Insurer Travelers profit falls on winter storm costs By Reuters


© Reuters. The brand of Dow Jones Industrial Common inventory market index element Vacationers Firms is seen in Los Angeles, California, United States, April 27, 2016. REUTERS/Lucy Nicholson/File Picture/File Picture

(Reuters) – Property and casualty insurer Vacationers Firms (NYSE:) Inc reported a 37% fall in quarterly revenue on Tuesday, damage by losses associated to a winter storm that swept throughout the USA and Canada within the final week of 2022.

The corporate’s core earnings fell to $810 million, or $3.40 per share, within the fourth quarter ended Dec. 31, from $1.29 billion, or $5.20 per share, a yr earlier.

The winter storm pushed up the insurer’s disaster losses internet of reinsurance to $459 million from $36 million final yr.

A dangerously frigid Arctic air mass gripped an unlimited expanse of the USA in late December, bringing floods, energy outages, mudslides, evacuations and highway closures.

Business specialists already anticipated the impression from Hurricanes Ian and Fiona final yr to push smaller insurers into chapter 11.

Vacationers’ revenue was additionally hit by a fall in internet funding earnings to $625 million from $743 million a yr earlier.

The New York-based firm, typically seen as a bellwether for the insurance coverage sector because it usually reviews earlier than its business friends, posted internet written premiums development of 10% to $8.83 billion within the quarter.

The corporate reported a mixed ratio of 94.5%, in contrast with 88% a yr earlier. A ratio under 100% means the insurer earned extra in premiums than it paid out in claims.

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