In Advance of Its Investor Conference, Travelers Estimates Range of Catastrophe Losses from California Wildfires
November 09 2017 - 7:00AM
Business Wire
As previously announced, The Travelers Companies, Inc. (NYSE:
TRV) will host an Investor Day on Monday, Nov. 13. The company’s
senior executive team will update investors on the business and
discuss certain strategic initiatives.
In advance of the conference, the company today announced that
it estimates fourth quarter catastrophe losses related to the
recent California wildfires, including estimated recoveries from
reinsurance, will be in the range of $525 million to $675 million
pre-tax ($340 million to $440 million after-tax). The company’s
estimates reflect, among other factors, the high average
replacement value of homes in the affected areas and a high
incidence of total losses, which also include contents, other
structures and additional living expenses. The company’s estimates
also reflect losses from its commercial businesses, including its
Agribusiness unit.
“The toll from one of the worst wildfire events in U.S. history
is devastating,” said Alan Schnitzer, Chairman and Chief Executive
Officer. “Lives were tragically lost, property and personal
possessions were destroyed and entire communities are now forced to
start over. Our claim professionals are on the ground, and we’ll
work tirelessly with our customers to help them and their
communities recover as quickly as possible.”
The company also announced that based on its strong capital
position and its expected results for the full year, it intends to
resume repurchases of its common shares consistent with its
long-standing capital management strategy of returning excess
capital to shareholders. The company had previously suspended its
common share repurchase activity as it assessed catastrophe losses
from recent hurricanes and the wildfires.
The Investor Day will begin at 9:30 a.m. ET and is expected to
last approximately three hours. A live webcast of the conference,
which will include the presentation materials, will be available on
the investor section of the Travelers website. Following the
conference, a replay of the webcast, including the presentation
materials, will be available on the same website.
Forward-Looking StatementsAll 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. The estimated range of
losses discussed above is based on an analysis of claims already
reported and projected to be reported, estimated values of
properties in the affected areas, estimated damage resulting from
wildfire and other perils, and other factors requiring significant
judgment. As a result of the foregoing and other factors, including
the unprecedented nature of the scope and duration of the
wildfires, the number of insureds affected, the complexity of
factors contributing to the losses and the preliminary nature of
the information available to prepare the estimated range, future
estimates of losses and the actual ultimate amount of losses
associated with the wildfires may be materially different from the
current estimated range. The Company’s share repurchase plans
depend on a variety of factors, including the Company’s financial
position, earnings, share price, catastrophe losses, maintaining
capital levels commensurate with the Company’s desired ratings from
independent rating agencies, 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 and
related financings), market conditions and other factors. Other
factors that could cause actual losses to differ from the current
estimated range or that could impact the Company’s share repurchase
plans are discussed under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the company’s most recent Form 10-K filed
with the Securities and Exchange Commission (SEC) on February 16,
2017, as updated by the company’s most recent Form 10-Q filed with
the SEC on October 19, 2017, and the company’s other periodic
filings with the SEC. The forward-looking statements in this
press release speak only as of the date of this press release, and
the company undertakes no obligation to update any forward-looking
statements.
About TravelersThe Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto, home
and business. A component of the Dow Jones Industrial Average,
Travelers has approximately 30,000 employees and generated revenues
of approximately $28 billion in 2016. For more information, visit
travelers.com.
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The Travelers Companies, Inc.Investors:Gabriella Nawi,
917-778-6844orMedia:Patrick Linehan, 917-778-6267
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