New York, NY, United States (4E) – Travelers Companies Inc. said Tuesday that its second-quarter profit fell sharply, driven by one-time gains and increased Catastrophe losses.
The company’s operating earnings were short of analysts’ estimates. The property casualty insurer also announced a quarterly dividend.
Second-quarter net income fell 26 percent to $683mn from $925mn in the previous year. Per-share earnings dropped 19 percent to $1.95 from $2.41 in the year-earlier period.
Operating income in the current quarter stood at $673mn, down 18 percent from $816mn in the previous year. Operating earnings fell 9 percent to $1.93 per share from $2.13 per share a year earlier. Analysts’ average forecast for earnings was $2.07 per share for the quarter. Analysts’ estimates typically exclude special items.
Tuesday’s results included the $284mn, or $0.82 per share, loss at Catastrophe, which increased from last year. Net realized investment gains stood at $10mn in the current quarter, down from $109mn in the previous year.
Results for the prior-year period included a $122mn gain from favorable legal and tax settlements, and an $87mn realized gain linked to a short position in U.S. Treasury futures contracts.