(Reuters) — Travelers Cos. Inc. reported an 11% fall in quarterly profit hurt by higher catastrophe losses and lower underwriting gains.
The company also authorized a $5 billion share buyback program.
Wind and hail storms in several regions of the United States, as well as a winter storm in the eastern part of the country resulted in higher catastrophe losses during the quarter.
Net income fell to $617 million in the first quarter ended March 31, from $691 million a year earlier.
Total revenue rose 3.8% to $6.94 billion and net written premiums rose 5.3% to $6.50 billion. Net investment income rose 12 percent to $610 million, reflecting higher interest rates.
December and March saw the latest hikes in interest rates by the U.S. Federal Reserve. A quarter point uptick in each case, the hikes marked only the second and third raise in seven years, after being kept near zero.
Gains from underwriting, before tax, halved to $211 million. Pre-tax catastrophe losses, net of reinsurance, rose to $347 million from $318 million and Travelers’ combined ratio deteriorated rose to 91.7% from 90% a year earlier.
(Reuters) — Property/casualty insurer Travelers Cos. Inc. reported a better-than-expected quarterly net profit on Tuesday, helped by a rise in investment earnings.