(Reuters] – Travelers, a property and casualty insurer, reported a record fourth-quarter profit on Thursday. Higher returns from investments helped to cushion the blow from a surge in claims related to natural disasters.

New York-based firm, which is part of the Index, can be seen as an indicator for the insurance industry as it usually reports ahead of its peers.

In the quarter that ended December 31, insurers reported core income of $1.29 trillion, or $5.20 per Share, as compared to $1.26 billion or $4.91 per Share a year prior.

Refinitiv IBES data shows that analysts expected an average profit of $3.86 for each share.

The higher returns of its private equity partnership and real estate partnership led to a 10% increase in pre-tax investment income for travelers at $743 million.

The net premiums paid by the company rose 10% to $7.9 million.

According to travelers, most of the catastrophic losses suffered in quarter resulted from windstorms and tornado activity across the U.S. States as well as wildfires in Colorado.

Industry experts predict that the industry will be paying more for insurance in 2021 to cover weather-related claims due to the devastation caused by tornadoes, which struck parts of the United States last December.

A combined ratio of 88% was reported by travelers, against 86.7% the previous year. If the ratio is below 100 percent, it means that insurers earned less in claims payouts and more in premiums.