The earthquake in Chile and a harsh winter season, especially along the eastern seaboard, took a bite out of Travelers Cos.’ first-quarter profits.
The New York commercial and property insurer with operations in Hartford said Friday its net income dipped 2 percent in the first quarter ended March 31 to $647 million.
Net earnings per share rose to $1.25, up 13 percent from $1.11 a year ago. Travelers said its operating profit for the quarter totaled $1.22 cents per share – missing analysts’ average estimate of $1.36 per share, according to the Associated Press.
The company repurchased 27 million common shares for $1.4 billion.
“In what was an unusually significant catastrophe quarter for Travelers as well as for the entire industry, we were pleased to report net income per diluted share of $1.25, return on equity of nearly 10 percent and growth in book value per share of 2 percent from year-end 2009,” said Jay Fishman, chairman and CEO. “Our underwriting fundamentals were strong, as evidenced by retention rates continuing at high levels, positive renewal rate changes on premiums and non-weather-related loss trends remaining within expectations.”
Catastrophe losses in the quarter, which totaled $312 million, or 61 cents per share, were primarily due to several severe winter, wind and hail storms in the eastern United States as well as the Chilean earthquake, the company said.
Travelers also affirmed its previous 2010 guidance for operating income per diluted share of $5.20 to $5.55.
