NU Online News Service, April 23, 10:40 a.m.EDT

The Travelers Companies Inc. reported first-quarter profits fell2.3 percent, pushed down by "unusually significant" catastrophelosses of $471 million pretax.

Net income was $647 million, or $1.25 per diluted share,compared to $662 million, or $1.11 per diluted share, for theperiod in 2009.

Operating income excluding some investment results was $631million, or $1.22 per diluted share, compared to $799 million, or$1.34 per diluted share, in the prior-year quarter, somewhat belowanalysts' estimates.

Jay Fishman, Travelers chairman and chief executive officer,said in a statement that the company was pleased with the resultsin the face of "what was an unusually significant catastrophequarter for Travelers as well as for the entire industry..."

The cat loss including heavy Northeast rainstorm events was $388million more than what the company sustained in last year's firstquarter.

Mr. Fishman said catastrophe impact was largely offset byfavorable prior-year reserve development and other favorable items,and operating income of $1.22 per diluted share was consistent withexpectations going into the quarter as well as full-yearguidance.

Travelers said it continues to expect full-year 2010 operatingincome in the range of $5.20 to $5.55 per share.

The company said that for the remainder of the year it isprojecting catastrophe losses of $504 million pretax and $238million after tax, or 67 cents per share for the remainder of theyear.

Net written premium was listed as $5.21 billion compared with$5.2 billion for the quarter last year.

Investment income improved to $753 million from $542 million inthe 2009 first quarter.

"Our underwriting fundamentals were strong, as evidenced byretention rates continuing at high levels, positive renewal ratechanges on premiums and non-weather-related loss trends remainingwithin expectations. These results, in addition to solid netinvestment income and our strong capital position, enabled us torepurchase 27 million common shares in the quarter for $1.4billion," said Mr. Fishman.

He said the firm in response to catastrophes was able to"respond promptly and to efficiently manage the claim process," anarea "where we feel we have a competitive advantage."

"The insurance market remains broadly consistent with theexpectations we had at the beginning of the year, and availableinvestment returns have remained at relatively low levels.Consequently, our strategy continues to be to seek premium rategains where needed and to aggressively return excess capital," theCEO said.