27)		4						10			3
Asset-backed		5		5		5		8		(1	)		6			(5	)
U.S. Treasury and obligations of government-sponsored enterprises		3				5				2			1			3			2
Foreign government		1				3		1					2						2

Total fixed maturity securities		47		(29)		46		(29)		44			16			76			(1)
Equity securities		(3)		(18)		(5)		(19)					3						(2)
Derivative instruments		1		(1)		(12)		9
Derivative securities										(3	)		(6	)		(2	)		(13)
Short term investments and other				(2)		1		(3)		2						3			1

Total realized investment gains (losses)		45		(50)		30		(42)		43			13			77			(15)
Income tax (expense) benefit		(15)		18		(12)		22		(15	)		(6	)		(26	)		3
Amounts attributable to noncontrolling interests		(3)		3		(2)		2		(2	)		(1	)		(5	)		1

Net realized investment gains (losses) attributable to Loews Corporation	$	27	$	(29)	$	16	$	(18)	$	26		$	6		$	46		$	(11)

Net realized investment ~~results~~gains improved ~~$56~~$20 million for the three months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period, ~~in 2015,~~ driven by higher net realized investment gains on sales of securities ~~reflecting the overall net unrealized gain position within the portfolio~~ and lower OTTI losses recognized in earnings.

Net realized investment results improved ~~$34~~$57 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 as compared with the ~~same~~2016 period, ~~in 2015,~~ driven by higher net realized investment gains on sales of securities ~~reflecting the overall net unrealized gain position within the portfolio~~ and lower OTTI losses recognized in ~~earnings, partially offset by derivative results.~~

earnings. Further information on CNA’s realized gains and losses, including OTTI losses, is set forth in Note 23 of the Notes to Consolidated Condensed Financial Statements included under Item 1.

The following table presents the estimated fair value and net unrealized gains ~~(losses)~~ of CNA’s fixed maturity securities by rating distribution:


	June 30, 2017				December 31, 2016
	Estimated Fair Value		Net Unrealized Gains (Losses)		Estimated Fair Value		Net Unrealized Gains (Losses)

(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	4,249	$	39	$	4,212	$	32
AAA		1,819		139		1,881		110
AA		9,104		870		8,911		750
A		10,014		895		9,866		832
BBB		13,409		982		12,802		664
Non-investment grade		3,154		156		3,233		156

Total	$	41,749	$	3,081	$	40,905	$	2,544

As of ~~September~~June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, only 2% ~~and 1%~~ of CNA’s fixed maturity portfolio was rated internally.

The following table presents CNA’savailable-for-sale fixed maturity securities in a gross unrealized loss position by ratings distribution:


September 30, 2016	Estimated Fair Value		Gross Unrealized Losses
June 30, 2017					Estimated Fair Value		Gross Unrealized Losses

(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	62	$	1	$	1,744	$	34
AAA		116		2		197		6
AA		196		2		616		10
A		304		5		635		12
BBB		828		18		1,150		22
Non-investment grade		781		34		598		20

Total	$	2,287	$	62	$	4,940	$	104

The following table presents the maturity profile for theseavailable-for-sale fixed maturity securities. Securities not due to mature on a single date are allocated based on weighted average life:


September 30, 2016	Estimated Fair Value		Gross Unrealized Losses
June 30, 2017					Estimated Fair Value		Gross Unrealized Losses

(In millions)

Due in one year or less	$	121	$	1	$	72	$	1
Due after one year through five years		585		13		785		15
Due after five years through ten years		999		26		3,035		66
Due after ten years		582		22		1,048		22

Total	$	2,287	$	62	$	4,940	$	104

A primary objective in the management of ~~the~~CNA’s investment portfolio is to optimize return relative to corresponding liabilities and respective liquidity needs. CNA’s views on the current interest rate environment, tax regulations, asset class valuations, specific security issuer and broader industry segment conditions and ~~the~~ domestic and global economic conditions, are some of the factors that enter into an investment decision. CNA also continually monitors exposure to issuers of securities held and broader industry sector exposures and may from time to time adjust such exposures based on its views of a specific issuer or industry sector.

