Travelers: Lower profit with disasters


(CercleFinance.com) – The American insurer Travelers reported on Thursday a drop in its results for the second quarter due to the increase in costs generated by natural disasters.

The New York group says it has generated over the past three months a basic profit (‘core’) of 625 million dollars against 879 million dollars a year earlier, a decline of 29%.

Its quarterly net income reached $551 million, or $2.27 per share, from $934 million ($3.66 per share) in the second quarter of 2021.

On that basis, financial analysts on average expected earnings per share (EPS) of $1.97.

Pre-tax catastrophe losses, net of reinsurance, totaled $746 million, primarily due to recent storms and hailstorms in the United States.

The combined ratio, the ratio between indemnities paid and premiums collected which makes it possible to measure profitability within the sectors, deteriorated to 98.3% against 95.3% a year earlier.

For the record, a combined ratio above 100% reflects loss-making activity.

In accordance with its habits, Travelers, one of the 30 values ​​of the Dow Jones index, did not provide forecasts.

In pre-market quotations, the Travelers action – which rose by around 1% this year while the Dow fell sharply – posted a decline of 0.7% Thursday morning.

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