Minneapolis-based St. Paul Travelers Cos. Inc. reported a six-fold increase in earnings and raised its guidance for the full year after clearing the third quarter without significant hurricane losses.
Insurers struggled last year with massive catastrophe losses after Hurricanes Katrina and Rita, and St. Paul booked catastrophe losses of more than $1 billion after taxes. This year such losses were just $10 million.
The company said it earned $1.04 billion, or $1.47 per share, up 543 percent from $162 million, or 23 cents per share, during the same period last year. Revenue rose 4.5 percent to $6.32 billion, from $6.04 billion during the same period last year.
Analysts surveyed by Thomson Financial were expecting $1.32 per share on revenue of $6.2 billion.
“Aided by very benign weather, this quarter marked a continuation of our solid performance, both on the top and bottom lines,” said Chairman and Chief Executive Jay Fishman on a conference call with analysts.
The company’s shares rose 84 cents to $49.43 in morning trading on the New York Stock Exchange.
The St. Paul said it now expects to earn $5.50 to $5.65 for the year, up from earlier guidance of $4.90 to $5.10. Analysts had been expecting $5.36 per share.
For the first nine months of the year, the company said it earned $3.02 billion, or $4.23 per share, more than double the $1.44 billion, or $2.07 per share, during the same period last year. Revenue rose 2.4 percent to $18.62 billion from $18.18 billion during the same period last year.
Source: St. Paul Travelers
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