Class 16 Travelers Catastrophy losses 10-19-2011 NYT

Class 16 Travelers - Travelers Profit Falls on Disaster Costs By ERIK HOLM NEW YORKTravelers Cos said a rash of severe weather including August's

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10-19-2011 Travelers' Profit Falls on Disaster Costs By ERIK HOLM NEW YORK—Travelers Cos. said a rash of severe weather, including August's Hurricane Irene, caused profit to fall 67% to $333 million in the third quarter. The insurance company incurred $394 million in catastrophe costs after taxes, a five-fold increase from an uneventful quarter last year, and said storms that didn't qualify as major disasters were also significantly higher than the same period a year earlier. Operating income of $332 million, or 79 cents a share, missed the consensus estimate of analysts surveyed by Thomson Reuters by eight cents a share. But the New York-based company sounded an optimistic note on pricing, saying a years-long streak of outsized losses from severe weather combined with other factors to provide an impetus to raise rates across all its operating segments, which include both business and consumer lines. "We are very pleased with our progress to date," Chief Executive Officer Jay Fishman said of the
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This note was uploaded on 02/22/2012 for the course MANEC 453 taught by Professor Jerrynelson during the Winter '10 term at BYU.

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