Reportedly, The Travelers Companies, Inc. (TRV) released strong Q2 profit figures driven by higher premiums, the surge in returns from investments, and lower catastrophe losses beating analysts’ average earnings per share forecast by more than $1.00, or about 44%.
Travelers’ pre-tax net investment income tripled to $818 million, as higher returns on its non-fixed income investments countered weakness in the mainstay fixed-income assets that have struggled due to record-low interest rates. Net written premiums, a measure of its revenue, increased 11% to $8.14 billion. Adjusted, or core, income totaled $879 million, or $3.45 per share, for the quarter ending June 30, ahead of $2.39 analysts’ estimates.
The company reported underwriting gains of $324 million for the quarter, compared with a loss of $280 million a year ago. Catastrophe losses dropped to $475 million in the latest quarter from $854 million a year ago. Total revenues increased 17% to $8.69 billion.
The New York-based company suggested strong profitability would continue, as its ability to raise prices in commercial lines would exceed the rise in losses, or payouts, for the months ahead.
The bouncing back of economies and the rollout of COVID-19 vaccinations has provided some respite to insurers, helping Travelers retain customers and grow its auto and homeowners-focused businesses.
Dow 30 component, The Travelers Companies, Inc. (TRV) is an insurance provider of property-casualty insurance for home, auto, and business. To learn more about The Travelers Companies, Inc. (TRV) and to continue to track its progress please visit the Vista Partners Travelers Companies, Inc. Coverage Page.
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