Travelers

Early Q3 earnings reports point to worsening market conditions.

The selloff may hint at headwinds for equity investors.

The firm also expects to increase share repurchases in Q4 to roughly $1.3bn.

The carrier reported favorable reserve development of $22mn compared to $126mn in Q3 last year.

The risk also ranked as a top three concern for companies of all sizes.

Full-stack carriers fail to outclass incumbents with no clear platform differentiation.

Court documents show Travelers subsidiary Northfield Insurance is the insurer.

The research team presents the June cat heatmap.

Pricing slowdown and reserving concerns are the hot-button topics as earnings kick off.

On the rate environment, Schnitzer said the amplitude of the pricing cycle is shrinking.

Cat losses declined to $927mn from over $1.5bn a year ago on windstorms and hailstorms.

Major insurance industry groups and companies have recently pressed lawmakers to include the provision.

The deal leaves premier surety as Travelers' sole Canadian portfolio.

During first quarter earnings calls, insurers argued that they can mitigate volatility.

Insurers haven’t announced concrete steps – yet.

The executive has been with the firm’s underwriting team for over 12 years.

A one-time impact would be a mid-single digit increase to physical injury auto severity.

The business insurance segment booked a CoR of 96.2%, up 2.9 points YoY.

The decision is the first of its kind under the new Trump administration.

Its post-tax estimate of $1.3bn is net of reinsurance recoveries.

The insurer’s strong Q4 results might not read across to the rest of its peer group.

The Insurance Insider US news team runs you through the earnings results for the day.

Cat activity was a “modest” $175mn for Q4, but still up year over year.

The insurer also added $150mn cat coverage while reducing the total ceded premium for this treaty.

Cat losses rose to $175mn, fueled by Hurricane Milton and higher Helene estimated losses.

‘Emotionally driven’ claims by non-profits underscore their unique D&O exposures, according to Travelers' Nicole Murphy.

The company’s stock price has plummeted in the wake of the LA wildfires.

A quick roundup of our best journalism for the week.

Newcomers enter on the belief that they have a “better mousetrap”, said Donato Monaco.

Asbestos claims for exposed insurers could place more pressure on workers’ comp reserves.

Umbrella and commercial auto led Q3 rate hikes with double-digit increases.

The firm reported $547mn from Hurricane Helene losses.

Top concerns also included medical cost inflation and employee benefit costs.

Civil case, nuclear verdict and claims count data show worrying trends.

The figure represents a quarterly increase of 102%.

Travelers now holds around 6.2% of Fidelis, down from over 7.2%.

The industry could weather a recession, unless loss costs and reserving pressures worsen.

The report also noted that 35% of injuries occurred during an employee’s first year.

Travelers and Selective’s releases point to ongoing reserving challenges this earnings season.

A quick round-up of today’s need-to-know news, including the Microsoft outage and Travelers' results.

The carrier purchased an additional $150mn of cover.

The firm strengthened GL reserves by $250mn, for AY 2021-2023.

The carrier’s underlying combined ratio improved 3.4 points year on year to 87.7%.

Changes in investment strategy and strong results show carriers can weather financial storms.

Downward trends of DCC ratios are beginning to reverse, which could cause issues for long-tailed lines.

Corrective actions revealed by Travelers in the first-quarter earnings could set the stage for similar moves from peers

The insurer is currently transitioning Corvus' ‘profitable’ $200mn book of business.

Underlying improvement was driven by a decrease in the personal lines core CoR.

SEC filings show that Travelers’ equity ownership was valued at over $107mn in Q4.

Commercial carrier earnings continue to show mixed prior-year development.

The percentage of cases that could lead to higher losses increased in 2023.

Shares rose to over $213 at one point – from their previous close of $198.35 – after this morning’s Q4 results, which included an 8.7 point combined ratio (CoR) improvement driven by a rebound in personal lines.

The carrier also renewed the 20% quota share with Fidelis, maintaining the same loss ratio cap the parties agreed in 2023.

The program’s retention remained the same at $3.5bn.

The personal insurance segment’s CoR slashed to 86.8% from 105.3% in the prior year quarter, as the contribution of cat losses declined by 7.3 points to 2%.

The announcement closes the $435mn-deal which was announced in early November.

Travelers is set to expand its core cat treaty by between $1bn and $1.5bn, in a further sign of increased demand for cat reinsurance coverage at 1 January, this publication can reveal.

Sources agree that there are others that could follow a similar playbook, but there are three key considerations to keep in mind when pursuing a strategic-on-InsurTech transaction.

The Insurance Insider US Research team walks buyers through valuation considerations for InsurTech MGAs, as capital constraints point to further consolidation.

Broker and commercial carrier trends separate as inflation slows but rates stay elevated.

Kemper’s current results and historical trends suggest continued difficulty and remains a TBD story.

The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.

A clear commonality is already emerging much as it did in the previous quarter, when severe convective storms – particularly hail – also dominated.

Inside P&C’s morning summary of the key stories to get you up to speed fast.

“In the next few weeks, the third chapter will begin and I am excited to engage with the new team. I can’t share the details just yet but will provide an update in the near future,” Joseph Meisinger announced.

The carrier booked net pre-tax unfavorable development of $154mn in Q3, primarily driven by $263mn of unfavorable development from its business insurance unit.

CFO Frey noted that there was “nothing terribly significant in this quarter” with regards to the company’s view of loss trends.

Catastrophe losses of $850mn were primarily the result of “numerous” severe wind and hail storms in multiple states, the company said.

Allstate’s underperformance in results and value creation may be an opportunity for activist investor Trian, but history suggests it will have its work cut out.

The survey found that a majority of Canadian businesses consider cyber threats their top concern and also believe they will eventually fall victim to a cyberattack.

According to a source familiar with the matter, policyholders will see four changes coming – some nationwide and others specific to certain states.

At the same time, insurers are assessing the level needed to address loss cost trends.