Travelers Reports a Loss of $358 Million in Quarter : Insurance: The setback is blamed on hurricane claims and restructuring costs. Plans to cut 1,500 more jobs are announced.

The Travelers Corp. on Tuesday said that it lost $358 million in the third quarter and announced plans to eliminate another 1,500 jobs following 3,500 in cuts outlined less than two months ago.

The insurer blamed the loss on claims from Hurricane Andrew and costs associated with a recession-related restructuring, which includes a plan to sell a 27% stake to the New York-based financial services concern Primerica Corp.

The third-quarter results translate to a loss of $3.54 a share and contrast with a profit of $65 million, or 60 cents a share, during the same period last year.

Travelers reported $202 million in costs associated with the restructuring, including severance pay, early retirement incentives and other related expenses.

Revenue fell 7% to $2.6 billion, from $2.8 billion in the 1991 third quarter. Premiums totaled $1.7 billion, down from $1.8 billion last year.

Travelers employed 33,560 people before the first wave of job cuts were announced in late September. The two moves will trim the work force by nearly 15% over the next two years and will be made through a combination of layoffs, attrition and voluntary separation.

The company said it expects to save more than $100 million by mid-1994 from the restructuring.

“Our core businesses are sensitive to the protracted weak economy and therefore we are continuing an intensive process to streamline operations, reduce overhead and position our business for revenue and profit growth,” Travelers Chairman and Chief Executive Edward H. Budd said.

“Staffing decisions are directly related to the significant efficiencies we must achieve in order to compete in an environment that requires leaner and more competitive companies,” he said.

Analysts said the losses reflect the problems insurers have been having in a competitive property-casualty market that has been aggravated by a barrage of claims from Hurricane Andrew, the nation’s costliest natural disaster.

Travelers increased its estimated loss from Hurricane Andrew to $240 million from a previous range of $175 million to $225 million.

“In particular for Travelers, they have this ongoing problem with under-performing real estate and mortgage loans,” said David Seifer, an analyst who tracks the insurance industry for Donaldson, Lufkin & Jenrette in New York. “So the combination is not pleasant reading at this time.

The company said under-performing real estate remained constant at $5.2 billion.

The sale to Primerica, which is subject to shareholder and regulatory approval, will raise $722.5 million in new capital, Travelers said.

Travelers’ stock was unchanged at $23.125 in late afternoon trading on the New York Stock Exchange.

Meanwhile, another major insurance company, Lincoln National Corp., said its third-quarter net income rose to $114.6 million, or $2.46 a share, from $74.6 million, or $1.61, a year earlier.

“These results are especially encouraging because they indicate the ability of our diversified operations to sustain earnings in spite of unusually high storm losses,” Ian M. Rolland, chairman and chief executive, said in a statement. Hurricane Andrew lowered third-quarter net by $19.3 million, or 41 cents a share.

The Ft. Wayne, Ind.-based insurer’s revenue fell to $2.1 billion from $2.2 billion.