Travelers beats Q3 consensus despite rise in catastrophe losses

By Navneeta Nandan Oct 16 (The Insurer) — Travelers reported third-quarter core income per diluted share of $9.18 on Friday, beating analysts' consensus estimate of $7.39 per share. The beat was primarily driven by higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The New York-listed carrier reported a combined ratio of 86.8% for the quarter, a 0.5 percentage point improvement from 87.3% a year earlier. Travelers said higher net favorable prior year reserve development accounted for 1.9 points of the combined ratio improvement, partially offset by 1.2 points of catastrophe losses and a 0.2 point increase in the underlying combined ratio. Catastrophe losses primarily resulted from severe wind and hail storms in multiple states. Group net written premiums totaled $11.48 billion, in line with the prior-year quarter. The group's business insurance unit generated net written premiums of $5.86 billion, up 4% year on year when adjusted for the sale of its Canadian businesses. The unit's combined ratio improved 2 points to 90.9%, driven by a 2.9 point benefit from net favorable prior year reserve development