Loews Corp., the company run by New York's Tisch family, gained the most since May after fourth-quarter earnings beat analysts' estimates and the insurance unit declared its first dividend since 2008.
Loews advanced $1.87, or 4.5 percent, to $43.27 in New York Stock Exchange composite trading. Operating income in the fourth quarter was $1.17 a share, compared with the 88 cent estimate of two analysts surveyed by Bloomberg. CNA Financial Corp., the insurer controlled by Loews, will pay a dividend of 10 cents a share on March 2, the company said.
The payout "demonstrates the progress we have made in restoring our financial strength," said Thomas Motamed, CNA's chief executive officer.
CNA, 90 percent owned by Loews, went to its parent for capital amid investment declines and three quarterly losses at the end of 2008 and beginning of 2009. The insurer in December redeemed the remaining $500 million of preferred stock issued to Loews during the financial crisis, allowing it to resume its dividend.
Fourth-quarter net income at Loews jumped 16 percent to $466 million as results improved at Chicago-based CNA on so-called limited partnership investments, which can include hedge funds, private equity placements and real estate. Net income at CNA advanced to $302 million from $246 million.
CNA gained $2.45, or 8.8 percent, to $30.19, the biggest jump since August 2009.
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