Travelers Reports Disappointing Q3 Earnings

By John Heerdink LinkedIn

Dow 30 component, The Travelers Companies, Inc. (TRV) is an insurance provider of property-casualty insurance for home, auto, and business. Travelers reported weak Q3 earnings ending Sep 30 this morning prior to the open. The insurer reported earnings of $1.43/share, below Wall Street’s estimate of $2.35 per share. Net income of $396 million and core income of $378 million was reported. The Board of Directors declared a quarterly dividend per share of $0.82 and Return on Equity of 6.2% was declared. Reportedly, earnings suffered significantly due to the company’s more than $290 million in reserves for lawsuits including $220 million asbestos charge.

Alan Schnitzer, Chairman, and Chief Executive Officer stated “Despite the impacts of an increasingly challenging tort environment facing our industry and higher non-catastrophe weather-related losses, our underlying underwriting results were solid, benefiting from 4% growth in earned premiums and continued disciplined and thoughtful expense management. Earnings this quarter were impacted by net unfavorable reserve development in Business Insurance. While workers’ compensation reserves continued to develop favorably, asbestos reserves developed in an amount comparable to the prior-year quarter and general liability and commercial auto reserves developed unfavorably primarily due to the more challenging tort environment. Our high-quality investment portfolio performed well, generating a net investment income of $528 million after-tax. In terms of capital management, we returned $590 million of excess capital to our shareholders this quarter, including $375 million through share repurchases, bringing the total capital returned to shareholders so far this year to more than $1.8 billion”.

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.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Travelers Reports Third Quarter 2019 Net Income per Diluted Share of $1.50 and Return on Equity of 6.2% in Business Wire)


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