by Ignacio Gonzalez
Travelers Cos Inc reported a personal insurance loss within their third quarter earnings on Wednesday with management noting results for this unit were “significantly impacted by catastrophe losses”.
Segment revenues fell 5% year over year and missed expectations by 133%. Travelers shares rose by 0.951% in New York trading as overall third quarter revenue still beat estimates.
Claims and claim adjustment expenses this quarter were 17% higher year over year reflecting impacts from increased catastrophe losses as a result of severe wind and hail storms. This comes at a time where insurance companies have announced they’re leaving markets like Florida due to high weather risk.
“There were 19 designated PCS events. Specifically related to wind hail and tornado activity in the quarter. Nearly twice the 10 year average. And the highest number for a third quarter in more than a decade” Michael Klein, EVP and president of Personal Insurance said during the conference call post-earnings.
Copyright Bloomberg News
