Travelers Posts Higher Profit on Lower Catastrophe Losses
23 Juillet 2019 - 02:51PM
Dow Jones News
By Aisha Al-Muslim
Travelers Cos.' earnings rose in the latest quarter as the
insurance company reported lower catastrophe losses and higher net
investment income.
The New York-based company said Tuesday second-quarter profit
was $557 million, or $2.10 a share, compared with $524 million, or
$1.92 a share, a year earlier.
Total revenue, which includes investment income, rose to $7.83
billion from $7.48 billion.
Travelers, part of the Dow Jones Industrial Average, is among
the largest sellers of insurance to U.S. businesses and sells car
and home insurance to individuals and families. It is one of the
first big property-casualty insurers to report quarterly earnings,
and its results are watched closely as a bellwether for others.
Core income was $537 million, or $2.02 a share, missing the
$2.28 a share analysts polled by FactSet were looking for. In the
year-earlier period, core income was $494 million, or $1.81 a
share.
Core earnings are a closely watched metric because they exclude
realized capital gains or losses on companies' investment
portfolios as well as items that aren't considered recurring in
nature.
Shares, which have gained about 21% over the past 12 months,
fell 1.1% in premarket trading.
Pretax catastrophe losses, net of reinsurance, totaled $367
million during the quarter, compared with $488 million a year
earlier.
"While catastrophe losses were lower than in the prior year
quarter, all-in weather losses were modestly higher, due to higher
non-catastrophe weather-related losses," Chief Executive Alan
Schnitzer said.
Net premiums written, an important measure of revenue growth,
rose 4% to $7.45 billion, ahead of the consensus forecast of $7.41
billion.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
July 23, 2019 08:36 ET (12:36 GMT)
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