Travelers Q1 EPS Jumps to $7.71 Led by $1.10B Underwriting Gain
Travelers posted Q1 EPS of $7.71, beating estimates by $0.64, driven by a $1.10B underwriting gain from $761M catastrophe losses and $833M investment income, though revenue was $10.34B versus $10.72B expected. Net written premiums hit $10.30B and $2.20B was returned to shareholders with dividend up 14% to $1.25.
1. Q1 Earnings and Underwriting Gain
Travelers delivered Q1 EPS of $7.71, topping consensus by $0.64, driven largely by an underwriting gain of $1.10 billion. Catastrophe losses declined to $761 million and after-tax net investment income rose to $833 million, bolstering overall profitability.
2. Premium Volumes and Revenue Miss
Total revenue came in at $10.34 billion, short of the $10.72 billion forecast, while net written premiums reached a record $10.30 billion. Growth in Business Insurance and Bond & Specialty segments was offset by a 5% decline in domestic Personal Insurance premiums as management sought to rebalance risk exposure.
3. Capital Return and Dividend Increase
The company returned $2.20 billion to shareholders, including $1.80 billion for repurchasing 6 million shares. The board approved a 14% increase in the quarterly cash dividend to $1.25 per share, marking the 22nd consecutive annual raise and underscoring commitment to investor returns.