Travelers 3Q Net Income More Than Triples

For the first nine months of the year, Travelers reported net income increased 10 percent, or $214 million, to $2.34 billion. Earnings per share increased from $3.47 last year to $4.02.

However, net written premiums decreased 3 percent, or $141 million, to $5.34 billion because of the weak economic environment producing less underwriting activity, the company said. For the nine months of this year, net written premiums were off 1 percent, or $150 million, to $16.2 billion.

Catastrophe losses were "considerably lower than the prior year quarter," Travelers said and were related to "multiple severe weather events across various regions of the United States."

The lighter catastrophe loss period translated into a 15 point improvement in Travelers combined ratio, which fell to 89.7 during the quarter. The nine month combined ratio dropped 2.8 points to 91.2.

The company also announced it increased its regular quarterly dividend by 10 percent to 33 cents a share and it would buyback an additional $6 billion shares of common stock.

Travelers increased its earning guidance for 2009 for operating income per share from a range of $4.80 to $5.05 to $5.30 to $5.50.

During the conference call Mr. Fishman said the company is seeking rate increases where they are needed, but remained "cautious about the rate gain achievable."

"We are dealing with this market from one quarter to the next," he said.

He noted the company is pushing cost efficiency, citing that its Business Express line of automated small commercial underwriting has allowed independent agents to write more business while allowing the company to consolidate operations.

The technology involved, he said, allowed Travelers to consolidate operations from 39 offices to 12 and reduce staff. That change, he added, will save the company in excess of $9 million per year. He called it one small example of the kinds of things the company is thinking about doing "day in and day out to improve the business."