- Travelers beats earnings expectations in the fourth quarter.
- Revenue increases 20% compared to the same quarter in 2023.
- Underwriting margins expand and investment income soars.
- Market Soars as Netflix Earnings Boost NASDAQ.
The Travelers Companies (TRV) rose more than 6% in the morning session on Wednesday. The insurer’s stock price has taken a hit as one of the three major home insurers that has borne the brunt of the Los Angeles fires in recent weeks, making its fourth-quarter results released Wednesday a good respite
The Dow Jones Industrial Average (DJIA) rose more than 0.3% in the session that saw the NASDAQ soar 1.3% and the S&P 500 hit a new all-time high. Johnson & Johnson (JNJ)another Dow member like Travelers, fell 2.5% following dismal guidance for 2025. The market’s rally was largely due to earnings excitement from Netflix (NFLX) with the streamer’s shares exploding more than 12%.
Travelers Stock News
Profits exploded in the fourth quarter, which had none of the losses attributed to the Los Angeles fires that began in early January. Management said better underwriting margins and earnings in the investment portfolio contributed to the outperformance.
Net written premiums of $10.74 billion increased 7% from the prior year.
Adjusted earnings per share (EPS) of $9.15 beat the Wall Street consensus by $2.54. This represented a gain of almost 31% compared to the same period last year.
Likewise, fourth-quarter revenue of $12.01 billion was $1.21 billion above consensus. The revenue figure increased more than 20% compared to the previous year.
“Earned premiums and underwriting margins were strong in all three segments,” said Travelers CEO and President Alan Schnitzer.
Pre-tax net investment income rose 23% year over year, and Schnitzer boasted that the after-tax figure hit $785 million in the quarter.
The consolidated combined ratio improved by 2.6 percentage points year-on-year to 83.2%, and book value per share increased 13% year-over-year.
Catastrophe losses, particularly from Hurricane Milton in the fourth quarter, were surprisingly low at $175 million gross. This compares to $939 million a quarter earlier.
Travelers Stock Forecast
Travelers stock has recently faced resistance after meeting a double top pattern in October and November of last year. Both instances of that rally sold out at $269. Therefore, the downtrend that continued through much of December and January made sense.
After falling below the 100-day SMA, TRV stock found support near the resistance-turned-historical-support level at $232. Now, surrounding the $250 area, TRV needs to break above $269 again. Otherwise, you will face long-term consolidation.
TRV Stock Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
