Travelers profit rose 46 percent to $2.21bn as catastrophe losses dropped

Travelers earned $2.208bn in the second quarter, or $10.26 per diluted share, up from $1.509bn, or $6.53, a year earlier. Core income was $2.160bn. Catastrophe losses fell to $518m pre-tax, from $927m in the prior year quarter, and net favorable prior year reserve development across all three segments totaled $578m, which together lifted underwriting results. The consolidated combined ratio improved to 83.6 percent, from a higher figure a year earlier, meaning the insurer paid out that share of premiums in claims and expenses. Net written premiums were flat at $11.529bn. Net investment income rose 14 percent to $883m after-tax. The company returned $1.577bn to shareholders in the quarter, including $1.311bn of share repurchases, and reported a return on equity of 27.1 percent. Figures are from the earnings release filed with the SEC.