Travelers Says Private Equity Slumps After Hedge Fund Woes
- Company made a fraction of expected return, Heyman says
- Insurer’s second-quarter profit fell to lowest since 2012
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Travelers Cos., the lone property-casualty insurer in the Dow Jones Industrial Average, said second-quarter private equity returns failed to meet the company’s target, adding pressure to a portfolio that was hurt in the prior three months by hedge fund results.
Private equity generated “a few million dollars, and we would have expected about $50 million pretax,” Chief Investment Officer Bill Heyman said on an earnings conference call Thursday.