12:50 PM EDT, 07/19/2024 (MT Newswires) -- Travelers (TRV) reported stronger-than-expected second-quarter earnings on Friday, while earned premiums fell short of analyst estimates.

The property and casualty insurer's earned premiums advanced to $10.24 billion for the June quarter from $9.22 billion the year before, but fell short of the Capital IQ-polled consensus of $10.42 billion. Shares of the company declined 7.3% in midday trading.

Net written premiums rose 8% to $11.12 billion. In business insurance, net written premiums grew 7% to $5.54 billion reflecting robust renewal premium change and retention, as well as higher levels of new business, Travelers said. Personal insurance premiums rose 9% to $4.54 billion, while bond and specialty insurance increased by 8% to $1.04 billion.

Adjusted earnings surged to $2.51 from $0.06 year over year and surpassed the Street's view of $2. The core result benefitted from a higher underlying underwriting gain, net favorable prior-year reserve development and net investment income, according to the company. Total revenue climbed 12% to $11.28 billion.

"We are pleased to have generated a strong bottom line result in a quarter that included a record level of severe convective storms across the US," Chief Executive Alan Schnitzer said in a statement. Catastrophe losses widened to $1.51 billion from $1.48 billion amid wind and hail storms in multiple US states, according to Travelers.

The combined ratio, which indicates an underwriting profit if maintained under 100%, moved to 100.2% from 106.5% in the prior-year quarter.

"With a strong and diversified business and balance sheet, we delivered 13.6% core return on equity over the last 12 months, despite elevated industrywide catastrophe losses," according to Schnitzer. "With this momentum and plenty of opportunity ahead of us, we remain well positioned for success this year and beyond."

Price: 205.16, Change: -15.44, Percent Change: -7.00