Travelers - 450 Position Eliminated: Travelers’ Q2 Profit Climbs 85% to $925M; Auto Unit Layoffs Planned

http://www.insurancejournal.com/news/national/2013/07/23/299359.htm

The Travelers Companies today reported net income of $925 million for its 2013 second quarter, an 85 percent jump from $499 million net income posted a year ago. The insurer credited lower catastrophe losses and continued improvement in underlying underwriting margins.
The net income for the first six months of 2013 came in at $1.821 billion, up 40 percent from $1.305 billion a year ago.
Travelers also announced today its plan to cut auto insurance rates and steps to lower operating expenses at its auto unit — including layoffs — in the face of increasing competition.
Travelers’ Chief Operating Officer Brian MacLean said during an earnings conference call this morning that his company will notify approximately 450 employees this week that their positions are being eliminated. The company will also reduce positions through attrition.
“We expect to reduce our claim and other insurance expenses, such that we realize a savings of $140 million, pretax, when fully implemented,” MacLean said. “This represents about a 10 percent reduction in our unallocated claim and other insurance-expense base in personal insurance.” The company will begin realizing some savings immediately and they will be fully realized in 2015, MacLean said.