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

The Travelers Companies, Inc. today reported net income of $864 million, or $2.21 per diluted share, for the quarter ended September 30, 2012, compared to $333 million, or $0.79 per diluted share, in the prior year quarter. Operating income in the current quarter was $867 million, or $2.22 per diluted share, compared to $332 million, or $0.79 per diluted share, in the prior year quarter. The increase in net and operating income in the current quarter compared to the prior year quarter was primarily driven by lower catastrophe losses and higher underlying underwriting results. Catastrophe losses in the current quarter were $59 million after tax ($91 million pre tax), compared to $394 million after tax ($606 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 September 30,       Nine Months Ended September 30,  
2012   2011   Change   2012   2011   Change  
 
Net written premiums $ 5,697 $ 5,672 - % $ 17,062 $ 16,926 1 %
                           
 
Total revenues $ 6,512 $ 6,407 2 $ 19,263 $ 19,073 1
 
Operating income $ 867 $ 332 161 $ 2,163 $ 781 177

per diluted share
$ 2.22 $ 0.79 181 $ 5.48 $ 1.82 201
 
Net income $ 864 $ 333 159 $ 2,169 $ 808 168
per diluted share $ 2.21 $ 0.79 180 $ 5.50 $ 1.88 193
 

Diluted weighted average shares outstanding
387.9 418.5 (7 ) 391.5 425.6 (8 )
 
GAAP combined ratio 90.3 % 104.5 % (14.2 ) pts 94.3 % 108.2 % (13.9 ) pts
 
Operating return on equity 15.5 % 5.9 % 9.6 pts 13.1 % 4.5 % 8.6 pts
 
Return on equity 13.6 % 5.3 % 8.3 pts 11.6 % 4.3 % 7.3 pts
 
As of September 30,  
2012 2011 Change  
Book value per share $ 67.81 $ 60.98 11 %
Adjusted book value per share $ 59.13 $ 54.53 8
 
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
     
 

“We are very pleased with our strong results this quarter,” commented Jay Fishman, Chairman and Chief Executive Officer. “Our underwriting performance reflected a GAAP combined ratio of 90.3%, which benefited from lower weather-related losses as well as the rate gains we have achieved during the past year. Net investment income benefited from strong results in our non-fixed income portfolio.

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