A further consideration in the management of ~~the~~CNA’s investment portfolio is the characteristics of the corresponding liabilities and the ability to align the duration of the portfolio to those liabilities and to meet future liquidity needs, minimize interest rate risk and maintain a level of income sufficient to support the underlying insurance liabilities. For portfolios where future liability cash flows are determinable and typically long term in nature, CNA segregates investments for asset/liability management purposes. The segregated investments support the long term care and structured settlement liabilities in ~~the Life & Group Non-Core business.~~non-core operations.

The effective durations of CNA’s fixed maturity securities and short term investments are presented in the following table. Amounts presented are net of ~~accounts~~ payable and receivable amounts for securities purchased and sold, but not yet settled.


	September 30, 2016				December 31, 2015
									June 30, 2017				December 31, 2016
	Estimated Fair Value		Effective Duration (Years)		Estimated Fair Value		Effective Duration (Years)		Estimated Fair Value		Effective Duration (Years)		Estimated Fair Value		Effective Duration (Years)

(In millions of dollars)

Investments supporting Life & Group Non-Core	$	16,407		8.6	$	14,879		9.6
Investments supportingnon-core operations									$	16,375		8.7	$	15,724		8.7
Other interest sensitive investments		27,239		4.1		26,435		4.3		26,513		4.4		26,669		4.6

Total	$	43,646		5.8	$	41,314		6.2	$	42,888		6.1	$	42,393		6.1

The duration of the total fixed income portfolio is in line with portfolio targets. The duration of the assets supporting the Life & Group Non-Core business has declined, reflective of increases in expected bond call activity in CNA’s municipal bond portfolio and the low interest rate environment.

The investment portfolio is periodically analyzed for changes in duration and related price ~~change~~ risk. Additionally, CNA periodically reviews the sensitivity of the portfolio to the level of foreign exchange rates and other factors that contribute to market price changes. A summary of these risks and specific analysis on changes is included in the Quantitative and Qualitative Disclosures about Market Risk inunder Item 7A of our Annual Report on Form10-K for the year ended December 31, ~~2015.~~2016.

The carrying ~~values~~value of the components of CNA’s Short term investments are presented in the following table:


	September 30, 2016		December 31, 2015		June 30,		December 31,
					2017		2016
(In millions)

(In millions)

Short term investments:
Commercial paper	$	841	$	998	$	932	$	733
U.S. Treasury securities		374		411		186		433
Money market funds		75		60		76		44
Other		133		191		139		197

Total short term investments	$	1,423	$	1,660	$	1,333	$	1,407

Certain accounting policies require us to make estimates and judgments that affect the amounts reflected in the Consolidated Condensed Financial Statements. Such estimates and judgments necessarily involve varying, and possibly significant, degrees of uncertainty. Accordingly, certain amounts currently recorded in the financial statements will likely be adjusted in the future based on new available information and changes in other facts and circumstances. See the Critical Accounting Estimates and the Insurance Reserves sections of our MD&A included under Item 7 of our Annual Report on Form10-K for the year ended December 31, 2016 for further information.

For a discussion of accounting standards updates that have been adopted or will be adopted in the future, please ~~read~~see Note 1 of the Notes to Consolidated Condensed Financial Statements included under Item 1.

Investors are cautioned that certain statements contained in this Report as well as some statements in other SEC filings and periodic press releases and some oral statements made by us and our subsidiaries and our and their officials during presentations ~~are “forward-looking” statements~~may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include, without limitation, any statement that does not directly relate to any historical or current fact and may project, indicate or imply future results, events, performance or ~~achievements, and~~achievements. Such statements may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions. In addition, any statement concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible actions taken by us or our subsidiaries are also forward-looking statements as defined by the Act.

Forward-looking statements are based on current expectations and projections about future events and are inherently subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated or projected. ~~See Forward-Looking Statements and~~

Developments in any of the risks or uncertainties facing us or our subsidiaries, including those described under Part I, Item 1A, Risk Factors in our Annual Report on Form10-K for the year ended December 31, ~~2015 for further discussion of factors~~2016 and in our other filings with the SEC, could cause our results to differ materially from results that have been or may ~~affect the~~be anticipated or projected. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements. ~~The following information describes an~~

~~addition~~Forward-looking statements speak only as of the date they are made and we expressly disclaim any obligation or undertaking to ~~the Forward-Looking Statements and should be read in conjunction with the Forward-Looking Statements disclosed~~update these statements to reflect any change in our ~~Annual Report~~expectations or beliefs or any change in events, conditions or circumstances on ~~Form 10-K for the year ended December 31, 2015.~~which any forward-looking statement is based.

