The Wall Street Journal-20080130-Travelers Cos-- Fourth-Quarter Profit Falls- Buyback Plan Is Expanded

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Travelers Cos.: Fourth-Quarter Profit Falls; Buyback Plan Is Expanded

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Falling insurance premiums held back Travelers Cos.' fourth-quarter profit and likely will be a factor in next year's earnings as well for the commercial and personal lines property-casualty insurer. The company reported net income of $1.06 billion, down 11% from a year earlier. Higher claims costs, with an uptick in catastrophe-related claims, contributed to the drop. Revenue rose 0.3% to $6.49 billion. The net premiums written dropped 1.3% to $5.37 billion. Travelers boosted its share-buyback plan by $5 billion and projected 2008 earnings below analysts' expectations. The stock buyback will be on top of the $900 million still authorized under prior repurchase plans. Combined, the $5.9 billion makes up 20% of Travelers' market capitalization.