Travelers net income rises 11 percent
THE ASSOCIATED PRESS April 23, 2013 8:52AM
NEW YORK — Travelers Cos. said Tuesday its first-quarter net income rose 11 percent, as the insurer paid out less in claims in relation to the premiums it took in.
The New York-based company earned $896 million, or $2.33 per share, for the three months ended March 31, up from $806 million, or $2.02 per share, a year earlier.
Total revenue edged down 1 percent to $6.33 billion from $6.39 billion, as after-tax investment income fell 9 percent to $542 million, mainly as a result of lower interest rates.
The earnings easily beat Wall Street predictions, while the revenue fell short. Analysts, on average, expected a profit of 72 cents per share on $6.45 billion in revenue, according to FactSet.
The company said net written premiums, or the amount earned from premiums minus the amount paid out in commissions and reinsurance, rose 2 percent to $5.6 billion. The company said it got a boost from existing customers renewing their policies and an increase in volumes at its business insurance division.
Catastrophic losses after taxes fell 40 percent to $65 million.