Insurance giant Travelers reported higher revenue and income in the most-recent quarter, helped by double-digit percentage increases in premiums for auto and home insurance.
Travelers is seen as a bellwether for the property-casualty industry. Its improved performance suggests insurers are turning the corner on profitability after a long run of heavy underwriting losses.
The strong quarter meant Travelers last year increased net income to $3 billion, up from $2.8 billion in 2022.
That came despite heightened losses from storms and other extreme weather: Catastrophe losses tallied $3 billion last year, up from $1.9 billion in 2022.
The turnaround in personal insurance was driven by steeper prices for policyholders.
Renewed home-insurance premiums rose 21% for the three months through December, compared to a year earlier. For auto insurance, the increase was 16.7%.
“Our personal insurance business is showing significantly improved profitability, and the outlook is for continued improvement,” Travelers Chief Executive Alan Schnitzer said.