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Travelers Companies (NYSE:TRV) stock surged 4.1% in Friday premarket trading after the insurer’s Q4 earnings blew away Wall Street expectations, with both underwriting gains and the performance of its investments driving the beat.
Impressive Q4 Performance
Q4 core EPS of $7.01, vs. the average analyst estimate of $5.09, soared from $1.95 in Q3 and $3.40 in Q4 2022.
Q4 revenue of $10.9B, matching the Visible Alpha consensus, rose from $10.6B in the prior quarter and $9.6B in the year-ago period.
“Core income, earnings per share and return on equity were all record highs for the quarter, driven by both underwriting and investment results,” said Chairman and CEO Alan Schnitzer.
Catastrophe losses dropped to $125M pretax from $850M in the prior quarter and $459M a year ago.
Earned premium of $9.97B vs. $9.72B in Q3 and $8.82B in Q4 2022.
Robust Financial Indicators
Net investment income of $778M grew from $769M in the previous quarter and $625M a year ago.
Underlying combined ratio improved to 85.9% from 90.6% in Q3 and 91.4% in Q4 2022.
Return on equity of 29.0% vs. 7.7% in the prior quarter and 15.8% a year ago.
Adjusted book value per share grew to $122.90 at Dec. 31, 2023 from $115.78 at Sept. 30.
Positive Market Response
Conference call at 9:00 AM ET.
Earlier, Travelers Companies (TRV) non-GAAP EPS of $7.01 beats by $1.92, net written premiums of $9.99B beats by $40M
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