Travelers Companies Inc. reported a dramatic 60% plunge in profit for the first quarter of 2025, largely due to catastrophic losses linked to the devastating wildfires in Los Angeles.
The insurance giant posted a record $2.27 billion in catastrophe losses for the quarter, marking a significant increase from the $712 million reported during the same period last year.
The catastrophic wildfire, which occurred in January, is considered one of the most costly natural disasters in California’s history, with estimates of economic losses reaching $250 billion. The fires not only claimed lives but also destroyed property, leaving insurers grappling with unprecedented claims. The wildfires were among the key contributors to Travelers’ steep decline in core profit, which fell to $443 million, or $1.91 per share, compared to $1.1 billion, or $4.69 per share, during the same quarter in 2024.
Despite these setbacks, CEO Alan Schnitzer highlighted that the company managed to report a profit for the quarter, emphasizing the firm's resilience amid the challenges posed by the wildfires. “We are pleased to report a substantial profit for the quarter despite the devastating January California wildfires,” Schnitzer said in the company’s statement.
Travelers, like many other insurers, has faced increasing challenges from natural disasters, particularly as extreme weather events become more frequent. In recent years, the company has taken steps to reduce its exposure to high-risk areas, but catastrophes as severe as the California wildfires continue to have a major financial impact.
The report also touched on regulatory issues that have affected the insurance market in California. Insurers have long complained about the state's stringent regulations, which require them to obtain approval from the state regulator before raising prices for most policies. These regulations have led to concerns within the industry that California has become an “uninsurable” market, with pricing disconnected from the actual risk insurers face. Travelers' CEO, Schnitzer, has previously argued that these regulatory policies are driving insurers out of the market, thereby reducing competition and limiting consumer choice.
Additionally, the company faces potential disruption from President Donald Trump's recent imposition of tariffs on April 2, which could increase the cost of building materials, auto parts, and repairs. The higher costs could either be absorbed by insurers or passed on to consumers through increased premiums. Following the announcement of the new tariffs, Travelers' stock dropped 5.6%, reflecting the broader concerns in the insurance industry about the economic impact of these trade policies.
Despite the ongoing challenges, Travelers continues to focus on adjusting its business practices to mitigate risk and recover from the financial blows caused by such devastating natural disasters. The company’s ability to navigate these hurdles will be key to its long-term success in a market that is increasingly influenced by environmental and regulatory factors.
A 5.2 magnitude earthquake hit San Diego County on Monday, shaking homes and disrupting daily life across the region. Originating near Julian, the tremor was felt in San Diego, Orange, and Los Angeles counties, with residents noting its intensity and duration.
California Governor Gavin Newsom is asking Congress for nearly $40 billion in disaster funding to help Los Angeles recover and rebuild areas scorched by last month's devastating wildfires, the Washington Post reported on Friday citing a letter.
SpaceX will launch the Starlink 11-10 mission aboard a Falcon 9 Block 5 rocket from Vandenberg Space Force Base, California, at 02:00 UTC on February 11, 2025. The launch will deploy another batch of satellites to expand SpaceX’s global internet coverage.
Relatives of Lyle and Erik Menendez are urging prosecutors to release the brothers, who have served over 30 years for their parents' murder, as new evidence of alleged abuse by their father is being reviewed.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
The Russian rouble surged past 81 to the U.S. dollar on Thursday, marking a 40% increase since the beginning of 2025.
The Russian ruble has emerged as the top-performing currency globally in 2025, registering an impressive 38% appreciation against the US dollar since the beginning of the year, according to a report by Bloomberg.
A small plane crashed near Kopake, New York, on April 13, killing at 6 people. The Mitsubishi MU-2B aircraft, carrying six people, went down under unclear circumstances. This marks the second aviation accident in New York in a week, raising safety concerns.
Several regions in Ukraine faced heightened alert on Palm Sunday, as reports of explosions and missile threats drew public attention and official responses.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 16th, covering the latest developments you need to know.
Severe rainfall on April 17 led to flooding and landslides in the Piedmont region, prompting a large-scale emergency response from over 400 firefighters.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
Russian Foreign Minister Sergey Lavrov extended Moscow’s support for the ongoing indirect nuclear talks between the United States and Iran, offering to mediate or assist in any way that would be beneficial to Tehran and acceptable to Washington.
Japanese Finance Minister Katsunobu Kato strongly denied accusations that Japan manipulates its currency to weaken the yen, ahead of a highly anticipated meeting with U.S. Treasury Secretary Scott Bessent next week. Kato addressed the issue in the Japanese parliament on Friday, reaffirming that Jap
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
The Russian rouble surged past 81 to the U.S. dollar on Thursday, marking a 40% increase since the beginning of 2025.
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