Q2 snap: slightly disappointing
TRV delivered a slightly disappointing Q2 result. The 25% EPS miss was primarily due to higher catastrophes than forecast. However, the underlying combined ratio was also disappointing at 93.6% and 110bp above our forecast. There were a couple of abnormally large charges in Business (totalling $54m), but even accounting for those then the underlying combined ratio of 92.8% was 30bp above our expectation. Normalising for a range of factors then we calculate a ~3% normalised EPS miss. On the positive side, premium growth was strong in all segments (+7-9%) and commercial insurance rates improved a further 40bp to 2.1% YoY. Management is still guiding to an improvement in the underlying combined ratio in Business in 2018, assuming more normalized non-cat weather.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.