Property and casualty insurer Travelers Cos. Inc.'s quarterly earnings fell short of analysts' estimates as hail and wind storms in the United States increased catastrophe losses.
The company, a Dow Jones Industrial Average component, said net income fell to $683 million, or $1.95 per share, in the second quarter ended June 30, from $925 million, or $2.41 per share, a year earlier.
Operating earnings of $1.93 per share missed the average estimate of $2.07, according to Thomson Reuters I/B/E/S.
The company's shares were down 1.9 percent at $93.47 in premarket trading on Tuesday. Up to Monday's close, the stock had risen 10.75 percent since it last reported results in April.
Travelers' earnings often differ substantially from Wall Street estimates as the company does not provide forecasts.
As one of the first insurers to report results, the company's results are seen as a bellwether for the industry.
Severe storms pounded parts of the central United States in early June, producing baseball-sized hail. There were also several tornado touchdowns other dangerous wind storms.
The company's pre-tax catastrophe losses, net of reinsurance, rose to $436 million from $340 million.
Net written premium rose 6 percent to $6.16 billion.
The company's combined ratio, the percentage of premium revenue an insurer has to pay out in claims, rose to 95.1 percent in the quarter from 94.3 percent. A combined ratio of under 100 indicates an underwriting profit.
Revenue rose 2 percent to $6.79 billion.
© 2022 Thomson/Reuters. All rights reserved.