Travelers profit reaches $2.208 billion in Q2

• Travelers reported Q2 net income of $2.208 billion and diluted EPS of $10.26.
• Travelers shares rose 2.65% to $337.82 in premarket trading following the results.
• Lower catastrophe losses, reserve development and higher investment income supported the earnings increase.

The Travelers Companies (NYSE:TRV) reported Q2 net income of $2.208 billion, or $10.26 per diluted share, as underwriting results improved.

Net income rose 46% from $1.509 billion, while core income increased to $2.160 billion from $1.504 billion a year earlier.

Reported return on equity reached 24.9%, while the consolidated combined ratio improved to 83.6% from 90.3% last year.

Catastrophe losses fell to $518 million from $927 million, favorable reserve development reached $578 million and net written premiums totaled $11.529 billion.

Following the announcement, Travelers' share price was up 2.65% at $337.82 in premarket trading.

Travelers returned $1.577 billion to shareholders, including $1.311 billion in repurchases, after increasing its quarterly dividend by 14% to $1.25 in April.

The company also introduced TravelersLLM in June as part of its strategy to apply proprietary insurance data and artificial intelligence across its operations.