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Travelers 4Q profits climbs 5% on underwriting gains

Property casualty insurer Travelers Cos. Inc., which has major operations in Hartford, said its quarterly profits crossed into 10 figures, as premiums and fee income outpaced claims.

Travelers booked $1.04 billion in net income, or $3.11 per diluted share, in the fourth quarter of 2014, up from $988 million, or $2.70, in the final quarter a year prior.

The company wrapped the year with profits of $27.16 billion, or $10.70 per share, compared to $26.19 billion, or $9.74 in 2013.

CEO Jay Fishman said in a statement that the quarterly and annual earnings per share were at record levels.

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Underwriting gains for the quarter increased nearly 26 percent, to $866 million. Travelers gave back about a third of that gain in lower investment income, which fell from $702 million to $637 million.

Net written premiums grew by $203 million, to $5.84 billion, led by growth in the company’s middle-market as well as contributions from Dominion of Canada General Insurance Co., which Travelers acquired in Nov. 2013 for $1.1 billion.

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