Travelers Sees Pre-Tax Catastrophe Losses More than Double from Storms

Travelers Cos.’ pretax catastrophe losses more than doubled from a year ago for the company’s first quarter, due in part to winter storms.

Source: WSJ | Published on April 20, 2021

Traveling by car during winter storm conditions.

The property-casualty insurance company logged pretax catastrophe losses of $835 million. A year earlier, those were $333 million.

The three-month period was the company’s highest first quarter ever of catastrophe losses, Chairman and Chief Executive Alan Schnitzer said in prepared remarks. The company said those losses were mainly from winter and wind storms in the U.S.

Travelers reported earnings of $733 million, or $2.87 a share. The company’s profit rose from $600 million, or $2.33 a share, a year ago. Core income was $2.73 a share. According to FactSet, analysts were expecting $2.37 a share in core income.

Revenue increased to $8.31 billion, up from $7.91 billion a year ago. Net written premiums at the company rose a little over 2% to $7.51 billion. Analysts were expecting net written premiums of $7.55 billion.

The company also said its board approved $5 billion more in share buybacks.

 

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