On June 23, 2016, the U.K. held a referendum in which voters approved an exit from the E.U., commonly referred to as “Brexit.” As a result of the referendum, it is currently expected that the British government will formally commence the process to leave the E.U. and begin negotiating the terms of treaties that will govern the U.K.’s future relationship with the E.U. in the first quarter of 2017. Although the terms of any future treaties are unknown, changes in CNA’s international operating platform may be required to allow it to continue to write business in the E.U. after the completion of Brexit. As a result of these changes, the complexity and cost of regulatory compliance of CNA’s European business is likely to increase.

~~There were no material changes~~The following describes an addition to our Quantitative and Qualitative Disclosures about Market Risk and should be read in ~~our market risk components for the nine months ended September 30, 2016. See~~conjunction with the Quantitative and Qualitative Disclosures about Market Risk included inunder Item 7A of our Annual Report on ~~Form 10-K~~Form10-K for the year ended December 31, ~~2015 for further information.~~2016. Additional information related to portfolio duration and market conditions is discussed in the Investments section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included inunder Part I, Item 2.

Commodity Price Risk – We have exposure to price risk as a result of Consolidated Container’s purchases of certain raw materials, such as high-density polyethylene, polycarbonate, polypropylene and polyethylene terephthalate resins in connection with the production of its products. The purchase prices of these raw materials are determined based on prevailing market conditions. While Consolidated Container’s operations are affected by fluctuations in resin prices, its net income over time is generally unaffected by these changes because industry practice and many Consolidated Container contractual arrangements permit or require Consolidated Container to pass through these cost changes to its customers. In the future, however, Consolidated Container may not always be able to pass through these changes in raw material costs in a timely manner or at all due to competitive pressures.

The Company maintains a system of disclosure controls and procedures (as defined in Rules13a-15(e) and15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), which ~~are~~is designed to ensure that information required to be disclosed by the Company in reports that it files or submits to the Securities and Exchange Commission under the ~~Securities~~ Exchange Act, ~~of 1934, as amended (the “Exchange Act”),~~ including this ~~report,~~Report, is recorded, processed, summarized and reported on a timely basis. These disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Company under the Exchange Act is accumulated and communicated to the Company’s management on a timely basis to allow decisions regarding required disclosure.

The Company’s management, including the Company’s principal executive officer (“CEO”) and principal financial officer (“CFO”) ~~undertook~~, concluded an evaluation of the effectiveness of the Company’s disclosure controls and procedures ~~(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e))~~ as of the end of the period covered by this ~~report. The~~Report and, based on that evaluation, the CEO and CFO have concluded that the Company’s ~~disclosure~~ controls and procedures were effective as of ~~September~~June 30, ~~2016.~~2017.

There were no changes in the Company’s internal control over financial reporting (as defined in Rules13a-15(f) and15d-15(f) under the Exchange Act) ~~identified in connection with the foregoing evaluation~~ that occurred during the quarter ended ~~September~~June 30, ~~2016~~2017 that have materially affected or that are reasonably likely to materially affect the Company’s internal control over financial reporting.

Information on our legal proceedings is set forth in ~~Note 11~~Notes 9 and 10 to the Consolidated Condensed Financial Statements included under Part I, Item 1.

Our Annual Report on Form10-K for the year ended December 31, ~~2015~~2016 includes a detailed discussion of certain risk factors facing ~~our~~the company. ~~No updates or~~The information presented below describes additions ~~have been made~~ to such risk factors and should be read in conjunction with the Risk Factors included under Item 1A of our Annual Report onForm10-K for the year ended December 31, 2016.

Risks Related to Us and Our Subsidiary, Consolidated Container Company (“Consolidated Container”)

Consolidated Container’s substantial indebtedness could affect its ability to meet its obligations and may otherwise restrict its activities.

Consolidated Container has a significant amount of indebtedness, which requires significant interest payments. Its inability to generate sufficient cash flow to satisfy its debt obligations, or to refinance its obligations on commercially reasonable terms, would have a material adverse effect on its business. Consolidated Container’s substantial indebtedness could have important consequences. For example, it could:

In addition, the credit agreements governing its current indebtedness contain, and any future debt instruments would likely contain, financial and other restrictive covenants, which impose significant operating and financial restrictions on it. As a result of these covenants, Consolidated Container could be limited in the manner in which it conducts its business and may be unable to engage in favorable business activities or finance future operations or capital needs. Furthermore, a failure to comply with these covenants could result in an event of default which, if not cured or waived, could have a material adverse effect on its business.

