Home News Traveler Stocks Hit an All-Time High: Here’s Why

Traveler Stocks Hit an All-Time High: Here’s Why

by SuperiorInvest

Key takeaways

  • Travelers Companies saw a 101% increase in core income as premiums and investment income increased while catastrophe insurance payouts decreased.
  • Personal insurance premiums increased by 13% due to higher rates for customers.
  • The news sent shares of The Travelers Companies to an all-time high.

Shares of The Travelers Companies (TRV) rose more than 4% to a record high in intraday trading on Friday after the insurance provider’s profits more than doubled due to a rise in premiums and investment income, and lower payments.

Travelers reported fourth-quarter core revenue soared 101% from a year earlier to $1.63 billion, or $7.01 per share. Revenue rose 13% to $10.93 billion. Both exceeded estimates. Return on equity increased from 13.8% to 29%. Core revenue, earnings per share and return on equity all hit record highs in the fourth quarter.

Written premiums increased 13% to $9.99 billion, commercial insurance premiums increased 14% and bond and specialty insurance premiums increased 7%. Personal insurance premiums rose 13%, driven by higher rates for customers.

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

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

Shares of Travelers rose 4.9% to $207.99 per share at approximately 12:35 p.m. ET on Friday. They have gained about 13% last year.

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