Travelers Corp. Adding to Reserves: The company...
From Times Staff and Wire Reports
Travelers Corp. Adding to Reserves: The company said it is adding $650 million to its reserves to cover expected real estate losses, a move that will result in a third-quarter net loss of $500 million. The Hartford, Conn.-based insurance company will also reduce its quarterly dividend to 40 cents per share from 60. Edward H. Budd, Travelers chairman and chief executive, said reserves were boosted to cover expected losses in the company’s mortgage loan and real estate investments. He blamed the sharp decline in the commercial real estate market. The company said this was the first major addition to reserves since June, 1988.
