Travelers Delivers Strong Q3 Results


Shares of Travelers Companies (TRV) gained 1.6% in extended trade on Tuesday after the company reported better-than-expected results for the third quarter of 2021. The company provides commercial and personal property, and casualty insurance products and services.

Travelers’ adjusted earnings of $2.60 per share surpassed the Street’s expectations of $2.45 per share. The company had reported earnings of $3.12 per share in the same quarter last year.

Revenue climbed 6% year-over-year to $8.81 billion, beating the analyst’s expectations of $8.22 billion. The upside can be attributed to higher net premiums written in Business, Bond & Specialty and Personal Insurance segments during the quarter. (See Travelers stock charts on TipRanks)

Catastrophe losses of $501 million were reported in the third quarter due to Hurricane Ida and severe storms in several regions of the United States.

The Chairman and CEO of Travelers, Alan Schnitzer, said, “We continue to make investments consistent with those priorities in everything from talent to technology. With our significant and hard to replicate competitive advantages and the best team in the industry, we are well positioned to continue to deliver meaningful shareholder value over time.” (See Top Smart Score Stocks on TipRanks)

Following the release, Wells Fargo analyst Elyse Greenspan assigned a Hold rating to the stock and raised the price target to $161 from $159 (3.6% upside potential).

Greenspan noted, “We have lowered our Q4 2021 cat load, as TRV should be able to get recoveries on most of its losses under its aggregate reinsurance cover (which has $255 million remaining)… TRV got a lift from earnings coming in above expectations and the better-than-expected underlying margin within Business Insurance in the quarter.”

Based on 1 Buy, 5 Holds and 2 Sells, the stock has a Hold consensus rating. The average Travelers price target of $165.71 implies 6.6% upside potential from current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Travelers, with 5% of investors on TipRanks increasing their exposure to TRV stock over the past 30 days.

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