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TRV Q1 core income jumped fourfold, beating estimates on lower cat losses and higher investment income.
Net written premiums hit a record $10.3B, driven by Business and Bond & Specialty Insurance growth.
Underwriting swung to a $1.1B gain as catastrophe losses fell sharply from last year's $2.3B loss.
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2025 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year.
The increase was primarily due to lower catastrophe losses and higher net investment income. The quarterly results reflected higher premiums across the Business Insurance and Bond & Specialty Insurance segments and higher segment income across all the segments.
The Travelers Companies, Inc. Price, Consensus and EPS Surprise
Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments.
Net investment income increased 8.4% year over year to $1 billion, primarily due to the long-term fixed income investment portfolio, which benefited from a higher yield and growth in average invested assets. The figure matched the Zacks Consensus Estimate.
Catastrophe loss was $761 million, pre-tax, narrower than a loss of $2.3 billion, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting gain of $1.1 billion against a $305 million loss in the year-ago quarter.
Pre-tax underlying underwriting income of $1.5 billion declined 3.9% year over year.
The consolidated underlying combined ratio of 85.3 deteriorated 50 basis points (bps) year over year. The combined ratio improved 1,390 bps year over year to 88.6 due to higher catastrophe losses. The Zacks Consensus Estimate was pegged at 91.
Segment Update
Business Insurance: Net written premiums increased 2% year over year to about $5.8 billion, reflecting strong renewal premium change, record new business and retention.
The combined ratio improved 240 bps year over year to 93.8 due to lower catastrophe losses and higher net favorable prior year reserve development, partially offset by a higher underlying combined ratio. The Zacks Consensus Estimate was pegged at 93.
Segment income of $839 million increased 22.8% year over year due to lower catastrophe losses and higher net favorable prior year reserve development.
Bond & Specialty Insurance: Net written premiums increased 7% year over year to $1 billion, reflecting production growth in both surety and management liability.
The combined ratio deteriorated 80 bps year over year to 83.3 due to a higher underlying combined ratio and lower net favorable prior year reserve development, partially offset by lower catastrophe losses. The Zacks Consensus Estimate was pegged at 85.
Segment income of $254 million increased 15.5% year over year due to a higher underlying underwriting gain, higher net investment income and lower catastrophe losses. The underlying underwriting gain benefited from a non-recurring tax item and higher business volumes.
Personal Insurance: Net written premiums of $3.5 billion decreased 9% year over year, reflecting solid retention and positive renewal premium change in both Auto and Homeowners.
The combined ratio improved 3,220 bps year over year to 82.9 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 89.
Segment income was $704 million against a loss of $374 million in the year-ago quarter. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income. It was partially offset by lower net favorable prior year reserve development.
Financial Update
The debt of $9.26 billion remained flat from the end of 2025.
Operating cash flow was $2.20 billion.
Core return on equity expanded 1,410 basis points to 19.7%.
Adjusted book value was $161.60 per share, which increased 2.3% from Dec. 31, 2025.
Dividend and Share Repurchase Update
This property and casualty insurer returned more than $2.2 billion of excess capital to shareholders through dividends and share repurchases. It bought back 6 million shares for $$1.8 billion in the first quarter. As of March 31, 2026, TRV had $5.21 billion remaining under its authorization.
The board of directors declared a 14% increase in quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend increases at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10, 2026.
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
Upcoming Releases
RLI Corp. (RLI - Free Report) is slated to report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 85 cents, suggesting a decrease of 7.6% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in each of the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.13, suggesting an increase of 11.8% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while missing in one.
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Travelers Q1 Earnings Beat, Revenues Miss, Dividend Raised
Key Takeaways
The Travelers Companies, Inc. (TRV - Free Report) reported first-quarter 2025 core income of $7.71 per share, which beat the Zacks Consensus Estimate by 10.5%. The bottom line surged fourfold year over year.
The increase was primarily due to lower catastrophe losses and higher net investment income. The quarterly results reflected higher premiums across the Business Insurance and Bond & Specialty Insurance segments and higher segment income across all the segments.
