Travelers Stock Sinks After It Misses Revenue and Premiums Estimates

The Travelers Companies (TRV) shares dropped successful intraday trading Friday arsenic nan large security supplier missed estimates for second-quarter income and nett premiums written.

The institution reported quarterly gross was up 12% to $11.28 billion, little than forecasts. Net written premiums roseate 8% to a grounds $11.12 billion, but that besides was beneath forecasts. Adjusted profit of $2.51 per stock was amended than expected.

Travelers said halfway income jumped to $585 cardinal from $15 cardinal a twelvemonth ago, chiefly because of “a higher underlying underwriting summation (i.e., excluding nett anterior twelvemonth reserve improvement and catastrophe losses), higher nett favorable anterior twelvemonth reserve improvement and higher nett finance income.”

'Severe Convective Storms' Lead To Higher Catastrophe Losses

However, catastrophe losses roseate to $1.51 cardinal from $1.48 cardinal successful 2023. The institution blamed that connected “severe convective storms.” Investment losses besides jumped to $65 cardinal from $35 million.

Shares of The Travelers Companies fell almost 7% to $205.77 arsenic of 11:45 a.m. ET Friday but stay up astir about 8% successful 2024.