Insurance giant travellers said net income plunged 63% to 79 cents per share. Analysts were hoping for around 90 cents per share.
Results were hit hard by a spike in catastrophe-related claims, which cost the insurer $606 million after reinsurance gains. These catastrophes included Hurricane Irene and Tropical Storm Lee.
But for insurance companies, preparing for catastrophes is part of day-to-day business.
On the sunnier side of things, travellers made more money selling insurance policies during the quarter. Net written premiums rose 4% to $5.67 billion.
Shares are up 5.9%, making it the top stock in the Dow Jones Industrial Average.
In a close second is Intel, which is up 3.9% on a strong earnings announcement.
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