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$TRV Manages to Post Profits Despite Sandy Losses

“Shares of insurance company Travelers Cos were signaling a positive start Tuesday, climbing in pre-market trading. The gain came after the company managed to post a fourth-quarter profit despite the impact of Superstorm Sandy.

Travelers reported operating income of $278 million, or 72 cents per share, down 54.4% from $609 million a  year earlier but still ahead of analyst expectations.

Sandy was the culprit behind the drop, producing the bulk of a sizable increase in catastrophe losses over the prior year. Losses from Sandy accounted for $669 million of the $689 million in after-tax catastrophe losses at Travelers (and more than $1 billion pre-tax). In the similar quarter a year ago after-tax catastrophe losses were just $68 million.

Despite the hit from Sandy, Travelers full-year operating income was up 71.4% to $2.4 billion. “We are pleased with our fourth quarter results, as well as our full year results, particularly in light of Storm Sandy,” said Chairman and CEO Jay Fishman, touting the encouraging pricing trends and renewal rates across the company’s business lines….”

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