Why The Travelers Companies Stock Lost 12% in October
Insurance giant The Travelers Companies (NYSE: TRV) trailed the market last month as its stock shed 12% compared to a 2% increase in the S&P 500, according to S&P Global Market Intelligence. The drop pushed investor returns lower, but the stock is still up about 10% so far in 2019 compared to a 22% increase in the S&P.
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October's slump was driven by Wall Street's lukewarm reception of Travelers' third-quarter earnings results. On Oct. 22, the company revealed that premiums rose by a healthy 7% but that this increase was offset by significant underwriting losses related to volatile weather and to a worsening claims environment for automotive accidents. Struggles in these areas helped push underwriting to a $149 million loss compared to a $200 million gain a year ago.
Source Fool.com
