The Travelers Companies, Inc. · NYSE:TRV

The Travelers Companies — Q2 2024 Earnings Presentation

22 slides from The Travelers Companies's earnings presentation, Jul 19, 2024

  1. Slide 1: Second Quarter 2024 Results

    SECOND QUARTER 2024 RESULTS July 19, 2024

  2. Slide 2: Long-Term Financial Strategy

    L O N G - T E R M F I N A N C I A L S T R AT E G Y Generation of Balanced Meaningful top–tier earnings approach to and sustainable and capital rightsizing capital competitive substantially and growing book advantages in excess of value per share growth needs over time C R E AT E S H A R E H O L D E

  3. Slide 3: Second Quarter 2024 Overview

    SECOND QUARTER 2024 OVERVIEW Travelers Reports Strong Second Quarter and Year-to-Date Results Excellent Underlying Results, Net Favorable Prior Year Reserve Development and Higher Net Investment Income More Than Offset Significant Catastrophe Losses from Severe Convective Storms Second Quarter 2024

  4. Slide 4: Consolidated Performance

    C O N S O L I D AT E D P E R F O R M A N C E ($ in millions, except per share amounts, after-tax, except for premiums) SECOND QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Core income $ 585 $ 15 NM $ 1,681 $ 985 71 % per diluted share $ 2.51 $ 0.06 NM $ 7.20 $ 4.19 72 % Included the followi

  5. Slide 5: Very Strong Financial Position

    V E RY S T R O N G F I N A N C I A L P O S I T I O N ($ and shares in millions, except per share amounts) June 30, December 31, 2024 2023 Capital Debt $ 8,032 $ 8,031 Common equity 1 28,838 28,050 • Continued strong capitalization to support the Company’s business operations. Total capital 1 $ 36,87

  6. Slide 6: Net Investment Income

    NET INVESTMENT INCOME ($ in millions, after-tax) TOTAL $727 Second Quarter 2024 vs. Prior Year Quarter Commentary $698 $609 $640 $645 $557 $594 • Net investment income (NII) from the fixed income $542 portfolio increased due to a higher average yield and growth in average invested assets • NII from

  7. Slide 7: Leading Core Return on Equity at Industry-Low Volatility

    LEADING CORE RETURN ON EQUITY AT INDUSTRY-LOW VOLATILITY 13.0% 10.9% 11.3% 13.7% 11.3% 11.5% 7.4% 11.8% 8.7% 8.8% 8.9% 1.0% 7.8% 8.0% 1.1% 7.6% 0.2% 7.1% 0.7% 1.1% 6.9% 0.7% 0.8% 3.3% 0.7% 0.3% 0.7% 1.2% 0.6% 0.1% 0.2% 4.9% 4.3% 4.4% 4.2% 7.5% 3.5% 7.0% 2.9% 6.4% 3.1% 6.1% 6.6% 6.3% 5.5% 5.7% -0.2%

  8. Slide 8: Business Insurance Performance

    BUSINESS INSURANCE PERFORMANCE ($ in millions) SECOND QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income $ 656 $ 402 63 % $ 1,420 $ 1,158 23 % Loss and loss adjustment expense ratio 66.2 % 70.0 % 64.9 % 66.9 % Underwriting expense ratio 29.9 30.1 29.8 30.0 Combined ratio 1 96.1 %

  9. Slide 9: Domestic Business Insurance (ex. National Accounts) Illustrative Business Statistics

    D O M E S T I C B U S I N E S S I N S U R A N C E ( E X . N AT I O N A L A C C O U N T S ) I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 7.8% 8% 7.2% 7.3% 6.9% 6.5% 6% 4% 4.7% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23

  10. Slide 10: Domestic Business Insurance: Select Accounts

    DOMESTIC BUSINESS INSURANCE: SELECT ACCOUNTS I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8% 6% 5.3% 4.0% 3.8% 4% 3.0% 2.9% 1.9% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 Retention 85% 85% 85% 85% 84

  11. Slide 11: Domestic Business Insurance: Middle Market

    DOMESTIC BUSINESS INSURANCE: MIDDLE MARKET I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8% 7.0% 7.0% 7.0% 6.8% 5.9% 6% 4.4% 4% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 Retention 89% 89% 89% 89% 87%

  12. Slide 12: Bond & Specialty Insurance Performance

    B O N D & S P E C I A LT Y I N S U R A N C E P E R F O R M A N C E ($ in millions) SECOND QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income $ 170 $ 230 (26) % $ 365 $ 437 (16) % Loss and loss adjustment expense ratio 48.0 % 39.8 % 46.2 % 41.4 % Underwriting expense ratio 39.7 37.

  13. Slide 13: Domestic Bond & Specialty Insurance Illustrative Business Statistics

    D O M E S T I C B O N D & S P E C I A LT Y I N S U R A N C E ($ in millions) I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q Management Liability 1 Retention 89% 91% 91% 90% 90% 90% Renewal premium change 2 5.6% 4.4% 4.1% 2.1% 2.8% 2.3% New business $68 $70 $62 $

  14. Slide 14: Personal Insurance Performance

    PERSONAL INSURANCE PERFORMANCE ($ in millions) SECOND QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income (loss) $ (153) $ (538) NM $ 67 $ (455) NM Loss and loss adjustment expense ratio 83.7 % 97.4 % 78.0 % 87.1 % Underwriting expense ratio 24.8 24.6 24.8 24.9 Combined ratio 1 108

  15. Slide 15: Personal Insurance Performance

    PERSONAL INSURANCE PERFORMANCE SECOND QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Automobile Loss and loss adjustment expense ratio 75.6 % 86.0 % 74.0 % 83.9 % Underwriting expense ratio 22.3 22.4 22.3 22.7 1 Combined ratio 97.9 % 108.4 % 10.5 pts 96.3 % 106.6 % 10.3 pts Net favorable (un

  16. Slide 16: Domestic Personal Insurance

    DOMESTIC PERSONAL INSURANCE ($ in millions) I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q Automobile Retention 1 82% 82% 82% 83% 82% 82% 2 Renewal premium change 15.4% 17.5% 19.6% 18.3% 16.7% 15.8% Policies in force (in thousands) 3,021 2,999 2,996 2,996 2,985

  17. Slide 17: Total International Insurance Illustrative Business Statistics

    TO TA L I N T E R N AT I O N A L I N S U R A N C E ($ in millions) I L L U S T R AT I V E B U S I N E S S S TAT I S T I C S 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q International 1 Retention 84% 84% 84% 83% 83% 82% Renewal premium change 2 8.4% 9.0% 6.5% 4.5% 4.3% 4.5% New business $91 $104 $98 $91 $195 $92 1 Ex

  18. Slide 18: Appendix

    APPENDIX 18

  19. Slide 19: 2024 Catastrophe Reinsurance

    2 0 2 4 C ATA S T R O P H E R E I N S U R A N C E Catastrophe Bonds – Long Point Re IV Ltd. • $575 million aggregate principal was placed in May 2022 and the attachment point was reset in May 2024 − The reinsurance agreement provides single occurrence coverage to the Company through May 24, 2026 for

  20. Slide 20: Explanatory Note

    E X P L A N ATO RY N O T E This presentation contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as

  21. Slide 21: Disclosure

    DISCLOSURE In this presentation, we may refer to some non-GAAP financial measures. For a reconciliation of these measures to the most comparable GAAP measures and a glossary of financial measures, we refer you to the press release and financial supplement that we have made available in connection wi

  22. Slide 22: investor.travelers.com

    investor.travelers.com 22

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