Travelers Posts Lower Profit As Catastrophe And Weather-related Losses Climb

By Ciara Linnane Markets MarketWatch Pulse

Insurer The Travelers Cos. Inc. said Thursday it had net income of $595 million, or $2.11 a share, in the second quarter, down from $664 million, or $2.24 a share, in the year-earlier period. Adjusted per-share earnings came to $1.92. The FactSet consensus was for EPS of $2.11. Revenue rose to $7.184 billion from $6.785 billion, while net written premiums rose to $6.640 billion from $6.345 billion. The FactSet consensus was for $6.547 billion. The company said it had an underwriting gain of $173 million, down from $388 million a year ago. "Second quarter core income of $543 million and core return on equity of 9.5% were impacted by high levels of catastrophe and non-catastrophe weather-related losses caused by significant U.S. tornado and hail activity," Chief Executive Alan Schnitzer said in a statement. The company's net investment income rose to $598 million from $549 million. Shares were not yet active premarket, but have gained 3.3% in 2017, while the Dow Jones Industrial Average has gained 9.5% and the S&P 500 has gained 10.5%.

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