On Wednesday, The Travelers Companies, Inc. (TRV) announced a notable rise in profit for the fourth quarter, driven by increased revenue. Both profit and revenue exceeded analysts' forecasts, leading to a more than 3% uptick in the company's shares during pre-market trading.
The Travelers reported a net income of $2.082 billion, translating to $8.96 per share, an increase from the $1.626 billion, or $6.99 per share, recorded in the comparable quarter last year. This improvement was largely attributable to higher underwriting gains, increased investment income, and a rise in prior year reserve development.
Excluding non-recurring items, core income advanced to $2.126 billion, or $9.15 per share, compared to $1.633 billion, or $7.01 per share, from the previous year.
Market expectations, as per the average of 19 analysts, had projected earnings of $6.61 per share. Notably, analysts' forecasts generally exclude special items.
Quarterly revenue experienced growth, reaching $12.008 billion as opposed to $10.927 billion from the prior year, surpassing the consensus estimate of $10.8 billion.
Net written premiums saw an increase of 7%, totaling $10.742 billion, with growth reported across all three business segments.
Net investment income surged to $955 million, up from $778 million a year prior, and underwriting gains climbed to $1.787 billion from last year's $1.375 billion.
On Tuesday, Travelers' stock had closed at $239.16, a slight decline of 0.15%. Over the past year, the stock has fluctuated between $200.21 and $269.56.
