Travelers (TRV) Q1 2016 Earnings Call

posted in: Earnings Call, Notes | 0
Travelers (TRV) CEO Alan Schnitzer said some catastrophe losses hurt the company’s insurance results
To put the weather in some context, our catastrophe losses were about $100 million, after tax, higher in the quarter than they were last year, and these are the highest first quarter cat losses we’ve had since 2010. The timing of catastrophes is, of course, unpredictable, but this level of weather volatility is certainly within our playbook. We’re confident in our ability to model and manage our exposures and that we’re pricing appropriately for the risk. In this case, it just so happens that, by design, we have a healthy market share in the Dallas/Fort Worth Metroplex, where severe hailstorms were concentrated. “
Travelers (TRV) CFO Jay Benet partly blamed capital markets for decrease returns in the insurance company’s investment portfolio
Our net investment income was $439 million, after tax, this quarter, which was $39 million lower than the prior year quarter. In addition to the lower fixed income returns, non-fixed income NII was down $15 million after-tax, due to lower hedge fund returns that resulted from the more challenging capital market conditions in recent months.”
Working on a pilot project to determine whether to offer car insurance to Uber drivers
Second, we did roll out, in a couple of pilot states, for use for individuals when they’re using their car for Uber. And what it really does is, it covers what’s called the trolling period. Until there’s a match, then the coverage is clear that there isn’t any personal insurance coverage.”