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Travelers (TRV) Q3 Earnings Beat on Higher Revenues

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New York based The Travelers Companies, Inc. (TRV - Free Report) is one of the leading writer of auto and homeowners’ insurance through independent agents as well as writer of commercial U.S. property-casualty insurance.

Travelers’ impressive inorganic growth story bodes well for long-term growth. While its prudent acquisitions help to expand in the attractive and growing market place outside the United States as well, the same bear testimony of its solid capital and liquid position.

Travelers’ focus on reducing operating expenses and acquisition costs in order to improve underwriting margins bodes well for to have more competitively priced product in its portfolio. However, exposure to catastrophe loss always remains a concern as occurrence of any dent underwriting results.

Currently, Travelers has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below. (You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)

Bottom Line Beat Expectation

Travelers beat earnings. Our consensus called for EPS of $2.37 per share, and the company reported EPS of $2.40 per share. However, bottomline deteriorated 18.1% year over year.

Revenues Beat

Revenues of $6.96 billion outperformed the Zacks Consensus Estimate of $6.73 billion.

Key Stats to Note

•   Net written premiums of $6.4 billion, up 3.2% year over year.
•   Underwriting gains plunged 46.2% to $408 million.
•   Combined ratio deteriorated by 600 basis points to 92.9%.
•   Adjusted book value per share improved 6% year over year to $78.82 as on Sep 30,  2016
•   Returned $755 million in capital to shareholders.

TRAVELERS COS Price and EPS Surprise

TRAVELERS COS Price and EPS Surprise | TRAVELERS COS Quote

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

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