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Travelers (TRV) Reports Q3 Earnings: What Key Metrics Have to Say

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Travelers (TRV - Free Report) reported $10.7 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 13.9%. EPS of $1.95 for the same period compares to $2.20 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $10.5 billion, representing a surprise of +1.89%. The company delivered an EPS surprise of -33.45%, with the consensus EPS estimate being $2.93.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Loss and loss adjustment expense ratio - Consolidated: 73% versus 69.5% estimated by seven analysts on average.
  • Underwriting Expense Ratio - Consolidated: 28% versus 28.7% estimated by seven analysts on average.
  • Combined Ratio - Consolidated: 101% versus the seven-analyst average estimate of 98.1%.
  • Loss and loss adjustment expense ratio - Business Insurance: 70% versus the seven-analyst average estimate of 66.7%.
  • Total Revenues- Other Revenues: $101 million compared to the $91.73 million average estimate based on eight analysts. The reported number represents a change of +20.2% year over year.
  • Total Revenues- Net investment income: $769 million versus the eight-analyst average estimate of $723.92 million. The reported number represents a year-over-year change of +29.7%.
  • Total Revenues- Premiums: $9.72 billion versus the eight-analyst average estimate of $9.59 billion. The reported number represents a year-over-year change of +12.8%.
  • Total Revenues- Fee income: $112 million versus the seven-analyst average estimate of $108.79 million. The reported number represents a year-over-year change of +7.7%.
  • Revenues- Fee income- Business Insurance: $102 million compared to the $100.97 million average estimate based on six analysts. The reported number represents a change of +6.3% year over year.
  • Revenues- Premiums- Personal Insurance: $3.83 billion compared to the $3.76 billion average estimate based on six analysts. The reported number represents a change of +13.1% year over year.
  • Revenues- Net investment income- Business Insurance: $551 million versus the six-analyst average estimate of $516.65 million. The reported number represents a year-over-year change of +29.3%.
  • Revenues- Net investment income- Personal Insurance: $132 million versus the six-analyst average estimate of $128.18 million. The reported number represents a year-over-year change of +29.4%.
View all Key Company Metrics for Travelers here>>>

Shares of Travelers have returned +1.3% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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