Travelers Q3 income plummets on nat cat hit
The Travelers Companies has seen its net income plummet in the third quarter of 2017 compared to the same period a year ago due to the impact of nat cat losses in North America.
Net income in the third quarter fell to $293 million in the third quarter from $716 million in the third quarter of 2016. The results were impacted by $700 million pre-tax ($455 million after-tax) of catastrophe losses, the company said on Oct. 19.
The Travelers group provides property liability insurance for motor, home and business.
The combined ratio during the period was 103.2 percent, including 10.7 points of catastrophe losses. This compares to 92.9 percent in the third quarter of 2016.
Net written premiums grew 4 percent over the prior year quarter to $6.66 billion, with growth in all segments.
“In a quarter of unprecedented hurricane activity, our strength in underwriting and our investment expertise enabled us to deliver core income of $253 million and core return on equity of 4.5 percent,” commented CEO Alan Schnitzer.
“Our disciplined coastal underwriting stood up to the storms, and we also delivered a consolidated underlying combined ratio of 92.8 percent, with all three segments contributing to the solid result. The results in Business Insurance benefited from higher earned premiums and lower general and administrative expenses, while Bond & Specialty Insurance delivered another quarter of impressive profitability,” he said.
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