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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.
Travelers
Travelers
Travelers Revenue by Segment
Revenue by Segment
Business Insurance Revenue
CapyFin.comBond & Specialty Revenue
CapyFin.comPersonal Insurance Revenue
CapyFin.com 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.
- Income from the fixed income investment portfolio decreased due to lower interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income