Travelers Cos. Inc. will continue to push for rate hikes in its commercial insurance business, the insurance company’s top executives said on Tuesday as the insurance company reported a sharply higher profit in the first quarter.
Increased court rulings and settlements, inflation and other factors continue to put pressure on insurance companies, despite lower disaster losses during the first quarter, they said.
Excluding occupational injury compensation, prices in the travelers’ corporate insurance sector increased by almost 7% during the first quarter, says Alan Schnitzer, chairman and CEO of the insurance company.
“The interest rate for workers was a little more negative than we have seen in the past year, which is in line with the line̵7;s strong profitability. Overall, however, the premium change in the labor market line was positive because the exposure growth was meaningfully positive,” he says.
Travelers reported a 16% increase in new commercial insurance operations during the quarter, driven by gains in large accounts and medium-sized business, said Greg Toczydlowski, vice president and CEO of corporate insurance.
Travelers will continue to push for higher prices in their commercial business, he said.
“Given social and other inflation, the frequency and severity of weather-related loss-making activity and the persistent low interest rate environment, we will continue to seek pricing gains to further improve the profitability of our business,” said Toczydlowski.
Travelers reported first-quarter earnings of $ 1.02 billion, up 39% from the same period last year. It reported a combined ratio of 91.3%, a significant improvement from the 96.6% reported during the disaster-stricken first quarter of 2021.
The insurance company reported $ 8.81 billion in revenue for the quarter, an increase of 6% compared to the first quarter of last year.
Net investment income fell to $ 637 million from $ 701 million in the same period last year.