NEW YORK (TheStreet) -- Shares of Travelers (TRV - Get Report) were declining in early-morning trading on Thursday after reporting a fourth-straight decline in quarterly profit as weather-related costs increased and investment income fell.
Before the market open, the property-casualty insurer announced that net income dropped 23% year-over-year to $716 million, or $2.45 a share for the third quarter.
Operating profit declined to $2.40 a share from $2.93 a share in the year-ago period, but topped analysts' estimates of $2.38 per share.
Net investment income slumped to $472 million from $484 million a year prior.
"Underwriting results for the quarter reflected lower net favorable prior year reserve development, higher non-catastrophe
weather-related losses and higher-than-expected losses associated with auto bodily injury," CEO Alan Schnitzer said in a statement.
"While returns from our high-quality fixed income portfolio declined in line with our expectations due to the continued low interest rate environment, returns from our non-fixed income portfolio improved from recent quarters and were comparable to the prior year quarter," he added.
Analysts will focus on comments during today's earnings call about Hurricane Matthew, the Wall Street Journal notes. The hurricane recently hit the Atlantic Coast, and any damage will affect the company's fourth-quarter results.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.
Travelers' strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: TRV
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.