Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Thursday July 17
Travelers Property Casualty Second Quarter Net Income Up 33% in Q2
Travelers Property Casualty Corp. has reported net income for the second quarter of $441.2 million or $0.44 per share, basic and diluted, compared to net income of $332.0 million or $0.33 per share in the prior year quarter. These results reflect strong underwriting performance, a lower charge for prior year reserve development, and net realized investment gains versus net losses in the 2002 quarter, offset in part by higher weather-related catastrophe losses. Weighted average shares and common stock equivalents outstanding were 1.008 billion in the current quarter compared to 1.000 billion in the 2002 quarter."Our outstanding results this quarter demonstrate the earnings power of the Company even in the face of unusual catastrophe events," said Robert I. Lipp, Chairman and Chief Executive Officer. "Strong underwriting results drove our earnings growth and are reflected in our 17.4 percent return on equity for the current quarter. Net written premiums continue to benefit from higher levels of new business in targeted markets, historically high customer retention rates, and renewal price increases that continue to outpace loss cost trends across all business lines.
"We continue to support a legislative solution to the asbestos litigation crisis that ensures fair treatment for all parties, particularly for truly sick individuals exposed to asbestos," said Mr. Lipp. "Unfortunately, the likely cost of the current Senate bill is unacceptably high, and it leaves open the door to further litigation. Nevertheless, we will continue to press for a solution that is fair and balanced.
"Our competitive position remains excellent, and we continue to believe that full year net and operating income will be in the range of $1.65 billion to $1.75 billion." This estimate is based on various assumptions, including no further net charges for prior year reserve development, no asbestos incurrals, and, for the remainder of the year, a normal level of catastrophe losses and no significant net realized investment gains or losses.
©2003 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?