Travelers to Report Q4 Earnings: Is a Beat in the Cards?

Core Viewpoint - Travelers Companies, Inc. is expected to report fourth-quarter 2024 earnings on January 22, with a history of earnings beats in three of the last four quarters, indicating a positive outlook for the upcoming report [1] Factors to Consider - Improved performance across all three segments is anticipated to enhance Travelers' fourth-quarter results, with premiums expected to reach $10.8 billion, reflecting an 8.3$884.5 million, a 13% increase from the previous year [3] Segment Performance - The Personal Insurance segment is projected to benefit from strong renewal pricing, with earned premiums estimated at $4.2 billion, a 4.7$1 billion, indicating a 7.2% increase from the prior year [5] - Business Insurance is likely to report earned premiums of $5.6 billion, reflecting an 11.4$11.9 billion, a 9.1% increase from the previous year [7] - Improved underwriting profitability is anticipated, with a combined ratio estimated at 89, showing a 300 basis points improvement year-over-year, despite losses from Hurricane Milton [8] Expenses and Earnings - Total expenses are projected to rise by 14.4% to $10.2 billion due to higher claims and administrative costs [9] - The Zacks Consensus Estimate for earnings per share is$6.53, indicating a decrease of 6.9% from the year-ago figure [10] Earnings Prediction - The model predicts an earnings beat for Travelers, supported by a positive Earnings ESP of +8.12% and a Zacks Rank of 2 (Buy) [12][13]