The Travelers Companies, Inc. reported higher third-quarter core income as investment income and reserve adjustments outweighed some catastrophe losses, while earned premiums fell slightly from a year earlier.
Core income reached $1.947 billion, up 4% year over year. Core income per diluted share rose 13% to $9.18 from $8.14, the company said in its Oct. 16 earnings release filed with the Securities and Exchange Commission.
Earned premiums totaled $11.103 billion in the three months ended Sept. 30, down from $11.135 billion a year earlier. The $32 million decrease was about 0.3%. Underlying underwriting income before taxes was $1.736 billion, compared with $1.758 billion a year earlier. Reported pre-tax underwriting income, by contrast, increased to $1.432 billion from $1.378 billion.
Travelers credited investment income and favorable reserve adjustments tied to earlier years with supporting core income. Higher catastrophe losses reduced some of the gain; the company said severe wind and hail storms in multiple states were the primary sources of those losses.
Investment income before taxes rose 6% to $1.098 billion, a quarterly record. Travelers linked the increase to higher yields on its long-term fixed-income portfolio and growth in average invested assets. That income growth came as earned premiums and underlying underwriting income declined from year-earlier levels.
The company returned $1.769 billion in capital during the quarter, including $1.508 billion through share repurchases. Its board also declared a quarterly dividend of $1.25 per share. Shareholders of record Dec. 10 are due to receive payment Dec. 31.
