In response to questions, Mr. Elliot said he thought there would be continued consolidation of insurance companies, adding, "I hope not, but I think we will see more."

Despite the current "moderating cycle" the industry is in, and the best earnings insurers have seen in the past couple of years, carriers are not seeing the yields on returns they have in the past, he said.

Mr. Elliot's comments came today during a CEO forum held by the Insurance Brokers' Association of the State of New York in New York City.

He said despite an industry combined ration of 100 percent, yields on returns for investment remain in the single digits, and that means the industry is struggling to attract capital. To attract investors, and receive yields on investments in the double digits, carriers will need to get ratios down "in the low 90's."

He said in four of the last five years carriers have seen declines in their investments, which is adding to pressures on their performance. He compared this to a 23-year period beginning in 1975, when companies saw gains in all but 2 years and double-digit yields with combined ratios at 100 percent.

"I am proud of the continued progress [we are making]," he said, "but if you are inside the corporate board rooms, the carriers are seeing some stress. Travelers hopes to be one of those who outperforms others."