UPDATE 2-Travelers raises view of '09 operating earnings

* Travelers raises 2009 oper EPS view by 5 cents

* Sees benefit from rivals' financial woes

* Shares rise 1.3 percent (Recasts first paragraph; adds CEO comments from investor day, updates share activity)

NEW YORK, June 4 (Reuters) - Travelers Cos Inc (TRV.N: Quote, Profile, Research) raised its 2009 operating earnings outlook by about 5 cents a share on Thursday and said it was benefiting from the troubles of weakened competitors, including American International Group (AIG.N: Quote, Profile, Research)

In an investor presentation, the large U.S. commercial, home and auto insurer said it expected full-year earnings of $4.55 to $4.95 a share before realized gains and losses on investments.

On that basis, analysts on average had expected Travelers to earn about $5.12 a share, according to Reuters Estimates.

The company had previously forecast operating earnings of$4.50 to $4.90 a share.

At an investor day in New York, Chief Executive Jay Fishman said the gap between Travelers' policy sales and those of competitors had widened in the company's favor in the fourth and first quarters.

He attributed Travelers' lead, at least in part, to winning customers away from rivals, including AIG, which has struggled after massive derivatives losses led to a $180 billion federal bailout.