Insurer Travelers Co Q3 profit rises; reports higher catastrophe losses
Overview
Property casualty insurer's Q3 core EPS beat analyst expectations, revenue was flat yr/yr
Core income rose due to higher prior year reserve development and investment income
Company repurchased $1.5 bln of shares in Q3
Outlook
Travelers says it is well positioned to finish the year strong
Company sees momentum and innovation supporting outlook for 2027 and beyond
Result Drivers
PRIOR YEAR RESERVE DEVELOPMENT - Core income benefited from higher net favorable prior year reserve development across all segments
INVESTMENT INCOME - Record net investment income rose 6% in Q3, driven by higher yields and growth in average invested assets
CATASTROPHE LOSSES - Higher catastrophe losses, mainly from severe wind and hail storms, partially offset gains in core income
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $12.41 bln | ||
Q3 Core EPS | Beat | $9.18 | $7.42 (26 Analysts) |
Q3 EPS | $9.04 | ||
Q3 Net Income | $1.92 bln | ||
Q3 Combined Ratio | 86.80% | ||
Q3 Dividend | $1.25 | ||
Q3 Underlying Combined Ratio | 84.10% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 20 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for The Travelers Companies, Inc. is $352.00, about 8.3% below its October 15 closing price of $383.89
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Oct 14 - Progressive improves combined ratio to 90% in September
Oct 13 - Insured losses from Hurricane Isaias could reach $2 billion, Verisk says
Oct 15 - Industry Isaias estimates converge around low single-digit billion dollar insured loss
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)