Travelers Companies Inc Q4 Earnings Rise; Beats Estimates (TRV)

Insurance company Travelers Companies Inc (TRV) reported higher fourth quarter and full year results on Tuesday, which came in well above analysts’ estimates.

TRV’s Earnings in Brief

TRV reported Q4 earnings of $988 million, or $2.70 per share, up from just $304 million, or 78 cents per share, a year ago. Excluding special items, earnings were $981 million, or $2.68 per share,  up from $278 million, or 72 cents per share, last year. Analysts expected to see earnings of $2.10 per share. Total revenue for the quarter was  $6.74 billion, up from $6.48 billion last year. Analysts expected to see revenue of $5.45 billion. For FY2013, the company reported earnings of $3.67 billion, or $9.74 per share, up from 2.47 billion, or $6.30 per share, in 2012. Revenue for the year was $26.19 billion from $22.19 billion in 2012. On average, analysts expected to see earnings of $8.91 per share and revenue of $22.56 billion.

CEO Commentary

Chairman and CEO Jay Fishman commented on the company’s Q4 results: ”Fourth quarter operating income of almost a billion dollars provided a very strong finish to an excellent 2013. We are encouraged by the strength of our 2013 results, and we remain committed to taking the steps necessary to continue to improve returns consistent with our long-held goal of producing mid-teens operating return on equity over time.”

TRV’s Dividend

TRV’s board announced that it will pay its next quarterly dividend of 50 cents on March 31 to shareholders of record on March 10.  This dividend remains unchanged from the company’s previous quarterly dividend. TRV will likely announce a dividend increase in April. 

 Stock Performance 

Travelers Companies shares were mostly flat during pre-market trading Tuesday.