Travelers profits hike in Q2
US insurer Travelers posted a solid set of results for the second quarter of 2015 as it benefited from strong underwriting results across its segments and lower catastrophe losses.
The insurer’s profits jumped 19 percent to $812 million in the second quarter of 2015, compared with $683 million in the second quarter of 2014.
Travelers said this was primarily driven by lower catastrophe losses and a $32 million benefit from the resolution of prior year tax matters, partially offset by lower net investment income.
Its combined ratio improved to 90.8 percent in the second quarter of 2015, compared with 95.1 percent in the prior year quarter.
However, its gross written premiums within its property and casualty operations decreased by 1 percent in the second quarter of 2015 to $6.5 billion, driven by adverse foreign currency exchange movements.
Jay Fishman, chairman and chief executive officer of Travelers, said: “We are pleased to report another strong quarter, with operating income of $806 million and operating return on equity of 14.2 percent.
“Our results were driven by strong underwriting performance across all of our business segments, as reflected in our consolidated combined ratio of 90.8 percent, as well as net investment income which was consistent with our expectations. We continue to deploy our capital first by seeking opportunities that offer attractive returns, and then by returning excess capital to shareholders. In the quarter, we returned almost $1 billion to shareholders, including approximately $800 million in share repurchases.
