Strong Underwriting, Lower Catastrophe Losses Lift Travelers' Earnings

The company reported a 19% year-over-year (y-o-y) increase in net income of $812 million compared to a 30% y-o-y decline reported in the first quarter of 2015. Similarly, operating income increased by 20% y-o-y on the back of lower catastrophe-related losses, the settlement of tax matters resulting in an additional benefit of $32 million, and growth in the personal insurance division. However, lower investment income continued to plague overall earnings as the low interest rate environment persi...