Travelers posts 21% fall in profits for Q2

TRAVELERS has recorded a 21% slump in second-quarter profit on lower investment returns. The firm posted income of $740m, down from $942m, while revenue decreased 2.1% to $6.16bn. Investment income fell $77m to $547m, and included a $20m loss from alternative holdings, such as private equity and hedge funds and real estate. A year earlier, alternative holdings contributed a $22m gain.Net premiums written were flat at $5.6bn, but the combined ratio deteriorated 3.9 percentage points to 93.2%. Despite the profit fall, Travelers raised its full-year earnings outlook to $4.8 to $5.05 a share, from an earlier forecast of between $4.55 and $4.95 a share.