Travelers

(Travelers)

Travelers 2Q Trails View on Disaster Bill

By Features FOXBusiness

Hit by above-average catastrophe losses, insurance giant Travelers Cos (TRV) swung to a weaker-than-expected second-quarter profit of nearly $500 million on Thursday.

Continue Reading Below

Despite the earnings miss, shares of the blue-chip insurer ticked just slightly lower.

New York-based Travelers logged a net profit of $499 million, or $1.26 a share, last quarter, compared with a loss of $364 million, or 88 cents a share, a year earlier.

On an operating basis, the company earned $495 million, or $1.26 a share, last quarter. Analysts had been calling for stronger EPS of $1.35.

Severe storms in the Midwest and mid-Atlantic last month helped contribute to $357 million in catastrophe losses last quarter. That figure was above historical norms but down sharply from a record $1.1 billion in disaster claims a year earlier amid devastating tornadoes.

Travelers said the catastrophe losses from last quarter stemmed from wind and hail storms in several parts of the U.S.

Continue Reading Below

Earnings were “impacted by weather-related losses which, while much lower than in the prior year quarter, were considerably higher than we would have expected based on historical experience,” CEO Jay Fishman said in a statement.

Travelers said net written premiums rose 1% last quarter to $5.87 billion and renewal rates increased across all segments.

Shares of Travelers, which have rallied about 8% so far this year, dipped 0.17% to $63.89.