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Travelers Q4 Earnings Surpass Estimates on Higher Underwriting Gain
TRVTravelers(TRV) ZACKS·2025-01-22 17:36

Core Insights - Travelers Companies reported a strong fourth-quarter 2024 core income of 9.15pershare,exceedingestimatesby39.39.15 per share, exceeding estimates by 39.3% and improving 30.5% year over year [1] - The company's total revenues rose 10.4% year over year to 11.9 billion, driven by higher premiums and net investment income, beating estimates by 1% [2] - Net written premiums reached a record 10.7billion,up710.7 billion, up 7% year over year, with strong growth across all segments [2] Financial Performance - Net investment income increased 26% year over year to 955 million, attributed to higher average yield and growth in fixed maturity investments [3] - Catastrophe losses were reported at 175million,pre−tax,comparedto175 million, pre-tax, compared to 125 million in the previous year [3] - Travelers achieved an underwriting gain of 1.4billion,up30.51.4 billion, up 30.5% year over year, with a consolidated underlying combined ratio of 84, improving 190 basis points [4] Segment Analysis - Business Insurance segment saw net written premiums increase 9% year over year to approximately 5.4 billion, with a combined ratio improving to 85.2 [5] - Bond & Specialty Insurance segment reported net written premiums of 1billion,withacombinedratiodeterioratingto82.7[7]−PersonalInsurancesegment′snetwrittenpremiumsincreased71 billion, with a combined ratio deteriorating to 82.7 [7] - Personal Insurance segment's net written premiums increased 7% year over year to 4.3 billion, with a combined ratio improving to 80.7 [9] Full-Year Highlights - For the full year 2024, core income was reported at 21.58pershare,up64.321.58 per share, up 64.3% from 2023, exceeding estimates [11] - Net written premiums for the year increased 8% year over year to a record 43.3 billion [11] - The underwriting gain for the year was 2.4billion,morethandoublingyearoveryear,withacombinedratioof92.5,improving450basispoints[11]CapitalManagement−Travelersreturnedover2.4 billion, more than doubling year over year, with a combined ratio of 92.5, improving 450 basis points [11] Capital Management - Travelers returned over 2.1 billion of excess capital to shareholders through dividends and share repurchases in 2024 [13] - The company repurchased 1 million shares for 252millioninthefourthquarter,with252 million in the fourth quarter, with 5.04 billion remaining under its authorization [13] - A quarterly dividend of $1.05 per share was announced, payable on March 31, 2025 [14]