NYSE$TRV

Travelers · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported net income of $600 million and core income of $676 million.

Travelers reported a decrease in net income to $600 million, primarily due to net realized investment losses and higher catastrophe losses, though these were partially offset by a higher underlying underwriting gain. COVID-19 related charges impacted underwriting gain. Net written premiums increased by 4%, and the company returned $681 million to shareholders through dividends and share repurchases.

  • Net income was $600 million, and core income was $676 million.
  • Catastrophe losses totaled $333 million pre-tax, up from $193 million in the prior year quarter.
  • COVID-19-related net charges of $86 million pre-tax were included in the underwriting gain.
  • Net written premiums increased by 4% to $7.346 billion, with growth in all segments.

Headline financials

Total Revenue

$7.91B

Previous: $7.67B+3.1%
EPS (adj)

$2.62

Previous: $2.83-7.4%
Combined Ratio

95.5%

No prior period
Underlying Combined Ratio

91.3%

No prior period
Free Cash Flow

$600M

Previous: $796M-24.6%
Net Income

$600M

Previous: $796M-24.6%
Operating Income

$800M

Previous: $1.05B-23.9%
Gross Profit

$1.94B

Previous: $2.11B-8.1%
Cash & Equivalents

$544M

Previous: $357M+52.4%
Total Assets

$109B

Previous: $107B+2.0%

Revenue & EPS history

Travelers · Revenue · Quarterly

$7.91B

Q1 2020+3.1%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Travelers · $7.35B total across 3 segments · Q1 2020

  • Business Insurance
    $4.19B
  • Personal Insurance
    $2.49B
  • Bond & Specialty Insurance
    $663M

Forward guidance

There are many uncertainties surrounding COVID-19’s impact on our global economy and on us, it has been in the most challenging circumstances that the strength of our AA-rated franchise and the value we provide to all of our stakeholders shine through.

Tailwinds

  • Balance sheet is extremely strong
  • Debt-to-capital ratio is comfortably within our target range
  • Holding company liquidity of $1.6 billion is well above our target level
  • Very high-quality investment portfolio
  • Have the talent, technology, risk management processes and procedures, and, importantly, financial strength to manage through these extraordinary times and to continue to deliver meaningful shareholder value over time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.1%

Avg return

30 days after

60%

44 / 73 earnings

Positive

+11.8%

Q3 2020

Best reaction

-6.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+0.7%+0.2%
Q4 2025+1.9%+4.5%+13.1%
Q3 2025-2.9%-0.0%+6.6%
Q2 2025-0.3%-0.2%+3.6%
Q1 2025+1.1%-0.0%+9.6%
Q4 2024+3.2%+5.0%+0.4%
Q3 2024+9.3%+6.7%+7.4%
Q2 2024-6.9%-5.8%-1.8%
Q1 2024-5.7%-4.0%-1.5%
Q4 2023+7.8%+6.4%+9.7%
Q3 2023-3.2%-6.0%+1.5%
Q2 2023+1.3%+0.9%-4.7%
Q1 2023+4.2%+4.1%+6.8%
Q4 2022+2.4%-4.4%-5.6%
Q3 2022+2.5%+7.8%+10.7%
Q2 2022-1.1%+1.7%+9.1%
Q1 2022-4.1%-6.5%-8.6%
Q4 2021+1.6%+5.3%+6.6%
Q3 2021+3.8%+6.2%+2.1%
Q2 2021+0.4%-2.2%+5.4%
Q1 2021+1.9%+2.2%+2.9%
Q4 2020+0.6%-0.9%+0.6%
Q3 2020+11.8%+12.6%+19.7%
Q2 2020-3.2%-5.9%-8.5%
Q1 2020+0.0%-0.9%-2.6%
Q4 2019-4.6%-4.9%-4.4%
Q3 2019-6.9%-8.1%-5.1%
Q2 2019-0.6%+0.1%-1.3%
Q1 2019+0.5%+1.6%+8.6%
Q4 2018-0.8%+0.8%+4.7%
Q3 2018-0.3%-2.1%+1.8%
Q2 2018-3.7%-4.0%+0.3%
Q1 2018-3.7%-2.9%-4.8%
Q4 2017+5.9%+7.2%-1.2%
Q3 2017+2.5%+2.4%-0.1%
Q2 2017-1.0%+0.8%+1.1%
Q1 2017-1.1%+0.8%+0.3%
Q4 2016-0.3%+0.1%+3.7%
Q3 2016-6.8%-6.2%-3.8%
Q2 2016+0.1%+0.5%+0.4%
Q1 2016-4.3%
Q4 2015-0.5%
Q3 2015+4.1%
Q2 2015+2.6%
Q1 2015-3.9%
Q4 2014+1.9%
Q3 2014+2.6%
Q2 2014-3.7%
Q1 2014+2.0%
Q4 2013-2.2%
Q3 2013-0.6%
Q2 2013-3.8%
Q1 2013+1.5%
Q4 2012+1.7%
Q3 2012+3.0%
Q2 2012-2.0%
Q1 2012+5.5%
Q4 2011+0.9%
Q3 2011+6.0%
Q2 2011+0.9%
Q1 2011+0.5%
Q4 2010+2.5%
Q4 2008+2.5%
Q4 2009+2.5%
Q3 2010+0.8%
Q2 2010+0.5%
Q1 2009-3.5%
Q1 2010-0.0%
Q3 2008+6.8%
Q3 2009+6.8%
Q4 2007+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro