The Travelers Companies reported a 14% decline in quarterly profit for the third quarter due to elevated catastrophe losses stemming from severe wind and hailstorms across several parts of the United States.
The company, based in New York, posted a core income of $454 million, or $1.95 per diluted share, compared to $526 million, or $2.20 per diluted share, in the same quarter the previous year.
The catastrophe losses net of reinsurance surged to $850 million from $512 million in the previous year due to adverse weather events, the firm noted.
The United States accounted for a significant portion of global insured losses from natural catastrophes during the first nine months of 2023.
Travelers CEO Alan Schnitzer acknowledged the impact of elevated catastrophe losses on core income but emphasized strong underlying underwriting returns and net investment income.
“We are very pleased with the underlying fundamentals of our business,” Schnitzer said in a statement.
“The fundamentals in our commercial businesses are terrific, the underlying results in our personal insurance business are improving and heading in the right direction and we are achieving steadily rising returns in our growing fixed income portfolio. Alongside that momentum, we are making excellent progress in the execution of our focused innovation agenda.”
Despite the challenges, Travelers reported record net written premiums growth of 14% in the quarter, reflecting a positive outlook for their diversified business.
Travelers stock was up 1.2% on Wednesday morning at $171.36.