Travelers Companies missed first-quarter profit estimates on Wednesday as severe storms in the United States drove up its catastrophe losses, sending shares of the insurance bellwether down 8 percent in early trading.

For years, extreme weather activity has troubled the insurance industry, which is liable to pay for damages caused by such events.

Global insured losses from natural catastrophes in the first quarter were estimated to be $20 billion, heavily driven by storm activity in the United States, according to a report by reinsurance broker Gallagher Re.

Travelers’ catastrophe losses, net of reinsurance, jumped to $712 million from $535 million a year earlier, due to severe wind and hail storms in the central and eastern regions of the United States.

But the company continued to reap the benefits of growing hopes of a soft landing and a still-tight labor market that has revived spending on insurance policies.

Core income rose 13 percent to $1.1 billion, or $4.69 per share, for the three months ended March 31 from a year earlier, boosted by a 57 percent surge in underwriting gains and 28 percent jump in net investment income, thanks to a string of interest rate hikes by the U.S. Federal Reserve to curb inflation.

The core income, however, was lower than the $4.90 per share analysts had expected, according to LSEG.

Underlying combined ratio also improved to 87.7 percent in the quarter, compared with 90.6 percent a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.

As of Tuesday’s close, Travelers’ shares had gained 17 percent this year compared with a near 19 percent jump in the S&P 500 Property & Casualty Insurance Index.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)