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The New York-based company, seen as a
bellwether for the U.S. insurance sector as it typically reports
before its peers, said net written premiums, a measure of
revenue, jumped 11% to $8.14 billion.
Its adjusted, or core, income totaled $879 million, or $3.45 per
share, for the three months ended June 30, far more than the
$2.39 analyst had expected, according to Refinitiv IBES data.
In the year-ago period, the insurer reported a loss of $50
million, or 20 cents a share, due to severe storms and claims
related to civil unrest.
The reopening of economies with the rollout of COVID-19
vaccinations has provided some respite to insurers, helping
Travelers retain customers and expand its auto and
homeowners-focused businesses.
The company posted underwriting gains of $324 million for the
quarter, compared with a loss of $280 million a year ago.
Catastrophe losses fell to $475 million in the latest quarter
from $854 million a year ago.
Travelers' pre-tax net investment income more than tripled to
$818 million, as higher returns on its non-fixed income
investments countered weakness in the mainstay fixed-income
assets that have struggled due to record-low interest rates.
The company reported a combined ratio of 95.3%, compared with
103.7% a year earlier. A ratio below 100% means the insurer
earned more in premiums than it paid out in claims.
Total revenues rose 17% to $8.69 billion, and the company said
it bought back $401 million worth of shares in the quarter.
(Reporting by Niket Nishant in Bengaluru and Alwyn Scott in New
York; Editing by Aditya Soni and Edmund Blair)
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