(Bloomberg) – Travelers Cos., the lone property-casualty insurer in the Dow Jones Industrial Average, said first-quarter profit slipped 17% as catastrophe costs climbed and investment income dropped on lower hedge fund returns. Shares fell the most since August.
Net income fell to $691 million, or $2.30 a share, from $833 million, or $2.55, a year earlier, New York-based Travelers said Thursday in a statement. Operating profit was $2.33 a share, missing the $2.55 estimate of 25 analysts surveyed by Bloomberg.
Chief Executive Officer Alan Schnitzer, who took over late last year for longtime leader Jay Fishman, is confronting near-record-low bond yields and uneven results in some of the alternative holdings — such as private equity and hedge funds. Weather also contributes to volatility, including Texas hail storms in the first quarter.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
