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Sep 30, 2020
Travelers Q3 2020 Earnings Report
Reported net income per diluted share of $3.23 and core income per diluted share of $3.12, both up substantially from prior year quarter.
Key Takeaways
Travelers Companies reported a strong third quarter with net income of $827 million and core income of $798 million. The consolidated combined ratio improved to 94.9%, and net written premiums increased by 3% to $7.771 billion.
Net income was $827 million and core income was $798 million.
The consolidated combined ratio improved 6.6 points to 94.9%, with the underlying combined ratio improving 2.6 points to 91.5%.
Net written premiums increased 3% to $7.771 billion.
Capital returned to shareholders was $218 million, with no share repurchases in the current quarter.
Revenue by Segment
Forward Guidance
Travelers is actively pursuing its innovation agenda and investing in its strategic priorities to extend its lead in risk expertise, provide best-in-class experiences to its customers and distribution partners, and improve productivity and efficiency.
Positive Outlook
- Strong renewal rate change in all three segments.
- Record renewal rate change in Business Insurance and Bond & Specialty Insurance.
- High-quality investment portfolio performed well.
- Net written premiums in the quarter were up nearly 3%.
- Strong retention across all businesses.
Challenges Ahead
- Catastrophe losses were well above the 10-year average for the third quarter.
- COVID-19 and related economic conditions are creating ongoing challenges.
- Modest reduction in exposures impacted by COVID-19.
- Higher loss estimates for management liability coverages due to COVID-19.
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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