Travelers (TRV) Up 4.2% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Travelers reported a mixed earnings performance for Q1 2024, with core income per share of $4.69, missing estimates due to higher catastrophe losses, but showing a year-over-year increase of 14.1% [2][4] Financial Performance - Total revenues increased by 15.3% year-over-year to $11.2 billion, driven by higher premiums, slightly beating estimates [3] - Net written premiums rose 8% year-over-year to approximately $10.2 billion, surpassing the estimate of $9.9 billion [3] - Net investment income grew by 27.6% year-over-year to $846 million, exceeding the estimate of $784 million [3] Catastrophe Losses and Underwriting - Catastrophe losses were reported at $712 million, up from $535 million in the previous year [4] - Underwriting gain increased by 57.3% year-over-year to $1.4 billion, attributed to higher business volumes [4] - The consolidated underlying combined ratio improved to 87.7, a 290 basis point improvement year-over-year [4] Segment Performance - Business Insurance net written premiums increased by 9% year-over-year to about $5.6 billion, beating the estimate of $5 billion [5] - Bond & Specialty Insurance net written premiums rose by 6% year-over-year to $943 million, below the estimate of $982.9 million [6] - Personal Insurance net written premiums increased by 9% year-over-year to $3.6 billion, below the estimate of $3.9 billion [7] Dividend and Share Repurchase - Travelers returned $620 million to shareholders in Q1 2023, including $388 million for share buybacks [8] - The quarterly dividend was increased by 5% to $1.05 per share, marking the 20th consecutive year of dividend increases [8] Market Outlook - Estimates for Travelers have trended upward over the past month, indicating a positive outlook [9][11] - The stock holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11]