FOURTH QUARTER 2 0 23 RESULTS January 1 9 , 2024 LONG -TERM FINANCIAL STRATEGY Generation of Balanced Meaningful top–tier earnings approach to and sustainable and capital rightsizing capital competitive substantially and growing book advantages in excess of value per share ...

Financial Data and Key Metrics Changes - Core income for Q4 2023 was $1.6 billion, with a core return on equity of 24%, both record highs [18] - Net earned premiums reached $10 billion, up more than 13% year-over-year, with an underlying combined ratio improving by 5.5 points to a record 85.9% [5][18] - Full year core income was $3.1 billion, generating a core return on equity of 11.5% [27] Business Line Data and Key Metrics Changes - Business Insurance segment income for Q4 was $957 million, up over $200 million from the prior year, with net written premiums increasing by 14% to a record $5 billion [29][30] - Bond & Specialty Insurance saw net written premiums grow by 7% to $989 million, driven by strong demand in surety and management liability [8][37] - Personal Insurance achieved a 13% growth in net written premiums, with significant renewal premium changes of 21.2% in home and 16.7% in auto [8][40] Market Data and Key Metrics Changes - The overall market environment showed strong pricing dynamics, with renewal premium changes remaining high across all segments [7][31] - The company reported a favorable development in prior year reserves across all segments, contributing positively to the financial results [19] Company Strategy and Development Direction - The company emphasized a focused innovation strategy aimed at achieving industry-leading returns through disciplined growth and investment in capabilities [10][12] - Investments in technology and data analytics were highlighted as key to enhancing competitive advantages and improving underwriting processes [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business for 2024 and beyond, citing strong operational results and strategic priorities [17] - The company noted that while the environment remains dynamic, it is well-positioned to generate leading returns in Personal Insurance and grow profitably over time [44] Other Important Information - The company returned nearly $2 billion of excess capital to shareholders through dividends and share repurchases [6][17] - Adjusted book value per share increased by 8% year-over-year to $122.90 [26] Q&A Session Summary Question: Inquiry on Business Insurance underlying loss ratio components - Management noted that while they won't provide specific numbers, favorable pricing trends, a mix shift towards property, and modestly favorable non-CAT weather contributed to the improvement [46][47] Question: Details on general liability and umbrella reserve increases - Management indicated that there were no significant surprises, and the adjustments were modest, reflecting ongoing monitoring of data [48][49] Question: Comments on return on equity and capital allocation - Management acknowledged that while the ROE is solid, elevated catastrophe losses impacted it, and they remain disciplined in capital allocation, focusing on profitable growth and strategic investments [51][55] Question: Update on Fidelis relationship and its impact - Management described the Fidelis relationship as providing a modest benefit in 2023 and expected a similar impact in 2024, without providing specific figures [58][59] Question: Insights on personal auto non-rate restrictions - Management stated that the majority of premium is in states where non-rate actions have been relaxed, aligning with written adequacy [60][61] Question: Pricing dynamics in different markets - Management confirmed that while national property rates have ticked down, middle market and select business rates remain strong [63][64] Question: Clarification on general liability and umbrella returns - Management reiterated that despite reserve increases, the overall returns in these lines remain attractive due to strong rate adequacy [70][71] Question: Importance of free cash flow - Management emphasized that strong free cash flow is crucial for investing in growth, returning capital to shareholders, and growing the investment portfolio [72][73]

Travelers (TRV) reported $10.94 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 13.6%. EPS of $7.01 for the same period compares to $3.40 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $10.91 billion, representing a surprise of +0.24%. The company delivered an EPS surprise of +39.09%, with the consensus EPS estimate being $5.04.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

Travelers (TRV) came out with quarterly earnings of $7.01 per share, beating the Zacks Consensus Estimate of $5.04 per share. This compares to earnings of $3.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 39.09%. A quarter ago, it was expected that this insurer would post earnings of $2.93 per share when it actually produced earnings of $1.95, delivering a surprise of -33.45%.Over the last four quarters, the company has su ...

About this content About Stephen Gunnion Stephen Gunnion is a senior financial journalist and broadcaster at Proactive Investors. He has more than 25 years of experience in television, radio and print media, anchoring on a number of television channels including South Africa's Business Day TV, CNBC Africa and the South African Broadcasting Corporation, where he was the economics editor. He has also worked for Daily Maverick, Bloomberg, the Business Day newspaper and Investors' Chronicle. Read more About ...

Travelers stock was rising Friday after the insurance company posted earnings that beat Wall Street expectations as catastrophe losses declined. ...

Shares of Travelers Companies Inc. TRV, +0.43% surged 6.3% into record territory in premarket trading Friday, after the property casualty insurer reported fourth-quarter profit that rose well above expectations, citing lower catastrophe losses and higher underwriting gains. Net income nearly doubled to $1.63 billion, or $6.99 a share, from $819 million, or $3.44 a share, in the year-ago period. Excluding nonrecurring items, core earnings per share of $7.01 beat the FactSet consensus of $5.10. Total revenue ...

NEW YORK--(BUSINESS WIRE)--The Travelers Companies, Inc. today reported net income of $1.626 billion, or $6.99 per diluted share, for the quarter ended December 31, 2023, compared to $819 million, or $3.44 per diluted share, in the prior year quarter. Core income in the current quarter was $1.633 billion, or $7.01 per diluted share, compared to $810 million, or $3.40 per diluted share, in the prior year quarter. Core income increased primarily due to a higher underlying underwriting gain (i.e., excluding ne ...

Investors are always looking for stocks that are poised to beat at earnings season and The Travelers Companies, Inc. (TRV) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because The Travelers is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is ...

The Travelers Companies, Inc. (TRV) is set to report fourth-quarter 2023 earnings on Jan 19. The company delivered an earnings surprise in one of the three reported quarters of 2023 while missing in the other two.Factors to ConsiderTravelers’ fourth-quarter results are likely to benefit from solid performance across its three segments.Improved pricing, solid renewal rate change, strong retention and exposure growth are likely to have favored premiums in the to-be-reported quarter. The Zacks Consensus Estima ...