NYSE$TRV

Travelers · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported net income of $404 million and core income of $454 million.

Travelers reported a decrease in net income to $404 million compared to the prior year, with core income also declining due to higher catastrophe losses and unfavorable prior year reserve development, though offset by higher underwriting gain and net investment income. Record net written premiums of $10.493 billion, up 14% over the prior year quarter, including growth in all three segments.

  • Excellent underlying underwriting income of $868 million pre-tax, up 43%.
  • Consolidated combined ratio of 101.0%; and underlying combined ratio of 90.6%, a 1.9 point improvement.
  • Record net written premiums of $10.493 billion, up 14% over the prior year quarter, including growth in all three segments.
  • Net investment income increased 30% pre-tax over the prior year quarter primarily due to strong fixed income returns.

Headline financials

Total Revenue

$10.6B

Previous: $9.3B+14.3%
EPS (adj)

$1.95

Previous: $2.20-11.4%
Combined Ratio

101.0%

Previous: 98.2%+2.9%
Underlying Combined Ratio

90.6%

Previous: 92.5%-2.1%
Free Cash Flow

$404M

Previous: $454M-11.0%
Net Income

$404M

Previous: $454M-11.0%
Operating Income

$570M

Previous: $616M-7.5%
Gross Profit

$1.88B

Previous: $1.81B+4.0%
Cash & Equivalents

$593M

Previous: $773M-23.3%
Total Assets

$121B

Previous: $114B+6.2%

Revenue & EPS history

Travelers · Revenue · Quarterly

$10.6B

Q3 2023+14.3%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Travelers · $10.5B total across 3 segments · Q3 2023

  • Business Insurance
    $5.08B+16.2%
  • Personal Insurance
    $4.41B+14.1%
  • Bond & Specialty Insurance
    $1B+4.0%

Forward guidance

Travelers is confident in its outlook, citing strong fundamentals in commercial businesses, improving results in personal insurance, and rising returns in the fixed income portfolio, alongside progress in innovation.

Tailwinds

  • Terrific fundamentals in commercial businesses.
  • Improving underlying results in personal insurance.
  • Achieving steadily rising returns in the growing fixed income portfolio.
  • Making excellent progress in the execution of the focused innovation agenda.
  • Confident in the outlook across the diversified business.

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 2023

Historical avgQ3 2023

+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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