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Sep 30, 2023

Travelers Q3 2023 Earnings Report

Reported net income of $404 million and core income of $454 million.

Key Takeaways

Travelers reported a decrease in net income to $404 million compared to the prior year, with core income also declining due to higher catastrophe losses and unfavorable prior year reserve development, though offset by higher underwriting gain and net investment income. Record net written premiums of $10.493 billion, up 14% over the prior year quarter, including growth in all three segments.

Excellent underlying underwriting income of $868 million pre-tax, up 43%.

Consolidated combined ratio of 101.0%; and underlying combined ratio of 90.6%, a 1.9 point improvement.

Record net written premiums of $10.493 billion, up 14% over the prior year quarter, including growth in all three segments.

Net investment income increased 30% pre-tax over the prior year quarter primarily due to strong fixed income returns.

Total Revenue
$10.6B
Previous year: $9.3B
+14.3%
EPS
$1.95
Previous year: $2.2
-11.4%
Combined Ratio
101%
Previous year: 98.2%
+2.9%
Underlying Combined Ratio
90.6%
Previous year: 92.5%
-2.1%
Gross Profit
$10.6B
Previous year: $9.3B
+14.3%
Cash and Equivalents
$593M
Previous year: $773M
-23.3%
Free Cash Flow
$3.05B
Total Assets
$121B
Previous year: $114B
+6.2%

Travelers

Travelers

Travelers Revenue by Segment

Forward Guidance

Travelers is confident in its outlook, citing strong fundamentals in commercial businesses, improving results in personal insurance, and rising returns in the fixed income portfolio, alongside progress in innovation.

Positive Outlook

  • Terrific fundamentals in commercial businesses.
  • Improving underlying results in personal insurance.
  • Achieving steadily rising returns in the growing fixed income portfolio.
  • Making excellent progress in the execution of the focused innovation agenda.
  • Confident in the outlook across the diversified business.

Revenue & Expenses

Visualization of income flow from segment revenue to net income