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Travelers Stock Sinks After It Misses Revenue and Premiums Estimates
TRVTravelers(TRV) Investopedia·2024-07-19 16:05

Core Insights - The Travelers Companies reported a 12% increase in quarterly revenue to 11.28billion,butthiswasbelowforecasts[1]−Netwrittenpremiumsrose811.28 billion, but this was below forecasts [1] - Net written premiums rose 8% to a record 11.12 billion, also falling short of estimates [1] - Adjusted profit was reported at 2.51pershare,exceedingexpectations[1]FinancialPerformance−Coreincomesurgedto2.51 per share, exceeding expectations [1] Financial Performance - Core income surged to 585 million from 15millionyear−over−year,drivenbyhigherunderwritinggains,favorableprioryearreservedevelopment,andincreasednetinvestmentincome[2]−Catastrophelossesincreasedto15 million year-over-year, driven by higher underwriting gains, favorable prior year reserve development, and increased net investment income [2] - Catastrophe losses increased to 1.51 billion from 1.48billion,attributedtosevereconvectivestorms[3]−Investmentlossesroseto1.48 billion, attributed to severe convective storms [3] - Investment losses rose to 65 million from 35million[3]MarketReaction−SharesofTheTravelersCompaniesfellnearly735 million [3] Market Reaction - Shares of The Travelers Companies fell nearly 7% to 205.77 during intraday trading, despite being up approximately 8% in 2024 [3]