(Bloomberg) – Travelers Cos., the only property-casualty insurer in the Dow Jones Industrial Average, said fourth-quarter profit jumped 8.9 percent as investment income improved and the company recorded a gain tied to the settlement of a risk-sharing dispute.
Net income rose to $943 million, or $3.28 a share, from $866 million, or $2.83, a year earlier, the New York-based company said Tuesday in a statement. Operating profit was $3.20 a share, beating the $2.81 average estimate of 22 analysts surveyed by Bloomberg. Travelers was helped by higher returns from private equity, which countered pressure on the investment portfolio from low bond yields.
Chief Executive Officer Alan Schnitzer, who took over in December 2015, has been seeking to revive investor confidence after profit declined for four straight quarters through Sept. 30. Morgan Stanley, Goldman Sachs Group Inc. and Atlantic Equities have all cut their ratings on the insurer to sell this month, citing risks including higher costs from auto policies as more drivers get in car crashes.
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