Summary
The Travelers Companies, Inc. (TRV) reported strong financial performance for the fiscal year ended December 31, 2009. Net income increased by 24% to $3.62 billion, or $6.33 per diluted share, compared to the previous year. This growth was primarily driven by a significant reduction in catastrophe losses, which fell to $457 million pretax from $1.41 billion in 2008. The company also benefited from net realized investment gains and favorable prior year reserve development. The company maintained a strong financial position with total investments of $74.97 billion and shareholders' equity of $27.42 billion. TRV continued its commitment to returning capital to shareholders, repurchasing approximately 69.4 million shares for $3.30 billion during the year, reflecting confidence in its ongoing operational strength and capital management strategy.
Financial Highlights
33 data points| Revenue | $24.68B |
| Operating Income | $3.60B |
| Interest Expense | $382.00M |
| Net Income | $3.62B |
| EPS (Basic) | $6.38 |
| EPS (Diluted) | $6.33 |
| Shares Outstanding (Basic) | 563.20M |
| Shares Outstanding (Diluted) | 568.60M |
Key Highlights
- 1Net income grew 24% to $3.62 billion, or $6.33 per diluted share, compared to $2.92 billion in 2008.
- 2Catastrophe losses decreased significantly to $457 million pretax, down from $1.41 billion in 2008, primarily due to reduced storm activity.
- 3Net realized investment gains of $17 million in 2009 compared to net realized investment losses of $415 million in 2008, indicating improved investment performance in the latter part of the year.
- 4The GAAP combined ratio improved to 89.2% from 91.9% in 2008, signaling enhanced underwriting efficiency.
- 5Total investments increased to $74.97 billion, with a continued focus on high-quality, liquid fixed-maturity securities comprising 94% of the portfolio.
- 6Shareholders' equity stood at $27.42 billion, and the company repurchased approximately 69.4 million shares for $3.30 billion, demonstrating a commitment to shareholder returns.
- 7The company maintained strong retention levels across its business segments, with a slight decline in net written premiums primarily attributed to lower insured exposures reflecting economic conditions.