TRV reports Q2 adjusted earnings of $10.04 per share, crushing estimates of $5.39, driven by reduced catastrophe losses and higher investment income.
Travelers Companies Inc (TRV) shares surged over 8% after reporting second-quarter adjusted core earnings of $10.04 per share, more than doubling the $5.39 estimate. Net income rose to $2.21 billion, or $10.26 per share, from $1.51 billion a year earlier.
The insurer’s combined ratio improved to 83.6% from 90.3% in the prior-year quarter, reflecting a drop in catastrophe losses to $518 million from $927 million. Net investment income climbed 14% to $883 million, while net written premiums remained steady at $11.53 billion.
Travelers returned $1.58 billion to shareholders, including $1.31 billion in share repurchases. Revenue reached $12.15 billion, slightly above the $12.12 billion reported a year ago.