The Hartford, Conn. ? based insurance carrier said it realized net income of $332.3 million for the period ending Sept. 30, compared to a loss of $59.9 million for the same period of 2001. The 2001 loss, the company said, was related to claims stemming from the Sept. 11 terrorist attack. The results were based on revenues of $3.6 billion for the third quarter of 2002 compared to revenues of $3 billion in 2001.

The company said it had a combined ratio of 97.9 percent an improvement over the same period in 2001 when the company's combined ratio was 130.4 percent.

For the nine months, the company reported net income of $766 million for 2002, compared to $762 million in 2001. Revenues also rose $1.1 million going from $9.1 billion in 2001 to $10.12 billion in 2002. For the nine months, the company's combined ratio was 99.6 percent, compared to 111.4 percent for 2001.

The company said in its report that the results were based on "continuing favorable rate environment, higher production levels and disciplined expense management."

Asbestos reserves were increased by $293.8 million. The company said net reserves have been increased from $747.5 million at the end of the second quarter of 2002 to $950.3 million in the third quarter.

Travelers said it made this move after analysis of trends in "reported losses, higher level of claim payments, the current litigation environment and settlement activities." The company said it expects to complete its analysis of these trends during the fourth quarter.

The company also reported that its reported losses and claims related to 9/11 are less than expected. However, due to "uncertainties caused by the unprecedented nature of this event" it is keeping its net incurred loss figure at $753 million. Travelers added that its reinsurers are keeping their commitments.

"The rate environment continues to be favorable and loss trends in Personal Lines continue to improve," said Robert I. Lipp, chairman and chief executive officer for Travelers in a statement. "While we are experiencing lower yields on our investments, net investment income has benefited from very strong underwriting cash flows."