ST. PAUL (dpa-AFX) - Property casualty insurer Travelers Companies, Inc. (TRV) Tuesday posted lower second-quarter net profit of $683 million, or $1.95 a share, from $925 million, or $2.41 a share, in the prior-year quarter, due to a reduction in both operating income and net realized investment gains.
Operating income in the current quarter was $673 million, or $1.93 a share, versus last year's $816 million, or $2.13 a share. On average, 27 analysts polled by Thomson Reuters expected earnings per share of $2.07 for the quarter. Analysts' estimates typically exclude one-time items.
Operating income of $673 million after-tax declined $143 million or 18% largely reflecting a $122 million after-tax benefit in the year-ago quarter from favorable tax and legal settlements, as well as higher catastrophe losses in the current quarter, partially offset by higher underlying underwriting gains, that exclude prior year reserve development and catastrophe losses, the company said.
The firm clocked total revenues of $6.79 billion in the quarter, up 2% from $6.67 billion a year earlier, with quarterly net written premiums rising 6% year-on-year to $6.16 billion, from $5.82 billion. Sixteen analysts estimated revenues of $6.16 billion for the quarter.
Further, the board declared a quarterly dividend of $0.55 per share, payable on September 30, 2014, to shareholders of record as of the close of business on September 10, 2014.
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