Summary
In its 2008 10-K filing, The Travelers Companies, Inc. (TRV) reported net income of $2.92 billion, a decrease from $4.60 billion in 2007, primarily driven by increased catastrophe losses and lower net investment income. The company experienced a challenging year due to adverse economic conditions and severe weather events impacting its property and casualty insurance operations. Despite these headwinds, Travelers maintained a strong capital position, with shareholders' equity of $25.32 billion and a debt-to-capital ratio of 19.5% at year-end. The company continued its share repurchase program, buying back $2.12 billion of its common stock in 2008, though at a reduced pace in the latter half of the year due to market uncertainty. The report details operations across three main segments: Business Insurance, Financial, Professional & International Insurance, and Personal Insurance, highlighting the performance and competitive landscape within each.
Financial Highlights
28 data points| Revenue | $24.48B |
| Interest Expense | $370.00M |
| Net Income | $2.90B |
| EPS (Basic) | $4.87 |
| EPS (Diluted) | $4.81 |
| Shares Outstanding (Basic) | 595.90M |
| Shares Outstanding (Diluted) | 604.30M |
Key Highlights
- 1Net income decreased by 36% to $2.92 billion ($4.82 per diluted share) in 2008, primarily due to a significant increase in catastrophe losses ($1.41 billion pretax) and a decline in net investment income.
- 2The company repurchased $2.12 billion of its common stock in 2008, as part of its ongoing share repurchase authorization, though repurchases were reduced in the fourth quarter due to market uncertainty.
- 3Shareholders' equity stood at $25.32 billion at year-end 2008, with book value per common share at $43.12, reflecting a decrease from the prior year due to market conditions impacting investments.
- 4The Business Insurance segment generated $11.18 billion in earned premiums, while Personal Insurance earned $6.97 billion, and Financial, Professional & International Insurance earned $3.43 billion. Combined net written premiums were $21.68 billion.
- 5The GAAP combined ratio for the company was 91.9% in 2008, an increase from 87.4% in 2007, reflecting higher loss and expense ratios.
- 6The company maintained strong financial strength ratings from major agencies, with A.M. Best rating the Travelers Reinsurance Pool as A+ and Moody's rating it as Aa2, indicating a stable financial outlook despite the challenging economic environment.