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Travelers beat profit estimates on strong investment returns



(Reuters) -Property / non-life insurance company Traveler Cos. Inc. reported a decline in third-quarter earnings on Tuesday that still beats estimates, as higher return on investment, primarily from its non-interest-bearing portfolio, dampened the blow from a jump in disaster losses.

Total revenue increased 6% to $ 8.81 billion.

The company, part of the Dow Jones Industrial Average Index, is seen as a bell tower for the insurance industry and usually reports ahead of its peers. [19659002] The company reported core revenue of $ 655 million, or $ 2.60 per share, during the three months ended September 30, while analysts had expected $ 1.67 per share, according to Refinitive IBES data.

In the previous year, New York-based insurers had reported earnings of $ 798 million, or $ 3.1

2 per share.

The company reported net investment income before tax of $ 771 million, an increase of 15% from the previous year. Low interest rates and hot capital markets in the US helped the insurer to provide higher returns from its non-interest-bearing investments, which compensated for a weak development from its fixed-income investments.

Lightning flows and heavy rains due to Hurricane Ida in late August caused property damage and disrupted businesses. These losses are expected to account for a large portion of insurance companies' earnings, with disaster risk modeling company Risk Management Solutions Inc. estimating that US insurance companies could lose between $ 31 billion and $ 44 billion.

Travelers' catastrophic losses, net after reinsurance, came in at $ 501 million, compared to $ 397 million the previous year.

The company reported a total ratio of 98.6% for the quarter, compared to 94.9% a year earlier. A ratio below 100% means that the insurer earned more in premiums than it paid out in claims. Catalog

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