Travelers' 4Q profit falls 25 pct. on investments

[January 27, 2009]  CHARLOTTE, N.C. (AP) -- Travelers Cos. reports a 25 percent drop in fourth-quarter earnings, on lower investment income due to the difficult markets.

The St. Paul, Minn.-based commercial and property insurer said Tuesday that net income tumbled to $801 million, or $1.35 per share, from $1.06 billion, or $1.64 per share, a year ago.

Excluding items, operating profit totaled $1.58 cents per share -- beating analysts' average estimate of $1.46 per share, according to Thomson Reuters.

The lower profit reflected a 37 percent drop in investment income to $438 million. However, earnings did get a boost from $189 million in reserves that Travelers was able to release because claims for prior-year periods were lower than expected.

[Associated Press; By IEVA M. AUGSTUMS]

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