Travelers (NYSE:TRV) just crushed expectations with a knockout Q4, sending its stock soaring nearly 4% in the morning. The insurance giant pulled in $2.08 billion in net income, or $8.96 per share, a 28% jump from last year. Core income hit a record $2.1 billionobliterating Wall Street's $6.67 estimatefueled by strong premium growth across business, bond, and personal insurance. Net written premiums climbed 7% to $10.74 billion, while the combined ratio tightened to 83.2%, a sign of sharp underwriting discipline. Even with catastrophe losses from the Los Angeles wildfires, Travelers' ability to drive profitability stood out.

CEO Alan Schnitzer didn't just celebrate the quarterhe pointed to Travelers' rock-solid balance sheet as a reason it can stand by customers in tough times. Investment income jumped 23% as higher yields and a growing portfolio added fuel to the fire. Record operating cash flows of $9.07 billion gave the company plenty of firepower to reinvest and reward shareholders. Case in point: Travelers repurchased $252 million in shares and boosted book value per share by 13% to $122.97.

With a 27.7% core return on equity and all signs pointing to more growth in 2025, Travelers is proving it can win in a high-rate environment while managing risk like a pro. Premiums are climbing, underwriting is tight, and investment gains are stacking upall the ingredients for continued dominance. The question now: Can it keep the momentum rolling? Investors are betting yes.