Travelers Cos. Sees Q4 Profit Fall 11%

Commercial insurer Travelers Cos. said Tuesday its fourth-quarter profit dropped 11 percent on lower premiums and investment income. For the three months ended Dec. 31, net income fell to $1.06 billion, or $1.64 per share, from $1.19 billion, or $1.68 per share, a year ago. Excluding items, profit totaled $1.63 per share in the latest quarter, compared with $1.69 per share in the prior-year quarter. Net investment income dipped to $696 million from $701 million in the 2006 quarter, due to slightly lower returns in the non-fixed income portion of its portfolio. Net written premiums of $5.4 billion fell 1 percent, but were flat when adjusted for the sales of Afianzadora Insurgentes and Mendota. Retention rates were positive but renewal price changes were slightly weaker and new business volumes declined amid competition. Personal insurance had a $201 million operating profit, down from $348 million a year ago on higher weather-related losses and a lack of favorable prior-year development.Travelers noted its business segment had an operating profit of $729 million for the quarter, a gain from $703 million during the same period a year ago. That was following $3 million in losses from the southern California wildfires. Net written premiums dropped 2 percent from a year ago. The company said retention was "extremely strong" but renewal pricing was slightly lower than recent quarters, and new business volumes dropped versus a year ago.