“We are very pleased to report excellent underwriting and investment performance, with core income of $879 million in the second quarter, or $3.45 per diluted share, and core return on equity of 13.7%,” it said. Alan Schnitzer, Travelers Chairman and CEO. “Higher underlying insurance earnings and net favorable reserves development from last year, as well as a lower level of catastrophe losses, all contributed to higher core revenues compared to last year’s quarter.”
The company’s strong results allowed Travelers to return $625 million in excess capital to shareholders in the second quarter, including $401 million in share repurchases, Schnitzer said.
The company’s total net written premiums were up 11% (8% adjusted for car premium refunds in the prior year quarter). In the business insurance segment of the company, net written premiums increased by 5%, with renewal premiums changing 9.5%, almost at an all-time high. Retention was higher and the segment grew 9% from new business. In bonds and special insurance, newly written premiums increased by 16%. In personal insurance, net premiums written increased 16%, or 8% adjusted for car premium refunds in the prior year quarter.
“Our excellent top and bottom-line results this quarter and for the first half of the year demonstrate the continued successful execution of our strategy to grow revenue at attractive returns,” said Schnitzer, “as well as the effectiveness of our resource – defined and consistent investment philosophy,
“Our focused innovation agenda has been a major contributor to the growth and profitability we have achieved, and we will relentlessly pursue our priorities to extend our lead in risk expertise, deliver great experiences to our customers , distribution partners and employees, and improving productivity and efficiency. With the momentum we have and the best talent in the industry, we are well positioned to continue to create meaningful shareholder value over time.”