The impact of second-quarter catastrophes on insurers is beginning to be seen, as four separate companies cited cat losses as the primary reason for their drop in net income.
The Travelers Cos. was the first of the four to report results, and it also suffered the biggest impact from catastrophes. The insurer reports a second-quarter net loss of $364 million, driven by $1.09 billion in catastrophe losses, after tax. Catastrophes added more than 30 points to Travelers' combined ratio of 125.
Travelers CEO Jay Fishman says losses due to extreme tornadoes and hail during the second quarter were “the equivalent of losses we would expect from a 1-in-100-year hurricane.” Nevertheless, he says Travelers' capital “remained generally unchanged.”
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