Summary
The Travelers Companies, Inc. reported net income of $896 million, or $2.33 per diluted share, for the first quarter of 2013. This represents an 11% increase in net income and a 15% increase in diluted earnings per share compared to the same period in 2012. The improved performance was primarily driven by higher underwriting margins, particularly in the Business Insurance and Personal Insurance segments, and a reduction in catastrophe losses. Net earned premiums remained stable at $5.52 billion, with slight increases in Business Insurance offset by decreases in Personal Insurance. Investment income saw a notable decline of 9% to $670 million, primarily due to lower yields on fixed maturity and non-fixed maturity investments.
Financial Highlights
29 data pointsBeta
Financial Statements
Beta
| Revenue | $6.33B |
| Operating Income | $887.00M |
| Interest Expense | $92.00M |
| Net Income | $896.00M |
| EPS (Basic) | $2.36 |
| EPS (Diluted) | $2.33 |
| Shares Outstanding (Basic) | 377.70M |
| Shares Outstanding (Diluted) | 381.90M |
Key Highlights
- 1Net income increased by 11% to $896 million ($2.33 diluted EPS), demonstrating strong profitability in the quarter.
- 2The GAAP combined ratio improved significantly to 88.5% from 92.2% in the prior year, indicating improved underwriting discipline and loss management.
- 3Catastrophe losses were reduced to $99 million from $168 million in the prior year, contributing positively to underwriting results.
- 4Net favorable prior year reserve development decreased to $231 million from $304 million, suggesting a normalization of reserve releases.
- 5Net investment income declined by 9% to $670 million, reflecting lower yields in the prevailing interest rate environment.
- 6The company continued its capital return strategy by repurchasing $300 million of common stock and increasing its quarterly dividend.