Travelers Q3 Earnings & Revenues Surpass Estimates, Premiums Rise Y/Y

Core Insights - Travelers Companies (TRV) reported a third-quarter 2024 core income of $5.24 per share, exceeding the Zacks Consensus Estimate by 38.2% [1] - The company's total revenues rose 10.7% year over year to $11.84 billion, driven by increased premiums and net investment income, surpassing the Zacks Consensus Estimate by 1.4% [2] - The underwriting gain significantly improved to $685 million from a loss of $136 million in the prior year, with a consolidated underlying combined ratio of 85.6, an improvement of 500 basis points year over year [3] Revenue and Premiums - Net written premiums reached a record $11.31 billion, an 8% increase year over year, exceeding the estimate of $10.5 billion [2] - Business Insurance segment net written premiums increased 9% to approximately $5.51 billion, matching estimates [4] - Personal Insurance segment net written premiums rose 7% to $4.72 billion, reflecting strong renewal premium changes [6] Investment Income and Catastrophe Losses - Net investment income increased 18% year over year to $904 million, driven by higher average yields and growth in fixed maturity investments [2] - Catastrophe losses were reported at $939 million, pre-tax, compared to $850 million in the prior year [2] Segment Performance - Business Insurance segment income increased 49% year over year to $698 million, benefiting from lower net unfavorable prior-year reserve development [4] - Bond & Specialty Insurance segment net written premiums rose 7% to $1 billion, but segment income decreased 16.2% year over year to $222 million [5] - Personal Insurance segment income was $384 million after-tax, a significant recovery from a loss of $193 million in the prior year [6] Shareholder Returns - Travelers returned $496 million to shareholders in Q3 2024, including $253 million used for share repurchases [7] - A quarterly dividend of $1.05 per share was announced, payable on December 31, 2024 [7]