Insurance exchange traded funds lost ground Friday after Travelers (NYSE: TRV) said it has limited its share buyback program due to catastrophe losses in April and May.
The Dow component said the losses resulted from multiple tornadoes and hail storms that hit the U.S., primarily in the Midwest and Southeast. Travelers now expects its total repurchases in the second quarter to be less than $250 million.
The stock is held in SPDR KBW Insurance (NYSEArca: KIE), iShares Dow Jones U.S. Insurance (NYSEArca: IAK) and PowerShares Dynamic Insurance (NYSEArca: PIC), all of which slipped about 1% on Friday morning.
SPDR Dow Jones Industrial Average (NYSEArca: DIA) was also lower. Stocks broke a six-day losing streak the previous session but headed lower on Friday. Travelers is one of four financial-services stocks in the Dow along with American Express (NYSE: AXP), JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC).
Travelers shares slipped nearly 3%.
SPDR KBW Insurance
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