(Bloomberg) – Travelers Cos., the only property-casualty insurer in the Dow Jones Industrial Average, said fourth-quarter profit jumped 8.9 percent as investment income improved and the company recorded a gain tied to the settlement of a risk-sharing dispute.
Net income rose to $943 million, or $3.28 a share, from $866 million, or $2.83, a year earlier, the New York-based company said Tuesday in a statement. Operating profit was $3.20 a share, beating the $2.81 average estimate of 22 analysts surveyed by Bloomberg. Travelers was helped by higher returns from private equity, which countered pressure on the investment portfolio from low bond yields.
Chief Executive Officer Alan Schnitzer, who took over in December 2015, has been seeking to revive investor confidence after profit declined for four straight quarters through Sept. 30. Morgan Stanley, Goldman Sachs Group Inc. and Atlantic Equities have all cut their ratings on the insurer to sell this month, citing risks including higher costs from auto policies as more drivers get in car crashes.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
