|Three Months Ended September 30,||Nine Months Ended September 30,|
|($ in millions, except for per share amounts, and after-tax, except for premiums & revenues)||2013||2012||Change||2013||2012||Change|
|Net written premiums||$||5,713||$||5,697||-||%||$||17,134||$||17,062||-||%|
|per diluted share||$||2.35||$||2.22||6||$||6.79||$||5.48||24|
|per diluted share||$||2.30||$||2.21||4||$||7.05||$||5.50||28|
|Diluted weighted average shares outstanding||372.9||387.9||(4||)||378.1||391.5||(3||)|
|GAAP combined ratio||88.9||%||90.3||%||(1.4||)||pts||90.6||%||94.3||%||(3.7||)||pts|
|Underlying GAAP combined ratio||90.0||%||92.1||%||(2.1||)||pts||90.8||%||93.7||%||(2.9||)||pts|
|Operating return on equity||15.2||%||15.5||%||(0.3||)||pts||15.1||%||13.1||%||2.0||pts|
|Return on equity||13.9||%||13.6||%||0.3||pts||14.2||%||11.6||%||2.6||pts|
|September 30,||December 31,||September 30,||December 31,||September 30,|
|Book value per share||$||68.15||$||67.31||$||67.81||1||%||1||%|
|Adjusted book value per share||63.87||59.09||59.13||8||8|
|See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.|
The Travelers Companies, Inc. today reported net income of $864 million, or $2.30 per diluted share, for the quarter ended September 30, 2013, compared to $864 million, or $2.21 per diluted share, in the prior year quarter. Operating income in the current quarter was $883 million, or $2.35 per diluted share, compared to $867 million, or $2.22 per diluted share, in the prior year quarter. The increase in net and operating income per diluted share compared to the prior year quarter primarily resulted from a higher underlying underwriting gain (i.e., excluding prior year reserve development and catastrophe losses) and the impact of share repurchases, partially offset by lower net investment income and lower net favorable prior year reserve development.
“We are very pleased to report quarterly operating income per diluted share of $2.35, a record dating back to Travelers’ initial public offering in 2002 and operating income of $883 million,” commented Jay Fishman, Chairman and Chief Executive Officer, “as well as operating return on equity of 15.2%. The current quarter benefited from earned rate increases exceeding loss cost trends in each segment, largely the result of the pricing strategy we have been pursuing since the middle of 2010, low weather-related losses and meaningful net favorable prior year reserve development. Our strong results for the first nine months of this year enabled us to return almost $2 billion in capital to shareholders year-to-date through share repurchases and dividends, including almost $1 billion in the quarter.