New York based The Travelers Companies, Inc. TRV is one of the leading writer of auto and homeowners’ insurance through independent agents as well as writer of commercial U.S. property-casualty insurance.
Travelers’ impressive inorganic growth story bodes well for long-term growth. While its prudent acquisitions help to expand in the attractive and growing market place outside the United States as well, the same bear testimony of its solid capital and liquid position.
Travelers’ focus on reducing operating expenses and acquisition costs in order to improve underwriting margins bodes well for to have more competitively priced product in its portfolio. However, exposure to catastrophe loss always remains a concern as occurrence of any dent underwriting results.
Currently, Travelers has a Zacks Rank #2 (Buy), but that could definitely change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Bottom Line Missed Expectation
Travelers missed earnings. Our consensus called for EPS of $2.57 per share, and the company reported EPS of $2.33 per share, declining 8% year over year. The underperformance stemmed from catastrophe losses.
Revenues Beat
Revenues of $6.7 billion outperformed the Zacks Consensus Estimate of $6.6 billion.
Key Stats to Note
• Net written premiums of $6.2 billion, up 5% year over year.
• Underwriting gains decreased 31% to $428 million.
• Combined ratio deteriorated by 340 basis points to 92.3%.
• Adjusted book value per share improved 7% to $73.63 as on Mar 31, 2016.
• Returned $790 million in capital to shareholders.
• Ups dividend by 10%
Check back later for our full write up on this Travelers earnings report later!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
TRAVELERS COS (TRV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research