Travelers stock up 3.5% premarket after Q1 earnings blow past estimates
Travelers Cos. Inc.'s stock (TRV) jumped 3.5% in premarket trade Wednesday, after the insurer blew past earnings estimates for the first quarter. The company posted net income of $975 million, or $4.13 a share, for the period, compared with $1.018 billion, or $4.15 a share, in the year-earlier period. Adjusted per-share earnings came to $4.11, well ahead of the $3.56 FactSet consensus. Revenue rose 10% to $9.704 billion from $8.809 billion, also well ahead of the $9.340 billion FactSet consensus. Net written premiums rose 12% to $9.396 billion. The company's underlying combined ratio, a measure of overall profitability, stood at 90.6%. Chief Executive Alan Schnitzer said the company was especially pleased with the numbers given the high level of severe weather activity in the quarter, including a major winter storm. Catastrophe losses "were elevated" at $535 million pretax, but the company had an underwriting gain of $367 million. Its net investment income rose to $663 million from $637 million a year ago. Schnitzer aid the year was off to a "terrific start." The stock has fallen 8% in the year to date, while the Dow Jones Industrial Average has gained 2.5%.
-Ciara Linnane
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04-19-23 0716ET
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