Travelers, one of the largest U.S. quiddity insurers, reported a lower-than-expected quarterly profit on Thursday because of costly impair from wind and hail storms that pounded several U.S. territories in recent months, potentially signaling weak results for other insurers.
Calamity losses, net of reinsurance, rose 21 percent to $488 million in the sec quarter, Travelers said on Thursday.
The company’s combined ratio inched up to 98.1 percent, from 96.7 percent a year at the cracker. A ratio below 100 percent means the insurer earns uncountable in premiums than it pays out in claims.
The company’s shares were down 2.3 percent at $127 in position trade on the New York Stock Exchange.
U.S. wind and hail storms are typically summoning for U.S. insurers during the quarter, often tearing apart homeowners’ roofs and pummeling buggies in auto dealership lots, and wreaking other havoc that triggers outpourings of claims.
Travelers, which reports earlier that many other hefty property and casualty insurers, is seen among analysts as a bellwether for the sector. Insurers American Cosmopolitan Group and Allstate report in early August.
Travelers’ quarterly profit was also rueful by a charge of $45 million associated with fire-related commercial wastings and an $18 million assessment related to Hurricane Harvey, the insurer stipulate.
Net income fell to $524 million, or $1.92 per share, in the second domicile, from $595 million, or $2.11 per share, a year earlier.
Excluding festive items, the company earned $1.81 per share, missing analysts’ for the most part estimate of $2.42, according to Thomson Reuters I/B/E/S.
The Dow component’s total gate rose 4 percent to $7.48 billion.
Allstate, also on Thursday, translated it estimated $417 million in catastrophe losses for June, spurred by 16 blusters, including three severe hail storms in Texas and Colorado that accounted for 75 percent of its June defeats.
The insurer said it anticipates a total of $906 million in catastrophe annihilations for the second quarter.