Summary
The Travelers Companies, Inc. (TRV) reported solid financial performance for the fiscal year ended December 31, 2012. The company demonstrated strong underwriting discipline and improved profitability compared to the previous year, driven by higher underlying underwriting margins and a decrease in catastrophe losses. Net income increased significantly to $2.47 billion, or $6.30 per diluted share, up from $1.43 billion, or $3.36 per diluted share, in 2011. This improvement was supported by a combined ratio of 97.1%, down from 105.1% in 2011, indicating an underwriting profit. The company maintained a robust balance sheet with total investments of $73.84 billion and a debt-to-total capital ratio of 20.0%. Travelers also actively returned capital to shareholders through share repurchases totaling $1.45 billion and dividends of $694 million in 2012.
Financial Highlights
33 data points| Revenue | $25.74B |
| Operating Income | $2.44B |
| Interest Expense | $378.00M |
| Net Income | $2.47B |
| EPS (Basic) | $6.35 |
| EPS (Diluted) | $6.30 |
| Shares Outstanding (Basic) | 386.20M |
| Shares Outstanding (Diluted) | 389.80M |
Key Highlights
- 1Net income increased by 73% to $2.47 billion in 2012, compared to $1.43 billion in 2011.
- 2Diluted earnings per share rose to $6.30 in 2012, up from $3.36 in 2011.
- 3The GAAP combined ratio improved to 97.1% in 2012, down from 105.1% in 2011, indicating improved underwriting profitability.
- 4Catastrophe losses decreased to $1.86 billion in 2012 from $2.56 billion in 2011.
- 5Net favorable prior year reserve development was $940 million in 2012, an increase from $715 million in 2011.
- 6Total investments stood at $73.84 billion at year-end 2012, with a conservative allocation towards fixed maturities and short-term securities.
- 7The company repurchased $1.45 billion of its common stock and paid $694 million in dividends to shareholders in 2012.