UPDATES: TRAVELERS/AETNA PROFITS DROP

HARTFORD, Conn.-Travelers/Aetna Property Casualty Corp. reported net income of $390.5 million for 1996, down 6.8% from $419 million for 1995.

The net income, however, reflects $422.5 million in 1996 net charges related to Travelers' acquisition of Aetna Casualty & Surety Co. Aetna's results are included only from April 2. The combined company reported $8.2 billion in revenues, up 79.4% from $4.57 billion in 1995.

For commercial lines, total net premiums for the year were a combined $4.67 billion, down 9.3% from a combined $5.14 billion last year.

Chairman and Chief Executive Officer Robert I. Lipp said the market is competitive, and "our assumption is that that is not going to substantially change. Our real effort is to try to get our expenses and claims operations in superior shape so we can compete in this kind of marketplace."