Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
Insurance firm $TRV reported a charge of $129MM during 4Q17 owing to the latest tax reform. This hurt profit that fell 42% to $551MM, or $1.98 per share, compared to $943MM, or $3.28 per share in 4Q16. Core income fell 29% to $2.28 per share. Total revenue during the quarter rose 4% YoY to $7.45Bil.
Travelers Europe, a unit of $TRV, said it will apply to the Central Bank of Ireland for authorisation of a new insurance subsidiary. Based in Dublin, this new unit will enable $TRV to continue to seamlessly serve its customers and broking partners in Ireland and across Europe when the UK exits the European Union, as currently planned in March 2019.
$TRV estimates its catastrophe losses from Hurricane Harvey, including estimated recoveries from reinsurance, to be in the range of $375-750MM pre-tax and $245-490MM after-tax. The company also announced that it has temporarily suspended common share repurchases while it assesses losses from Hurricanes Harvey and Irma.
Insurance firm $TRV has appointed CEO Alan D Schnitzer as Chairman of the BoD, effective immediately. Schnitzer succeeds John H Dasburg, who will now be serving as Independent Lead Director. The company also elected Clarence Otis to its BoD, effective immediately. Otis is former Chairman and CEO of Darden Restaurants.
$TRV launched its IntelliDrive smartphone app, which allows customers to better understand their driving habits and get auto insurance priced according to their driving habits. Customers who use the app and drive safely can save up to 20% and will receive feedback on improving their driving skills and savings.
Insurance firm $TRV has launched an online system that enables brokers in the UK to quickly receive management liability quotes and bind coverage for clients. The Management Liability Package also gives brokers built-in support through a chat function, video demos, answers to common questions and tips that make transactions easy and efficient.
$TRV said that Simply Business acquisition impacts its resource base. In 1Q17, the company decided to hold back a little bit on share repurchases so that it can have some funds to close the deal. $TRV plans to fund this deal through a combination of debt and some of the internal capital and return the remaining excess capital to shareholders.
Insurance major $TRV reported a 11% decrease in its 1Q17 earnings, hurt by catastrophe losses of $226MM after-tax. Net income during the quarter fell to $617MM, or $2.17 per share, compared to $691MM, or $2.30 per share in the 1Q16. Total revenues during the quarter rose 4% YoY to $6.94Bil from $6.68Bil during 1Q16.
$TRV has agreed to buy UK-based Simply Business from Aquiline Capital Partners LLC for an enterprise value of approx $490MM, which includes the repayment of debt and other obligations. $TRV will fund the transaction through a combination of debt financing and internal resources. The transaction is expected to close in 3Q17.