Travelers: consensus easily beaten, despite Hurricane Ida

(CercleFinance.com) - On Tuesday US insurer Travelers reported quarterly profit that is well ahead of Wall Street expectations, as higher premiums more than offset increased losses from natural disasters.


Travelers, one of the 30 stocks on the Dow Jones Industrial Average, posted premiums that are up 7% to over 8.3 billion dollars in Q3, with all three of its business lines posting growth.

However, the company's net income over the period fell by 20% to 662 million dollars (from 827 million dollars a year ago).

This decline is mainly due to the 501 million dollars of losses recorded for natural disasters, mainly due to Hurricane Ida.

Core profit was 2.60 dollars per share, while analysts were only expecting EPS of 1.67 dollar.

In pre-market trading on Wall Street, Travelers shares were up 2.6%. At Monday's close, the stock had risen by over 8% YTD, about half the 15% rise in the Dow index over the same period.


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