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Travelers Falls Most Since 2011 as Hail, Hedge Funds Hurt Profit

  • Shares erase gain for year as profit misses analyst estimates
  • Dividend raised almost 10 percent to 67 cents per share
Updated on

Travelers Cos., the lone property-casualty insurer in the Dow Jones Industrial Average,
fell the most since 2011 after first-quarter profit slipped 17 percent as catastrophe costs climbed and investment income dropped on lower hedge fund returns.

The insurer slumped 6.1 percent to $108.79 at 4:15 p.m. in New York, wiping out gains for the year. Net income declined to $691 million, or $2.30 a share, from $833 million, or $2.55, a year earlier, New York-based Travelers said Thursday in a statement. Operating profit was $2.33 a share, missing the $2.55 estimate of 25 analysts surveyed by Bloomberg.