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Travelers Stock Hit a Record High—Here’s Why

Key Takeaways

  • The Travelers Companies posted a 101% jump in core income as premiums and investment income rose while catastrophe insurance payments fell.
  • Personal insurance premiums surged 13% on higher rates for customers.
  • The news sent shares of The Travelers Companies to an all-time high.

Shares of The Travelers Companies (TRV) jumped over 4% to an all-time high in intraday trading Friday after the insurance provider’s profit more than doubled on an increase in premiums and investment income, and lower payouts.

Travelers reported fourth quarter core income soared 101% from a year ago to $1.63 billion, or $7.01 per share. Revenue was up 13% to $10.93 billion. Both exceeded estimates. Return on equity rose to 29% from 13.8%. Core income, earnings per share, and return on equity all reached record highs for the fourth quarter. 

Premiums written gained 13% to $9.99 billion, with business insurance premiums up 14%, and bond and specialty insurance premiums higher by 7%. Personal insurance premiums climbed 13%, boosted by higher rates for customers.

CEO Alan Schnitzer said the personal insurance business “is showing significantly improved profitability, and the outlook is for continued improvement.”

Investment income increased 24% to $778 million, and catastrophe losses net of reinsurance sank 73% to $125 million.

Travelers shares were up 4.9% at $207.99 per share as of about 12:35 p.m. ET Friday. They have gained about 13% in the past year.


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