The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Q3 2024 Earnings Presentation
21 slides from The Travelers Companies's earnings presentation, Oct 17, 2024
Slide 1: Third Quarter 2024 Results
THIRD QUARTER 2024 RESULTS October 17, 2024
Slide 2: Long-Term Financial Strategy
LONG-TERM FINANCIAL STRATEGY 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 CREATE SHAREHOLDER VALUE Objective: Mid–Teens Core RO
Slide 3: Third Quarter 2024 Overview
THIRD QUARTER 2024 OVERVIEW Travelers Reports Excellent Third Quarter and Year-to-Date Results Third Quarter 2024 Net Income per Diluted Share of $5.42, up 211%, and Return on Equity of 19.2% Third Quarter 2024 Core Income per Diluted Share of $5.24, up 169%, and Core Return on Equity of 16.6% • Str
Slide 4: Consolidated Performance
CONSOLIDATED PERFORMANCE ($ in millions, except per share amounts, after-tax, except for premiums) THIRD QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Core income $ 1,218 $ 454 168 % $ 2,899 $ 1,439 101 % per diluted share $ 5.24 $ 1.95 169 % $ 12.43 $ 6.15 102 % Included the following item
Slide 5: Very Strong Financial Position
VERY STRONG FINANCIAL POSITION ($ and shares in millions, except per share amounts) September 30, December 31, 2024 2023 Capital Debt $ 8,033 $ 8,031 Common equity 1 29,807 28,050 • Continued strong capitalization to support the Company’s business operations. Total capital 1 $ 37,840 $ 36,081 • Repu
Slide 6: Net Investment Income
NET INVESTMENT INCOME ($ in millions, after-tax) TOTAL $742 Third Quarter 2024 vs. Prior Year Quarter Commentary $698 $727 $609 $640 $645 $557 $594 • Net investment income (NII) from the fixed income $542 portfolio increased due to a higher average yield and growth in average invested assets • NII f
Slide 7: Leading Core Return on Equity at Industry-Low Volatility
LEADING CORE RETURN ON EQUITY AT INDUSTRY-LOW VOLATILITY 13.0% 10.9% 11.3% 13.7% 11.3% 11.5% 7.2% 13.4% 8.7% 8.8% 8.9% 7.8% 8.0% 7.9% 1.0% 1.0% 0.2% 7.1% 0.7% 0.8% 0.8% 1.1% 6.9% 3.3% 0.7% 0.7% 0.3% 0.7% 1.2% 0.1% 0.2% 4.9% 4.4% 4.5% 4.3% 4.2% 7.5% 3.5% 3.1% 7.1% 6.4% 6.6% 6.4% 6.1% 5.7% 5.5% 2005 -
Slide 8: Business Insurance Performance
BUSINESS INSURANCE PERFORMANCE ($ in millions) THIRD QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income $ 698 $ 468 49 % $ 2,118 $ 1,626 30 % Loss and loss adjustment expense ratio 66.6 % 70.0 % 65.5 % 68.0 % Underwriting expense ratio 29.2 29.1 29.6 29.7 Combined ratio1 95.8 % 99
Slide 9: Domestic Business Insurance (ex. National Accounts)
DOMESTIC BUSINESS INSURANCE (EX. NATIONAL ACCOUNTS) IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 7.9% 8% 7.2% 7.3% 7.0% 7.3% 6.5% 6% 4% 4.7% 2% —% ($ in millions) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Retention 87% 87% 87% 87% 86
Slide 10: Domestic Business Insurance: Select Accounts
DOMESTIC BUSINESS INSURANCE: SELECT ACCOUNTS IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8% 6% 5.3% 5.5% 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 3Q'24 Retention 85% 85% 85% 85% 84% 83% 8
Slide 11: Domestic Business Insurance: Middle Market
DOMESTIC BUSINESS INSURANCE: MIDDLE MARKET IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8.0% 8% 7.1% 7.0% 6.8% 6.9% 6.0% 6% 4.3% 4% 2% —% ($ in millions) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Retention 89% 89% 89% 89% 87% 89% 89%
Slide 12: Bond & Specialty Insurance Performance
BOND & SPECIALTY INSURANCE PERFORMANCE ($ in millions) THIRD QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income $ 222 $ 265 (16) % $ 587 $ 702 (16) % Loss and loss adjustment expense ratio 43.4 % 36.9 % 45.2 % 39.8 % Underwriting expense ratio 39.1 36.7 39.7 37.0 Combined ratio1 8
Slide 13: Domestic Bond & Specialty Insurance
DOMESTIC BOND & SPECIALTY INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q Management Liability 1 Retention 89% 91% 91% 90% 90% 90% 90% Renewal premium change 2 5.7% 4.5% 4.3% 2.2% 2.9% 2.3% 1.0% New business $68 $70 $62 $85 $91 $111 $113 1 Domestic only
Slide 14: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE ($ in millions) THIRD QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Segment income (loss) $ 384 $ (193) NM $ 451 $ (648) NM Loss and loss adjustment expense ratio 67.7 % 85.7 % 74.5 % 86.6 % Underwriting expense ratio 24.8 24.3 24.7 24.7 Combined ratio1 92.5 %
Slide 15: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE THIRD QUARTER YEAR-TO-DATE 2024 2023 Change 2024 2023 Change Automobile Loss and loss adjustment expense ratio 71.0 % 81.4 % 72.9 % 83.0 % Underwriting expense ratio 22.4 22.1 22.4 22.5 1 Combined ratio 93.4 % 103.5 % 10.1 pts 95.3 % 105.5 % 10.2 pts Net favorable (unf
Slide 16: Domestic Personal Insurance
DOMESTIC PERSONAL INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q Automobile Retention 1 82% 82% 82% 82% 82% 82% 83% Renewal premium change 2 15.4% 17.5% 19.5% 18.3% 17.6% 15.9% 12.8% Policies in force (in thousands) 3,021 2,999 2,996 2,996 2,985 2,958
Slide 17: Total International Insurance
TOTAL INTERNATIONAL INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2023 2024 1Q 2Q 3Q 4Q 1Q 2Q 3Q International 1 Retention 84% 84% 84% 83% 84% 81% 80% Renewal premium change 2 8.3% 9.4% 7.7% 4.6% 4.0% 4.9% 6.5% New business $91 $104 $100 $92 $184 $97 $78 1 Excludes 2024 and 2023 qu
Slide 18: Appendix
APPENDIX 18
Slide 19: Explanatory Note
EXPLANATORY NOTE 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 “may,” “w
Slide 20: 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 21: investor.travelers.com
investor.travelers.com 21
The Travelers Companies — Q3 2024 Earnings Presentation on 6ix