“Travelers Cos. (TRV), the only insurer in the Dow Jones Industrial Average, said third-quarter profit more than doubled on lower claims costs tied to natural disasters. The stock rallied in early trading.
Net income advanced to $864 million, or $2.21 per share, from $333 million, or 79 cents, a year earlier, the New York- based insurer said today in a statement. Operating profit, which excludes some investment results, was $2.22 a share, beating the $1.60 average estimate of 24 analysts surveyed by Bloomberg.
Chief Executive Officer Jay Fishman, 59, has bought back shares, raised rates for coverage and changed policy terms to improve shareholder returns as near record-low interest rates pressure income from the investment portfolio. Property-casualty insurers have benefited from fewer natural disasters this year after record losses in 2011.”
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