Travelers Cos reported a loss in line with Wall Street expectations as net investment income dove lower from a year earlier and catastrophe losses rose.
The property-casualty insurance company swung to a loss of $40 million, or 16 cents a share, compared with a year-earlier profit of $557 million, or $2.10 a share. The company’s core loss was 20 cents a share.
Core results leave out nonrecurring items, investment portfolio losses and realized capital gains.
Net investment income before tax, was $268 million, down from $648 million a year ago, Travelers said.
Net written premiums were $7.35 billion, which according to FactSet was in line with Wall Street’s consensus. They fell more than 1%, while total revenue declined over 5% to $7.4 billion.
The company reported pretax catastrophe losses of $854 million, up from $367 million a year ago.
Travelers said the “net impact of Covid-19 and related economic conditions on underwriting results…was modest.”
Travelers said that due to PG&E Corp. coming out of bankruptcy, it expects to have a prior-year net reserve development for the current quarter of about $400 million before tax. The development is tied to the California wildfires in 2017 and 2018, the company said.