The Travelers Companies stock rises on Q1 earnings beat

Yahoo Finance Live anchors Julie Hyman and Brad Smith break down the rise in stock for The Travelers Companies.

Video transcript

JULIE HYMAN: Let's talk about Travelers, the big insurance company. That company out with earnings as well today. And Travelers, a provider of property and casualty insurance, its earnings beat in its latest quarter. Core and net income did fall, as the company navigated impacts from a higher level of severe weather across the United States. But you can see overall, beating by a pretty good margin there, even as net income fell.

So interesting there. We also talked about the company doing a $5 billion share buyback authorization. As we always like to note, that doesn't mean they're actually going to buy back all of those shares. But the board has authorized that move over time.

BRAD SMITH: Yeah. And in the past few weeks, with some of the weather events that we've had as well, it's been interesting to see where the premiums-- the record net written premiums that they had is noteworthy to call out here. Record of $9.396 billion there. So yeah, $9.4 billion rounded off. But that's up by about 12%. You compare that to the prior year's quarter, with growth in all three segments they're noting.

And so could be something that a lot of homeowners, a lot of people who were just looking for insurance of actually any kind, they, especially in these different weather patterns or more inclement weather events, or perhaps looking to re-up some of the insurance policies that they do have, and Travelers could be a beneficiary on that front too.

JULIE HYMAN: Yeah. It is interesting to see the net investment income go up as well in this environment. We did see, to go back to Morgan Stanley for just a second, their fixed income trading revenue beat estimates. So we don't know exactly. We'd have to listen to the call for Travelers to find out where perhaps that investment was. But interesting to see that number go higher.