Travelers Q1 Profit Rises, Tops Estimate; Hikes Dividend - Quick Facts

(RTTNews) - Property casualty insurance provider Travelers Companies Inc. (TRV) reported that its first-quarter net income was $1.052 billion or $2.95 per share, up from $896 million or $2.33 per share in the same quarter last year.

Quarterly operating income for the quarter rose to $1.052 billion, or $2.95 per share, from $887 million or $2.31 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $2.16 per share for the quarter. Analysts' estimates typically exclude special items.

The increase in operating income compared to the prior year quarter primarily resulted from higher underlying underwriting gains (i.e., excluding prior year reserve development and catastrophe losses), higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. Underlying underwriting gains in the latest-quarter included a $49 million after-tax benefit resulting from a reduction in the estimated liability for state assessments to be paid by the company related to workers' compensation premiums.

Net written premiums for the quarter grew to $5.873 billion from $5.597 billion last year. Total revenues was $6.708 billion up from $6.328 billion in the prior year. Wall Street expected revenues of $5.91 billion.

The Board of Directors declared a regular quarterly dividend of $0.55 per share. This dividend, which is $0.05 higher than the last regular quarterly dividend, is payable June 30, 2014, to shareholders of record as of the close of business June 10, 2014.