Travelers report big gains as investment income triples

Travelers Companies Inc. TRV,
reported Tuesday that second-quarter earnings were well above expectations amid strong investment income growth and a decline in catastrophic losses. The insurer’s shares were still inactive in premarket trading. Net income for the quarter was $934 million, or $3.66 per share, after a loss of $40 million, or 16 cents per share, in the same period a year ago. Excluding one-time items, core earnings per share were $3.45, beating the FactSet consensus of $2.39. Total revenue grew 17% to $8.69 billion, above the FactSet consensus of $8.22 billion, while net written premiums grew 11% to $8.14 billion to meet expectations of $7.76 billion. to surpass. Net investment income tripled, from $268 million to $818 million, while catastrophe losses fell 44% to $475 million. The stock is up 7.8% through Monday, while the SPDR S&P Insurance ETF KIE,
is up 9.5% and the Dow Jones Industrial Average DJIA,
has progressed by 11.0%.