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Travelers Reports Second Quarter Net Income Of $683 Million, Or $1.95 Per Diluted Share, Including Catastrophe Losses Of $284 Million, Or $0.82 Per Diluted Share

The Travelers Companies, Inc. today reported net income of $683 million, or $1.95 per diluted share, for the quarter ended June 30, 2014, compared to net income of $925 million, or $2.41 per diluted share, in the prior year quarter. Operating income in the current quarter was $673 million, or $1.93 per diluted share, compared to $816 million, or $2.13 per diluted share, in the prior year quarter.

             

Consolidated Highlights

 

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

Three Months Ended June 30, Six Months Ended June 30,

 

  2014         2013       Change   2014       2013     Change
 
Net written premiums $

6,162

$ 5,824 6 % $

12,035

$ 11,421 5 %
 
Total revenues $ 6,785 $ 6,674 2 $ 13,493 $ 13,002 4
 
Operating income $ 673 $ 816 (18 ) $ 1,725 $ 1,703 1

 

per diluted share $ 1.93 $ 2.13 (9 ) $ 4.89 $ 4.44 10
 
Net income $ 683 $ 925

(26

)

$ 1,735 $ 1,821 (5 )
 
per diluted share $ 1.95 $ 2.41 (19 ) $ 4.91 $ 4.75 3
 
Diluted weighted average 346.7 379.9 (9 ) 350.5 380.8 (8 )
shares outstanding

 

 

 
Combined ratio 95.1 % 94.3 % 0.8 pts 90.5 % 91.4 % (0.9 ) pts
 

Underlying combined ratio

90.9 % 91.7 % (0.8 ) pts 89.6 % 91.3 % (1.7 ) pts
 
Operating return on equity 11.4 % 14.2 % (2.8 ) pts 14.6 % 15.0 % (0.4 ) pts
 
Return on equity 10.7 % 14.6 % (3.9 ) pts 13.7 % 14.4 % (0.7 ) pts
 
 
Change from

June 30,

December 31, June 30, December 31,

June 30,

  2014     2013     2013     2013     2013  
 
Book value per share $ 75.32 $ 70.15 $ 66.65 7 % 13 %
 
Adjusted book value per share 69.38 66.41 62.12 4 12
 
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
 

“Our second quarter operating income of $673 million and operating return on equity of 11.4% were strong, particularly given the relatively high level of catastrophe losses we experienced this quarter,” commented Jay Fishman, Chairman and Chief Executive Officer. “The comparison of these results to last year’s second quarter was meaningfully impacted by the significant increase in catastrophe losses in the current quarter as well as the inclusion of significant favorable tax and legal settlements in the prior year quarter.We are very pleased with our underlying combined ratio of 90.9%, which improved from 91.7% in the prior year quarter. Net investment income was comparable to the prior year quarter, notwithstanding the impact of the low interest rate environment, as we continued to generate strong returns from our non-fixed income portfolio. In addition, our strong earnings in recent quarters enabled us to return over $1 billion of capital to shareholders in the current quarter, including $876 million of share repurchases.

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