Travelers shares fall 2% on Q1 earnings, revenue miss By biedexmarkets.com

NEW YORK – Shares of The Travelers Companies, Inc. (NYSE: NYSE:) fell 2.07% as the company reported first-quarter earnings and revenue that missed analyst expectations.

The insurance giant posted an adjusted EPS of $4.69, which was $0.18 below the consensus estimate of $4.87. The company’s earned premium for the quarter was $10.13 billion, also falling short of the expected $10.62 billion.

Travelers, known for providing a range of property casualty insurance products, experienced a quarter that included an elevated level of catastrophe losses amounting to $712 million pre-tax, compared to $535 million pre-tax in the prior year quarter. Despite these losses, the company achieved a consolidated combined ratio of 93.9%, marking a 1.5 point improvement, and an outstanding underlying combined ratio of 87.7%, which improved by 2.9 points.

The company’s net written premiums showed an 8% increase compared to the prior year quarter, with growth across all three segments. The Board of Directors declared a 5% increase in the regular quarterly cash dividend to $1.05 per share, reflecting confidence in the company’s financial position and future business outlook.

Chairman and CEO Alan Schnitzer commented on the results, stating, “We are very pleased to report excellent top- and bottom-line results for the first quarter. Core income for the quarter was $1.1 billion, or $4.69 per diluted share, generating a core return on equity of 15.4%.” He attributed the strong core income to record net earned premiums and an excellent combined ratio, despite the higher catastrophe activity.

Looking ahead, Travelers’ management remains optimistic about the company’s strategic initiatives and the ability to deliver superior returns with industry-low volatility. With a focus on innovation and investing in strategic initiatives, the company is well-positioned for success in the current year and beyond.

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