Travelers Q4 Earnings Surpass Estimates on Higher Underwriting Gain

Core Insights - Travelers Companies reported a strong fourth-quarter 2024 core income of $9.15 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 $10.7 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 $175 million, pre-tax, compared to $125 million in the previous year [3] - Travelers achieved an underwriting gain of $1.4 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 $1 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 $21.58 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 $2.4 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 $252 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]