Bloomberg News

Travelers  (TRV - Get Report) shares slipped 4% in premarket trading after the property and casualty insurer reported third-quarter earnings below Wall Street expectations.

New York-based Travelers said net income decreased to $396 million, or $1.50 a share, from $709 million, or $2.62 a share, a year earlier. Adjusted net income fell to $378 million, or $1.43 a share, from $687 million, or $2.54 a share last year.

Analysts surveyed by FactSet were expecting adjusted EPS to come in at $2.35.

Total revenue increased to $8.01 billion from $7.7 billion, which was ahead of expectations of $7.4 billion. The company said net written premiums increased by 7% to a record $7.6 billion.

"Despite the impacts of an increasingly challenging tort environment facing our industry and higher non-catastrophe weather-related losses, our underlying underwriting results were solid, benefiting from 4% growth in earned premiums and continued disciplined and thoughtful expense management," chairman and CEO Alan Schnitzer said in a release. He also said earnings "were impacted by net unfavorable reserve development in Business Insurance."

Shares of Travelers were down 4.2% at $136 in premarket trading.

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