Help

BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Travelers' profit misses estimates as catastrophe losses rise

Reprints
Travelers' profit misses estimates as catastrophe losses rise

(Reuters) — Property/casualty insurer Travelers Cos. Inc.'s quarterly earnings fell short of analysts' estimates as hail- and windstorms in the United States increased catastrophe losses.

The company, a Dow Jones Industrial Average component, said net income fell to $683 million, or $1.95 per share, in the second quarter ended June 30, from $925 million, or $2.41 per share, a year earlier.

Operating earnings of $1.93 per share missed the average estimate of $2.07, according to Thomson Reuters I/B/E/S.

The company's shares were down 1.9% at $93.47 in premarket trading on Tuesday. Up to Monday's close, the stock had risen 10.75% since it last reported results in April.

Travelers' earnings often differ substantially from Wall Street estimates, as the company does not provide forecasts.

As one of the first insurers to report results, the company's results are seen as a bellwether for the industry.

Severe storms pounded parts of the central United States in early June, producing baseball-sized hail. There were also several tornado touchdowns among other dangerous windstorms.

The company's pretax catastrophe losses, net of reinsurance, rose to $436 million from $340 million.

Net written premium rose 6% to $6.16 billion.

The company's combined ratio, the percentage of premium revenue an insurer has to pay out in claims, rose to 95.1% in the quarter from 94.3%. A combined ratio of under 100 indicates an underwriting profit.

Revenue rose 2% to $6.79 billion.

Read Next