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Mar 31, 2021
Travelers Q1 2021 Earnings Report
Reported strong first quarter with increased net income per diluted share and return on equity.
Key Takeaways
Travelers reported a strong first quarter with net income of $733 million and core income of $699 million, driven by strong underlying underwriting income, favorable prior year reserve development, and net investment income, despite record catastrophe losses. The company returned $613 million of capital to shareholders, increased its quarterly dividend by 4%, and authorized an additional $5.0 billion for share repurchases.
Net income was $733 million and core income was $699 million.
The consolidated combined ratio was 96.6%, with the underlying combined ratio improving to 89.5%.
Net written premiums increased by 2% to $7.505 billion.
Total capital returned to shareholders was $613 million, including $397 million in share repurchases.
Travelers
Travelers
Travelers Revenue by Segment
Revenue by Segment
Business Insurance Revenue
CapyFin.comBond & Specialty Revenue
CapyFin.comPersonal Insurance Revenue
CapyFin.com Forward Guidance
The strength of underwriting and investment expertise enabled Travelers to deliver strong profitability, notwithstanding the severe winter weather. They are particularly pleased with the strong underlying fundamentals in all three of their business segments.
Positive Outlook
- The company is well positioned to capitalize on opportunities as the economy recovers.
- The company is confident that it will continue to create meaningful shareholder value over time.
- The company's Board of Directors declared a 4% increase in the company's quarterly cash dividend to $0.88 per share.
- The company's Board also authorized an additional $5 billion of share repurchases.
- The company has a proven strategy, strong track record of execution, leading analytics and talent advantage.
Challenges Ahead
- High levels of catastrophe losses.
- Actual claims may exceed the Company’s claims and claim adjustment expense reserves.
- The Company’s potential exposure to asbestos and environmental claims and related litigation.
- A period of financial market disruption or an economic downturn.
- The intense competition that the Company faces, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income