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 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.

1 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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs