Loews Corporation (L) is one of the largest diversified holding companies in the United States.

Loews has holdings in the property and casualty insurance business (CNA), the production and sale of tobacco products (Lorillard, which was spun off as a separate public company in 2008 and trades under the symbol LO), offshore oil and gas drilling rigs (Diamond Offshore Drilling trading under the symbol DO), the interstate natural gas pipeline business (Boardwalk Pipeline Partners trading as BWP) and the hospitality industry (Loews luxury hotels).

During stable times, this diversification serves the investor well. Economic conditions which may affect one segment of the company’s business may result in improvement in another segment.

Under current conditions, none of the operations of Loews is immune from being impacted.

The insurance segment has been hit hard by losses in its investment portfolio; offshore drilling activity is in a state of suspension due to the drop in demand as well as the uncertain regulatory environment in the United States; the hospitality industry has been dramatically affected by the restrictions on corporate travel imposed by companies trying to manage expenses as well as the reluctance of consumers to travel because of their tenuous financial condition.

The net effect on Loews resulted in a fourth-quarter loss of nearly $1billion. Charges due to impairment of goodwill and losses on investments at CNA and other company units contributed significantly to the reported operating loss.

Loews is maintaining its dividend payment for the foreseeable future. The company’s balance sheet is strong, with $2.36 billion in cash and investments and $866 million in debt. Company executives have indicated that they do not foresee the need to raise additional capital in the next year.

This article was written by Jamie Dlugosch, contributor to InvestorPlace Media. For more actionable insights likes this, visit www.InvestorPlace.com.