The Travelers Companies Inc. has become the latest P/C carrier to report sizable catastrophe losses for the 2020 second quarter.
Estimated pretax catastrophe losses for Q2 reached $854 million, or $673 million after tax, net of reinsurance. Travelers blames that result largely on severe storms in several regions of the states, along with civil unrest.
Overall, Travelers said it expects a net loss per diluted share of $0.16, stemming from catastrophe losses and losses in its non-fixed income investment portfolio.
In one positive sign, COVID-19 didn’t hugely impact Q2 net income, according to the insurer. Travelers said that insurance losses directly related to the pandemic landed at $114 million pretax. That, along with a $63 million pretax reduction in the estimate of ultimate audit premiums receivable, were generally offset by initial estimates of favorable frequency from the shelter-in-place rules around the country. This was particularly prevalent in short-tail lines, net of premium refunds and other items, according to the insurer.
Other than Travelers, W.R. Berkley Corp. recently warned that its 2020 second quarter pretax catastrophe losses will reach $145 million, with more than half of that coming from COVID-19 costs. Meanwhile, Chubb has stated that it will face $1.8 billion in estimated pretax catastrophe losses for Q2, of which $1.4 billion stems from the coronavirus pandemic.
Travelers plans to hold its Q2 2020 investor call on July 23, 2020.