WRB - Travelers Q2 Earnings Beat Revenues Miss Estimates | Benzinga
The Travelers Companies (NYSE: TRV) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%.
Shares gained 0.5% in the pre-market trading session to reflect the outperformance.
The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses.
The Travelers Companies, Inc. Price, Consensus and EPS Surprise
The Travelers Companies, Inc. price-consensus-eps-surprise-chart | The Travelers Companies, Inc. Quote
Behind Q2 Headlines
Travelers' total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
Net written premiums increased 8% year over year to a record $11.1 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.4 billion.
Net investment income increased 24.2% year over year to $885 million, primarily due to strong fixed-income returns and growth in fixed-maturity investments. The figure was higher than our estimate of $852.14 million. The Zacks Consensus Estimate was pegged at $861.2 million.
Catastrophe loss was $1.51 billion, pre-tax, wider than a loss of $1.18 million, pre-tax, incurred in the year-ago quarter.
Travelers witnessed an underwriting loss of $65 million, narrower than a loss of $640 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 87.7 improved 340 basis points (bps) year over year. The combined ratio improved 630 bps year over year to 100.2 due to an improvement in the underlying combined ratio, higher net favorable prior-year reserve development and lower catastrophe losses as a percentage of net earned premiums. The Zacks ...