Shares of The Travelers Companies (TRV) jumped more than 7% to close at a record high $264.82 Thursday, marking one of the top daily performances in the S&P 500 after the insurer reported better-than-expected profits for the third quarter.
Although Travelers reported a year-over-year uptick in catastrophe losses, strong growth in premiums and investment income helped the insurer more than triple its net income year-over-year to $1.26 billion, blowing past analysts’ estimates.
Travelers reported third-quarter catastrophe losses of $939 million, up from $850 million a year earlier. The steeper losses primarily reflected the impact of Hurricane Helene, which caused devastating damage across several southeastern states at the end of the quarter, as well as severe wind and hail storms in multiple areas.
Despite the adverse impact of these events, Travelers managed to achieve strong bottom-line growth, thanks in part to higher premiums. Net written premiums reached a record level of $11.3 billion, up 8% year-over-year (YOY)…