
Property and casualty insurer Travelers Cos. Inc. reported a jump in quarterly profit that beat analysts’ estimates on Thursday, helped by an increase in returns from investments and lower catastrophe claims.
The company reported a core income of $1.26 billion, or $4.91 per share, in the fourth quarter ended Dec. 31, compared with $867 million, or $3.32 per share, a year earlier.
Analysts had expected a profit of $3.18 per share on average, according to Refinitiv data.
New York-based Travelers, often seen as a bellwether for the insurance sector as it typically reports before its industry peers, said net written premiums rose 3% to $7.27 billion for the reported quarter.
The insurer’s strong quarter caps off a year of the COVID-19 pandemic, which has had a far less impact on property/casualty insurers than many investors expected, mainly because of pandemic-related exclusions in their contracts.
Travelers’ underwriting gains rose to $955 million from $513 million a year earlier, while pre-tax net investment income rose 10% to $677 million, helped by gains in its non-fixed income investment portfolio.
The company reported a combined ratio of 86.7, compared with 92.4 a year earlier. A ratio below 100 means the insurer earned more in premiums than it paid out in claims.
The insurer reported catastrophe loss net of reinsurance of $29 million in the quarter, compared with $85 million a year earlier. Full-year losses jumped to $1.6 billion, impacted mainly by tornados, storms, hurricanes and civil unrest in the United States.
Shares of Travelers, a Dow component, were up marginally in light trade on Thursday.
(Reporting by Noor Zainab Hussain in Bengaluru and Suzanne Barlyn in Washington Crossing, Pennsylvania; Editing by Shinjini Ganguli)


Chubb CEO Greenberg on Personal Insurance Affordability and Data Centers
Allianz Built an AI Agent to Train Claims Professionals in Virtual Reality
Experts Say It’s Difficult to Tie AI to Layoffs
Lessons From 25 Years Leading Accident & Health at Crum & Forster 










