The underwriting gain in the current quarter reflected a GAAP combined ratio of 90.3 percent, as compared to 104.5 percent in the prior year quarter. This improvement of 14.2 points in the combined ratio was primarily due to lower catastrophe losses (9.2 points) and higher underlying underwriting margins (4.9 points). Catastrophe losses in the current quarter were primarily driven by increases in estimated losses related to wind and hail storms that occurred in the second quarter 2012. Also included in the current quarter underwriting gain was net favorable prior year reserve development in all three segments.The current quarter underlying underwriting gain, which excludes net favorable prior year reserve development and catastrophe losses, reflected a GAAP combined ratio of 92.1 percent, as compared to 97.0 percent in the prior year quarter. This improvement of 4.9 points primarily resulted from lower non-catastrophe weather-related losses as well as earned rate increases exceeding loss cost trends.
Travelers Reports Net Income Per Diluted Share Of $2.21 And Quarterly Record Operating Income Per Diluted Share Of $2.22 For The Third Quarter
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