By Jonathan Stempel

Excluding special items, operating profit increased 20 percent to $575 million as improved results at its energy and drilling units offset weaker underwriting and higher catastrophe losses at the commercial insurer CNA Financial Corp , Loews' largest unit.

Net income at New York-based Loews, a conglomerate run by the billionaire Tisch family, increased from $654 million a year earlier. Revenue rose 12 percent to $3.92 billion.

Profit attributable to Loews shareholders rose to $4.86 billion, or $9.54 per share, from $513 million, or 95 cents, a year earlier.

Income from continuing operations rose 21 percent to $511 million, or $1.00 per share.

Analysts' average profit forecast was $1.19 per share, according to Reuters Estimates. It was not immediately clear on what basis analysts computed their forecasts.

Results included a tax-free, non-cash gain of $4.29 billion related to Loews' disposal in June of its stake in Lorillard , whose cigarette brands include Newport and True.

James Tisch, Loews' chief executive, had said the tobacco business was not a key focus and that the split-off would improve Loews' risk profile.

Loews' businesses include financial, energy and hotel companies. The company changed its stock symbol to "L" from "LTR" last month.

INSURANCE DOWN; ENERGY, DRILLING UP

Quarterly profit at Chicago-based CNA, the seventh-largest U.S. commercial insurer, fell 17 percent to $181 million, or 67 cents per share, as premiums and investment income declined while catastrophe losses increased.

Operating profit at CNA, excluding investments, fell 21 percent to $250 million, or 93 cents per share. On that basis, analysts' average forecast was 96 cents per share. Loews said it owns 90 percent of CNA.

Houston-based Diamond Offshore Drilling Inc , in which Loews has a 51 percent stake, reported last week that quarterly profit rose 65 percent to $416.3 million, or $2.99 per share, as tight supply and high demand lifted rates for its rigs.

Boardwalk Pipeline Partners LP , an Owensboro, Kentucky, natural gas transportation and storage company in which Loews has a 70 percent stake, on Monday said quarterly profit rose 83 percent to $64.7 million.

HighMount Exploration & Production LLC, a natural gas unit that Loews wholly owns, posted quarterly profit of $48 million. Profit rose 36 percent at Loews Hotels to $19 million.

In morning trading, shares of Loews rose $1.16 to $43.08, CNA rose 65 cents to $25.62, and Boardwalk rose 98 cents to $24.02.

(Editing by John Wallace)