Travelers Insurance $TRV.US EPS core up 13%, core profit up only 4%. The 9-point gap comes from buybacks, with diluted shares down 7%. This needs to be broken down.
Q3 total revenue was US$12.412 billion, roughly flat year over year. Core profit was US$1.947 billion, up 4%, and net income was US$1.917 billion, up 2%.
Underwriting is still profitable. Pretax underwriting profit was US$1.432 billion, and the combined ratio improved from 87.3% to 86.8%. But half of the improvement came from prior-year reserve development, which was favorable by US$234 million (US$22 million last year), while catastrophe losses rose from US$402 million to US$538 million. Excluding those items, the underlying combined ratio was 84.1%, still higher than last year’s 83.9%.
Net written premiums of US$11.48 billion were basically flat; excluding the sale of the Canada business, they rose 2%. Commercial insurance grew 3%, surety and specialty grew 12%, and personal insurance fell 7%.
Net investment income hit a record US$1.098 billion, up 6%. But book value per share was US$141.48, down 6% from year-end; excluding unrealized investment gains and losses, it was US$172.47, up 9%.
What I care about more are two things: whether the underlying combined ratio can stay around 84%, and whether underwriting can hold up after reserves come down.
The above is a summary of public information and does not constitute investment advice.
#旅行者保险 #BStocks #保险股
Q3 total revenue was US$12.412 billion, roughly flat year over year. Core profit was US$1.947 billion, up 4%, and net income was US$1.917 billion, up 2%.
Underwriting is still profitable. Pretax underwriting profit was US$1.432 billion, and the combined ratio improved from 87.3% to 86.8%. But half of the improvement came from prior-year reserve development, which was favorable by US$234 million (US$22 million last year), while catastrophe losses rose from US$402 million to US$538 million. Excluding those items, the underlying combined ratio was 84.1%, still higher than last year’s 83.9%.
Net written premiums of US$11.48 billion were basically flat; excluding the sale of the Canada business, they rose 2%. Commercial insurance grew 3%, surety and specialty grew 12%, and personal insurance fell 7%.
Net investment income hit a record US$1.098 billion, up 6%. But book value per share was US$141.48, down 6% from year-end; excluding unrealized investment gains and losses, it was US$172.47, up 9%.
What I care about more are two things: whether the underlying combined ratio can stay around 84%, and whether underwriting can hold up after reserves come down.
The above is a summary of public information and does not constitute investment advice.
#旅行者保险 #BStocks #保险股