Travelers Profit And Revenue Top Estimates

By Ciara LinnaneMarketWatch Pulse

Insurer Traveler Cos. Inc. said Tuesday it had net income of $928 million, or $2.97 a share, in the third quarter, up from $919 million, or $2.69 a share, in the year-earlier period. Operating earnings came to $2.93 a share, ahead of the FactSet consensus of $2.27. Revenue edged down to $6.79 billion from $6.89 billion, while net premiums rose to $6.19 billion from $6.03 billion. The FactSet consensus was for revenue of $6.12 billion. Chief Executive Jay Fishman said the company's combined ratio stood at 86.9% at quarter end, boosted by a strong performance across all business lines. The company had an underwriting gain of $759 million, up from $564 million, while net investment income fell to $614 million from $719 million. Shares rose 0.6% in premarket trade and are up 0.4% in the year through Monday, while the Dow Jones Industrial Average has fallen 3.2%.

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