Insurance company Travelers (TRV) reported a 9.5% drop in quarterly results from a year ago following claims related to storms in the Midwest that impacted the company’s results.
The former Citigroup (C) division earned $670 million, or $1.35 per share, down from $740 million, or $1.27 per share, from a year ago. The company’s operating results, which include the insurer’s booked gains on investment revenue, increased to $1.39 per share from $1.25 last year. The company had $5.69 billion in net premium revenue during the quarter.
The results missed analysts estimates partially because some had not calculated in the damages from the Midwest storms as much as others. Analysts were looking for $1.49 per share on $5.57 in revenue.
Travelers, which primarily insures housing and property, booked $439 million in catastrophic-related claims this quarter net of reinsurance. It had investment revenue of $762 million.
The storm-related claims raised the insurer’s combined ratio from 93.2% to 95.2%. A combined ratio is the percentage a insurance company pays out in claims versus how much it brings in premiums.
The company’s book value per share increased 18% in the quarter because the company repurchased $5.4 billion in shares compared to a year ago.
Because of the weather-related losses, Travelers said it was lowering its full-year 2010 guidance by ten cents to a range of $5.20 to $5.45 per share.
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