NU Online News Service, April 21, 12:38 p.m. EST
The Travelers Cos. says it increased first quarter net income 30 percent, driven by a decrease in catastrophe losses and an uptick in net written premiums.
First quarter net income was $839 million compared to $647 million a year ago during the same period.
Net written premiums increased 4 percent to $5.4 billion and the New York-based company auto, home, and business insurer experienced a $285 million pre-tax decrease in catastrophe losses compared to the first quarter 2010, when it booked $471 million in cat losses.
“We were pleased to see the favorable impact of pricing and improved economic conditions on net written premiums,” says Jay Fishman, chairman and chief executive officer, in a statement. He adds that renewal rate changes in commercial lines of business turned positive early in the quarter and continue to trend up.
The combined ratio during the quarter improved to 94.7 from 96.4 at the first quarter last year, driven by the decrease in catastrophe losses, but offset by a $57 million pre-tax overall decrease in net favorable reserve development.
Personal insurance business recorded a pre-tax first quarter underwriting gain of $85 million compared to a loss of $69 million a year ago. Catastrophe losses, primarily from U.S. winter storms, were $53 million compared to $250 million last year.
In personal lines Travelers says a $37 million pre-tax increase in favorable prior year reserves and a $197 million decrease in catastrophe losses resulted in an improved first quarter combined ratio in the segment of 94.2, compared to 102.6 during the 2010 first quarter.
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