Travelers (TRV) Reports Q2 Earnings: What Key Metrics Have to Say

Financial Performance - For the quarter ended June 2024, Travelers reported revenue of $11.35 billion, up 12% year-over-year, with EPS at $2.51 compared to $0.06 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $11.47 billion, resulting in a surprise of -1.04%, while the EPS exceeded expectations by +25.50% against a consensus estimate of $2.00 [1] Key Metrics - Combined Ratio - Consolidated: 100.2% versus the 10-analyst average estimate of 101% [2] - Loss and loss adjustment expense ratio - Consolidated: 71.4% compared to the 72.2% average estimate [2] - Underwriting Expense Ratio - Consolidated: 28.8% matching the 10-analyst average estimate [2] - Total Revenues - Net investment income: $885 million, exceeding the $841.71 million estimate, representing a +24.3% change year-over-year [2] - Total Revenues - Fee income: $115 million compared to the $109.80 million estimate, reflecting an +8.5% year-over-year change [2] - Total Revenues - Premiums: $10.24 billion, slightly below the $10.42 billion estimate, with a +11.1% year-over-year change [2] - Revenues - Premiums - Business Insurance: $5.17 billion versus the $5.30 billion estimate, showing a +11.3% year-over-year change [2] - Revenues - Premiums - Personal Insurance: $4.10 billion compared to the $4.13 billion estimate, representing a +11.9% year-over-year change [2] - Revenues - Other revenues - Personal Insurance: $22 million versus the $25.89 million estimate, indicating a -12% change year-over-year [2] Stock Performance - Shares of Travelers have returned +4.1% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]