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Travelers Reports Quarterly Records For Net And Operating Income Per Diluted Share Of $2.70 And $2.68, Respectively, As Compared To $0.78 And $0.72 In The Prior Year Quarter

Stocks in this article: TRV

The Board of Directors declared a quarterly dividend of $0.50 per share. This dividend is payable March 31, 2014, to shareholders of record as of the close of business on March 10, 2014.

 

Business Insurance Segment Financial Results

                                                                     
($ in millions and pre-tax, unless noted otherwise)                                      
Three Months Ended December 31, Twelve Months Ended December 31,
2013 2012 Change 2013 2012 Change
 
Underwriting gain (loss): $ 333 $ (119 ) $ 452 $ 936 $ 252 $ 684

Underwriting gain (loss) includes:

Net favorable prior year reserve development 121 120 1 325 467 (142 )
Catastrophes, net of reinsurance (41 ) (439 ) 398 (285 ) (794 ) 509
 
Net investment income 507 498 9 1,975 2,090 (115 )
 
Other 23 9 14 158 40 118
           
Operating income before income taxes 863 388 475 3,069 2,382 687
Income tax expense   229     62     167     740     539     201  
Operating income $ 634   $ 326   $ 308   $ 2,329   $ 1,843   $ 486  

 

 

                                                                 

 

GAAP combined ratio 88.9 % 103.5 % (14.6 ) pts 91.9 % 97.4 % (5.5 ) pts
 

Impact on GAAP combined ratio

Net favorable prior year reserve development (3.9 ) pts (4.0 ) pts 0.1 pts (2.7 ) pts (4.0 ) pts 1.3 pts
Catastrophes, net of reinsurance 1.3 pts 14.7 pts (13.4 ) pts 2.4 pts 6.8 pts (4.4 ) pts
 
Underlying GAAP combined ratio 91.5 % 92.8 % (1.3 ) pts 92.2 % 94.6 % (2.4 ) pts
                                                                 
 
Net written premiums by market
Select Accounts $ 637 $ 657 (3 ) % $ 2,724 $ 2,775 (2 ) %
Commercial Accounts 750 718 4 3,197 3,101 3
National Accounts 255 244 5 1,010 907 11
Industry-Focused Underwriting 620 599 4 2,645 2,554 4
Target Risk Underwriting 410 369 11 1,799 1,666 8
Specialized Distribution 202 198 2 858 870 (1 )
Other   (1 )   (1 ) -   -     (1 ) NM
Total $ 2,873   $ 2,784   3 % $ 12,233   $ 11,872   3 %
 
NM = Not Meaningful                                                              
 

Fourth Quarter 2013 Results

(All comparisons vs. fourth quarter 2012, unless noted otherwise)

Operating income of $634 million after-tax increased $308 million or 94%, primarily reflecting improved underwriting results driven by lower catastrophe losses and a higher underlying underwriting gain.

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