On Wednesday, Travelers Companies Inc, the property and casualty insurer, reported a 20 per cent decline in quarterly profit, hurt by hurricane-related claims and lower returns on its investments.

Reportedly, hurricanes Ian and Fiona pushed the insurer’s pretax catastrophe losses to USD 512 million from USD 501 million last year. However, strong premiums growth helped the company surpass Wall Street targets for profit in Q3, making its shares up 1.2 per cent in premarket trade.

New York-based Travelers reported record net written premiums growth of 10 per cent to USD 9.2 billion, with business, bond and speciality and personal insurance lines clocking growth.

Earlier in October, risk modelling firm Verisk said that insurers are bracing for a hit of up to USD 57 billion from Hurricane Ian in Florida and South Carolina. The insurance industry also faces hefty claims from the Ukraine crisis and greater uncertainty brought on by higher claims costs from inflation.

Travelers said pretax net investment income declined 23 per cent to USD 593 million. The company’s core income dropped to USD 526 million, or USD 2.20 per share, in Q3 ended September 30, from USD 655 million, or USD 2.60 per share, a year earlier.
It reported a combined ratio of 98.2 per cent, compared with 98.6 per cent a year earlier. A ratio below 100 per cent implies the insurer earned more in premiums than it paid out in claims.