Travelers Cos. net income surged 50% in the fourth quarter, fueled partly by strong results in its car-insurance business as the pandemic and weak U.S. economy continued to hold down the number of miles motorists are driving, resulting in fewer wrecks.
The company also benefited from fewer catastrophes than in the year-earlier period and record premium increases in some lines of business sold to corporate customers.
Travelers, which is one of the nation’s biggest sellers of insurance to businesses and a top consumer-car insurer, posted overall net income of $1.31 billion, up from $873 million in the year-earlier period.
The company, part of the Dow Jones Industrial Average, is one of the first big property-casualty insurers to report quarterly earnings, and its results are watched closely as a bellwether for others. Advisory firm Evercore ISI analysts summed up Travelers’ quarter as “Kicking Off 4Q20 Insurance Earnings with a Bang,” in a note to investors.
Travelers’ unit for car and home insurance posted income of $457 million, up 40% from $327 million in the year-earlier period, one of the biggest sources of its quarterly profit gain.
