This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Travelers Reports Net Income Per Diluted Share Of $2.21 And Quarterly Record Operating Income Per Diluted Share Of $2.22 For The Third Quarter

Capital Management

“Our $1.5 billion of cash flows from operating activities during the quarter were the highest level since the third quarter of 2007,” commented Jay S. Benet, Vice Chairman and Chief Financial Officer. “We repurchased 5.4 million shares for $350 million and dividends were $179 million, bringing the year-to-date total capital returned to shareholders to over $1.5 billion.”

At the end of the third quarter of 2012, shareholders’ equity was $25.905 billion, a 6 percent increase from the end of the prior year. Included in shareholders’ equity at the end of the third quarter of 2012 were after-tax net unrealized investment gains of $3.315 billion, compared to $2.871 billion at year-end 2011. Statutory surplus was $20.291 billion, up $1.117 billion from the beginning of the year. The company’s debt-to-capital ratio (excluding after-tax net unrealized investment gains) was 21.9 percent, well within its target range, and holding company liquidity was $2.042 billion.

The Board of Directors declared a quarterly dividend of $0.46 per common share. This dividend is payable December 31, 2012, to shareholders of record as of the close of business on December 10, 2012.

Business Insurance Segment Financial Results

“In Business Insurance, our strong results this quarter were driven in large part by lower weather-related losses and previously achieved rate gains,” commented Brian MacLean, President and Chief Operating Officer. “We continued to achieve broad based written rate increases across the segment, led by Workers’ Compensation and Commercial Auto, along with improved retentions. We are encouraged by our progress so far and plan on continuing this strategy."

       
                               
($ in millions) Three Months Ended September 30,  
2012 2011 2012 2011  
Pre-tax After-tax  
 
Underwriting gain (loss) $ 187 $ (167 ) $ 117 $ (110 )

Underwriting gain (loss) includes:

Net favorable prior year reserve development 41 26 27 17
Catastrophes, net of reinsurance (50 ) (195 ) (33 ) (127 )
 
Net investment income 524 487 419 398
 
Other 9 8 7 6
               
Operating income $ 720   $ 328   $ 543   $ 294  
                               
 
GAAP combined ratio 93.3 % 105.4 %
 

Impact on GAAP combined ratio

Net favorable prior year reserve development (1.4 ) pts (0.9 ) pts
Catastrophes, net of reinsurance 1.7 pts 6.8 pts
 
 

Operating income of $543 million after tax increased $249 million from the prior year quarter mostly due to a $227 million after-tax improvement in the underwriting results, reflecting higher underlying underwriting margins and lower catastrophe losses.

4 of 12

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs