Travelers Q3 profit falls on hurricane damage

“Even in the face of challenging weather, we generated meaningful gains in our core earnings for the quarter,” Travelers chairman and CEO Alan Schnitzer said in a statement. Results benefited from record net premiums earned of USD 8.6 billion, up 10% year-on-year, and a solid underlying combined ratio of 92.5%.

“Our commercial underwriting income was excellent, driven by strong net premiums earned and an underlying combined ratio of 88.0% in commercial and fixed income and specialty lines.

“Our high-quality investment portfolio generated a solid after-tax net investment return of US$505 million despite significant declines in the broader equity markets. Along with our strong balance sheet, we were able to return $722 million of excess capital to shareholders this quarter, including $501 million of share repurchases.”

New York-based insurers are often considered pioneers in the industry, as they typically report earnings before their peers.

Hurricanes Ian and Fiona boosted Travelers’ pre-tax disaster losses to $512 million in 2021 from $501 million in 2021, among the many storms that have hit North America this year.

According to risk modeling firm Verisk, the onslaught of Hurricane Ian in Florida and South Carolina has left the insurance industry facing losses of up to US$57 billion.