Elevated Catastrophe Losses From Hail and Wind Storm Hurt Travelers Companies Q1 Profit, Stock Slides
Portfolio Pulse from Anusuya Lahiri
Travelers Companies (NYSE:TRV) reported Q1 earnings with a core income per share of $4.69, missing the consensus forecast of $4.90, despite an 8% increase in net written premiums and a 16% increase in total revenues. The company faced elevated catastrophe losses of $712 million pre-tax due to severe wind and hail storms, leading to a stock decline. The Board declared a 5% increase in the quarterly dividend to $1.05 per share. TRV shares are down 3.20% in premarket trading. Exposure to TRV can also be gained through Invesco KBW Property & Casualty Insurance ETF (NASDAQ:KBWP) and iShares U.S. Insurance ETF (NYSE:IAK).
April 17, 2024 | 12:19 pm
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NEGATIVE IMPACT
iShares U.S. Insurance ETF, which includes TRV, may experience indirect impact from TRV's Q1 earnings miss and subsequent stock decline.
Given TRV's inclusion in IAK's portfolio, TRV's negative earnings report and stock price movement could indirectly influence IAK's short-term performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Invesco KBW Property & Casualty Insurance ETF, which includes TRV, may see indirect impact due to TRV's Q1 performance and stock decline.
As TRV is part of KBWP's holdings, its stock performance, especially negative, can indirectly affect KBWP's performance in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Travelers Companies reported lower than expected Q1 earnings and faced significant catastrophe losses, leading to a 3.20% premarket stock decline.
The earnings miss and elevated catastrophe losses directly impact investor sentiment and TRV's stock price, leading to a negative short-term price direction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100