Second-quarter results this year are compared to net income after tax of $670 million, catastrophe losses of $285 million and a profitable combined ratio of 95.2 during the 2010 second quarter.

Nevertheless, Fishman says Travelers’ capital “remained generally unchanged,” as the company reduced share repurchases to adjust for its earnings expectations, adds Jay S. Benet, chief financial officer. Statutory surplus at the end of the second quarter was $20.2 billion—about the same as the start year.

Travelers’ quarterly earnings may be a sign of things to come in the industry. For weeks insurers have been telling investors of expected losses from the destructive thunderstorms in the U.S. in April, May and June. However, as Travelers’ results also point out, the catastrophic events this year are predicted to be an earnings event for insurers, not a capital event.

Travelers’ says net premiums written were up 2 percent. The company saw pricing gains in all business insurance product lines, especially workers’ compensation, as the segment “benefited from improved economic activity as evidenced by positive exposure change at renewal.” Retention and new business rates were strong but lower than recent quarters, Travelers adds.