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10-KPeriod: FY2016

TRAVELERS COMPANIES, INC. Annual Report, Year Ended Dec 31, 2016

Filed February 16, 2017For Securities:TRV

Summary

Travelers Companies, Inc. (TRV) reported solid financial performance for the fiscal year ended December 31, 2016. The company generated total revenues of $27.6 billion, with net earned premiums of $24.5 billion. Net income for the year was $3.01 billion, or $10.28 per diluted share, reflecting a decrease from the prior year primarily due to higher catastrophe losses and lower underwriting margins, partially offset by favorable prior year reserve development and lower net investment income. The combined ratio improved slightly to 92.0%, indicating a continued focus on underwriting discipline. The company maintained a strong balance sheet with total investments of $70.5 billion and total assets of $100.2 billion. Shareholder returns were supported by $2.47 billion in common share repurchases and $757 million in dividends paid.

Financial Statements
Beta
Revenue$27.63B
SG&A Expenses$4.15B
Interest Expense$363.00M
Net Income$3.01B
EPS (Basic)$10.39
EPS (Diluted)$10.28
Shares Outstanding (Basic)288.10M
Shares Outstanding (Diluted)291.00M

Key Highlights

  • 1Total revenues reached $27.6 billion, with net earned premiums of $24.5 billion.
  • 2Net income was $3.01 billion, or $10.28 per diluted share.
  • 3Catastrophe losses amounted to $877 million (pre-tax), impacting underwriting results.
  • 4Net favorable prior year reserve development was $771 million (pre-tax), providing a positive offset to current year results.
  • 5The combined ratio improved to 92.0% from 94.3% in the Business and International segment, and 88.3% overall, indicating improved underwriting efficiency.
  • 6Net investment income was $2.30 billion, reflecting a slight decrease due to lower reinvestment rates.
  • 7The company returned significant capital to shareholders through $2.47 billion in share repurchases and $757 million in dividends.

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