Travelers Suffers Earnings Drop From Spike in Catastrophic Losses
The Travelers Cos. (NYSE: TRV) saw earnings fall in the first quarter due in part to higher catastrophic losses.
The Hartford, Conn.-based insurer missed earnings estimates with $600 million in net income, down 25% from the first quarter of 2019. Earnings per diluted share came in at $2.33, down 22% from the previous year's first quarter.
Revenue was up 3% year over year to $7.9 billion, but the company paid out $333 million in catastrophic losses -- up from $193 million in the previous year's quarter. The losses were primarily from tornadoes that hit Tennessee, as well as other wind storms and winter storms throughout the country. Underwriting gains were also offset by $86 million in net charges related to hardships caused by the COVID-19 pandemic.
Source Fool.com
