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Mar 31, 2020
Travelers Q1 2020 Earnings Report
Reported net income of $600 million and core income of $676 million.
Key Takeaways
Travelers reported a decrease in net income to $600 million, primarily due to net realized investment losses and higher catastrophe losses, though these were partially offset by a higher underlying underwriting gain. COVID-19 related charges impacted underwriting gain. Net written premiums increased by 4%, and the company returned $681 million to shareholders through dividends and share repurchases.
Net income was $600 million, and core income was $676 million.
Catastrophe losses totaled $333 million pre-tax, up from $193 million in the prior year quarter.
COVID-19-related net charges of $86 million pre-tax were included in the underwriting gain.
Net written premiums increased by 4% to $7.346 billion, with growth in all segments.
Revenue by Segment
Forward Guidance
There are many uncertainties surrounding COVID-19’s impact on our global economy and on us, it has been in the most challenging circumstances that the strength of our AA-rated franchise and the value we provide to all of our stakeholders shine through.
Positive Outlook
- Balance sheet is extremely strong
- Debt-to-capital ratio is comfortably within our target range
- Holding company liquidity of $1.6 billion is well above our target level
- Very high-quality investment portfolio
- Have the talent, technology, risk management processes and procedures, and, importantly, financial strength to manage through these extraordinary times and to continue to deliver meaningful shareholder value over time.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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