Early Access

10-QPeriod: Q3 FY2012

TRAVELERS COMPANIES, INC. Quarterly Report for Q3 Ended Sep 30, 2012

Filed October 18, 2012For Securities:TRV

Summary

Travelers Companies, Inc. reported strong financial results for the third quarter and first nine months of 2012, demonstrating significant year-over-year improvements in net income and earnings per share. Net income for the third quarter reached $864 million, or $2.21 per diluted share, a substantial increase from $333 million, or $0.79 per diluted share, in the prior year's quarter. This robust performance was primarily driven by a considerable reduction in catastrophe losses and a notable increase in net favorable prior year reserve development. The company also benefited from improved underlying underwriting margins across its segments. Total revenues grew slightly to $6.51 billion for the quarter. Investments remain a strong component of the company's financial health, totaling $74.49 billion, predominantly in fixed maturities and short-term securities. The company continued its commitment to returning capital to shareholders through share repurchases, buying back $350 million worth of common stock in the third quarter, while maintaining a solid debt-to-capital ratio of 19.7%. Travelers' financial position appears stable, with ample liquidity and a strong capital base supporting its operations.

Financial Highlights

29 data points
Beta

Revenue

$6.51B

Net Income

$864.00M

0.1% Net Margin

EPS (Diluted)

$2.21

Total Assets

$105.44B

Cash & Equivalents

$220.00M

Free Cash Flow

$1.50B

Financial Statements
Beta
Revenue$6.51B
Operating Income$867.00M
Interest Expense$93.00M
Net Income$864.00M
EPS (Basic)$2.23
EPS (Diluted)$2.21
Shares Outstanding (Basic)384.00M
Shares Outstanding (Diluted)387.90M

Key Highlights

  • 1Net income significantly increased to $864 million ($2.21/diluted share) in Q3 2012, up from $333 million ($0.79/diluted share) in Q3 2011.
  • 2Catastrophe losses decreased substantially to $91 million in Q3 2012 from $606 million in Q3 2011.
  • 3Net favorable prior year reserve development was strong at $193 million in Q3 2012, up from $184 million in Q3 2011.
  • 4Consolidated GAAP combined ratio improved to 90.3% in Q3 2012 from 104.5% in Q3 2011.
  • 5Total investments stood at $74.49 billion as of September 30, 2012, with 93% in fixed maturities and short-term securities.
  • 6The company repurchased $350 million of common stock in Q3 2012.
  • 7Debt-to-total capital ratio remained healthy at 19.7% at the end of Q3 2012.

Frequently Asked Questions