NYSE$TRV

Travelers · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported excellent results driven by strong underwriting and investment income.

Travelers reported a strong Q3 2024, marked by a significant increase in net income and core income. The company saw improvements in its combined ratio and underlying combined ratio, driven by strong underwriting profitability across all segments. Record net written premiums and net investment income also contributed to the positive results, allowing the company to return substantial capital to shareholders.

  • Net income per diluted share increased by 211% to $5.42, with a return on equity of 19.2%.
  • Core income per diluted share rose by 169% to $5.24, resulting in a core return on equity of 16.6%.
  • The consolidated combined ratio improved to 93.2%, driven by a strong underlying combined ratio of 85.6%.
  • Net written premiums reached a record $11.317 billion, up 8% year-over-year.

Headline financials

Total Revenue

$11.9B

Previous: $10.6B+11.9%
EPS

$5.42

Previous: $1.95+177.9%
Combined Ratio

93.2%

Previous: 101.0%-7.7%
Underlying Combined Ratio

85.6%

Previous: 90.6%-5.5%
Net Investment Income

$742M

No prior period
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$1.26B

Previous: $404M+211.9%
Net Income

$1.26B

Previous: $404M+211.9%
Operating Income

$1.66B

Previous: $570M+190.9%
Gross Profit

$3.12B

Previous: $1.88B+65.7%

Revenue & EPS history

Travelers · Revenue · Quarterly

$11.9B

Q3 2024+11.9%vs Q3 2023
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 for its business into 2025 and beyond, driven by its strong earnings power across underwriting and investments.

Tailwinds

  • Strong underlying profitability in all three segments.
  • Continued strong premium growth.
  • High-quality investment portfolio.
  • Effective management of capital.
  • Strategic investments in the business.

Headwinds

  • Potential for high levels of catastrophe losses.
  • Risk of actual claims exceeding reserves.
  • Exposure to asbestos and environmental claims.
  • Impact of economic downturn.
  • Cybersecurity risks.

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 2024

Historical avgQ3 2024

+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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