Summary
The Travelers Companies, Inc. reported a net income of $740 million ($1.27 per diluted share) for the second quarter of 2009, a decrease from $942 million ($1.54 per diluted share) in the same period of 2008. This decline was primarily attributed to lower net favorable prior year reserve development and net investment income, coupled with reduced underwriting margins. Catastrophe losses were down year-over-year, offering some offset. Premiums remained stable, with slight declines in Business Insurance and Financial, Professional & International Insurance segments, while Personal Insurance saw modest growth. Investment income was significantly impacted by negative returns from non-fixed maturity investments and lower short-term interest rates. The company continued its share repurchase program, repurchasing $750 million of common stock during the quarter, demonstrating a commitment to returning capital to shareholders while maintaining a strong capital position.
Financial Highlights
28 data points| Revenue | $6.16B |
| Interest Expense | $94.00M |
| Net Income | $740.00M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.27 |
| Shares Outstanding (Basic) | 575.80M |
| Shares Outstanding (Diluted) | 579.80M |
Key Highlights
- 1Net income for Q2 2009 was $740 million, or $1.27 per diluted share, down from $942 million, or $1.54 per diluted share, in Q2 2008.
- 2Earned premiums remained largely flat at $5.35 billion in Q2 2009 compared to $5.36 billion in Q2 2008.
- 3Net investment income decreased by 15% to $658 million in Q2 2009 from $778 million in Q2 2008, impacted by lower yields and negative returns from non-fixed maturity investments.
- 4The GAAP combined ratio deteriorated to 93.2% from 89.3% in the prior year's second quarter, largely due to lower favorable prior year reserve development and increased catastrophe losses relative to the lower reserve development benefit.
- 5The company repurchased approximately 18.5 million shares for $750 million during the quarter, with $3.06 billion remaining under its share repurchase authorization.
- 6Shareholders' equity increased to $26.92 billion, resulting in a book value per share of $47.29, up 10% from the end of 2008.
- 7The Business Insurance segment experienced a decline in operating income to $560 million from $658 million in the prior year quarter, impacted by lower reserve development and investment income.