Fluctuations in raw material prices and raw material availability may affect Consolidated Container’s results.

To produce its products, Consolidated Container uses large quantities of plastic resins and recycled plastic materials. It faces the risk that its access to these raw materials may be interrupted or that it may not be able to purchase these raw materials at prices that are acceptable to it. In general, Consolidated Container does not have long-term supply contracts with its suppliers, and its purchases of raw materials are subject to market prices. Although Consolidated Container generally is able to pass changes in the prices of raw materials through to its customers over a period of time, it may not always be able to do so or there may be a lag between when its costs increase and when it passes those costs through to its customers. It may not be able to pass through all future raw material price increases in a timely manner or at all due to competitive pressures. In addition, a sustained increase in resin and recycled plastic prices, relative to alternative packaging materials, would make plastic containers less economical for its customers and could result in a slower pace of conversions to, or reductions in the use of, plastic containers. Any limitation on its ability to procure its primary raw materials or to pass through price increases in such materials on a timely basis could negatively affect its results of operations.

Consolidated Container depends on several large customers, the loss of which could have a material adverse effect on its business. In addition, because many of its customers’ contracts are requirements-based contracts, it faces the risk that they will purchase less than anticipated volumes.

The termination of any of Consolidated Container’s top customer relationships or significant declines in demand for its products could have a material adverse effect on Consolidated Container’s business. Furthermore, in Consolidated Container’s rigid packaging business, many of its contracts with large customers are requirements-based contracts that do not obligate the customer to purchase fixed amounts of product from it and are subject to termination by its customers under certain circumstances. As a result, despite the existence of contracts with most of its key customers, Consolidated Container generally faces the risk that the customers will not purchase expected amounts of the products covered under contracts. Additionally, customer contracts come up for renewal on a regular basis in the ordinary course of business, and Consolidated Container cannot guarantee that it will be able to successfully renew these contracts on favorable terms or at all as they expire.

Consolidated Container’s customers may increase their self-manufacturing.

Increased self-manufacturing by Consolidated Container’s customers may have a material adverse impact on its sales volume and financial results. Consolidated Container believes that its customers may engage in self-manufacturing over time at locations where transportation costs are high, and where low complexity and available space to install blow molding equipment exists. If one or more of ~~September 30, 2016.~~Consolidated Container’s customers increase their self-manufacturing, it may materially adversely affect its business.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this ~~report~~Report to be signed on its behalf by the undersigned, hereunto duly authorized.


Delaware		13-2646102
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)


Large accelerated filer X		Accelerated filer		Non-accelerated filer		Smaller reporting company


	Page
	~~Page~~ No.

Part I. Financial Information

Item 1. Financial Statements (unaudited)

Consolidated Condensed Balance Sheets ~~September 30, 2016 and December 31, 2015~~		3
June 30, 2017 and December 31, 2016

Consolidated Condensed Statements of Income ~~Three and nine months ended September 30, 2016 and 2015~~		4
Three and six months ended June 30, 2017 and 2016

Consolidated Condensed Statements of Comprehensive Income ~~Three and nine months ended September 30, 2016 and 2015~~ (Loss)		5
Three and six months ended June 30, 2017 and 2016

Consolidated Condensed Statements of Equity ~~Nine months ended September 30, 2016 and 2015~~		6
Six months ended June 30, 2017 and 2016

Consolidated Condensed Statements of Cash Flows ~~Nine months ended September 30, 2016 and 2015~~		7
Six months ended June 30, 2017 and 2016

Notes to Consolidated Condensed Financial Statements		8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		4239

Item 3. Quantitative and Qualitative Disclosures about Market Risk		6658

Item 4. Controls and Procedures		6658

Part II. Other Information		6758

Item 1. Legal Proceedings		6758

Item 1A. Risk Factors		6758

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		6760

Item 6. Exhibits		6861


June 30, 2017	Estimated Fair Value	Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
	(In millions)

Fixed maturity securities	$ 125	Discounted cash flow	Credit spread	2% – 40% (4%)

