Property and casualty insurer Travelers, which has major operations in Hartford, posted a steep drop in third-quarter profits Thursday, attributing the decline largely to losses from this season’s catastrophic storms.
For the period ended Sept. 30, the insurer said it reported net income of $293 million, or $1.05 a diluted share, down 59 percent from $716 million, or $2.45 a diluted share, in the year-ago period.
Core income totaled $253 million, or 91 cents per diluted share, compared to $701 million, or $2.40 per diluted share, in the year-ago period, the company said.
Hurricanes Harvey, Irma, and Maria were the primary reasons for the losses, said Travelers CEO Alan Schnitzer, but the company held its own nonetheless.
“In a quarter of unprecedented hurricane activity, our strength in underwriting and our investment expertise enabled us to deliver core income of $253 million and core return on equity of 4.5 percent,” said Schnitzer. “Our disciplined coastal underwriting stood up to the storms.”
The company also wrote a record net of $6.7 billion in written premiums for the quarter, a 4 percent increase compared to the year ago period, he said.
In a conference call, Schnitzer said the company faced the unprecedented hurricane season with strength and resolve. The company was successful in closing within 30 days of each hurricane on the “vast majority” of property claims, he said.
“Our experience with the storms this quarter reaffirms the competitive value of our claims model,” he said.
Travelers also plans to improve renewal rates.
“We believe our customers are served by a stable market as opposed to the pricing swings of the past,” Schnitzer said.
