Jan 22 (Reuters) - Property and casualty insurer

Travelers beat estimates for fourth-quarter profit on

Wednesday, as strength in its underwriting business cushioned a

blow from elevated catastrophe losses.

Individuals and companies are increasing their spending on

insurance in response to rising economic uncertainty and risks,

enabling insurers to attract and retain clients even as premiums

for policies such as auto and property get pricier.

The strong quarterly performance from Travelers underscores

the resilience of the insurer's business model amid volatile

weather conditions and fluctuating financial markets.

Net written premiums rose 7% in the quarter to $10.74

billion and hit a full-year record of $43.36 billion.

Core income of Travelers, often seen as a sector bellwether

as it typically reports results before peers, increased to $2.13

billion, or $9.15 per share, in the three months ended Dec. 31.

That compares with $1.63 billion, or $7.01 per share, a year

earlier.

Analysts on average had expected a quarterly profit of $6.63

per share, according to data compiled by LSEG.

Net investment income - earned off an insurer's investment

portfolios - came in at $955 million pre-tax, up 23%.

The industry is grappling with a profit squeeze as higher

catastrophe losses, fueled by an uptick in severe weather

events, weigh on their bottom line.

Rising claims from hurricanes, wildfires, and other natural

disasters have significantly eroded underwriting margins, even

as premium rates climb to offset escalating risks. The trend

underscores growing challenges for insurers navigating an

increasingly volatile climate landscape.

Catastrophe losses, net of reinsurance, rose to $175 million

for Travelers from $125 million a year earlier, due to Hurricane

Milton and Hurricane Helene.

The losses refer to a significant financial hit that

insurers incur due to large-scale natural or man-made disasters.