Travelers stock gains after profit misses expectations on higher catastrophe losses but revenue beats

Shares of Travelers Companies Inc. (TRV) edged 0.4% higher in premarket trading Wednesday, after the insurer reported third-quarter profit that missed expectations on higher catastrophe losses, while revenue rose above forecasts. Net income fell to $404 million, or $1.74 a share, from $454 million, or $1.89 a share, in the year-ago period. Excluding nonrecurring items, core earnings per share of $1.95 missed the FactSet consensus of $2.99. Catastrophe losses swelled by 66% to $850 million, amid "numerous severe wind and hail storms in multiple states," and the combined ratio increased to 101.0% from 98.2%. Total revenue grew 14.3% to $10.64 billion, above the FactSet consensus of $10.50 billion, as net written premiums increased 14.1% to $10.49 billion to beat expectations of $9.64 billion. The stock has slipped 1% over the past three months through Tuesday, while the Dow Jones Industrial Average has lost 2.7%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-18-23 0708ET

Copyright (c) 2023 Dow Jones & Company, Inc.