Accounting Rules Lower Travelers' Net Income.(Travelers Property Casualty Corp.)

National Underwriter Property & Casualty-Risk & Benefits Management, April, 1999 by SCLAFANE, SUSANNE

Although Travelers Property Casualty Corp. announced a 6 percent increase in operating earnings for the first quarter of 1999, the company said that because it adopted new accounting principles net income dropped 42 percent compared to firstquarter 1998. Operating earnings rose to $323.5 million, or $0.83 per share, for first-quarter 1999, compared to $303.9 million, or $0.77 per share, for first-quarter 1998, Travelers said in a statement.

However, at the same time the required adoption of new accounting principles pulled first-quarter net income down nearly $150 milion to $200.5 million, or $0.51 per share, compared to $347.1 million, or $0.88 per share, for first-quarter 1998. The accounting principles involved are in the American Institute of Certified...

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