The Travelers Companies Inc. (NYSE:TRV) on Friday reported strong third-quarter results.
Adjusted earnings of $9.18 per share beat the analyst consensus estimate of $7.42. Revenue fell slightly to $12.41 billion, topping expectations of $11.38 billion, according to Benzinga Pro.
Travelers continues to expand artificial intelligence across claims processing and underwriting to improve efficiency and manage rising liability costs.
“We are pleased to report excellent third quarter results,” said Alan Schnitzer, Chairman and Chief Executive Officer. “It was another in a run of successful quarters, with very strong underwriting performance across all three segments and a record result from our investment portfolio. Core income for the quarter was $1.9 billion, or $9.18 per diluted share. Core return on equity for the quarter was 22.1%, bringing core return on equity over the last four quarters to 24.1%. Third quarter underwriting income of $1.4 billion pre-tax benefited from continued strong levels of underlying underwriting income and net favorable prior year development. Profitability was excellent on both a reported and underlying basis. The combined ratio improved to 86.8%, and the underlying combined ratio remained very strong at 84.1%.”
Travelers shares fell 1% to trade at $385.69 on Monday.
These analysts made changes to their price targets on Travelers following earnings announcement.
- Truist Securities analyst Mark Hughes maintained the stock with a Buy and raised the price target from $425 to $435.
- Evercore ISI Group analyst David Motemaden maintained the stock with an In-Line rating and raised the price target from $349 to $372.
- Wells Fargo analyst Elyse Greenspan maintained the stock with an Equal-Weight rating and raised the price target from $341 to $377.
Considering buying TRV stock? Here’s what analysts think:
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