Travelers Upbeat on Momentum Despite Fires as 4Q Profit Surges -- Update

Travelers Companies Inc. (TRV) reported a strong fourth quarter, with net income per diluted share of $8.96, up 28% year-over-year, and core income per diluted share of $9.15, up 31%. The company's resilience in the face of recent natural disasters, such as the Los Angeles wildfires, has been a testament to its strong underwriting discipline and risk management strategies.



Travelers' consolidated combined ratio improved 2.6 points from the prior year quarter to an excellent 83.2%. The underlying combined ratio also improved 1.9 points to an excellent 84.0%, reflecting strong underlying results across all three segments. Net written premiums grew 7% to $10.742 billion, with growth in all three segments, and net investment income increased 23% pre-tax over the prior year quarter.

The company's record full year operating cash flows of $9.074 billion further highlight its financial strength and resilience. Travelers' book value per share increased 13% over year-end 2023 to $122.97, and adjusted book value per share increased 13% to $139.04.

Alan Schnitzer, CEO of Travelers, expressed confidence in the company's outlook for 2025 and beyond, stating, "With this momentum, we are very confident in our outlook for our business into 2025 and beyond."

Travelers' strong performance in the face of recent natural disasters demonstrates the company's ability to manage risks effectively and maintain a strong financial position. Its growth in net written premiums and underlying underwriting income has solidified its competitive position within the insurance sector, allowing it to maintain its market share and expand its international presence.