Shares of property casualty insurance provider The Travelers Companies (NYSE:TRV) are on the rise today after the company posted better-than-expected first-quarter numbers.
Revenue rose 10.5% year-over-year to $8.85 billion but missed the cut by $130 million. EPS at $4.11, on the other hand, surpassed expectations by $0.55. During the quarter, TRV saw higher catastrophe losses and lower net favorable prior-year reserve development. This impact was partially offset by increased underwriting gains and higher net investment income.
Next, the company has boosted its quarterly dividend by 8% to $1 per share. The dividend is payable on June 30 to investors of record on June 9. But there’s more, TRV has also authorized an additional share repurchase program worth $5 billion in addition to the remaining $1.6 billion authorization under a previous share repurchase program.
Overall, the Street has a $193.38 consensus price target on TRV, pointing to a 12.4% potential upside in the stock. That’s after an 8% slide in the share price so far in 2023.
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