By: Luke Jones, Published on April 20, 2017 07:38 PM, Last Update on April 21, 2017 05:41 AM
The Travelers Companies, Inc. has announced its financial results for the first quarter of 2017, revealing a combined ratio of 96%, a 3.7 point increased year-on-year.
US-based Travelers reports net income of US$617 million for the period ending March 31, 2017. This is down from US$691 million during the same period in 2016. In a statement, the company said core incomes was US614 million, a slip from US$698 million during the first quarter the year before. Travelers says the decline in income is due to catastrophic losses, which numbered US$226 million after-tax.
“Core income of US$614 million and core return on equity of 10.8% reflected unusually high first quarter catastrophe losses that arose from a record number of tornado and hail events,” said Travelers’ CEO Alan Schnitzer in the release. “We were pleased with our underlying underwriting results and that loss trends were stable and consistent with our expectations for all of our businesses, including personal auto.”
Travelers does report it has “record” net written premiums of US$6.5 billion during Q2, 2017, up 5 percent year-on-year. Total revenue was US$6.94 billion, up from US$6.69 billion in Q1 2016.
“Net written premiums grew 5% to a record level this quarter, with each business segment contributing to the growth,” Schnitzer continued. “In our commercial businesses, the markets in which we operate remained stable. We continued to achieve historically high levels of retention, and renewal rate change remained positive and improved modestly from recent quarters.”