-=Travelers (TRV) reported earnings on Tue 22 Oct 2019 (b/o)

Travelers misses by $0.92 due to an increasingly challenging tort environment, beats on revs

Reports Q3 (Sep) earnings of $1.43 per share, excluding non-recurring items, $0.92 worse than the S&P Capital IQ Consensus of $2.35; revenues rose 7.2% year/year to $7.57 bln vs the $7.17 bln S&P Capital IQ Consensus.

Core income decreased primarily due to net unfavorable prior year reserve development in the current quarter, including the impact of an increasingly challenging tort environment.

Combined Ratio 101.5%, Prior year 96.6%.

Core return on equity 6.5%, Prior year 12.0%

"Despite the impacts of an increasingly challenging tort environment facing our industry and higher non-catastrophe weather-related losses, our underlying underwriting results were solid, benefiting from 4% growth in earned premiums and continued disciplined and thoughtful expense management. Earnings this quarter were impacted by net unfavorable reserve development in Business Insurance. While workers' compensation reserves continued to develop favorably, asbestos reserves developed in an amount comparable to the prior year quarter and general liability and commercial auto reserves developed unfavorably primarily due to the more challenging tort environment".