Travelers profit beats as underwriting profit cushion $ 2 billion wildfire

(Add analyst remarks in paragraphs 9 and 10, work shares in paragraph 2) by Niket Nishant April 16 (Reuters) -Insurance Bellghether Travelers ‘first term exceeded analysts’ expectations on Wednesday, as the strong underwriting wins drove more than $ 2 billion from Catastrophe. Shares rose by 4%, expanding a recovery after the tariff-related market unrest drove them to a three-month low last week. The results shed a light on the fallout of one of the most expensive natural disasters in California’s history, which claimed several lives and destroyed property, with a few estimates that captured the economic losses at $ 250 billion. Travelers’ disaster loss, net of reinsurance, touched a record of $ 2.27 billion for the quarter ending March 31, compared to $ 712 million a year earlier. But the pre -tax underlie the underwriting revenue grew by 32% to $ 1.58 billion, as demand for insurance coverage remained resilient. “We are pleased to report a significant profit for the term despite the devastating wildfires in California,” CEO Alan Schnitzer said. The company has a $ 443m core profit last year, or $ 1.91 a share, compared to $ 1.1 billion, or $ 4.69 per share. Earnings per share were also assisted by the repurchase of shares. Analysts expected a profit of 78 cents per share, according to estimates compiled by Lseg. “Travelers enjoy the wind of the wind in his business,” wrote Brett Horn, senior Equity analyst at Morningstar, in a note. However, the shares of the company are “modestly overvalued (AS) the market extrapolates favorable operational conditions too far in the future.” In the past few years, insurance restriction insurers have been covered by natural disasters, especially as events related to extreme weather more frequent. Some, including travelers, have tried to reduce exposure to high -risk comperations. The industry has often complained of a strict regulation in California, which requires them to seek the nod of the state regulator before raising prices for most policies. Insurers say it limits their flexibility to adjust prices according to the risk they assume. Together with this, the regular wildfires make the state an ‘irregular’ market, some said. “Regulatory policies that disconnect prices and conditions of actual risk saucers from the market, reduce competition and limit consumer choice,” Schnitzer wrote in a LinkedIn post last month. However, critics believe that tight controls are needed to prevent expenses in a state where the hidden cost of home ownership – which includes taxes, insurance and other accounts – is of the highest. Insurers are also facing possible disruption of rates, which can inflate the cost of building materials and auto parts and increase repair costs. The policy providers will either have to absorb the additional costs or pass on to consumers by higher premiums. Since President Donald Trump unveiled the rates on April 2, the shares of travelers have dropped 5.6%. (Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber) first published: 16 Apr 2025, 09:26 PM IST