July 18 (Reuters) - Travelers Companies ( TRV ) reported

a jump in second-quarter profit, driven by higher investment

income and strong underwriting that offset a hit from

catastrophe losses, the insurance bellwether said on Friday.

Individuals and businesses are reviving spending on their

insurance policies, allowing insurers to attract and retain

clients despite higher prices in some cases.

Net written premiums were 8% higher in the reported quarter

than a year earlier, with growth across its units, the company

said.

Underwriting gains jumped 55% to $1.2 billion, while net

investment income rose 24%, thanks to strong fixed income

returns and growth in fixed maturity investments.

A steady U.S. economy, bets of interest-rate cuts and rising

geopolitical uncertainty have helped fuel activity across U.S.

equity markets.

The euphoria has also spread to other asset classes,

bolstering gains across investment portfolios.

Catastrophe losses, net of reinsurance, rose to $1.51

billion from $1.48 billion a year earlier, due to severe wind

and hail storms in the United States.

"We are pleased to have generated a strong bottom-line

result in a quarter that included a record level of severe

convective storms across the United States," said Chairman and

CEO Alan Schnitzer.

Global insured losses from natural catastrophes in the first

half of 2024 were at least $61 billion, 25% above the 10-year

average for the period, heavily driven by storm activity in the

United States, according to a report by reinsurance broker

Gallagher Re.

The company's core income rose to $585 million, or $2.51 per

share, for the three months ended June 30, compared with $15

million, or $0.06 per share, a year earlier.

Its underlying combined ratio also improved to 87.7%,

compared with 91.1% a year earlier. A ratio below 100% means the

insurer earned more in premiums than it paid out in claims.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by

Devika Syamnath)