10-KPeriod: FY2021

TRAVELERS COMPANIES, INC. Annual Report, Year Ended Dec 31, 2021

Filed February 17, 2022For Securities:TRV

Summary

The Travelers Companies, Inc. reported strong financial performance for the fiscal year ending December 30, 2021. Net income increased by 36% year-over-year to $3.66 billion, translating to diluted earnings per share of $14.49. This robust growth was driven by higher net investment income, improved underwriting margins across its Business Insurance and Bond & Specialty Insurance segments, and a significant increase in net favorable prior year reserve development. The company also saw an 8% increase in gross written premiums and a 7% increase in net written premiums, reflecting growth across its core segments, particularly in Bond & Specialty Insurance. Despite elevated catastrophe losses, notably from Hurricane Ida, the company maintained a combined ratio of 94.5%, a slight improvement from the previous year. Travelers continues to focus on disciplined underwriting and risk management, supported by a strong balance sheet with total investments of $87.38 billion. The company also demonstrated a commitment to shareholder returns, with $3.08 billion returned through share repurchases and dividends, underscoring its financial strength and confidence in future operations.

Financial Highlights

35 data points
Beta

Revenue

$34.82B

Net Income

$3.66B

10.5% Net Margin

EPS (Diluted)

$14.49

Total Assets

$120.47B

Cash & Equivalents

$761.00M

Free Cash Flow

$7.27B

Financial Statements
Beta
Revenue$34.82B
SG&A Expenses$4.68B
Interest Expense$340.00M
Net Income$3.66B
EPS (Basic)$14.63
EPS (Diluted)$14.49
Shares Outstanding (Basic)248.50M
Shares Outstanding (Diluted)250.80M

Key Highlights

  • 1Net income increased by 36% year-over-year to $3.66 billion.
  • 2Diluted earnings per share rose to $14.49, a 38% increase from the prior year.
  • 3Gross written premiums grew by 8% to $34.24 billion, and net written premiums increased by 7% to $31.96 billion.
  • 4Combined ratio improved to 94.5%, indicating better underwriting efficiency.
  • 5Catastrophe losses were significant at $1.85 billion but were managed effectively within the company's reinsurance framework.
  • 6Net investment income increased by 36% to $3.03 billion.
  • 7Shareholders received $3.08 billion in capital returns through dividends and share repurchases.

Frequently Asked Questions

The Travelers Companies, Inc. reported a net income of $3.66 billion, or $14.49 per diluted share, for the fiscal year ended December 30, 2021. This represents a significant increase from the previous year, driven by strong investment performance and improved underwriting results.

Travelers experienced robust premium growth in 2021. Gross written premiums increased by 8% to $34.24 billion, and net written premiums grew by 7% to $31.96 billion. This growth was distributed across its main segments, with Bond & Specialty Insurance showing particularly strong performance.

Travelers incurred $1.85 billion in catastrophe losses in 2021, primarily due to events like Hurricane Ida and severe weather events. While these losses impacted profitability, the company's reinsurance programs helped mitigate the full financial impact, contributing to a combined ratio of 94.5%.

Travelers maintained a high-quality, diversified investment portfolio with $87.38 billion in total investments, 93% of which are in fixed maturities and short-term securities. Net investment income increased by 36% to $3.03 billion in 2021, reflecting strong market performance, particularly in private equity partnerships, and a higher average investment base.