Travelers Profit, Revenue Weighed Down By Catastrophe Losses And Low Investment Income

By Ciara LinnaneMarketsMarketWatch Pulse

Travelers Cos. Inc. said Thursday it had net income of $664 million, or $2.24 a share, in the second quarter, compared with $812 million, or $2.53 a share, in the year-earlier period. Adjusted per-share earnings came to $2.20, above the FactSet consensus of $2.04. Revenue rose to $6.785 billion from $6.710 billion, also above the FactSet consensus of $6.353 billion. Earnings were pressured by catastrophe and non-catastrophe weather-related losses, as well as lower net investment income in the low interest-rate environment, the insurer said. Shares were not yet active in premarket trade, but are up 3.7% in the year so far, while the Dow Jones Industrial Average has gained almost 7%.

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