Travelers Companies Inc. TRV, -3.28% reported Tuesday that it swung to a second-quarter profit that was well above expectations, amid strong growth in investment income and a drop in catastrophe losses. The insurer’s stock was still inactive in premarket trading. Net income for the quarter was $934 million, or $3.66 a share, after a loss of $40 million, or 16 cents a share, in the year-ago period. Excluding nonrecurring items, core earnings per share came to $3.45, beating the FactSet consensus of $2.39. Total revenue grew 17% to $8.69 billion, above the FactSet consensus of $8.22 billion, as net written premiums increased 11% to $8.14 billion to beat expectations of $7.76 billion. Net investment income tripled, to $818 million from $268 million, while catastrophe losses declined 44% to $475 million. The stock has gained 7.8% year to date through Monday, while the SPDR S&P Insurance ETF KIE, -2.75% has advanced 9.5% and the Dow Jones Industrial Average DJIA, -2.09% has advanced 11.0%.
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