Travelers Q4 earnings hurt by catastrophe losses, lower underwriting gain
Travelers (NYSE:TRV) Q4 earnings dropped from a year ago due to higher catastrophe losses, lower underwriting gain, and lower net investment gains from the year-ago period, the company said Tuesday. The insurer had pre-announced Q4 core EPS of $3.40 last week, in line with consensus.
Revenue, though, increased from both the previous quarter and a year ago. Q4 total revenue of $9.64B, beating the $8.78B consensus, rose from $9.30B in Q3 and from $9.01B in the year-ago quarter.
Travelers (TRV) stock rose 0.6% in Tuesday premarket trading.
Net written premiums of $8.83B dropped from $9.20B in the prior quarter and increased from $8.00B in the year-ago quarter. On a Y/Y basis, business insurance NWP rose 11% Y/Y to $4.4B, bond and specialty insurance NWP rose 5%, and personal insurance NWP climbed 13%.
Core income of $810M vs. $526M in Q3 and $1.29B in Q4 2021. Q4 underwriting gain of $354M rebounded from $90M in the prior quarter and dropped from $729M in the year-ago period.
Net investment income of $625M vs. $593M in the prior quarter and $743M in the year-ago period.
Underlying combined ratio of 91.4% vs. 92.5% in Q3 and 88.7% in the year-ago quarter.
Core return on equity rose to 12.3% from 7.9% in the prior quarter and dropped from 19.8% in the year-ago quarter.
Adjusted book value per share was $114.00 at Dec. 31, 2022 vs. $111.90 at Sept. 30.
Earlier, The Travelers Companies (TRV) Q4 revenue beats, catastrophe losses impact profit.