Travelers Down Sharply On $1 Billion In Losses

Shares of Dow component and insurance giant The Travelers Companies, Inc. TRV are down sharply today, losing almost 3% after the company said this morning that it would face $1 billion in losses from the damage seen in the Midwest and Southern parts of the United States. Due to the losses, the Connecticut-based insurance giant said it would be slowing its buyback program. The losses were disclosed in an SEC filing earlier this morning. “In response to the significant devastation from the severe weather across the United States, our primary concern continues to be for all those individuals impacted. We are proud of our catastrophe team's immediate response to these events and their continued dedication to helping those affected,” said Jay S. Fishman, Chairman and Chief Executive Officer. “The company's view of consolidated underwriting margin excluding catastrophes and prior year reserve development remains unchanged, and we continue to expect a modest increase in the consolidated loss ratio on that basis in 2011. On a written basis, quarter to date through May, Business Insurance renewal rate change was 2 percent as compared to 1 percent in the first quarter, and exposure change was positive. Within Business Insurance, Commercial Accounts renewal rate change was 4 percent as compared to 2 percent in the first quarter,” continued Fishman. Shares were off the worst levels of the session, set earlier this morning. At last check, shares were off $1.81 to $59.27, but had touched a low of $58.27 earlier in the session.