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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Travelers Reports Fourth Quarter Net Income Of $304 Million Or $0.78 Per Diluted Share After Catastrophe Losses Of $689 Million After-tax, Including Storm Sandy, Or $1.78 Per Diluted Share

The Travelers Companies, Inc. (NYSE: TRV):

  • Fourth quarter operating income of $278 million or $0.72 per diluted share.
  • Substantial improvement in underlying underwriting margin.
  • Strong net investment income attributable to alternative investment returns.
  • Written rate gains strong in all segments, with renewal rate change of approximately 8% in Business Insurance.
  • Book value per share of $67.31, up 8% from year-end 2011.
  • Repurchased 5.4 million shares for $400 million in the quarter and 22.4 million shares for $1.450 billion in the full year.
  • Board of Directors approved quarterly dividend per share of $0.46.

The Travelers Companies, Inc. today reported net income of $304 million, or $0.78 per diluted share, for the quarter ended December 31, 2012, compared to $618 million, or $1.51 per diluted share, in the prior year quarter. Operating income in the current quarter was $278 million, or $0.72 per diluted share, compared to $609 million, or $1.48 per diluted share, in the prior year quarter. The decrease in net and operating income in the current quarter compared to the prior year quarter resulted from the after-tax impact of higher catastrophe losses, partially offset by higher underlying underwriting margins and higher net favorable prior year reserve development. Catastrophe losses in the current quarter were $689 million after-tax ($1.054 billion pre-tax), including losses resulting from Storm Sandy of $669 million after-tax ($1.024 billion pre-tax), compared to $68 million after-tax ($102 million pre-tax) in the prior year quarter.

Consolidated Highlights


($ in millions, except for per share amounts, and after-tax, except for premiums & revenues)


Three Months Ended December 31,


Twelve Months Ended December 31,











Net written premiums $ 5,385 $ 5,261 2 % $ 22,447 $ 22,187 1 %
Total revenues $ 6,477 $ 6,373 2 $ 25,740 $ 25,446 1
Operating income $ 278 $ 609 (54 ) $ 2,441 $ 1,390 76
per diluted share $ 0.72 $ 1.48 (51 ) $ 6.21 $ 3.28 89
Net income $ 304 $ 618 (51 ) $ 2,473 $ 1,426 73
per diluted share $ 0.78 $ 1.51 (48 ) $ 6.30 $ 3.36 88

Diluted weighted average shares outstanding

385.3 407.0 (5 ) 389.8 420.5 (7 )
GAAP combined ratio 105.4 % 95.9 % 9.5 pts 97.1 % 105.1 % (8.0 ) pts
Operating return on equity 5.0 % 11.1 % (6.1 ) pts 11.0 % 6.1 % 4.9 pts
Return on equity 4.7 % 10.0 % (5.3 ) pts 9.8 % 5.7 % 4.1 pts
As of December 31,




Book value per share $ 67.31 $ 62.32 8 %
Adjusted book value per share $ 59.09 $ 55.01 7
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

“We are pleased with our fourth quarter results, as well as our full year results, particularly in light of Storm Sandy,” commented Jay Fishman, Chairman and Chief Executive Officer. “Our full year operating income was $2.4 billion, which included $1.2 billion in after-tax catastrophe losses, compared to operating income of $1.4 billion in the prior year, which included $1.7 billion in after-tax catastrophe losses. In addition to the lower level of catastrophe losses, higher underlying underwriting margins contributed significantly to the year over year improvement. The underlying underwriting margins improved in each of our businesses, attributable to improved non-catastrophe weather-related losses and the significant pricing gains we have been realizing. Our high quality investment portfolio continued to perform very well. Finally, in light of the overall economic environment, we remained highly disciplined in managing our expenses but continue to invest strategically in our businesses where appropriate.

Stock quotes in this article: TRV 

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs