Investment losses knock Travelers’s profit
US-based insurer Travelers has announced its first quarter results, with profit down by almost a third and a 1.2% drop in premiums written.
Net income for the three month period dropped to $662 million, compared to $967 million for the first quarter of 2008.
Gross written premiums fell to $5,863, compared to $5,933 million in the year ago period
A 27% drop in investment income, down from $650 million to $474 million, was blamed for the fall in profits.
Catastrophe losses of $54 million also dented income.
Combined ratio for the period was 90.6%.
Jay Fishman, chairman and chief executive, praised a ‘solid performance’ in a ‘difficult’ investment environment.
“Our position in the marketplace remains strong and we continue to gain momentum,” Fishman said.
“Our financial strength, coupled with our exceptional brand, positions us well for the future.”
Travelers said it is not changing its projection of $4.50 to $4.90 income per share for full year 2009.
Category: Financials, Insurance News
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