The company said net income in the first quarter was $340 million or 34 cents per share, compared to net income of $102. 1 million or 13 cents per share in last year's first quarter.

Travelers said the results reflected the continuing hard market that permits rate increases as well as higher weather-related catastrophe losses and charges for prior-year reserves.

In January, the company announced it was taking a $2.45 billion charge ($1.3 billion after taxes) to bring its total reserves for asbestos up to a $3.4 billion level.

Doug Elliot, Travelers chief operating officer, said the company is very comfortable with its reserve methodologies and is not projecting any further reserve developments. However, he noted, should there be unexpected developments, "We'll adjust accordingly."

Susan Stonehill Claflin, executive vice president for the firm's liability group, said that in terms of newly-tendered asbestos claims "we're not seeing anything different."

Robert I. Lipp, Travelers chairman and chief executive officer, in a statement before the conference, said the firm was working with other insurers, business, labor and representatives of those seriously harmed by asbestos to lobby Congress for legislative changes related to asbestos.

During the conference, he said that legislation might involve removing serious asbestos injury claims from the court system and providing a trust fund to pay claims as well as creating stricter medical criteria for asbestos claims.

The company statement said Mr. Lipp was "hopeful" something would pass this year, but he told analysts that when "dealing with Washington it's difficult to predict" and "we're not counting on anything" and he is reluctant even to use the word hopeful.

Ms. Claflin said possible benefits from legislation were "not anything we counted on when we set reserves."

Scott Belden, senior risk and reinsurance officer, said Travelers, like other carriers, is encountering "an ongoing increase in reinsurance company scrutiny of claims." He said the company has strong contract language in place and Travelers continues to collect reinsurance money at the same rate as in the past.

"We collect 90 to 95 percent of the money within 90 days," he said.

Travelers said its Gulf Insurance subsidiary had incurred a prior-year reserve development charge of $174.9 million, resulting in a charge to Travelers of $145.5 million.

Company officials said the charge was related to a Gulf product, offered to dealers and others, insuring the resale value of leased cars, which was impacted by a big drop off in used vehicle values when zero-interest rates drew buyers to new cars.

Gulf is no longer offering such coverage and Mr. Elliot told analysts the company is focusing Gulf back on its areas of core competency, and that difficulties are not foreseen for any of its other lines.

Travelers said it saw a 5.2 point improvement in its consolidated GAAP combined ratio, before catastrophes and prior year reserve development.

The ratio improved from 97.4 percent in the prior year quarter to 92.2 percent- reflecting improvements in both the loss and loss adjustment expenses ratio and the underwriting expense ratio.

The company attributed the improvement to an environment, in which rate increases continue to exceed loss cost trends, and to a higher volume of business.

The GAAP combined ratio reflects the negative impact of the higher catastrophes and prior year reserve development, the company said. Mr. Lipp cited the impact of severe winter storms, noting that heavy snow in Colorado had caused roof cave-ins.

Travelers said its net written premiums rose 16 percent to $3.17 billion rising with higher rates and strong retention across all its lines. The company said its personal auto insurance book of business was up 12 percent.

Company officials said Travelers' appetite for new business was dependent upon the class, and in some classes of construction coverage, it was withdrawing from the market. They described workers' compensation as the company line that needs the most work. "It's not at our target levels," said Mr. Elliot.

The company said its earnings guidance calls for net and operating income forecasts of $1.7 billion to $1.8 billion in 2003.