- Travelers’ net premiums in 1Q were written at $10.18 billion, indicating a +8.4% y/y, which fell short of the estimated $10.37 billion.
- The company recorded core EPS of $4.69 as compared to $4.11 y/y, which was below the estimated $4.90.
- Revenue was $11.23 billion, a +16% y/y, slightly surpassing the estimated $11.19 billion.
- Adjusted book value per share stood at $125.53, up from $116.55 y/y, but slightly lower than the estimated $126.28.
- The net investment income was $846 million, an increase of +28% y/y, better than the estimated $814.3 million.
- The core return on equity (ROE) was 15.4%.
- The underlying combined ratio was recorded at 87.7% as compared to 90.6% y/y, better than the estimated 89.7%.
- Book value per share was $109.28, up from $99.80 y/y, quite shy of the estimated $111.84.
- There was a significant surge in catastrophe losses at $712 million, recording a +33% y/y increase, significantly higher than the estimated $475.4 million.
- There was a little favorable decrease in consolidated combined ratio at 93.9% vs. 95.4% y/y, albeit higher than the estimated 93.2%.
- Reserve development was reported at $91 million, indicating a -13% y/y, which is higher than the estimated -$81.7 million.
- The company’s scores stand at 10 buys, 14 holds, 3 sells according to analysts.
A look at Travelers Cos Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The long-term outlook for Travelers Cos looks promising based on the Smartkarma Smart Scores. With a solid momentum score of 5, the company is showing strong positive growth potential and market performance. This indicates that Travelers Cos is likely to continue its upward trajectory in the future, attracting investors seeking growth opportunities.
Additionally, Travelers Cos scores consistently across other factors such as value, dividend, growth, and resilience, all at a score of 3. This balanced performance across multiple key indicators suggests that the company is well-positioned to weather economic challenges and deliver sustainable returns to its shareholders over the long term.
### The Travelers Companies, Inc. provides commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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