By Chelsey Dulaney
Travelers Cos. on Tuesday posted a 19% increase in profit in its
second quarter, as lower catastrophe losses helped to offset a
decline in net investment income for the casualty insurer.
New York-based Travelers said net income grew to $812 million
from $683 million in the year-earlier period.
Operating profit, a closely watched metric that excludes
realized capital gains or losses in an investment portfolio, grew
20% to $806 million, or $2.52 a share, from $673 million, or $1.93
a share, a year ago.
Revenue edged down 1.2% to $6.71 billion.
Analysts polled by Thomson Reuters forecast per-share earnings
of $2.12 and revenue of $6.26 billion.
Net written premiums were essentially flat at $6.17 billion.
Travelers sells an array of policies to companies of all sizes
and is a well-known name in car and home insurance sold to
individuals. One of the country's largest property-casualty
insurers, Travelers often sets the tone for industry earnings that
will be announced by peers in the coming weeks.
Insurers' big investment portfolios have been pressured by
competitive pricing and low interest rates.
Travelers said its net investment income fell to $632 million
from $695 million amid a tough comparison for private-equity
returns in the prior year quarter and lower valuations for energy
investments.
The company's combined ratio improved to 90.8%--meaning it spent
90.8 cents on claims and expenses for every dollar it collected in
premiums--from 95.1% a year earlier.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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