The Travelers Companies Inc. (NYSE:TRV) reported first-quarter results on Thursday that exceeded analyst expectations, although its shares slipped 1.95% in pre-market trading following the release.
The insurer posted adjusted earnings per share of $7.71, well above the $6.97 consensus estimate, while revenue reached $11.92 billion, beating forecasts of $10.75 billion. Revenue rose 1% year on year from $11.81 billion in the same quarter last year.
Net income totaled $1.711 billion, or $7.78 per diluted share, compared with $395 million, or $1.70 per diluted share, in the first quarter of 2025.
Performance was supported by a sharp decline in catastrophe losses, which came in at $761 million pre-tax versus $2.266 billion a year earlier, along with higher net investment income.
“We are pleased to report an excellent first quarter with strong underwriting performance across all three segments and a strong result from our investment portfolio,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income for the quarter was $1.7 billion, or $7.71 per diluted share.”
The company reported a consolidated combined ratio of 88.6%, an improvement of 13.9 percentage points from 102.5% a year earlier, while the underlying combined ratio stood at 85.3%.
Net written premiums came in at $10.338 billion, down 2% from $10.515 billion, although excluding the impact of divested Canadian operations, premiums showed slight growth.
During the quarter, Travelers returned $2.223 billion to shareholders, including $1.985 billion through share buybacks. The board also approved a 14% increase in the dividend to $1.25 per share, marking the company’s 22nd consecutive year of dividend growth.