The Travelers Companies, Inc. Price, Consensus and EPS Surprise
The Travelers Companies, Inc. price-consensus-eps-surprise-chart | The Travelers Companies, Inc. Quote
Behind Q1 Headlines
Travelers’ total revenues remain flat from the year-ago quarter to $11.9 billion. The top-line figure, however, missed the Zacks Consensus Estimate by 3.7%.
Net written premiums increased 2% year over year to a record $10.3 billion, driven by strong growth across Business Insurance and Bond & Specialty Insurance segments.
Net investment income increased 8.4% year over year to $1 billion, primarily due to the long-term fixed income investment portfolio, which benefited from a higher yield and growth in average invested assets. The figure matched the Zacks Consensus Estimate.
Catastrophe loss was $761 million, pre-tax, narrower than a loss of $2.3 billion, pre-tax, incurred in the year-ago quarter. Travelers witnessed an underwriting gain of $1.1 billion against a $305 million loss in the year-ago quarter.
Pre-tax underlying underwriting income of $1.5 billion declined 3.9% year over year.
The consolidated underlying combined ratio of 85.3 deteriorated 50 basis points (bps) year over year. The combined ratio improved 1,390 bps year over year to 88.6 due to higher catastrophe losses. The Zacks Consensus Estimate was pegged at 91.
Segment Update
Business Insurance: Net written premiums increased 2% year over year to about $5.8 billion, reflecting strong renewal premium change, record new business and retention.
The combined ratio improved 240 bps year over year to 93.8 due to lower catastrophe losses and higher net favorable prior year reserve development, partially offset by a higher underlying combined ratio. The Zacks Consensus Estimate was pegged at 93.
Segment income of $839 million increased 22.8% year over year due to lower catastrophe losses and higher net favorable prior year reserve development.
Bond & Specialty Insurance: Net written premiums increased 7% year over year to $1 billion, reflecting production growth in both surety and management liability.
The combined ratio deteriorated 80 bps year over year to 83.3 due to a higher underlying combined ratio and lower net favorable prior year reserve development, partially offset by lower catastrophe losses. The Zacks Consensus Estimate was pegged at 85.
Segment income of $254 million increased 15.5% year over year due to a higher underlying underwriting gain, higher net investment income and lower catastrophe losses. The underlying underwriting gain benefited from a non-recurring tax item and higher business volumes.
Personal Insurance: Net written premiums of $3.5 billion decreased 9% year over year, reflecting solid retention and positive renewal premium change in both Auto and Homeowners.
The combined ratio improved 3,220 bps year over year to 82.9 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 89.
Segment income was $704 million against a loss of $374 million in the year-ago quarter. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income. It was partially offset by lower net favorable prior year reserve development.
Financial Update
The debt of $9.26 billion remained flat from the end of 2025.
Operating cash flow was $2.20 billion.
Core return on equity expanded 1,410 basis points to 19.7%.
Adjusted book value was $161.60 per share, which increased 2.3% from Dec. 31, 2025.
Dividend and Share Repurchase Update
This property and casualty insurer returned more than $2.2 billion of excess capital to shareholders through dividends and share repurchases. It bought back 6 million shares for $$1.8 billion in the first quarter. As of March 31, 2026, TRV had $5.21 billion remaining under its authorization.
The board of directors declared a 14% increase in quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend increases at a compound annual growth rate of 8% over that period. The dividend will be paid out on June 30, 2026, to shareholders of record as of June 10, 2026.
Zacks Rank
TRV currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Another P&C Insurer
The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year. Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%. Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. The top line missed the Zacks Consensus Estimate by 1.2%.
Upcoming Releases
RLI Corp. (RLI - Free Report) is slated to report first-quarter 2025 results on April 22, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 85 cents, suggesting a decrease of 7.6% from the year-ago quarter’s reported figure.
RLI’s earnings beat estimates in each of the last four reported quarters.
W.R. Berkley Corporation (WRB - Free Report) is set to report first-quarter 2025 results on April 21, after market close. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.13, suggesting an increase of 11.8% from the year-ago quarter’s reported figure.
WRB’s earnings beat estimates in three of the last four quarters, while missing in one.