Travelers sees Q4 core EPS $3.40, consensus $4.04

Travelers expects to report net income of $3.44 per diluted share and core income of $3.40 per diluted share for Q4. Q4 results include the company’s estimate for catastrophe losses of $459M pre-tax, $362M after-tax, net of reinsurance. Catastrophe losses primarily resulted from the significant winter storm that impacted much of the U.S and Canada in late December. The company also expects Q4 results to include an underlying underwriting gain of $723M pre-tax – $571M after-tax -, net investment income of $625 M pre-tax – $531M after-tax -, which includes $601 M pre-tax – $510M after-tax – from the fixed income portfolio, and net favorable prior year reserve development of $185M pre-tax – $145M after-tax.