Travelers Q1 Profit Falls on Wildfire Losses

Travelers Companies reported a 60% decline in first-quarter profit, citing over $2.2 billion in catastrophe losses from the California wildfires, one of the state's most expensive natural disasters. Despite the losses, the insurer's core earnings of $1.91 per share surpassed analyst expectations, driven by robust underwriting gains and increased investment income. Total revenue rose 5% year-over-year to $11.81 billion, and net written premiums increased 3% to $10.52 billion, reflecting growth across all business segments. The company's combined ratio worsened due to the catastrophe losses, but operational performance improved as indicated by a better underlying combined ratio. CEO Alan Schnitzer underscored the company's resilience and criticized California's regulatory environment for restricting pricing adjustments. Travelers also announced a 5% dividend increase and continued share buybacks, signaling ongoing confidence in its financial stability.