Travelers' stock has risen 15.4% year to date and recently reached a new record high, even as technology stocks dominate headlines. The insurer benefits from elevated interest rates, which boosted net investment income 8% to $1 billion in the first quarter, up from $930 million a year earlier. Disciplined underwriting also drove a 333% surge in net income to $1.7 billion, aided by a stellar combined ratio of 88.6% and favorable reserve developments. Looking ahead, forecasts for a below-average hurricane season could limit catastrophe losses, while the stock trades at an attractive 11.8 times forward earnings.
The Travelers Companies IncHigher interest income and disciplined underwriting drove strong Q1 earnings, boosting net income 333%.