Catastrophic Losses from Hail and Windstorms Increase Damage to Travelers' First-Quarter Profit, Shares Slide

The Travelers Company(NYSE:TRV) announced mixed first-quarter results, with earnings falling short of analysts' expectations. Core earnings per share fell to $4.69 from $4.11 a year ago, below the consensus estimate of $4.90. Net income per share increased to $4.80 from $4.13 a year ago.

The company's stock price fell after the release of the financial results. The Massachusetts-based company provides auto, home and commercial property accident insurance.

For the first quarter, net written premiums increased 81 TP3T year-over-year to $10.18 billion, and total revenues increased 16.1 TP3T year-over-year to $11.23 billion, ahead of the market consensus estimate of $10.51 billion. The company attributed the performance to strong profitability, volume in all three segments and higher investment income.

Catastrophe losses in the quarter amounted to $712 million pre-tax, compared to $535 million pre-tax in the same period last year.

Catastrophe losses were primarily from strong winds and hail storms in the central and eastern United States.

During the quarter, the company's Underlying Composite Carbide Ratio declined from 90.6% to 87.7%.The lower the ratio, the more profitable the insurer is and vice versa.

Quarterly net investment income increased by 28% to US$846 million pre-tax (US$698 million after-tax). Revenue from the Fixed Income Portfolio increased compared to the same period last year due to higher average yields and growth in fixed maturity investments.

Dividends:Announcement by the Board of Directors The regular quarterly dividend increased 5% to $1.05 per share.

Travelers stock has risen 30% in the last 12 months. investors can find out more about Travelers stock via theInvesco KBW Property & Casualty Insurance ETF(NASDAQ:KBWP) and IShares U.S. Insurance ETF(NYSE:IAK) to invest in the stock.

Price Trend:Shares of TRV traded down 3.20% at $215.98 on Wednesday.

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