NYSE$TRV

Travelers · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported net income per diluted share of $3.23 and core income per diluted share of $3.12, both up substantially from prior year quarter.

Travelers Companies reported a strong third quarter with net income of $827 million and core income of $798 million. The consolidated combined ratio improved to 94.9%, and net written premiums increased by 3% to $7.771 billion.

  • Net income was $827 million and core income was $798 million.
  • The consolidated combined ratio improved 6.6 points to 94.9%, with the underlying combined ratio improving 2.6 points to 91.5%.
  • Net written premiums increased 3% to $7.771 billion.
  • Capital returned to shareholders was $218 million, with no share repurchases in the current quarter.

Headline financials

Total Revenue

$8.28B

Previous: $8.01B+3.3%
EPS (adj)

$3.12

Previous: $1.43+118.2%
Combined Ratio

94.9%

No prior period
Underlying Combined Ratio

91.5%

No prior period
Free Cash Flow

$827M

Previous: $396M+108.8%
Net Income

$827M

Previous: $396M+108.8%
Operating Income

$1.07B

Previous: $512M+108.8%
Gross Profit

$2.18B

Previous: $1.61B+35.2%
Cash & Equivalents

$583M

Previous: $508M+14.8%
Total Assets

$116B

Previous: $110B+5.6%

Revenue & EPS history

Travelers · Revenue · Quarterly

$8.28B

Q3 2020+3.3%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Travelers · $7.77B total across 3 segments · Q3 2020

  • Business Insurance
    $3.83B-1.4%
  • Personal Insurance
    $3.18B+7.9%
  • Bond & Specialty Insurance
    $754M+3.6%

Forward guidance

Travelers is actively pursuing its innovation agenda and investing in its strategic priorities to extend its lead in risk expertise, provide best-in-class experiences to its customers and distribution partners, and improve productivity and efficiency.

Tailwinds

  • Strong renewal rate change in all three segments.
  • Record renewal rate change in Business Insurance and Bond & Specialty Insurance.
  • High-quality investment portfolio performed well.
  • Net written premiums in the quarter were up nearly 3%.
  • Strong retention across all businesses.

Headwinds

  • Catastrophe losses were well above the 10-year average for the third quarter.
  • COVID-19 and related economic conditions are creating ongoing challenges.
  • Modest reduction in exposures impacted by COVID-19.
  • Higher loss estimates for management liability coverages due to COVID-19.
  • Income from the fixed income investment portfolio decreased due to lower interest rates.

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 Q3 2020

Historical avgQ3 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%

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