Travelers says its profit climbed to £960 million in Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Jan 21, 2021
  • Travelers says its profit climbed to £960 million in Q4.
  • The insurance firm's net written premiums jump 3%.
  • Travelers reports £3.58 of core income per share.

The Travelers Companies Inc. (NYSE: TRV) said on Thursday that its profit came in better than expected in the fiscal fourth quarter. The New York-based firm also reported a modest increase in its Q4 net written premiums.

In separate news from the United States, United Airlines said on late on Wednesday that it concluded its fiscal fourth quarter with £1.39 billion of loss, as the COVID-19 crisis continued to wreak havoc on demand for air travel.

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Travelers opened roughly 4% up in the stock market on Thursday. At £109.63 per share, it has recovered sharply from a low of £59.57 per share in March 2020. The price action should come in handy if you are interested in investing in the stock market.

Travelers’ net written premiums jump 3%

Travelers’ valued net written premiums at £5.30 billion in the fourth quarter that represents a 3% annualised growth. In comparison, experts had forecast a slightly higher £5.32 billion of net written premiums in Q4, as per FactSet.

The U.S. firm said that net written premiums saw an increase in its personal insurance and bond and speciality insurance segment while a slight decrease was seen in business insurance net written premiums in the fourth quarter. In an announcement at the start of 2021, Wells Fargo reiterated its ‘Hold’ rating on Travelers Companies Inc.

At £6.12 billion, Travelers said that its revenue jumped over 4% on a year over year basis in the recent quarter. The American insurance company recorded £21.15 million of catastrophe losses before taxes, net of reinsurance. Net investment income, as per Travelers, stood at £493.64 million in the fourth quarter – a roughly 10% increase from last year.

Travelers reports £3.58 of core income per share

The NYSE-listed company earned £960 million of profit in Q4 or £3.72 per share. Its profit in the comparable quarter of last year was capped at a lower £636.56 million or £2.44 per share. Core income, on the other hand, registered at £3.58 per share in the recent quarter. In comparison, experts had forecast a much lower £2.32 of core income per share, as per FactSet.

Travelers Companies performed marginally upbeat in the stock market with an annual gain of close to 2.5%. At the time of writing, the New York-based insurance company has a market cap of £27.92 billion and a price to earnings ratio of 17.32.

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