Core Insights - Travelers Companies Inc. reported third-quarter earnings that significantly surpassed analyst expectations, driven by lower catastrophe losses and increased investment income [1][2] - Despite strong earnings, shares declined approximately 3% due to concerns over asbestos-related charges [1] Financial Performance - Adjusted earnings reached $8.14 per share, exceeding the consensus estimate of $6.15 [2] - Revenue increased to $12.47 billion, surpassing expectations of $11.75 billion [2] - The consolidated combined ratio improved by 5.9 points year-over-year to 87.3% [2] Losses and Charges - Catastrophe losses dropped sharply to $402 million pre-tax from $939 million a year ago [3] - After-tax investment income rose by 15% to $850 million [3] - Travelers recorded a $277 million charge related to its annual asbestos reserve review, impacting the Business Insurance segment [3] Premiums and Shareholder Returns - Net written premiums increased by 1% to $11.47 billion, with Business Insurance premiums up 3% to $5.67 billion [4] - The underlying combined ratio, excluding catastrophes and reserve adjustments, improved by 1.7 points to 83.9% [4] - The company returned nearly $900 million to shareholders, including $628 million in buybacks [4] - Book value per share rose by 16% year-over-year to $141.72 [4] Market Sentiment - Analysts noted that the strong operational performance was tempered by investor concerns regarding long-term asbestos exposure risks [4]