Travelers (TRV) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Insights - Travelers (TRV) reported $12.11 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 6.7% and an EPS of $6.51 compared to $2.51 a year ago, indicating strong earnings growth [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $12.2 billion, resulting in a revenue surprise of -0.78%, while the EPS exceeded expectations with a surprise of +83.9% against a consensus estimate of $3.54 [1] Financial Performance Metrics - The combined ratio was reported at 90.3%, significantly better than the estimated 99.1% by analysts [4] - The loss and loss adjustment expense ratio was 61.7%, outperforming the average estimate of 70.1% [4] - The underwriting expense ratio was 28.6%, slightly better than the estimated 29.1% [4] - Net investment income totaled $942 million, exceeding the estimate of $936.44 million, reflecting a year-over-year increase of 6.4% [4] - Fee income reached $124 million, surpassing the average estimate of $119.98 million, with a year-over-year change of +7.8% [4] - Premium revenues amounted to $10.92 billion, slightly below the estimate of $11.04 billion, but still showing a year-over-year increase of 6.6% [4] - Other revenues were reported at $123 million, exceeding the estimate of $109.38 million, representing a year-over-year increase of 17.1% [4] Segment Performance - Premium revenues from Business Insurance were $5.55 billion, slightly below the estimate of $5.57 billion, with a year-over-year change of +7.3% [4] - Premium revenues from Personal Insurance totaled $4.36 billion, slightly below the estimate of $4.4 billion, reflecting a year-over-year increase of 6.3% [4] - Premium revenues from Bond & Specialty Insurance were reported at $1.02 billion, below the estimate of $1.06 billion, with a year-over-year change of +4.5% [4] - Other revenues from Personal Insurance were $23 million, slightly below the estimate of $24.27 million, with a year-over-year increase of 4.6% [4] Stock Performance - Shares of Travelers have returned -4.8% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]