October 18, 2018

Travelers 3Q profits soar amid lower catastrophe losses

HBJ File Photo
HBJ File Photo
The Travelers Cos. headquarters in Hartford.

Property and casualty insurer The Travelers Cos. said it spent less money on catastrophe claims during the third quarter helping to more than double its profits.

For three months ended Sept. 30, Travelers, which has a major presence in Hartford, reported net income of $709 million, or $2.62 a diluted share, up 142 percent from $293 million, or $1.05 a diluted share, in the year-ago period.

Travelers' operating income jumped to $687 million vs. $253 million a year ago.

The company said it experienced a $436 million decrease in catastrophe losses across numerous business segments. Operating income also benefited from a lower U.S. income tax rate, Travelers said.

The insurer also said its pre-tax net investment income rose 10 percent to $646 million.

For the year, Travelers said its net income rose to $1.9 billion.

Earlier this month, Travelers said it began selling internet-connected home security and sensor devices to its home-insurance customers through Amazon. The "industry-first digital storefront" is aimed at protecting homeowners from property loss and attracting new customers.

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