Record Core Income and Strong Return on Equity
Travelers reported core income of $1.9 billion or $8.14 per diluted share with a return on equity of 22.6% for the quarter, and a core return on equity of 18.7% for the trailing twelve months.
Growth in Net Written Premiums
Net written premiums grew to $11.5 billion, with business insurance growing by 3% to $5.7 billion. Excluding property lines, domestic net written premiums in the segment grew by more than 6%.
Investment Income Increase
After-tax net investment income increased by 15% to $850 million, driven by strong returns from the fixed income portfolio.
Shareholder Returns
Nearly $900 million was returned to shareholders, including $628 million in share repurchases, with plans for increased share repurchases in future quarters.
Segment Performance
All three business segments reported higher underwriting income, with Personal Insurance achieving a combined ratio of 81.3% and Bond and Specialty Insurance reporting a combined ratio of 81.6%.