December 31, 2016

Fixed maturity securities	$ 106	Discounted cash flow	Credit spread	2% – 40% (4%)


Six Months Ended June 30	2017			2016

(In millions)

Reserves, beginning of year:
Gross	$	22,343		$	22,663
Ceded		4,094			4,087

Net reserves, beginning of year		18,249			18,576


Net incurred claim and claim adjustment expenses:
Provision for insured events of current year		2,443			2,583
Decrease in provision for insured events of prior years		(159	)		(198)
Amortization of discount		93			93

Total net incurred (a)		2,377			2,478


Net payments attributable to:
Current year events		(266	)		(311)
Prior year events		(2,331	)		(2,185)

Total net payments		(2,597	)		(2,496)


Foreign currency translation adjustment and other		70			46


Net reserves, end of period		18,099			18,604
Ceded reserves, end of period		4,080			4,371

Gross reserves, end of period	$	22,179		$	22,975


Class				Outstanding at ~~October~~July 21, ~~2016~~2017
Common stock, $0.01 par value				~~336,959,362~~336,601,242 shares


	September 30, 2016							December 31, 2015

	Contractual/							Contractual /
	Notional		Estimated Fair Value					Notional		Estimated Fair Value

	Amount		Asset		(Liability)			Amount		Asset		(Liability)

(In millions)

Without hedge designation:

Equity markets:
Options – purchased	$	391	$	22					$ 501	$	16
– written		229			$	(9)			614				$ (28)
Futures – long									312				(1)
– short		106				(1)
Interest rate risk:
Futures – long									63
Foreign exchange:
Currency forwards – long									133		2
– short									152
Currency options – long		250							550		7
Commodities:
Futures – long		68		1
Embedded derivative on funds withheld liability		175				(8	)		179		5


Major Category of Assets and Liabilities		Consolidated Condensed Statements of Income Line Items


Fixed maturity securitiesavailable-for-sale		Investment gains (losses)
Fixed maturity securities, trading		Net investment income
Equity securitiesavailable-for-sale		Investment gains (losses)
Equity securities, trading		Net investment income
Other invested assets		Investment gains (losses) and Net investment income
Derivative financial instruments held in a trading portfolio		Net investment income
Derivative financial instruments, other		Investment gains (losses) and Other revenues
Life settlement contracts		Other revenues


	OTTI Gains (Losses)		Unrealized Gains (Losses) on Investments		Cash Flow Hedges		Pension Liability		Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)

(In millions)

Balance, July 1, 2015		$ 28		$ 619		$ (3)		$ (598)		$ 7		$ 53
Other comprehensive income (loss) before reclassifications, after tax of $(1), $38, $0, $(1) and $0		2		(70)				(1)		(53)		(122)
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(17), $0, $(2) and $0				31		1		5				37

Other comprehensive income (loss)		2		(39)		1		4		(53)		(85)
Amounts attributable to noncontrolling interests				4		(1)		1		5		9

Balance, September 30, 2015		$ 30		$ 584		$ (3)		$ (593)		$ (41)		$ (23)


Balance, July 1, 2016		$ 28		$ 838		$ (2)		$ (639)		$ (106)		$ 119
Other comprehensive income (loss) before reclassifications, after tax of $(4), $(32), $0, $0 and $0		7		69						(24)		52
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $2, $13, $0, $(4) and $0		(4)		(27)		1		7				(23)

Other comprehensive income (loss)		3		42		1		7		(24)		29
Amounts attributable to noncontrolling interests		(1)		(4)		(1)				2		(4)

Balance, September 30, 2016		$ 30		$ 876		$ (2)		$ (632)		$ (128)		$ 144


	OTTI Gains (Losses)		Unrealized Gains (Losses) on Investments		Cash Flow Hedges		Pension Liability			Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)

(In millions)

Balance, January 1, 2015		$ 32		$ 846		$ (6)		$ (641)			$ 49		$ 280
Other comprehensive income (loss) before reclassifications, after tax of $1, $162, $1, $(19) and $0		(3)		(321)		(2)		36			(100)		(390)
Reclassification of losses from accumulated other comprehensive income, after tax of $0, $(22), $(2), $(9) and $0				29		7		15					51

Other comprehensive income (loss)		(3)		(292)		5		51			(100)		(339)
Issuance of equity securities by subsidiary								1					1
Amounts attributable to noncontrolling interests		1		30		(2)		(4)			10		35

