Travelers projects 2Q loss on catastrophe, civil unrest and COVID-19 headwinds

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By HBJ Staff

Property-casualty insurer Travelers Cos. informed investors Tuesday it plans to report a decline in second-quarter profits largely because of higher catastrophe losses.

For the April-June period, preliminary results show the New York-based insurer, which has a major Hartford presence, expects to report a net loss per diluted share of 16 cents as a result of estimated catastrophe losses worth $854 million pre-tax, or $673 million after-tax, net of reinsurance.

Officials say catastrophe losses were primarily driven by severe storms in several parts of the U.S., in addition to "events related to civil unrest."

The company on Tuesday also said the COVID-19 outbreak and related economic conditions had a “modest” impact on its bottom line in the second quarter. It has, however, attributed insurance losses of $114 million pre-tax due to the pandemic.

Travelers’ pre-market shares, as of about 9 a.m. Tuesday, were being traded at $114.24, up 40 cents from Monday, according to Nasdaq.

Travelers said it plans to review its second quarter earnings report on July 23, following a release of its earnings report.

The insurer's second quarter report comes after it reported a 25% decline in first-quarter profits due, in part, because of rising catastrophe losses and an $86-million charge associated with the COVID-19 crisis.