Loews Corporation is a diversified holding company with the majority of its intrinsic value attributable to majority stakes in three publicly traded subsidiaries: CNA Financial, Diamond Offshore, and Boardwalk Pipeline. Based on market quotations as of May 10, 2013, the value of shares owned by Loews in these three publicly traded subsidiaries was $16,360 million.
With Loews Corporation’s market capitalization of $17,721 million, investors are paying $1,361 million for the rest of Loews, commonly referred to as the “Loews stub”, which had tangible book value of $3,808 million as of March 31, 2013. The Loews stub includes wholly owned subsidiaries HighMount Exploration & Production LLC and Loews Hotels along with cash and investments at the holding company level.
Disclosure: Individuals associated with The Rational Walk LLC own shares of Loews Corporation.