US insurer Travelers posts record profit

NEW YORK, Jan 20 (Reuters): Property and casualty insurer Travelers Cos Inc reported a record quarterly profit on Thursday as higher returns from its investments cushioned the hit from a rise in catastrophe-related claims.

The New York-based company, a component of the Dow Jones Industrial Average Index, is seen as a bellwether for the insurance sector as it typically reports before its peers.

The insurer said it earned a core income of $1.29 billion, or $5.20 per share, in the fourth quarter ended Dec. 31, compared with $1.26 billion, or $4.91 per share, a year earlier.

Analysts on average had expected a profit of $3.86 per share, according to Refinitiv IBES data.

Travelers' pre-tax net investment income jumped 10 per cent to $743 million, driven by higher returns on its private equity and real estate partnership.

Its net written premiums rose 10 per cent to $7.9 billion.

Travelers said the catastrophe losses it incurred in the quarter mainly stemmed from tornado activity in Kentucky.