High levels of both catastrophe and non-catastrophe weather losses saw insurer Travelers record lower net income in the second-quarter of 2017 when compared with the previous year, while the insurer’s combined ratio weakened to 96.7%.
The firm has reported pre-tax catastrophe losses, net of reinsurance, of $433 million for the second-quarter of 2017, up 21% from the $333 million reported a year earlier, and taking first-half 2017 cat losses to $750 million, which is 15% up from the $651 million recorded for the same period in 2016.
As a result of increased catastrophe and non-catastrophe weather losses during the period, Travelers saw its net income fall to $595 million from $664 million in Q2 2016, with its core income in Q2 2017 declining to $543 million.
Travelers’ combined ratio weakened in the quarter from 93.1% to 96.7%, year-on-year, which included 6.4 points of catastrophe losses, explains the firm in its Q2 2017 earnings release.
Alan Schnitzer, Chief Executive Officer (CEO) of Travelers, said; “Second quarter core income of $543 million and core return on equity of 9.5% were impacted by high levels of catastrophe and noncatastrophe weather-related losses caused by significant U.S. tornado and hail activity. The storm activity had the greatest impact on Personal Insurance, affecting results in both home and auto. Within personal auto, we were pleased that the actions we have undertaken to improve profitability remain on track.”