Travelers Reports Higher Quarterly Earnings

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NU Online News Service, July 17, 4:29 p.m.EDT?Travelers Property Casualty Corp. today reportedsecond quarter net income of $441.2 million or 44 cents per share,compared to net income of $332 million or 33 cents per share in thesecond quarter of 2002.

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The Hartford, Conn.-based company said the results reflectstrong underwriting performance, a lower charge for prior yearreserve development, and net realized investment gains versus netlosses in the 2002 second quarter.

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"Our outstanding results this quarter demonstrate the earningspower of the company even in the face of unusual catastropheevents," said Robert I. Lipp, chairman and chief executiveofficer.

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"Strong underwriting results drove our earnings growth and arereflected in our 17.4 percent return on equity for the currentquarter," Mr. Lipp added.

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Net written premiums continue to benefit from higher levels ofnew business in targeted markets, historically high customerretention rates, and renewal price increases that continue tooutpace loss cost trends across all business lines, the companystatement on results noted.

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"Our competitive position remains excellent, and we continue tobelieve that full year net and operating income will be in therange of $1.65 billion to $1.75 billion," said Mr. Lipp. "Thisestimate is based on various assumptions, including no further netcharges for prior year reserve development, no asbestos incurrals,and, for the remainder of the year, a normal level of catastrophelosses and no significant net realized investment gains orlosses."

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