Property and casualty insurer Travelers trounced Wall Street estimates for fourth-quarter profit as strength in its underwriting business cushioned a blow from outsized catastrophe losses, sending its shares up nearly 5% on Wednesday.

Travelers reported record annual profit, reflecting the strong financial run that home and auto insurers are enjoying despite concerns over rate hikes and availability crunches. The insurer didn't put a figure on potential losses from this month’s devastating Los Angeles wildfires.

Travelers Cos. executives confirm the Los Angeles wildfires will have a material impact on the insurer’s first-quarter earnings but say it’s too soon to specify the costs.