The Travelers Cos. Inc., with operations in Hartford, posted lower fourth-quarter net income mostly because the year-ago period had higher favorable reserve adjustments and lower catastrophe losses, The Associated Press reports.
The property-casualty insurer also said its board approved an additional $5 billion buyback program.
Travelers earned $894 million, or $1.95 per share, for the three months ended Dec. 31. That’s down from $1.29 billion, or $2.36 per share, a year ago.
Analysts surveyed by FactSet expected earnings of $1.66 per share.
Net written premiums increased to $5.23 billion from $5.19 billion.
Travelers said there was a $70 million pre-tax increase in catastrophe losses mostly due to hail and wind storms in Arizona.
Chairman and CEO Jay Fishman said in a statement that the New York company was encouraged that prices were modestly better than the third quarter. Travelers also reported an increase in policies in its automobile and homeowners segments.
Travelers’ combined ratio, which measures how much an insurer spends on paying out claims compared with how much it takes in from writing new policies, rose to 90.6 percent from 83.4 percent.
In late morning trading, Travelers shares were up 2.1 percent, or $1.18, to $56.80.
Full-year net income slipped 11 percent to $3.22 billion, or $6.62 per share, from $3.62 billion, or $6.33 per share, mostly on higher catastrophe losses in the first half of the year. Fishman said
Net written premiums rose to $21.64 billion from $21.34 billion.
Travelers said the $5 billion buyback is in addition to $1.5 billion remaining under previous authorizations as of Dec. 31, 2010.
