Travelers Issues Initial Estimate of Losses From Storm Sandy
NEW YORK -- December 05, 2012
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
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.
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.
The 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 more than 30,000 employees and generated
revenues of approximately $25 billion in 2011. For more information, visit
The Travelers Companies, Inc.
Jennifer Wislocki, 860-277-7458
Delker Vardilos, 860-954-7975
Gabriella Nawi, 917-778-6844
Andrew Hersom, 860-277-0902
Marc Parr, 860-277-0779
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