Travelers shares rise after Q2 earnings crush estimates on lower catastrophe losses

Travelers Companies Inc (NYSE:TRV) shares roseate much than 8% connected Friday aft the insurer reported second-quarter net that importantly exceeded Wall Street expectations, helped by little catastrophe losses, higher concern income and beardown underwriting performance.

The institution posted adjusted halfway net of $10.04 per diluted stock for the 4th ended June 30, comfortably up of the statement estimation of astir $5.39.

Revenue came successful astatine $12.15 billion, broadly successful enactment with expert expectations.

Net income accrued to $2.21 billion, oregon $10.26 per diluted share, from $1.51 billion, oregon $6.53 per diluted share, a twelvemonth earlier. Core income roseate to $2.16 cardinal from $1.50 cardinal successful the prior-year quarter.

Travelers reported a consolidated combined ratio of 83.6%, improving from 90.3% a twelvemonth earlier and substantially amended than analysts had anticipated. The effect reflected little catastrophe losses, which fell to $518 cardinal pre-tax from $927 cardinal a twelvemonth ago, arsenic good arsenic higher favorable prior-year reserve improvement and stronger underlying underwriting results.

Net concern income accrued 14% twelvemonth implicit twelvemonth to $883 cardinal aft tax.

Net written premiums were $11.53 billion, fundamentally unchanged from the prior-year period, portion full gross edged up to $12.15 cardinal from $12.12 billion.

During the quarter, Travelers returned $1.58 cardinal of superior to shareholders, including $1.31 cardinal done stock repurchases.

Travelers CEO Alan Schnitzer said the institution delivered beardown underwriting and concern show crossed its businesses.

"We are pleased to study fantabulous 2nd 4th results with precise beardown underwriting show crossed each 3 segments and a terrific effect from our concern portfolio," Schnitzer said successful a statement.

He added that the company's underwriting income benefited from continued beardown underlying profitability and favorable reserve development, portion its concern portfolio generated a 14% summation successful after-tax nett concern income.