Chief executive lifts the lid on improved financials
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Insurance company Travelers has published its interim financial results, revealing a major turnaround in the second quarter.
Here’s how the insurer performed in the three months and six months ended June 30, 2024:
Metric
|
Q2 2024
|
Q2 2023
|
H1 2024
|
H1 2023
|
---|---|---|---|---|
Net written premiums
|
$11.12 billion
|
$10.32 billion
|
$21.30 billion
|
$19.71 billion
|
Total revenues
|
$11.28 billion
|
$10.10 billion
|
$22.51 billion
|
$19.80 billion
|
Net income (loss)
|
$534 million
|
$(14 million)
|
$1.66 billion
|
$961 million
|
Core income
|
$585 million
|
$15 million
|
$1.68 billion
|
$985 million
|
Combined ratio
|
100.2%
|
106.5%
|
97.1%
|
101.1%
|
Lifting the lid on the numbers, Travelers chair and chief executive Alan Schnitzer stated: “We are pleased to have generated a strong bottom line result in a quarter that included a record level of severe convective storms across the United States.
“Core income of $585 million, or $2.51 per diluted share, benefited from excellent underlying results, favorable net prior year reserve development, and higher investment income.
“Underlying underwriting income of $1.2 billion pre-tax was up 55% over the prior year quarter, driven by record net earned premiums of $10.2 billion and a consolidated underlying combined ratio that improved 3.4 points to an excellent 87.7%.
“Net earned premiums were higher in all three of our business segments. The underlying combined ratio in our business insurance segment was an excellent 89.2%; the underlying combined ratio in our bond & specialty insurance business improved 1.7 points to a very strong 86.1%; and the underlying combined ratio in personal insurance improved by nearly eight points to a terrific 86.3%.”
The firm’s net written premiums for business insurance grew by 7%; for bond & specialty insurance, 8%; and for personal insurance, 9%.
Investments-wise, the company’s portfolio generated after-tax net investment income of $727 million, thanks to what Schnitzer described as “strong and reliable returns” from Travelers’ growing fixed income portfolio as well as higher returns from its non-fixed income portfolio.
The CEO highlighted that Travelers returned $498 million of excess capital to its shareholders in the quarter, including share repurchases worth $253 million.
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