Private equity returns boost travelers q4 profit


Travelers Cos., the only property/casualty insurer in the Dow Jones Industrial Average, said fourth-quarter profit jumped 8.9 percent as investment income improved and the company recorded a gain tied to the settlement of a risk-sharing dispute.

Net income rose to $943 million, or $3.28 a share, from $866 million, or $2.83, a year earlier, the New York-based company said Tuesday in a statement. Inr to usd Operating profit was $3.20 a share, beating the $2.81 average estimate of 22 analysts surveyed by Bloomberg. Usd trend 2016 Travelers was helped by higher returns from private equity, which countered pressure on the investment portfolio from low bond yields.

Chief Executive Officer Alan Schnitzer, who took over in December 2015, has been seeking to revive investor confidence after profit declined for four straight quarters through Sept. Convert yen to usd 30. Convert aud usd Morgan Stanley, Goldman Sachs Group Inc. 1000 usd to eur and Atlantic Equities have all cut their ratings on the insurer to sell this month, citing risks including higher costs from auto policies as more drivers get in car crashes.

“While homeowners profitability remains strong, we are disappointed with the underwriting results in personal auto and are taking pricing and other actions to improve its profitability,” Schnitzer said in the statement.

Usd to pound “In our commercial businesses, we continue to be pleased with the stability of the markets in which we operate and the execution of our strategies.”

Investment income climbed 12 percent to $493 million. Used book stores springfield mo The contribution from beyond the bond portfolio more than tripled to $96 million, fueled by gains from private equity. Taux de change euro dollar Underwriting Gain

The underwriting gain in the business and international segment, the company’s largest, climbed 8 percent to $391 million. Usa today newspaper sports For personal insurance, which includes both auto and home coverage, the figure plunged 90 percent to $23 million.

The one analyst tracked by Bloomberg who upgraded Travelers this year, Macquarie Group Ltd.’s Amit Kumar, advises investors to buy the stock on the prospect that an expanding U.S. Free language translation economy will increase demand from business clients for coverage. Usd to kwd converter Travelers is one of the largest commercial insurers in the U.S. Stock market futures news and offers products including workers’ compensation coverage and policies for fleets of vehicles.

Policy sales advanced 3.3 percent to $6.06 billion in the fourth quarter from $5.86 billion in the last three months of 2015. Usd to aud conversion The insurer charged domestic business insurance customers 2.5 percent more at renewal in the three months ended Dec. Usd zar 31, according to a presentation. American market futures That compares with a 2.6 percent increase in the third quarter. Us dollar indian rupee exchange rate Bond Yields

The fourth-quarter combined ratio was 90 percent, meaning Travelers kept 10 cents of every premium dollar after claims and expenses. The binary That worsened from 86.6 percent in the year-ago period.

The stock had declined 3.6 percent this year through Monday in New York trading to $118.04, compared with the 0.2 percent increase in the 30-company Dow Average.

Book value, a measure of assets minus liabilities, slipped to $83.05 a share as of Dec. Bloomberg stock futures cnn 31, from $86.04 three months earlier. Binary to letter converter Bond yields rose after Donald Trump’s surprise victory in the U.S. 1 usd to idr presidential election, pressuring the market value of fixed-income securities. Binary addition calculator The insurer repurchased $751 million of shares in the quarter.

Pretax catastrophe costs jumped to $137 million from $46 million a year. Futures in stock market U.S. Usd vs gbp chart insurers were pressured in the period by Hurricane Matthew, which battered the Florida coast, and Tennessee wildfires.

The gain from reserves was $264 million pretax, narrowing from $292 million a year earlier. Binary search example Insurers regularly reassess the money they’ve set aside for future claims and can scale back or raise the amount based on their expectation of losses. Kwacha to usd Morgan Stanley’s View

“Favorable development has bolstered Travelers’ earnings by about 17 percent in last three years, higher than the industry average and all other domestic companies that we cover,” Morgan Stanley’s Kai Pan said in a Jan. 1 aud to usd 5 note. Marriott hotel rates “This could pose a risk to future earnings should reserve releases slow.”

Return on equity for the quarter was 15.8 percent, a gain from 14.5 percent in the fourth quarter of 2015. Convert binary to text ROE for the year slipped to 12.5 percent from 14.2 percent. Convert usd to cny Annual net income fell 12 percent to $3.01 billion.