Traveler profits increase due to higher revenue and lower disaster costs

Travelers Cos. posted a 39% increase in net income in the first quarter, with premium increases and new business fueling sales growth. The sharp fall in catastrophe costs compared to the previous year also had a positive effect on the result.

The property-casualty insurer reported net income of $1.02 billion, with catastrophe costs down from $835 million to $160 million before taxes. Industry-wide US-focused airlines are expected to compare favorably to their prior-year results due to the reduced level of disasters. In the first quarter of 2021, winter and wind storms made the US a particularly costly three months.