Travelers Q4 Profit, Revenue Beat Estimates; Stock Up In Pre-market

(RTTNews) - The Travelers Companies, Inc. (TRV) Wednesday reported higher profit for the fourth quarter helped by growth in revenue. Profit as well revenue beat analysts expectations. The company's shares were more than 3 percent up in pre-market.

Travelers posted net income of $2.082 billion, or $8.96 per share, for the quarter, up from $1.626 billion, or $6.99 per share, in the same quarter a year ago, primarily helped by higher underwriting gain as well as investment income, and increase in prior year reserve development.

Excluding one-time items, core income increased to $2.126 billion, or $9.15 per share, from $1.633 billion, or $7.01 per share, last year.

On average, 19 analysts expected the company to report earnings of $6.61 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter grew to $12.008 billion from $10.927 billion in the prior year. The consensus estimate was for $10.8 billion.

Net written premiums were $10.742 billion, up 7percent, with growth in all three segments.

Net investment income rose to $955 million from $778 a year ago.

Underwriting gain was $1.787 billion, up from $1.375 billion last year.

Travelers stock had closed at $239.16, down 0.15 percent on Tuesday. It has traded in the range of $200.21 - $269.56 in the last 1 year.