The Travelers Companies, Inc.

This is our first report on The Travelers Companies, a well-known property and casualty insurance provider. The Travelers Companies kicked off the year on a high note, boasting impressive bottom-line results for the first quarter despite the surge of severe weather events across the United States. These promising outcomes were driven by solid production across all three business segments, contributing to a 12% quarterly growth in net written premiums. The Business Insurance segment particularly stood out with its strong profitability and growth. As reported by the company’s management, core income for the quarter hit $970 million or $4.11 per diluted share, leading to a 14.5% core return on equity. Record net earned premiums of $8.9 billion, an upswing of 10% compared to the same period in the previous year, a robust underlying combined ratio of 90.6%, and a one-off tax benefit fueled this core income. Despite the industry facing the highest number of Q1 PCS catastrophe events since the 1950s, Travelers’ investment portfolio generated $557 million after-tax net investment income for the quarter, with positive outcomes from both fixed income and non-fixed income portfolios. We initiate coverage on the stock of The Travelers Companies, Inc. with a ‘Hold’ rating.