Travelers Defies Catastrophe Losses with Strong Profit

Travelers exceeded profit expectations due to strong underwriting despite over $2 billion in losses from California wildfires. Shares rose as the results highlighted resilience amidst one of California's costliest disasters. Regulatory constraints in California and potential tariff impacts pose ongoing challenges for the insurance industry.

Insurance giant Travelers exceeded analysts' expectations for first-quarter profits, buoyed by strong underwriting outcomes, despite facing over $2 billion in losses primarily from catastrophic California wildfires.

Market shares jumped 2% pre-market, recovering from tariff-induced lows. The significant natural disaster, among California's priciest, resulted in numerous fatalities and substantial property damage, with economic loss estimates reaching $250 billion.

Travelers' net catastrophe losses reached $2.27 billion for Q1, a stark rise from $712 million the previous year. Nonetheless, the company saw a 32% increase in pre-tax underlying underwriting income, driven by sustained demand for insurance. Despite challenges, significant factors such as stringent regulations and potential tariff-induced cost hikes present continuous obstacles for insurers operating in California.

(With inputs from agencies.)