From Earlier: Travelers Sees Sandy Losses ~$650M; to Resume Buybacks
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 estimate.
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.
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