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 beats on higher premiums, lower costs

Travelers profit beats on higher premiums, lower costs

(Reuters) – Property/casualty insurer Travelers Cos. Inc. Inc beat third-quarter profit expectations on Tuesday, helped by higher premiums, lower costs and an increase in returns from non-fixed income investments.

The insurer, seen as a bellwether for the insurance sector as it typically reports before its industry peers, said net written premiums rose 3% to $7.77 billion in the quarter.

Core income stood at $3.12 per share, above analysts’ average estimate of $3.03 per share, according to Refinitiv. Total revenue rose 3%.

Overall profit more than doubled to $827 million, or $3.23 per share, in the quarter ended Sept. 30, thanks also to a one-time gain of about $403 million from Pacific Gas & Electric’s emergence from bankruptcy.

The gain, which stemmed from payments Travelers made for claims on wildfires in California in 2017 and 2018, had been flagged last quarter at an anticipated $400 million.

The profit rise was despite catastrophe losses that were well above the 10-year average for the third quarter, CEO Alan Schnitzer said.

However, the quarter saw lower revenue from fixed-income investments and the need to bolster reserves for asbestos claims to $295 million.

Travelers reported pretax catastrophe losses of $397 million, mainly from severe storms in several regions of the United States and wildfires.

It reported an increase in revenue from non-fixed income investments, which include private equity, whose results are reported with a one-quarter time lag.

Claims and claim adjustment expenses fell to $4.89 billion from $5.23 billion. The company reported a combined ratio of 94.9% compared with 101.5% a year earlier.

Shares of Travelers, a Dow component, was up 1% in light trade on Tuesday. They have fallen 18.3% so far this year, while the blue-chip index has slipped 1.2% in the same period.