Travelers Q4 core EPS beats estimates, sets $5 bln additional buyback

Overview

• Insurance provider's Q4 core EPS beat analyst expectations, driven by improved underwriting gains

• Company's Q4 net income rose 20% yr/yr, driven by higher core income

• Company authorized an additional $5 bln in share repurchases

Outlook

• Company confident in outlook for 2026 and beyond

• Travelers sees continued strong profitability and substantial cash flow

Result Drivers

• UNDERWRITING GAINS - Higher underlying underwriting gain contributed to increased core income

• INVESTMENT INCOME - Net investment income rose 10% due to growth in average invested assets and higher yields

• LOWER CATASTROPHE LOSSES - Reduced catastrophe losses improved combined ratio by 0.7 points

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 18 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Travelers Companies Inc is $304.00, about 12.8% above its January 20 closing price of $269.61

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw7nhGK2a

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