Insurer Travelers Cos. said Thursday that its second-quarter profit dipped 9 percent because of a jump in claims paid to cover weather-related losses.
Flooding and several severe wind and hail storms during the quarter led to the increase in claims. Catastrophe losses jumped by $239 million before taxes in the second quarter.
Higher claims payments offset a 1 percent increase in net written premiums, which topped analysts’ forecasts.
Travelers profit fell to $670 million, or $1.35 per share, in the second quarter, from $740 million, or $1.27 per share, during the same quarter last year. Earnings per share rose, even though overall profit fell because the company had fewer shares outstanding in the most recent quarter.
Operating income fell to $690 million, or $1.39 per share. Travelers’ operating income was $732 million, or $1.25 per share, during the second quarter last year.
Analysts polled by Thomson Reuters forecast a profit of $1.49 per share for the quarter.
Travelers is based in New York but has major corporate offices in St. Paul.
