The Travelers Cos. Inc. (TRV) said Tuesday it expects to report a net loss per share of 16 cents for the second quarter, weighed down by a high level of catastrophe losses, mostly stemming from severe storms in the U.S., along with claims related to social unrest. The New York-based insurer expects its adjusted per-share loss to come to 20 cents, compared with a FactSet consensus for earnings per share of $1.27. The company is expecting its catastrophe losses to total $854 million on a pretax basis, or $673 million after tax, net of reinsurance. The company is expecting net investment income of $268 million pretax, or $251 million after-tax, including $511 million from its fixed income portfolio and a loss of $234 million in the non-fixed income portfolio. That is equal to $438 million after-tax and $180 million after-tax respectively. The company is expecting the coronavirus pandemic to have a modest impact on its underwriting result. Insurance losses directly caused by the pandemic are expected to come to $114 million pretax. The company expects its subrogation recoveries relating to claims against PG&E Corp. (PCG) resulting from the wildfires that devastated parts of California in 2017 and 2017 to allow it to recognize favorable prior year reserve development of about $400 million pretax. The company will report second-quarter earnings on July 23. Shares fell 1.5% premarket and are down 16.6% in the year to date, while the Dow Jones Industrial Average has fallen 8.6% and the S&P 500 has fallen 2.3%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 14, 2020 07:12 ET (11:12 GMT)
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