Travelers expects $1B cost from spring storms
NEW YORK (AP) — The Travelers Companies Inc. says that severe weather in April and May will likely cost the company between $1 billion and $1.05 billion.
Travelers said Friday the cost estimate stems from several catastrophes including tornadoes and hail storms in the Midwest and Southeast where it had issued business and personal insurance policies. The amount is after taxes and reinsurance.
Due to the costly damages, Travelers says it will limit share repurchases to less than $250 million in the second quarter and another $400 million in excess of operating income for the second half of the year.
Its shares sank $2.03, or 3.3 percent, to $59.05 in morning trading.