Travelers (TRV) Reports Q1 Earnings: What Key Metrics Have to Say

Core Insights - Travelers reported revenue of $11.87 billion for Q1 2025, a 6.1% increase year-over-year, but fell short of the Zacks Consensus Estimate of $12.13 billion by -2.17% [1] - The company's EPS was $1.91, significantly lower than the $4.69 reported in the same quarter last year, but exceeded the consensus estimate of $0.64 by +198.44% [1] Financial Performance Metrics - The combined ratio was reported at 102.5%, better than the average estimate of 104.8% from nine analysts [4] - The loss and loss adjustment expense ratio was 74.2%, slightly better than the estimated 74.5% [4] - The underwriting expense ratio was 28.3%, outperforming the average estimate of 29.1% [4] - Net investment income totaled $930 million, compared to the average estimate of $952.18 million, reflecting a year-over-year increase of +9.9% [4] - Fee income reached $119 million, exceeding the average estimate of $114.73 million, with a year-over-year change of +9.2% [4] Premium Revenue Breakdown - Total premiums amounted to $10.71 billion, below the estimated $10.97 billion, representing a year-over-year increase of +5.8% [4] - Business Insurance premiums were $5.47 billion, compared to the estimated $5.56 billion, with a year-over-year change of +5.9% [4] - Personal Insurance premiums reached $4.25 billion, slightly below the estimated $4.34 billion, reflecting a +6% year-over-year change [4] - Bond & Specialty Insurance premiums were reported at $995 million, lower than the estimated $1.04 billion, with a year-over-year increase of +4.1% [4] - Other revenues from Personal Insurance were $24 million, below the average estimate of $26 million, indicating a year-over-year decline of -7.7% [4] Stock Performance - Shares of Travelers have returned -4.2% over the past month, mirroring the -4.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]