Cat loss drop makes Travelers Q3 results jump
Lower catastrophe losses in the third quarter of 2018 have helped The Travelers Companies to more than double the profit in the period compared to the previous year.
Travelers faced catastrophe losses of $264 million pre-tax in the third quarter of 2018 compared to $700 million pre-tax in the prior year quarter. The combined ratio improved to 96.6 percent in the third quarter of 2018 from 103.2 percent in the same period a year ago.
At the same time, net income increased to $709 million from $293 million.
“We are pleased to report strong third quarter results, including core income of $687 million and core return on equity of 12 percent,” said CEO Alan Schnitzer. “Our combined ratio improved from the prior year quarter to 96.6 percent, and we delivered a solid underlying combined ratio of 93.0 percent. Net earned premiums increased by 6 percent to a record $6.9 billion, which, together with our strategic focus on productivity and efficiency, resulted in an expense ratio of 29.7 percent, a terrific result. Net investment income of $646 million pre-tax was very strong, increasing by 10 percent over the prior year quarter due to higher returns in both our fixed income and private equity portfolios,” Schnitzer added.
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