10 Best Performing Dow Stocks in 2024

08. The Travelers Companies, Inc. (NYSE:TRV)

Year to date Share Price Gain: 24.06%

Number of Hedge Fund Holders: 38

The Travelers Companies, Inc. (NYSE:TRV) has delivered impressive financial results in Q2 2024, significantly exceeding analysts’ expectations with earnings per share (EPS) of $2.51, well above the forecast of $2.01. This robust performance reflects the company’s ability to navigate a challenging environment marked by severe weather-related events. With a year-to-date share price gain of 24.06%, The Travelers Companies, Inc. (NYSE:TRV) is on a strong upward trajectory, demonstrating investor confidence.

The Travelers Companies, Inc. (NYSE:TRV) reported core income of $585 million, bolstered by a remarkable 55% year-over-year increase in underlying underwriting income, reaching $1.2 billion pre-tax. The consolidated underlying combined ratio improved to 87.7%, highlighting the company’s effective risk management and underwriting discipline. Notably, the Business Insurance segment achieved an exceptional underlying combined ratio of 89.2%, while the Personal Insurance segment improved significantly to 86.3%. These metrics showcase Travelers’ ability to maintain profitability even amid increased catastrophic losses of $1.5 billion in the quarter.

The company also witnessed impressive premium growth, with net written premiums rising by 8% to $11.1 billion. In particular, the Business Insurance segment reported a 7% increase in net written premiums, underscoring strong retention rates and new business generation. The retention rate stood at an impressive 85%, while the renewal premium change was a robust 10.1%. Furthermore, with 38 hedge fund holders as of Q2 2024, down from 40 in the previous quarter, it suggests a minor shift in institutional interest, which may present an opportunity for new investors to capitalize on the stock’s fundamentals.

The Travelers Companies, Inc.’s (NYSE:TRV) investment portfolio also performed well, generating after-tax net investment income of $727 million, a 22% increase from the previous year. The firm’s commitment to returning capital to shareholders is evident, with $498 million returned this quarter through share repurchases and dividends. The consistent performance, strong fundamentals, and proactive management strategies position The The Travelers Companies, Inc. (NYSE:TRV) for continued growth and profitability, making it a compelling choice for investors seeking stability and growth in the insurance sector.