Insurance firms Marsh McLennan and Dow Jones component Travelers Companies announced Q3 results early Thursday. Travelers posted a major earnings beat and broke out. Marsh McLennan eked by earnings views, but is also working on a buy point.
Marsh McLennan reported a 4% increase in adjusted earnings to $1.63 per share. Revenue rose 6% to $5.7 billion.
FactSet expected earnings of $1.62 per share on $5.71 billion in revenue.
Risk and Insurance revenue increased 8% to $3.5 billion for the quarter, while consulting revenue climbed 4% to $2.3 billion.
Marsh McLennan on Sept. 29 agreed to acquire McGriff Insurance Services for $7.75 billion, which the company will fund via a combination of cash and proceeds from debt financing. The transaction is expected to finalize by the end of 2024, subject to regulatory clearance and standard closing conditions.
MMC stock inched down slightly Thursday. The stock climbed 1.8% to 232 Thursday morning.
Shares are trading in a flat base with a 232.32 buy point, matching their record high from Sept. 9.
MMC stock has had a series of three-weeks-tight patterns stretching back to June. Investors could use a move back above 228.76 as a potential early entry opportunity, which would clear the three-weeks-tight pattern within the flat base.
MMC stock leapt 19.8% so far this year.
Travelers Breaks Out Early
Travelers reported a 169% increase in earnings to $5.24 per share, easily beating FactSet estimates of $3.66 per share. Total revenue jumped 12% to $11.9 billion, outpacing expectations for $11.69 billion.
Net written premiums increased 8% to a record $11.32 billion, but were shy of views for $11.38 billion.
Travelers noted that net written premiums for business insurance rose 9%, while personal insurance and bond and specialty insurance premiums both rose 7% for the quarter.
The company's catastrophe losses increased 10.5% to $939 million, driven by Hurricane Helene and "severe wind and hail storms in multiple states."
TRV stock popped 9% Thursday to lead the Dow Jones Industrial Average.
Travelers broke out above a 243.48 buy point for a high handle, next to a 21-week consolidation. Shares traded tightly within that pattern the last several weeks.
Travelers stock rallied 39% this year and is trading at record highs.
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