The Travelers Cos. says first-quarter net income increased 11 percent due to higher underwriting margins and lower catastrophe losses.
First-quarter net income was $896 million compared to $806 million a year ago during the same time.
Travelers says rate increases outpaced loss-cost trends in all major segments, with 8 percent increases at renewal in Business Insurance, which includes a rate increases of nearly 10 percent in Commercial accounts.
Additionally, in Personal insurance, CEO Jay Fishman says Travelers continues to “achieve the improvements in pricing and terms and conditions needed to improve profitability.” Personal insurance turned in an underwriting gain of $176 million compared to $21 million during the first quarter 2012.
Net premiums written increased 2 percent to about $5.6 billion during the first quarter. The Business insurance segment reports a record level of net written premiums of $3.26 billion, according to Brian MacLean, COO. He adds rate increases of between 6 percent and 10 percent were led by Workers Compensation and Commercial Auto.
Travelers booked a first-quarter pretax underwriting gain of $602 million compared to $393 a year ago. Net of reinsurance, catastrophe losses during the first three months of the year were $99 million compared to $168 million in 2012.
The insurer's consolidated combined ratio during the first quarter improved to 88.5 from 92.2 last year.
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