Travelers Assesses Storm Losses, Lowers Forecast

Travelers Assesses Storm Losses, Lowers Forecast

NU Online News Service, May 22, 4:08 p.m. EDT?Travelers Property Casualty Corp. said its preliminary estimate for storms-related catastrophe losses during the second quarter, through May 21, is around $78 million, after reinsurance and taxes.

The Hartford, Conn.-based insurer also added that its estimate for the full-year net and operating income has been lowered to the $1.65 billion to $1.75 billion range, from a previous range of $1.7 billion to $1.8 billion.

This new earnings estimate is based on "various assumptions," the company said. It assumes that there would be no further net charges for prior year reserve development and no asbestos incurrals.

The company is also assuming for this new estimate that it will have a normal level of catastrophe losses and no significant net-realized investment gains or losses for the remainder of the year.

The estimate also includes net losses of some $45 million in its personal lines and $33 million in commercial lines.

Commenting on its catastrophe loss estimate, Douglas G. Elliot, chief operating officer at Travelers, said this second quarter has been among the "most active quarters for catastrophe events on record.

"We have had more than 150 claim specialists and three of our catastrophe vans, which serve as mobile claim headquarters, in the affected areas helping our customers get their lives and businesses back on track," Mr. Elliot said.