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Travelers Beats Q1 Earnings Estimates, Misses Revenues, Ups Dividend
TRVTravelers(TRV) ZACKS·2025-04-16 19:10

Core Insights - The Travelers Companies (TRV) reported a first-quarter 2025 core income of 1.91pershare,significantlyexceedingtheZacksConsensusEstimateof69cents,althoughthebottomlinedeclined29.31.91 per share, significantly exceeding the Zacks Consensus Estimate of 69 cents, although the bottom line declined 29.3% year over year [1][2] Financial Performance - Total revenues increased by 6.1% year over year to 11.9 billion, driven by higher premiums and net investment income, but fell short of the Zacks Consensus Estimate of 12.1billion[3]−Netwrittenpremiumsreachedarecord12.1 billion [3] - Net written premiums reached a record 10.5 billion, up 3% year over year, surpassing the estimate of 10.2billion[3]−Netinvestmentincomeroseby9.910.2 billion [3] - Net investment income rose by 9.9% year over year to 930 million, exceeding the estimate of 927million,althoughbelowtheZacksConsensusEstimateof927 million, although below the Zacks Consensus Estimate of 952 million [4] - Catastrophe losses amounted to 2.3billion,significantlyhigherthanthe2.3 billion, significantly higher than the 175 million loss in the prior year [4] - Underwriting loss was reported at 305million,comparedtoagainof305 million, compared to a gain of 577 million in the previous year [4] Underwriting Performance - Underlying underwriting income improved by over 30% year over year to 1.6billion,supportedbystrongnetearnedpremiums[5]−Theconsolidatedunderlyingcombinedratioimprovedby290basispointsyearoveryearto84.8,whiletheoverallcombinedratiodeterioratedby860basispointsto102.5duetoincreasedcatastrophelosses[5]SegmentAnalysis−∗∗BusinessInsurance∗∗:Netwrittenpremiumsincreasedby21.6 billion, supported by strong net earned premiums [5] - The consolidated underlying combined ratio improved by 290 basis points year over year to 84.8, while the overall combined ratio deteriorated by 860 basis points to 102.5 due to increased catastrophe losses [5] Segment Analysis - **Business Insurance**: Net written premiums increased by 2% year over year to approximately 5.7 billion, with a combined ratio of 96.2, down 290 basis points [6] - Bond & Specialty Insurance: Net written premiums rose by 6% year over year to 999million,withacombinedratioimprovingby200basispointsto82.5[7]−∗∗PersonalInsurance∗∗:Netwrittenpremiumsof999 million, with a combined ratio improving by 200 basis points to 82.5 [7] - **Personal Insurance**: Net written premiums of 3.8 billion increased by 5% year over year, but the combined ratio deteriorated to 115.2 due to higher catastrophe losses [9][10] Financial Position - Total investments and cash stood at 96.4billion,reflectinga1.696.4 billion, reflecting a 1.6% increase from the end of 2024 [11] - Debt remained flat at 8 billion, while operating cash flow decreased by 6.7% year over year to 1.4billion[11]−Corereturnonequitycontractedby980basispointsto5.61.4 billion [11] - Core return on equity contracted by 980 basis points to 5.6% [11] Capital Management - The company returned over 600 million to shareholders through dividends and share repurchases, including the buyback of 1 million shares for 358million[12]−A5358 million [12] - A 5% increase in the quarterly cash dividend to 1.10 per share was declared, marking 21 consecutive years of dividend increases [13]