LONDON (ShareCast) - Shares in US insurer Travelers headed north, despite a slump in operating earnings, which the company blamed on bad weather.

The New York based insurer reported a 67% decline in earnings to $332m in the third quarter, down from an operating profit of $858m in the corresponding period of last year, as the company counted the cost of natural disasters such as Hurricane Irene.

The insurer reported $394m in catastrophe costs, five times greater than last year's uneventful third quarter.

Earnings per share came in at $0.79 compared to the market consensus estimate of $0.90.

Even so, Travelers remains optimistic: "We are very pleased with our progress to date," said Chief Executive Jay Fishman. The company does not appear concerned about its ability to raise rates to cover rising costs. Industry observers have often remarked that it is easier for insurance companies to bump up premia after a high-profile catastrophe.

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