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Why Is Travelers (TRV) Down 0.1% Since Last Earnings Report?
TRVTravelers(TRV) ZACKS·2025-02-21 17:35

Core Insights - Travelers reported a strong Q4 2024 performance with core income of 9.15pershare,exceedingestimatesby39.39.15 per share, exceeding estimates by 39.3% and improving 30.5% year over year [2][9] - Total revenues increased by 10.4% year over year to 11.9 billion, driven by higher premiums and net investment income [3][9] - The company experienced a record net written premium of 10.7billion,reflectinga710.7 billion, reflecting a 7% year-over-year increase [3][9] Financial Performance - Net investment income rose 26% year over year to 955 million, surpassing estimates [4] - Catastrophe losses increased to 175million,comparedto175 million, compared to 125 million in the previous year [5] - The underwriting gain was 1.4billion,up30.51.4 billion, up 30.5% year over year, with a consolidated underlying combined ratio of 84, improving by 190 basis points [5] Segment Analysis - Business Insurance segment saw net written premiums increase by 9% to approximately 5.4 billion, with segment income rising 24.1% to 1.2 billion [6] - Bond & Specialty Insurance segment reported a 7% increase in net written premiums to 1 billion, but segment income decreased by 5% to 228million[7]−PersonalInsurancesegment′snetwrittenpremiumsincreasedby7228 million [7] - Personal Insurance segment's net written premiums increased by 7% to 4.3 billion, with segment income up 53% to 798million[8]Full−YearHighlights−For2024,coreincomereached798 million [8] Full-Year Highlights - For 2024, core income reached 21.58 per share, a 64.3% increase from 2023, and net written premiums hit a record 43.3billion[9]−Thecombinedratioimprovedto92.5,a450basispointenhancementyearoveryear[9]−Adjustedbookvaluepershareincreasedby1343.3 billion [9] - The combined ratio improved to 92.5, a 450 basis point enhancement year over year [9] - Adjusted book value per share increased by 13% to 139.04 [9] Capital Management - Travelers returned over 2.1billiontoshareholdersthroughdividendsandsharerepurchasesin2024,includingaquarterlydividendof2.1 billion to shareholders through dividends and share repurchases in 2024, including a quarterly dividend of 1.05 per share [10] - The company has $5.04 billion remaining under its share repurchase authorization [10] Market Outlook - Estimates for Travelers have trended downward recently, with a significant shift of -90.35% in consensus estimates [11] - The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [13]