Travelers Q3 Profit Tops View As Underwriting Gains Climb

(RTTNews) - Insurer Travelers Companies, Inc. (TRV) Tuesday reported a small increase in profit for the third quarter, helped by higher underlying underwriting gains and increased net favorable prior year reserve development.

Net income edged up to $928 million from $919 million. Earnings per share climbed to $2.97 from $2.69.

Operating income per share was $2.93, while it totaled $2.61 last year. On average, 26 analysts polled by Thomson Reuters expected earnings of $2.27 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues edged down 1 percent to $6.794 billion from $6.886 billion. Net written premiums grew 3 percent to $6.2 billion from $6.03 billion reported last year, with increases in each business segment. Analysts expected revenues of $6.11 billion.

In Business and International Insurance, net written premiums rose 1 percent to $3.59 billion.

For Bond & Specialty Insurance, net written premiums grew 2 percent to $565 million. Personal Insurance generated $2.036 billion, up 6 percent from last year.

Underwriting gain increased to $759 million from $564 million.

Combined ratio was 86.9 percent, compared to 90 percent last year, but reflected strong underwriting results in each business segment.

Jay Fishman, chairman and chief executive officer, said, "At 86.9%, our combined ratio reflected very strong performance across all of our business segments. Our investment portfolio continued to deliver solid returns in the continuing low interest rate environment."

The Board of Directors declared a quarterly dividend of $0.61 per share, payable on December 31, to shareholders of record as of the close of business on December 10.

TRV closed up 0.4 percent on Monday at $106.32.