Travelers' (TRV) Earnings Beat Estimates In Q4, Surge Y/Y
Zacks Investment Research | Jan 22, 2020 10:50PM ET
The Travelers Companies, Inc.’s (NYSE:TRV) fourth-quarter 2019 core income of $3.32 per share beat the Zacks Consensus Estimate of $3.23 by 2.8%. Moreover, the bottom line improved 55.9% year over year.
The quarter benefited from lower cat loss, better premiums and operational excellence.
Behind the Q4 Headlines
Travelers’ total revenues rose 4% from the year-ago quarter to $8 billion.
Net written premiums grew 6% year over year to a record $7.1 billion owing to strength in each of the business segments, namely Business and International Insurance, Bond & Specialty Insurance and Personal Insurance. This marks the 12th consecutive quarter of premium growth across all the business segments.
Net investment income dipped 2% year over year to $616 million.
Travelers’ underwriting gain of $513 million soared 280% year over year.
Combined ratio contracted 510 basis points (bps) year over year to 92.4%, attributable to lower cat loss. However, the same was partially offset by low net favorable prior-year reserve development and a higher underlying combined ratio.
At the end of the fourth quarter, statutory capital and surplus were $21.33 billion. Debt-to-capital ratio (excluding after-tax net unrealized investment gains) was 21.7%, within the company’s target range of 15-25%.
Adjusted book value per share was $92.76, up 6% from the 2018-end level.
Core return on equity was 14.8%, expanding 480 bps year over year.
The Travelers Companies, Inc. Price, Consensus and EPS Surprise
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