Travelers reported quarter 2 profits of 670 million or $1.35 per share. The consensus for the quarter was $1.49 per share meaning travelers came up 14 cents short. The reason for the short coming was an unexpected rise in flooding and hail storms. On a positive note, Travelers had a 1% increase in net written premiums which beat analyst estimates. Year over year Travelers profits have fallen from 740 million to 670 million but EPS has risen from $1.27 to $1.35 due to Travelers repurchasing shares.
Travelers also decided to cut its full-year earnings forecast by 10 cents. The insurer said the rate of renewal from commercial customers is not meeting original expectations, which led to the drop in the forecast. Travelers now expects profit to range between $5.20 and $5.45 per share for the year. Analyst predict a profit of $5.71 per share for the year, but that estimate does not include investment gains and losses that are factored into net income.
Joe Doran
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