Travelers Companies Triple Profits Despite Catastrophe Losses

Travelers Companies reported a significant increase in third-quarter profit, driven by higher underwriting gains and investment income, despite substantial catastrophe losses. Core income rose to $1.22 billion compared to $454 million a year earlier. Net written premiums also increased, highlighting strong client retention despite rising insurance costs.

Travelers Companies, a key player in the insurance industry, witnessed a nearly three-fold increase in third-quarter profits, as declared on Thursday. The surge is attributed to augmented underwriting gains and robust investment income, which more than compensated for significant catastrophe losses.

The company's core income soared to $1.22 billion, equating to $5.24 per share, from $454 million, or $1.95 per share, during the comparable period last year. With individuals and businesses increasing their spending on insurance, insurers managed to retain clients despite escalating prices for certain policies, including auto and property insurance.

Notably, Travelers experienced an 8% rise in net written premiums over the quarter, with all business units reporting growth. Meanwhile, underwriting gains reached $685 million, reversing a $136 million loss from last year, and net investment income saw an 18% rise. The insurer's catastrophe losses rose to $939 million, fueled by hurricanes and severe weather conditions.

(With inputs from agencies.)