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A Bit More On Travelers Q2 Earnings Report Miss!

By John F. Heerdink, Jr.

Travelers released its Q2 profit results on Tuesday, disappointing Wall Street expectations. Claims for the quarter increased by 5.7% to $4.82 billion which led to the decrease in underwriting gain by only 18% to $74 million in the quarter due to the destruction caused strong wind and hailstorms and raising the challenges for the U.S insurers including Travelers. The net of reinsurance fell because of catastrophes by 25% to $367 million, however, this was an improvement from the $488 million that it realized year before.

The quarter witnessed a rise in net investment income by 9% to $648 million, because of the higher returns from fixed income and private equity portfolio. A combined ratio of 98.4% was reported, meaning the insurer has earned more in premiums than it pays out in claims. Net Income of $557 million with $2.10 per share was reported for the quarter in comparison to $524 million a year earlier. Total revenue increased by 4.8% to $7.83 billion.

Dow 30 component, The Travelers Companies, Inc. (TRV) is an insurance provider of property-casualty insurance for home, auto, and business. To learn more about The Travelers Companies, Inc. (TRV) and to continue to track its progress please visit the Vista Partners Travelers Companies, Inc. Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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Travelers profit misses as higher claims weigh on underwriting gain

Insurer Travelers missed Wall Street estimates for second-quarter profit on Tuesday, as weather-related losses led to an 18% drop in underwriting gain…


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