Travelers reports net income of $864 million for quarter

The Travelers Companies Inc. has reported a net income of $864 million for the quarter ended Sept. 30, a result consistent with the prior year quarter.

The insurer reported an operating income of $883 million for the quarter, up from $867 million last year.

Net written premiums for the three months were about $5.71 billion (versus $5.7 billion last year), and $17.13 billion for the first nine months of the year, up slightly over the previous year’s first three quarters.

The majority of net written premiums was in the business insurance segment.

Net investment income totaled $657 million for the quarter, down from $722 million in the comparable quarter last year.

“The current quarter benefited from earned rate increases exceeding loss cost trends in each segment, largely the result of the pricing strategy we have been pursuing since the middle of 2010, low weather-related losses and meaningful net favorable prior year reserve development,” Jay Fishman, chairman and CEO noted in a statement.

“We continue to be pleased with the execution of our granular pricing strategies in our commercial lines businesses,” he added.

“Retention and renewal rate change levels remained strong and consistent with recent quarters, while new business was up slightly from the prior year quarter. We intend to stay the course on this strategy as our expectations of more volatile weather patterns and continued low interest rates have not changed.

Fishman added that the company expects its acquisition of the Dominion of Canada General Insurance tol close in the fourth quarter of the year, subject to customary closing conditions.

“We are excited about the transaction and look forward to welcoming the Dominion employees to Travelers,” he said.