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Healthcare

BRIEF-Travelers Says Declined "Vast Majority" Of Business Interruption Claims Because Of Exclusions

April 21 (Reuters) - Travelers Companies Inc:

* CEO ALAN SCHNITZER SAYS INDUSTRY TO BE IMPACTED BY LOWER PREMIUM LEVELS AS ECONOMY CONTRACTS - CONF CALL

* CEO SAYS THERE WILL BE COVID-19-RELATED LOSSES, BUT AS EXPOSURES DECLINE THERE WILL ]BE SOME CORRESPONDING DECLINE IN LOSSES - CONF CALL

* CEO SAYS LOSS RATIOS COULD IMPROVE OR DETERIORATE, VARYING BY LINE - CONF CALL

* EXEC SAYS EXPECTS “DOWNWARD PRESSURE” ON BOTH WRITTEN AND EARNED PREMIUMS DURING SECOND QUARTER - CONF CALL

* EXEC EXPECTS “DOWNWARD PRESSURE” ON NET INVESTMENT INCOME DURING SECOND QUARTER - CONF CALL

* SAYS EXPENSE RATIO WILL LIKELY INCREASE DUE TO DECLINING PREMIUMS - CONF CALL

* EXEC SAYS INSURER HAS A “VERY FEW NUMBER OF POLICIES” THAT EXPLICITLY COVER VIRUSES AND THOSE LOSSES ARE INCLUDED IN Q1 RESULTS - CONF CALL

* SAYS COMPANY HAS DECLINED “VAST MAJORITY” OF BUSINESS INTERRUPTION CLAIMS BECAUSE OF EXCLUSIONS - CONF CALL

* TRAVELERS CEO- OUR COMMERCIAL PROPERTY POLICIES THAT INCLUDE BI REQUIRE LOSSES TO BE CAUSED BY DIRECT PHYSICAL DAMAGE TO PROPERTY FROM A COVERED CAUSE

* TRAVELERS CEO- OUR STANDARD POLICY FORM SPECIFICALLY EXCLUDES LOSS OR DAMAGE CAUSED BY RESULTING FROM A VIRUS

* TRAVELERS CEO SAYS REQUIRING LOSSES TO BE COVERED RETROACTIVELY FOR COVID-19 WOULD OVERWHELM INDUSTRY’S PLAIN STAYING ABILITY FOR LEGITIMATE CLAIMS

* TRAVELERS CEO - . SURETY LOSS ACTIVITY COULD BE ELEVATED DEPENDING ON THE DURATION OF ECONOMIC SHUTDOWN AND DURATION OF STRESS IN THE ECONOMY

* TRAVELERS CFO ABOUT BUYBACKS SAYS CO FEELS BETTER TO HOLD ONTO SOME CAPITAL

* TRAVELERS CEO- “EXPECT THAT THE PAINTERS BAR WILL SEEK TO GENERATE COVID-RELATED LITIGATION”

* TRAVELERS CEO- LAWSUITS HAVE ALREADY BEEN FILED, INCLUDING FOR MANUFACTURING AND DISTRIBUTION OF HAND SANITIZER AND DEVELOPING COVID-19 VACCINE

* TRAVELERS CFO- THE FIRST QUARTER EXPENSE RATIO INCLUDES NEARLY 0.5 POINT OF ELEVATED BAD DEBT EXPENSE RELATED TO THE IMPACT OF COVID-19

* TRAVELERS CFO ON BUYBACKS- FEELS LIKE HOLDING ON TO A LITTLE MORE CAPITAL IS PREFERABLE TO HOLDING ON TO A LITTLE LESS, SIMILAR TO HOW WE FELT IN 2008 Further company coverage:

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