Travelers Profit Climbs 8.9% as Private Equity Bets Thrive
- Insurer beats analysts’ estimates, helped by commercial unit
- CEO Schnitzer to raise price for auto coverage after slump
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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. Operating profit was $3.20 a share, beating the $2.81 average estimate of 22 analysts surveyed by Bloomberg. Travelers was helped by higher returns from private equity, which countered pressure on the investment portfolio from low bond yields.