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The
company's core income fell to $625 million, or $2.57 per share,
in the second quarter ended June 30, from $879 million, or $3.45
per share, a year earlier.
New York-based Travelers, often seen as a bellwether for the
insurance sector as it typically reports before its industry
peers, said net written premiums rose 11% to $9.02 billion in
the quarter.
The insurance industry had over the past two years faced claims
from businesses losing revenue because of the coronavirus-led
crisis and canceled events among others, even though many have
been insulated by virus exclusions in their contracts.
While pandemic-related claims have slowed, the insurance
industry now faces hefty claims from the Ukraine crisis and
greater uncertainty brought on by higher claims costs this year
from inflation.
Travelers reported catastrophe loss net of reinsurance of $746
million in the quarter, compared with $475 million a year
earlier, impacted mainly by severe wind and hail storms in
several regions of the United States.
Global insured catastrophe losses in the first half of 2022 were
estimated at $39 billion – 18% higher than the 21st century
average of $33 billion, with severe convective storm events in
the United States and Europe alone accounting for 54% of the
total, according to broker Aon.
Underwriting gains fell to $113 million from $324 million a year
earlier, while pretax net investment income dropped to $707
million from $818 million a year earlier.
The company reported a combined ratio of 98.3%, compared with
95.3% a year earlier. A ratio below 100% means the insurer
earned more in premiums than it paid out in claims.
(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Maju
Samuel)
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