April 17 (Reuters) - Travelers Companies' ( TRV )

first-quarter profit rose 13%, driven by higher investment

income and strong underwriting that offset a hit from a jump in

catastrophe losses, the insurance bellwether said on Wednesday.

Insurers are reaping the benefits of firming hopes of a soft

landing, and wage growth in a still-tight labor market that has

ensured job security.

Individuals and businesses are reviving spending on their

insurance policies, allowing insurers to attract and retain

clients despite higher prices in some cases.

Renewal premium - the estimated average premium on renewing

policies - was 10.6% higher in the reported quarter from a year

earlier in the business insurance unit, Travelers' biggest,

while growth in personal insurance was driven by higher prices,

the company said.

Underwriting gains jumped 57% to $577 million, while net

investment income rose about 28% to $846 million, thanks to a

string of interest rate hikes by the U.S. Federal Reserve to

curb inflation, the company said.

Catastrophe losses, net of reinsurance, were up at $712

million from $535 million a year earlier, due to severe wind and

hail storms in the central and eastern regions of the United

States.

Global insured losses from natural catastrophes in the first

quarter were estimated to be $20 billion, 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 $1.1 billion, or $4.69 per

share, for the three months ended March 31, compared with $970

million, or $4.11 per share, a year earlier.

Its underlying combined ratio also improved to 87.7%,

compared with 90.6% a year earlier. A ratio below 100% means the

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

Travelers' shares have gained 17% this year compared with a

near 19% jump in the S&P 500 Property & Casualty Insurance Index

.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini

Ganguli)