Travelers (TRV) Shares Lower as Catastrophe Losses Weigh on Q4 Results
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Price: $221.06 -0.02%
Revenue Growth %: +9.5%
Financial Fact:
Total claims and expenses: 6.01B
Today's EPS Names:
CWD, VUZI, INSE, More
Revenue Growth %: +9.5%
Financial Fact:
Total claims and expenses: 6.01B
Today's EPS Names:
CWD, VUZI, INSE, More
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The Travelers Companies (NYSE: TRV) shares are trading lower Tuesday afternoon following an earlier fourth-quarter miss on the bottom line, though revs were strong.
Revenue increased about 1 percent from $6.332 billion in the fourth quarter of 2010 to $6.373 billion. The Street was looking for revs of $6.30 billion.
Operating income for Travelers fell 30 percent to $609 million, or $1.48 per share. The number fell 5 cent shy of $1.53 expected by analysts.
Operating return on equity dropped 340 basis points to 11.1 percent, while overall return on equity slipped 360 basis points to 10.0 percent.
"In light of the fact that 2011 was the costliest catastrophe year on record for the insurance industry on a global basis, we are pleased that the strength of our businesses enabled us to generate net income of $1.4 billion...Across Business Insurance pricing improved in the quarter, where renewal price gains exceeded 6 percent overall, compared to 3 percent in the third quarter. In particular, renewal price gains in our commercial accounts business unit reached 8 percent, the highest level since the end of 2003, compared to 4 percent in the third quarter," commented CEO Jay Fishman. "In Personal Insurance given, among other things, the possibility of continued unusual weather patterns, we also continued to achieve meaningful increases in pricing and have begun implementing some improvements in terms and conditions and selectively tightening underwriting guidelines."
Book value increased 7 percent to $62.32.
Shares are down about 3 percent at last check.
Revenue increased about 1 percent from $6.332 billion in the fourth quarter of 2010 to $6.373 billion. The Street was looking for revs of $6.30 billion.
Operating income for Travelers fell 30 percent to $609 million, or $1.48 per share. The number fell 5 cent shy of $1.53 expected by analysts.
Operating return on equity dropped 340 basis points to 11.1 percent, while overall return on equity slipped 360 basis points to 10.0 percent.
"In light of the fact that 2011 was the costliest catastrophe year on record for the insurance industry on a global basis, we are pleased that the strength of our businesses enabled us to generate net income of $1.4 billion...Across Business Insurance pricing improved in the quarter, where renewal price gains exceeded 6 percent overall, compared to 3 percent in the third quarter. In particular, renewal price gains in our commercial accounts business unit reached 8 percent, the highest level since the end of 2003, compared to 4 percent in the third quarter," commented CEO Jay Fishman. "In Personal Insurance given, among other things, the possibility of continued unusual weather patterns, we also continued to achieve meaningful increases in pricing and have begun implementing some improvements in terms and conditions and selectively tightening underwriting guidelines."
Book value increased 7 percent to $62.32.
Shares are down about 3 percent at last check.
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