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NEW YORK -On Wednesday, the Travelers Companies, Inc. (NYSE:TRV) reported better-than-expected first quarter earnings, as strong underlying results helped offset significant catastrophe losses from January’s California wildfires.
The insurance giant’s stock rose 3.34% following the report.
Travelers posted core earnings of $1.91 per share, handily beating analyst estimates of $0.81. Revenue grew 5% YoY to $11.81 billion, also topping expectations of $10.94 billion.
The company’s results were impacted by $2.27 billion in pre-tax catastrophe losses, primarily from the California wildfires. However, this was more than offset by a 32% increase in underlying underwriting income to $1.58 billion pre-tax.
"We are pleased to report a substantial profit for the quarter despite the devastating January California wildfires," said CEO Alan Schnitzer. He highlighted the company’s "outstanding underlying results" and strong net investment income.
Net written premiums rose 3% to $10.52 billion, with growth across all segments. The combined ratio deteriorated to 102.5% from 93.9% last year due to the catastrophe losses, but the underlying combined ratio improved 2.9 points to 84.8%.
Travelers also announced a 5% increase in its quarterly dividend to $1.10 per share. The company repurchased $358 million of its shares during the quarter.
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