Travelers Q4 Profit Declines, But Beats View; Revenues Miss

(RTTNews) - Insurer Travelers Companies, Inc. (TRV) on Thursday reported a 17 percent decline in profit for the fourth quarter from last year, reflecting lower underlying underwriting gains and a decline in net favorable prior year reserve development.

However, operating income per share beat analysts' expectations, while revenues missed their estimates.

Net income for the quarter declined to $866 million or $2.83 per share from $1.04 billion or $3.11 per share in the year-ago period.

Operating income per share was $2.90, while it totaled $3.07 per share last year. On average, 27 analysts polled by Thomson Reuters expected earnings of $2.65 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues declined 2 percent to $6.67 billion from $6.78 billion last year. Net written premiums edged up to $5.86 billion from $5.84 billion reported last year. Analysts expected revenues of $5.94 billion.

Underwriting gain declined to $773 million from last year's $866 million.

Combined ratio was 86.6 percent, up from 85.0 percent last year, and reflected strong underwriting results in each business segment.

The company's board of directors approved a quarterly dividend per share of $0.61.