Finance Watch -- WSJ
July 22 2016 - 3:02AM
Dow Jones News
EARNINGS
Catastrophe Claims Dent Travelers Net
Travelers Cos. said its second-quarter operating earnings fell
19%, depressed by claims from catastrophes such as the Fort
McMurray wildfires in Alberta, Canada, and hail storms in various
parts of the U.S.
The New York-based insurer, which posted record quarterly net
written premiums, a closely watched measure of revenue growth,
reported a profit of $664 million, or $2.24 a share, down from $812
million, or $2.53 a share, a year earlier.
Catastrophe losses totaled $333 million, up sharply from $221
million. Net written premiums increased 2.9% to $6.35 billion amid
strong retention of business, positive renewal premium changes and
increases in new-business volumes in each of its segments.
Operating profit, which excludes realized capital gains and
losses in investment portfolios, of $649 million, or $2.20 a share,
compared with $806 million, or $2.52 a share, a year earlier.
--Tess Stynes, Leslie Scism
M&A DEALS
MasterCard to Buy VocaLink Holdings
MasterCard Inc. said it was buying most of VocaLink Holdings
Ltd., a bank-owned technology company in the U.K. that provides the
backbone for noncard transactions such as employer payroll deposits
and consumer bill payments. The deal is valued at about $920
million.
In addition to providing the technology backbone for noncard
payments, VocaLink also unites the infrastructure of Britain's
automated-teller-machine network among its participating banks.
VocaLink reported $240 million in revenue last year and processed
more than 11 billion transactions.
--Robin Sidel
E*TRADE FINANCIAL
Trading Pickup Helps Revenue Rise 10%
E*Trade Financial Corp. said its second-quarter revenue rose 10%
as trading picked up and its allowance for loan losses shrunk,
though the pace of the online broker's new-account openings
slowed.
Earnings totaled $133 million, or 48 cents a share, down from
$292 million, or 99 cents a share, in a year-earlier period that
included a $220 million tax benefit. Revenue rose to $474 million
from $429 million. Analysts polled by Thomson Reuters expected
earnings of 38 cents a share on revenue of $471 million.
"The quarter closed in a frenzy of market activity that impelled
a single-day record of net buying as customers seized opportunities
following sharp market declines," Chief Executive Paul Idzik said,
referring to the steep market selloff after the U.K.'s decision to
leave the European Union on June 23.
Daily average revenue trades increased 2% to 152,000 from a year
earlier but decreased 8% from the first quarter.
--Lauren Pollock
(END) Dow Jones Newswires
July 22, 2016 02:47 ET (06:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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