Travelers Q2 Profit Down 18%, But Results Beat View

(RTTNews) - Property casualty insurance provider Travelers Companies, Inc. (TRV) on Thursday reported an 18 percent decline in profit for the second quarter from last year, primarily driven by higher catastrophe losses, non-catastrophe weather-related losses and lower net investment income.

However, both operating income and revenue for the quarter beat analysts' expectations.

Net income for the second quarter declined to $664 million or $2.24 per share from $812 million or $2.53 per share in the year-ago period.

The company noted that catastrophe and certain non-catastrophe weather-related losses higher by $135 million after-tax and net investment income was lower by $61 million after-tax.

Excluding items, operating income per share was $2.20, compared to $2.52 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $2.07 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose 1 percent to $6.79 billion from $6.71 billion last year. Net written premiums increased 3 percent to $6.35 billion from $6.17 billion reported last year. Analysts expected revenues of $6.33 billion.

However, underwriting gain declined to $388 million from last year's $511 million.

Combined ratio was 93.1 percent compared to 90.8 percent last year, and reflected strong consolidated underwriting results.

The company's board of directors approved a quarterly dividend of $0.67 per share. This dividend is payable on September 30, 2016, to shareholders of record as of the close of business on September 9, 2016.