(Reuters) – Property/casualty insurer Travelers Cos. Inc. Thursday reported an archive quarterly profit as higher returns from the investments cushioned the hit from a increase in catastrophe-related claims.
The New York-based company, a component of the Dow Jones Industrial Average Index, is seen as a bellwether for the insurance sector because it typically reports before its peers.
The insurer said it earned core income of $1.29 billion, or $5.20 per share, within the fourth quarter ended Dec. 31, compared with $1.26 billion, or $4.91 per share, last year.
Analysts typically had expected an income of $3.86 per share, according to Refinitiv IBES data.
Travelers’ pre-tax net investment income jumped 10% to $743 million, driven by higher returns on its private-equity and property partnership.
Its net written premiums rose 10% to $7.9 billion.
Travelers said the catastrophe losses it incurred within the quarter mainly stemmed from tornado activity in Kentucky, windstorms in multiple U.S. states along with a wildfire in Colorado.
Devastation from tornadoes that slammed parts of america in December are required to push the insurance industry’s 2022 bill for weather-related claims well over the predicted $105 billion, industry experts have said.
Travelers reported a combined ratio of 88%, compared with 86.7% last year. A ratio below 100% means the insurer earned more in premiums of computer paid out in claims.
