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Travelers (TRV) Earnings Miss Estimates in Q2, Down Y/Y

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Have you been eager to see how The Travelers Companies, Inc. (TRV - Free Report) , one of the leading writers of auto and homeowners’ insurance, through independent agents, and that of commercial U.S. property-casualty insurance, performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York based company’s earnings release this morning.

An Earnings Miss

Travelers reported adjusted earnings per share of $1.81, missing the Zacks Consensus Estimate of $2.43.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Travelers depicted bearish stance prior to the earnings release. The Zacks Consensus Estimate moved down by a cent to $2.43 per share over the last 7 days.

Nonetheless, Travelers has a decent earnings surprise history.

Overall, the company surpassed the Zacks Consensus Estimate by an average of 38.9% in the trailing four quarters.

Revenues Came in Lower Than Expected

Travelers’ revenues of $7.29 billion improved 4.9% year over year. However, the reported missed the Zacks Consensus Estimate of $7.35 billion.

Key Takeaways

Net written premiums of $7.1 billion, up 7.4% year over year.

Underwriting profit came in at $90 million, which plunged nearly 48% from the year-ago quarter.

Combined ratio deteriorated 140 basis points to 98.1%.

Adjusted book value per share improved 2.7% year over year to $84.93 as on June 30, 2018.

Returned $559 million in capital to shareholders.

Quarterly dividend declared was 77 cents per share.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Travelers. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here

Check back later for our full write up on this Travelers earnings report later!

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