Travelers' Profit Rises Above Expectations

Insurer Travelers Companies Inc. reported on Tuesday a second-quarter net profit that rose to $812 million, or $2.53 a share, from $683 million, or $1.95 a share, in the same period a year ago. Operating earnings per share came in at $2.52, above the FactSet consensus of $2.12. Revenue slipped 1% to $6.71 billion, while net written premiums inched up to $6.17 billion from $6.16 billion, missing the FactSet consensus of $6.27 billion. The combined ratio, a measure of underwriting profitability, improved to 90.8% from 95.1%, compared with the FactSet consensus of 93.9%. Book value per share increased to $77.51 from $77.08, above the FactSet consensus of $76.95. "Our results were driven by strong underwriting performance across all of our business segments, as reflected in our consolidated combined ratio of 90.8%, as well as net investment income which was consistent with our expectations," said Chief Executive Jay Fishman. The stock, which was still inactive in premarket trade, has lost 3.1% year to date, while the Dow Jones Industrial Average has tacked on 1.6%.