Latest posts by Diana Esparza (see all)
- Eye-Catching Stock to Track: The Travelers Companies Inc. (NYSE: TRV) - February 18, 2020
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- Hot Stock of the Day: Commercial Vehicle Group Inc. (NASDAQ: CVGI) - November 13, 2019
NEW YORK, – Shares of The Travelers Companies Inc. (NYSE: TRV) gained 0.97% to $140.20. The stock traded total volume of 186.609K shares lower than the average volume of 1.33M shares.
The Travelers Companies Inc. (NYSE: TRV) reported net income of $396.0M, or $1.50 per diluted share, for the quarter ended September 30, 2019, compared to $709.0M, or $2.62 per diluted share, in the prior year quarter. Core income in the current quarter was $378.0M, or $1.43 per diluted share, compared to $687.0M, or $2.54 per diluted share, in the prior year quarter. Core income decreased primarily due to net unfavorable prior year reserve development in the current quarter, including the impact of an increasingly challenging tort environment. Net realized investment gains were $23.0M pre-tax ($18.0M after-tax), compared to $29.0M pre-tax ($22.0M after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Net investment income of $622.0M pre-tax ($528.0M after-tax) decreased 4%. Income from the fixed income investment portfolio increased due to a higher average level of fixed maturity investments, as well as slightly higher interest rates. Private equity partnership and real estate partnership returns were strong but lower than in the prior year quarter. Record net written premiums of $7.569B increased 7%, reflecting growth in all segments.
Shareholders’ equity of $25.607B increased 12% from year-end 2018, primarily due to the impact of lower interest rates on net unrealized investment gains (losses). Net unrealized investment gains included in shareholders’ equity were $2.991B pre-tax ($2.354B after-tax), compared to net unrealized investment losses of $137.0M pre-tax ($113.0M after-tax) at year-end 2018. Book value per share of $99.21 increased 14% from year-end 2018, also primarily due to the impact of lower interest rates on net unrealized investment gains (losses). Adjusted book value per share of $90.09 increased 3% from year-end 2018.
The Company repurchased 2.50M shares during the third quarter at an average price of $147.23 per share for a total cost of $375.0M. Capacity remaining under the existing share repurchase authorization was $2.161B at the end of the quarter. Also at the end of the quarter, statutory capital and surplus was $20.780B, and the ratio of debt-to-capital was 20.4%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains included in shareholders’ equity was 22.0%, within the Company’s target range of 15% to 25%.
TRV has the market capitalization of $36.40B and its EPS growth ratio for the past five years was -1.00%. The return on assets ratio of the Company was 2.20% while its return on investment ratio stands at 9.80%. Price to sales ratio was 1.16 while 83.20% of the stock was owned by institutional investors.
The Travelers Companies Inc., NYSE: TRV, TRV