Balance, September 30, 2015		$ 30		$ 584		$ (3)		$ (593)			$ (41)		$ (23)


Balance, January 1, 2016		$ 24		$ 347		$ (3)		$ (649)			$ (76)		$ (357)
Other comprehensive income (loss) before reclassifications, after tax of $(5), $(304), $0, $0 and $0		9		608							(58)		559
Reclassification of (gains) losses from accumulated other comprehensive income, after tax of $1, $12, $0, $(11) and $0		(2)		(17)		2		20					3

Other comprehensive income (loss)		7		591		2		20	��		(58)		562
Amounts attributable to noncontrolling interests		(1)		(62)		(1)		(3)			6		(61)

Balance, September 30, 2016		$ 30		$ 876		$ (2)		$ (632)			$ (128)		$ 144


Major Category of AOCI		Affected Line Item


OTTI gains (losses)		Investment gains (losses)
Unrealized gains (losses) on investments		Investment gains (losses)
Cash flow hedges		Other revenues, Interest expense and Contract drilling expenses
Pension liability		Other operating expenses


	Page
	~~Page~~ No.

Overview		42	39
~~Consolidated Financial~~ Results of Operations		42	40
~~Parent Company Structure~~Consolidated Financial Results		43	40
~~Critical Accounting Estimates~~Acquisition of Consolidated Container Company		44	40
~~Results of Operations by Business Segment~~CNA Financial		44	41
~~CNA Financial~~Diamond Offshore		44	46
~~Diamond Offshore~~Boardwalk Pipeline		50	48
~~Boardwalk Pipeline~~Loews Hotels & Co		56	50
~~Loews Hotels~~Corporate		58	50
~~Corporate and Other~~		59
Liquidity and Capital Resources		59	51
Parent Company		59	51
Subsidiaries		60	52
Investments		62	53
Critical Accounting ~~Standards Update~~Estimates		65	57
~~Forward-Looking Statements~~Accounting Standards Update		65	57


	October 1, 2016		February 16, 2016

(In millions)

Ultra-Deepwater Floaters (a)	$	3,614	$	4,415
Deepwater Floaters		258		375
Other Rigs (b)		210		405

Total	$	4,082	$	5,195


Year Ended December 31	Total		2016 (a)		2017		2018		2019 - 2020

(In millions)

Ultra-Deepwater Floaters (b)	$	3,614	$	243	$	1,187	$	1,129	$	1,055
Deepwater Floaters		258		68		181		9
Other Rigs (c)		210		57		153

Total	$	4,082	$	368	$	1,521	$	1,138	$	1,055


Period	(a) Total number of shares purchased		(b) Average price paid per share	(c) Total number of shares purchased as part of publicly announced plans or programs	(d) Maximum number of shares (or approximate dollar value) of shares that may yet be purchased under the plans or programs (in millions)


July 1, 2016 -
July 31, 2016		284,614	$40.00	N/A	N/A

August 1, 2016 -
August 31, 2016		N/A	N/A	N/A	N/A

September 1, 2016 -
September 30, 2016		155,358	$39.97	N/A	N/A


Description of Exhibit	Exhibit Number

Certification by the Chief Executive Officer of the Company pursuant to Rule13a-14(a) and Rule15d-14(a)		31.1*

Certification by the Chief Financial Officer of the Company pursuant to Rule13a-14(a) and Rule15d-14(a)		31.2*

Certification by the Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)		32.1*

Certification by the Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350 (as adopted by Section 906 of the Sarbanes-Oxley Act of 2002)		32.2*

XBRL Instance Document		101.INS *

XBRL Taxonomy Extension Schema		101.SCH *

XBRL Taxonomy Extension Calculation Linkbase		101.CAL *	101.CAL*

XBRL Taxonomy Extension Definition Linkbase		101.DEF *

XBRL Taxonomy Label Linkbase		101.LAB *

XBRL Taxonomy Extension Presentation Linkbase		101.PRE *


	LOEWS CORPORATION
		(Registrant)

Dated: ~~October~~July 31, ~~2016~~2017	By:	/s/ David B. Edelson
		DAVID B. EDELSON
		Senior Vice President and
	Chief Financial Officer
	(Duly authorized officer
	and principal financial
	officer)