Q1 snap: mixed result, profitability questions
TRV delivered a mixed Q1 result. The 8% EPS miss was due to higher catastrophes than forecast. However, the underlying combined ratio was healthy at 92.4% and 90bp better than consensus with notable improvement in Personal Auto. Premium growth was also good in all segments with the biggest upside surprise coming from Bond & Specialty. However, the underlying combined ratio in Business increased by 110bp YoY to 95.5%, with the improvement in business pricing decelerating (+30bp in 1Q18 vs +70bp in 4Q17). With management guiding to an improvement in the underlying combined ratio in Business in 2018, this is likely to be a big focus on the call.Travelers Companies is a holding company. Through its subsidiaries, the company is engaged in providing commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. The company's segments include: Business Insurance, which provides property and casualty insurance and insurance-related services; Bond and Specialty Insurance, which provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services, and certain specialty insurance products; and Personal Insurance, which writes property and casualty insurance covering individuals' personal risks.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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