Travelers Stock Sinks After It Misses Revenue and Premiums Estimates
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Key TakeawaysThe Travelers Companies reported a gain in second-quarter revenue and net premiums written, but they both fell short of estimates and shares declined Friday.The big insurer also saw catastrophe losses rise by $30 million because of what it called "severe convective storms."Adjusted profit was higher than forecasts.
The Travelers Companies (TRV) shares dropped in intraday trading Friday as the big insurance provider missed estimates for second-quarter sales and net premiums written.The company reported quarterly revenue was up 12% to $11.28 billion, less than forecasts. Net written premiums rose 8% to a record $11.12 billion, but that also was below forecasts. Adjusted profit of $2.51 per share was better than expected.Travelers said core income jumped to $585 million from $15 million a year ago, primarily because of “a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net favorable prior year reserve development and higher net investment income.”'Severe Convective Storms' Lead To Higher Catastrophe LossesHowever, catastrophe losses rose to $1.51 billion from $1.48 billion in 2023. The company blamed that on “severe convective storms.” Investment losses also jumped to $65 million from $35 million.Shares of The Travelers Companies fell almost 7% to $205.77 as of 11:45 a.m. ET Friday but remain up about nearly 8% in 2024. Read the original article on Investopedia.
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