Travelers to Swing 2Q Loss

By Dave Sebastian

Travelers Cos. said it expects to swing to a second-quarter loss as it booked catastrophe losses from severe storms and events related to civil unrest.

The insurance company on Tuesday posted a preliminary loss of 16 cents a share, compared with a profit of $2.10 a share in the comparable quarter last year. It reported preliminary adjusted losses of 20 cents a share.

Travelers said its preliminary catastrophe losses were $854 million, or $673 million after taxes, net of reinsurance.

The company said it took a modest hit from the Covid-19 pandemic, with preliminary insurance losses directly attributed to the health crisis of $114 million before taxes.

The company also reported preliminary net investment income of $268 million, or $251 million after taxes, and losses in its non-fixed income portfolio of $234 million, or $180 million after taxes.

For the third quarter, the company said it will recognize about $400 million from prior-year reserve development related to claims against PG&E Corp., which emerged from bankruptcy on July 1.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

July 14, 2020 07:44 ET (11:44 GMT)

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