The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Q1 2024 Earnings Presentation
23 slides from The Travelers Companies's earnings presentation, Apr 17, 2024
Slide 1: First Quarter 2024 Results
FIRST QUARTER 2024 RESULTS April 17, 2024
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
Slide 3: First Quarter 2024 Overview
FIRST QUARTER 2024 OVERVIEW Travelers Reports Excellent First Quarter Results First Quarter 2024 Net Income per Diluted Share of $4.80, up 16%, and Return on Equity of 18.0% First Quarter 2024 Core Income per Diluted Share of $4.69, up 14%, and Core Return on Equity of 15.4% Board of Directors Decla
Slide 4: Consolidated Performance
C O N S O L I D AT E D P E R F O R M A N C E ($ in millions, except per share amounts, after-tax, except for premiums) FIRST QUARTER 2024 2023 Change Core income $ 1,096 $ 970 13 % per diluted share $ 4.69 $ 4.11 14 % Included the following items: Net favorable prior year reserve development $ 71 $
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) March 31, December 31, 2024 2023 Capital Debt $ 8,032 $ 8,031 Common equity 1 28,743 28,050 • Continued strong capitalization to support the Company’s business operations. Total capital 1 $ 36,7
Slide 6: Net Investment Income
NET INVESTMENT INCOME ($ in millions, after-tax) TOTAL $698 First Quarter 2024 vs. Prior Year Quarter Commentary $609 $640 $645 $557 $594 $542 • Net investment income (NII) from the fixed income portfolio increased due to a higher average yield and growth in average invested assets • NII from the no
Slide 7: Leading Core Return on Equity at Industry-Low Volatility
LEADING CORE RETURN ON EQUITY AT INDUSTRY-LOW VOLATILITY 13.0% 10.9% 11.3% 13.7% 11.3% 11.5% 14.5% 15.4% 8.7% 8.8% 8.7% 1.0% 7.8% 8.0% 1.0% 0.2% 0.7% 7.3% 7.2% 1.1% 6.9% 7.1% 0.8% 3.3% 0.7% 0.6% 6.7% 0.3% 0.7% 1.2% 0.5% 0.1% 0.2% 4.9% 4.3% 4.4% 4.2% 7.5% 3.5% 6.9% 6.4% 3.1% 6.1% 6.6% 6.2% 5.5% 5.7%
Slide 8: Business Insurance Performance
BUSINESS INSURANCE PERFORMANCE ($ in millions) FIRST QUARTER 2024 2023 Change Segment income $ 764 $ 756 1 % Loss and loss adjustment expense ratio 63.6 % 63.8 % Underwriting expense ratio 29.7 29.8 Combined ratio 1 93.3 % 93.6 % 0.3 pts Net favorable prior year reserve development 0.0 0.4 Catastrop
Slide 9: Domestic Business Insurance (ex. National Accounts)
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% 7.1% 7.3% 7.0% 6% 4% 4.6% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23 4Q’23
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% 4.1% 4.0% 4% 2.9% 2.9% 1.9% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 Retention 85% 85% 85% 85% 84% Renewal p
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% 6.8% 5.8% 6% 4.3% 4% 2% - ($ in millions) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 Retention 89% 89% 89% 89% 87% Renewal pre
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) FIRST QUARTER 2024 2023 Change Segment income $ 195 $ 207 (6) % Loss and loss adjustment expense ratio 44.4 % 43.0 % Underwriting expense ratio 40.1 37.0 Combined ratio 1 84.5 % 80.0 % (4.5) pts Net favorable prior ye
Slide 13: Domestic Bond & Specialty Insurance
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 Management Liability 1 Retention 89% 91% 91% 90% 90% 2 Renewal premium change 5.6% 3.8% 3.9% 2.1% 2.8% New business $68 $70 $62 $86 $91 1 Dom
Slide 14: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE ($ in millions) FIRST QUARTER 2024 2023 Change Segment income $ 220 $ 83 165 % Loss and loss adjustment expense ratio 72.2 % 76.3 % Underwriting expense ratio 24.7 25.2 Combined ratio 1 96.9 % 101.5 % 4.6 pts Net favorable prior year reserve development 1.6 0.8 Catastr
Slide 15: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE FIRST QUARTER 2024 2023 Change Automobile Loss and loss adjustment ratio 72.2 % 81.7 % Underwriting expense ratio 22.4 23.0 1 Combined ratio 94.6 % 104.7 % 10.1 pts Net favorable (unfavorable) prior year reserve development 2.3 (0.4) Catastrophes, net of reinsurance (2
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 Automobile Retention 1 82% 82% 82% 82% 82% 2 Renewal premium change 15.4% 17.6% 19.5% 16.8% 16.6% Policies in force (in thousands) 3,021 2,999 2,996 2,996 2,985 • Sequential
Slide 17: Total International Insurance
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 International 1 Retention 84% 84% 84% 83% 85% Renewal premium change 2 8.6% 8.8% 6.0% 3.3% 5.4% New business $92 $104 $100 $88 $190 1 Excludes 2023 quo
Slide 18: Appendix
APPENDIX 18
Slide 19: Well-Defined and Consistent Investment Philosophy
WELL-DEFINED AND CONSISTENT INVESTMENT PHILOSOPHY ($ in millions, as of March 31, 2024, unless otherwise noted) Investment Income reliable contributor to results Total Investments Fixed Income Portfolio Rating % % Fixed Maturities by Rating2 Fixed Non-Fixed Corporates1 A2 $ 34,380 42% Aaa 47.6% Inco
Slide 20: Investment Portfolio — Commercial Real Estate
I N V E S T M E N T P O RT F O L I O — C O M M E R C I A L R E A L E S TAT E ($ in millions, as of March 31, 2024, unless otherwise noted) H i g h q u a l i t y, w e l l - d i v e r s i f i e d h o l d i n g s Total Investments % of Total Fixed Income Non-Fixed Income Fixed Income Rating1 Investment
Slide 21: 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
Slide 22: 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
Slide 23: investor.travelers.com
investor.travelers.com 23
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