(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.
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