Travelers Reports Higher Quarterly Earnings
NU Online News Service, July 17, 4:29 p.m. EDT?Travelers Property Casualty Corp. today reported second quarter net income of $441.2 million or 44 cents per share, compared to net income of $332 million or 33 cents per share in the second quarter of 2002.
The Hartford, Conn.-based company said the results reflect strong underwriting performance, a lower charge for prior year reserve development, and net realized investment gains versus net losses in the 2002 second quarter.
"Our outstanding results this quarter demonstrate the earnings power of the company even in the face of unusual catastrophe events," said Robert I. Lipp, chairman and chief executive officer.
"Strong underwriting results drove our earnings growth and are reflected in our 17.4 percent return on equity for the current quarter," Mr. Lipp added.
Net written premiums continue to benefit from higher levels of new business in targeted markets, historically high customer retention rates, and renewal price increases that continue to outpace loss cost trends across all business lines, the company statement on results noted.
"Our competitive position remains excellent, and we continue to believe that full year net and operating income will be in the range of $1.65 billion to $1.75 billion," said Mr. Lipp. "This estimate is based on various assumptions, including no further net charges for prior year reserve development, no asbestos incurrals, and, for the remainder of the year, a normal level of catastrophe losses and no significant net realized investment gains or losses."
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