July 29 (Reuters) - Loews ( L ) said on Monday that James

Tisch will hand over the CEO role to his son after 25 years at

the helm. The company also reported a 2.5% jump in its quarterly

profit, helped by a rise in insurance premiums and higher

returns on its investments.

The New York-based insurer said James Tisch would retire on

Dec. 31 and serve as the chairman.

His son Benjamin Tisch currently serves as the company's

senior vice president, corporate development and strategy.

Spending on insurance products by individuals and

corporations has remained resilient despite economic

uncertainty. A market rally on hopes of a rate cut has also

benefited insurance companies' investment income.

Loews' ( L ) investment income rose to $639 million in the quarter

ended June 30, from $592 million a year earlier.

The company earns most of its revenue from its insurance

unit CNA, in which it holds about 92% stake. CNA reported a 6.5%

jump in its second-quarter revenue.

Profit attributable to Loews ( L ) in the quarter was $369

million, or $1.67 per share, up from $360 million, or $1.58 per

share, a year earlier.