The Travelers Companies, Inc. (TRV) reported quarterly earnings recently realizing a 25% drop in quarterly profits while claiming compensation coverage for dismissed employees would impact results for the year. The company foresees “elevated claims frequency and severity” for its workers’ compensation line
Key Highlights from the earnings release:
- The company reported losses of $333 million in the first quarter in comparison to $193 million a year earlier.
- The company’s net income dropped to $600 million for the quarter ending March 31 from $796 million a year earlier.
- EPS was $2.62 per share much below estimates of $2.85 per share as per market.
- Travelers reported a 5% rise in net investment income but informed that the economic slowdown caused by the pandemic is expected to reflect in second-quarter.
The increase in catastrophe losses was mainly due to tornadoes that hit Nashville, Tennessee and surrounding counties early in March, along with several U.S. regions experiencing wind storms and winter storms.
“As a result of COVID-19, economic conditions in the United States and other countries around the world have rapidly deteriorated. The decreased levels of economic activity will negatively impact premium volumes,” Travelers stated.
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.
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