Exhibit 99.1

 

 

 

NYSE: TRV

 

Travelers Reports Second Quarter Net Income and Core Income per Diluted Share of $1.92 and $1.81, Respectively, Which Includes Catastrophe Losses of $1.40 per Diluted Share

 

Second Quarter Return on Equity of 9.2% and Core Return on Equity of 8.7%

 

·             Second quarter net income of $524 million and core income of $494 million.

·             Catastrophe losses of $488 million pre-tax increased by $85 million pre-tax from the prior year quarter. Quarter-over-quarter results also impacted by an incremental charge of $45 million pre-tax associated with a few large commercial losses, primarily fire related.

·             Consolidated combined ratio of 98.1%; underlying combined ratio of 93.6%.

·             Record net written premiums of $7.131 billion, up 7% from the prior year quarter, reflecting growth in all segments.

·             Renewal premium change in Business Insurance at highest level since 2014.

·             Total capital returned to shareholders of $559 million in the quarter, including $350 million of share repurchases. Year-to-date total capital returned to shareholders of $1.157 billion, including $751 million of share repurchases.

·             Book value per share of $84.51, down 3% from year-end 2017, due to the impact of higher interest rates on net unrealized investment gains/(losses). Adjusted book value per share of $84.93, up 2% from year-end 2017.

·             Board of Directors declared quarterly dividend per share of $0.77.

 

New York, July 19, 2018

— The Travelers Companies, Inc. today reported net income of $524 million, or $1.92 per diluted share, for the quarter ended June 30, 2018, compared to $595 million, or $2.11 per diluted share, in the prior year quarter. Core income in the current quarter was $494 million, or $1.81 per diluted share, compared to $543 million, or $1.92 per diluted share, in the prior year quarter. Core income before income taxes decreased primarily due to an increase in catastrophe losses of $85 million, an incremental charge of $45 million associated with a few large commercial losses, primarily fire related, and an $18 million assessment from the Texas Windstorm Insurance Association (TWIA) related to Hurricane Harvey. Core income benefited by $54 million from a lower U.S. corporate income tax rate. Net realized investment gains of $36 million pre-tax ($30 million after-tax) decreased due to lower gains on equity securities. Per diluted share amounts benefited from the impact of share repurchases.

 

Consolidated Highlights

 

($ in millions, except for per share amounts, and after-tax,

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

except for premiums & revenues)

 

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

Net written premiums

 

$

7,131

 

$

6,640

 

7

%

$

13,955

 

$

13,135

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

7,477

 

$

7,184

 

4

 

$

14,763

 

$

14,126

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

524

 

$

595

 

(12

)

$

1,193

 

$

1,212

 

(2

)

per diluted share

 

$

1.92

 

$

2.11

 

(9

)

$

4.35

 

$

4.28

 

2

 

Core income

 

$

494

 

$

543

 

(9

)

$

1,172

 

$

1,157

 

1

 

per diluted share

 

$

1.81

 

$

1.92

 

(6

)

$

4.27

 

$

4.08

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

271.1

 

280.0

 

(3

)

272.5

 

281.2

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

98.1

%

96.7

%

1.4

pts

96.8

%

96.4

%

0.4

pts

Underlying combined ratio

 

93.6

%

93.5

%

0.1

pts

93.0

%

92.7

%

0.3

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on equity

 

9.2

%

10.0

%

(0.8

)pts

10.3

%

10.3

%

pts

Core return on equity

 

8.7

%

9.5

%

(0.8

)pts

10.3

%

10.2

%

0.1

pts

 

 

 

 

 

 

 

 

 

Change from

 

 

 

 

 

June 30,

 

December 31,

 

June 30,

 

December 31,

 

June 30,

 

 

 

 

 

2018

 

2017

 

2017

 

2017

 

2017

 

 

 

Book value per share

 

$

84.51

 

$

87.46

 

$

86.46

 

(3

)%

(2

)%

 

 

Adjusted book value per share

 

84.93

 

83.36

 

82.71

 

2

 

3

 

 

 

 

See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

 

1


The following information was filed by Travelers Companies, Inc. (TRV) on Thursday, July 19, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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