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Travelers (TRV) Q4 Earnings Surpass Estimates, 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 Q4 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 Beat

Travelers reported core income per share of $2.13, outpacing the Zacks Consensus Estimate of $1.98.

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 2.7% to $2.20 per share over the last 7 days.

Overall, the company missed the Zacks Consensus Estimate by an average of 2.9% in the trailing four quarters.

Revenues Came in Higher Than Expected

Travelers’ revenues of $7.8 billion improved 4.6% year over year. Also, the reported figure beat the Zacks Consensus Estimate of $7.7 billion.

Key Takeaways

Net written premiums of $6.7 billion, up 4.2% year over year.

Underwriting profit came in at $135 million, which plunged nearly 49.2% from the year-ago quarter.

Combined ratio deteriorated 200 basis points to 97.5%.

Adjusted book value per share improved 4.7% year over year to $87.27 as on Dec 31, 2018.

Returned $375 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 #4 (Sell) 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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