Total revenues for the quarter increased by 12.4% compared to the same period last year, reaching $11.3 billion. This growth was primarily driven by higher premiums, although it slightly missed the Zacks Consensus Estimate by 1%. Net written premiums climbed 8% year over year to a record level of $11.1 billion, with positive contributions from all segments. Net investment income also rose significantly, up 24.2% to $885 million, supported by strong fixed-income returns. However, the company incurred a catastrophe loss of $1.51 billion, higher than the previous year’s $1.18 million.
In terms of segment performance, Business Insurance saw a 7% increase in net written premiums to about $5.5 billion. Meanwhile, Bond & Specialty Insurance achieved an 8% uptick to $1 billion, although its combined ratio worsened. Personal Insurance also exceeded estimates, with net written premiums rising 9% to $4.5 billion. Overall, Travelers returned $498 million to shareholders through share buybacks and announced a dividend of $1.05 per share, expected to be paid out in September 2024. The company maintains a Zacks Rank of #3 (Hold), indicating a neutral outlook moving forward.
Article Source
