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First quarter net income at Travelers Cos. fell 4% to $975 million as catastrophes cost the insurer a total of about $535 million during the first three months of the year.

Catastrophe losses, coupled with a $48 million first quarter drop in favorable prior-year reserve development, overcame Travelers’ 12% increase in Q1 net written premiums to a “record” $9.4 billion, according to CEO Alan Schnitzer. Personal insurance and business insurance net premiums grew 12% and 15%, respectively.

However, the insurer’s personal insurance business booked $331 million in catastrophe losses, net of reinsurance, and took an underwriting loss of $77 million for Q1. Catastrophe losses added 9.4 points to the combined ratio for the segment of 101.5 compared to 95.3 a year ago, as income plummeted to $83 million compared to $225 million in Q1 2022.

Travelers said Q1 catastrophe losses were primarily from wind and hail storms in multiple states.

Q1 income for the business insurance segment finished at $756 million, up from $669 million the year prior. A 15% increase in net written premiums to about $5.2 billion reflected “strong renewal premiums change and retention, as well as higher levels of new business,” Travelers said.

The consolidated combined ratio for the first quarter was 95.4, up from 91.3 during the same period in 2022.

Topics Catastrophe Profit Loss