Jul. 30--The Travelers Cos. Inc. today reported a 21 percent drop in net income per share for the second quarter, results the company called "solid" considering lower coverage demands from existing customers in the weak economy.

Net income was $740 million, or $1.27 per diluted share, for the quarter ended June 30, compared with $942 million, or $1.54 per diluted share, one year earlier.

Travelers said its net unrealized investment gain -- the value of its portfolio, basically -- was $1.3 million before taxes in the recent quarter, up from a loss of $253 million in the 2008 second quarter. Unrealized gains do not directly affect income but are crucial to the company's financial soundness.

"Our performance for the quarter reflects solid underwriting and fixed income investment results, as well as the continued impact of very low short-term investment yields and a small loss on our alternative investment portfolio," said Jay Fishman, Chairman and Chief Executive Officer.

Smaller major losses also helped. Catastrophe losses totaled $200 million before taxes, compared with $356 million in the prior year quarter. Net written premiums remained flat, at $5.6 billion, as higher rates, strong retention and new business offset lower coverage requirements by policyholders, the company said.

During the quarter Travelers repurchased 18.5 million common shares for $750 million, and paid $172 million in common dividends. It book value, the difference between assets and liabilities, increased to $47.29.

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