The Travelers Companies, Inc. (NYSE: TRV) announced today that its preliminary estimate of net losses relating to Storm Sandy, which took place in late October, is approximately $650 million after tax and after estimated recoveries from reinsurance. This $650 million estimate reflects a gross loss estimate (pre-tax and before reinsurance) of $1.135 billion.
This preliminary estimate is based upon an analysis of claims already reported and projected to be reported, estimated values of properties in the affected areas, estimates of damage resulting from wind and other perils, including flooding to the extent covered by applicable policies, and other factors requiring considerable judgment.
Due to the nature of this event, including the scope of the storm, the number of insureds impacted, the complexity of factors contributing to the losses and the preliminary nature of the information available to prepare these estimates, future estimates of losses and the actual ultimate amount of losses associated with Storm Sandy may be materially different from this current estimate.
Following this release, the company intends to resume repurchases of its common shares consistent with its long-standing capital management strategy of returning to shareholders capital not needed to support business operations. The company had temporarily suspended its common share repurchase activity following Storm Sandy as it assessed its exposure.Forward-Looking Statements All statements in this press release other than statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding catastrophe loss estimates and the company’s capital management strategy and financial position. Actual results of matters addressed in these forward-looking statements involve risks and uncertainties and may differ substantially from those expressed or implied. In the case of the company’s common share repurchase program, the company’s actual repurchases depend on a variety of factors, including the company's financial position, earnings, common share price, catastrophe losses (including future updates to estimated catastrophe losses), funding of the company's qualified pension plan, capital requirements of the company's operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions), market conditions and other factors. In the case of estimating losses net of reinsurance, we may not be able to collect all amounts due to us from reinsurers. Some of the other factors that could cause actual results to differ are discussed in this press release and under the heading “Risk Factors” and "Forward-Looking Statements" in the company's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. The forward-looking statements in this release speak only as the date of this release, and the company undertakes no obligation to update any forward-looking statements.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV