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July 14, 2020, 7:13 a.m. EDT

Travelers expects Q2 loss due to high level of catastrophe claims caused by storms in the U.S.

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By Ciara Linnane

The Travelers Cos. Inc. /zigman2/quotes/206313935/composite TRV +3.18% said Tuesday it expects to report a net loss per share of 16 cents for the second quarter, weighed down by a high level of catastrophe losses, mostly stemming from severe storms in the U.S., along with claims related to social unrest. The New York-based insurer expects its adjusted per-share loss to come to 20 cents, compared with a FactSet consensus for earnings per share of $1.27. The company is expecting its catastrophe losses to total $854 million on a pretax basis, or $673 million after tax, net of reinsurance. The company is expecting net investment income of $268 million pretax, or $251 million after-tax, including $511 million from its fixed income portfolio and a loss of $234 million in the non-fixed income portfolio. That is equal to $438 million after-tax and $180 million after-tax respectively. The company is expecting the coronavirus pandemic to have a modest impact on its underwriting result. Insurance losses directly caused by the pandemic are expected to come to $114 million pretax. The company expects its subrogation recoveries relating to claims against PG&E Corp. /zigman2/quotes/202583141/composite PCG 0.00% resulting from the wildfires that devastated parts of California in 2017 and 2017 to allow it to recognize favorable prior year reserve development of about $400 million pretax. The company will report second-quarter earnings on July 23. Shares fell 1.5% premarket and are down 16.6% in the year to date, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.17% has fallen 8.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% has fallen 2.3%.

/zigman2/quotes/206313935/composite
US : U.S.: NYSE
$ 117.36
+3.62 +3.18%
Volume: 2.06M
Aug. 7, 2020 4:00p
P/E Ratio
16.75
Dividend Yield
2.90%
Market Cap
$28.80 billion
Rev. per Employee
$996,151
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/zigman2/quotes/202583141/composite
US : U.S.: NYSE
$ 9.10
0.00 0.00%
Volume: 12.13M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$17.67 billion
Rev. per Employee
$698,292
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,433.48
+46.50 +0.17%
Volume: 324.93M
Aug. 7, 2020 5:10p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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