Travelers (TRV) Q2 Earnings Beat, Revenues Miss Estimates

Core Insights - The Travelers Companies (TRV) reported a second-quarter 2024 core income of $2.51 per share, exceeding the Zacks Consensus Estimate by 25.5% [1] - Total revenues increased by 12.4% year over year to $11.3 billion, although this figure missed the Zacks Consensus Estimate by 1% [2] - Net written premiums reached a record $11.1 billion, up 8% year over year, surpassing the estimate of $10.4 billion [2] - Net investment income rose by 24.2% year over year to $885 million, exceeding the estimate of $852.14 million [2] - Catastrophe losses were reported at $1.51 billion, pre-tax, compared to a loss of $1.18 million in the same quarter last year [2] Underwriting Performance - Travelers experienced an underwriting loss of $65 million, significantly improved from a loss of $640 million in the prior year [3] - The consolidated underlying combined ratio improved by 340 basis points year over year to 87.7, while the overall combined ratio improved by 630 basis points to 100.2 [3] - Core return on equity expanded by 20 basis points to 8.1%, with adjusted book value per share increasing by 3% year over year to $126.52 [3] Segment Analysis - Business Insurance: Net written premiums increased by 7% year over year to approximately $5.5 billion, with a combined ratio improving by 400 basis points to 96.1 [4] - Bond & Specialty Insurance: Net written premiums rose by 8% year over year to $1 billion, but the combined ratio deteriorated by 1060 basis points to 87.7 [5][6] - Personal Insurance: Net written premiums increased by 9% year over year to $4.5 billion, with a combined ratio improving by 1350 basis points to 108.5 [6][7] Shareholder Returns - The company returned $498 million to shareholders in Q2 2024, including $253 million used to buy back 1.2 million shares [8] - A quarterly dividend of $1.05 per share was announced, payable on September 28, 2024, to shareholders of record by September 10, 2024 [8]