The Travelers Companies Inc. (NYSE: TRV) saw its shares plummet, following the release of second-quarter numbers Thursday.
The company, based out of New York, reported net income of $524 million, or $1.92 per diluted share, for the quarter ended June 30, 2018, compared to $595 million, or $2.11 per diluted share, in the prior year quarter.
Core income in the current quarter was $494 million, or $1.81 per diluted share, compared to $543 million, or $1.92 per diluted share, in the prior year quarter.
Core income before income taxes decreased primarily due to an increase in catastrophe losses of $85 million, an incremental charge of $45 million associated with a few large commercial losses, primarily fire related, and an $18-million assessment from the Texas Windstorm Insurance Association related to Hurricane Harvey.
Core income benefited by $54 million from a lower U.S. corporate income tax rate. Net realized investment gains of $36 million pre-tax ($30 million after-tax) decreased due to lower gains on equity securities. Per diluted share amounts benefited from the impact of share repurchases.
Said CEO Alan Schnitzer, "We are pleased with the execution of our marketplace strategies. Net written premiums increased by 7% to a record $7.1 billion. Net written premiums in Business Insurance increased by 7%.
"This was driven by very strong execution by our domestic field organization, which resulted in renewal premium change that reached 5.3%, its highest level since 2014, while still achieving retention of 85%, consistent with historical highs."
Shares dwindled $2.79, or 2.1%, to $127.22
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