[ad_1]
Travelers insurer surpbaded Wall Street's forecast of second-quarter earnings on Tuesday as weather-related losses led to an 18% drop in the underwriting gain.
Strong winds and hailstorms in the quarter ripped through the roofs of homeowners, crushed cars and wreaked havoc, prompting a series of claims that have proven difficult for US insurers, including Travelers.
Claims increased 5.7% to $ 4.82 billion, resulting in a decrease in the underwriting gain of $ 74 million during the quarter.
Claims-related claims, net of reinsurance, decreased 25% to $ 367 million, but were better than the previous year's $ 488 million.
Travelers, headquartered in New York, is often considered a pillar of the insurance industry, as it usually does before its competitors, said net written premiums had risen 4.5% to 7, $ 45 billion.
Net investment income increased 9% to $ 648 million as a result of higher returns from its fixed income and private equity portfolio businesses.
The company recorded a combined ratio of 98.4%, compared to 98.1% a year earlier. A ratio of less than 100% means that the insurer earns more in premiums than in spending.
Net income reached $ 557 million, or $ 2.10 per share, during the quarter ended June 30, compared to $ 524 million, or $ 1.92 per share, a year earlier.
On an adjusted basis, the company achieved earnings per share of $ 2.02, while badysts expected $ 2.28 per share, according to Refinitiv's IBES data.
Total revenues increased 4.8% to $ 7.83 billion.
Source link
