Exhibit 99.1

 

 

NYSE: TRV

The Travelers Companies, Inc.

485 Lexington Avenue

New York, NY 10017-2630

www.travelers.com

 

Travelers Reports Fourth Quarter Net and Operating Income per Diluted Share of $1.51 and $1.48, Respectively, Compared to $1.95 and $1.89 in the Prior Year Quarter

 

·             Solid net income generated return on equity of 10% for the quarter.

 

·             Total revenues of $6.4 billion, up 1% from the prior year quarter.

 

·             Higher pricing continued in all segments and accelerated in Business Insurance.

 

·             Higher pricing expected to result in improved underlying underwriting margins in first half of 2012.

 

·             Book value per share of $62.32, up 7% from year-end 2010.

 

·             Repurchased 20.9 million shares for $1.2 billion during fourth quarter.

 

·             Board of Directors approved quarterly dividend per share of $0.41.

 

New York, January 24, 2012

— The Travelers Companies, Inc. today reported net income of $618 million or $1.51 per diluted share for the quarter ended December 31, 2011, compared to $894 million, or $1.95 per diluted share in the prior year quarter. Operating income in the current quarter was $609 million, or $1.48 per diluted share, compared to $864 million, or $1.89 per diluted share, in the prior year quarter.

 

Consolidated Highlights

 

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

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

except for premiums & revenues)

 

2011

 

2010

 

Change

 

2011

 

2010

 

Change

 

Net written premiums

 

$

5,261

 

$

5,234

 

1

%

$

22,187

 

$

21,635

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

6,373

 

$

6,332

 

1

 

$

25,446

 

$

25,112

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

609

 

$

864

 

(30

)

$

1,390

 

$

3,043

 

(54

)

per diluted share

 

$

1.48

 

$

1.89

 

(22

)

$

3.28

 

$

6.26

 

(48

)

Net income

 

$

618

 

$

894

 

(31

)

$

1,426

 

$

3,216

 

(56

)

per diluted share

 

$

1.51

 

$

1.95

 

(23

)

$

3.36

 

$

6.62

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

 

407.0

 

454.7

 

(10

)

420.5

 

482.5

 

(13

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP combined ratio

 

95.9

%

90.6

%

5.3

pts

105.1

%

93.2

%

11.9

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on equity

 

11.1

%

14.5

%

(3.4

)pts

6.1

%

12.5

%

(6.4

)pts

Return on equity

 

10.0

%

13.6

%

(3.6

)pts

5.7

%

12.1

%

(6.4

)pts

 

 

 

As of December 31,

 

 

 

2011

 

2010

 

Change

 

Book value per share

 

$

62.32

 

$

58.47

 

7

%

Adjusted book value per share

 

$

55.01

 

$

54.19

 

2

 

 

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

 

“We posted solid results in the quarter, generating net income of $618 million and a return on equity of 10%,” commented Jay Fishman, Chairman and Chief Executive Officer, “In light of the fact that 2011 was the costliest catastrophe year on record for the insurance industry on a global basis, we are pleased that the strength of our businesses enabled us to generate net income of $1.4 billion and to grow book value per share by 7%.

 

“Since the second half of 2010, in response to what we then perceived as the potential for continued severe weather in the United States as well as the outlook for a persistent low interest rate environment, our strategy has been to selectively but actively increase prices.  Results this quarter continue to demonstrate success.  Across Business Insurance pricing improved in the quarter, where renewal price gains exceeded 6% overall, compared to 3% in the third quarter. In particular, renewal price gains in our commercial accounts business unit reached 8%, the highest level

 

1


The following information was filed by Travelers Companies, Inc. (TRV) on Tuesday, January 24, 2012 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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