The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Q1 2022 Earnings Presentation
21 slides from The Travelers Companies's earnings presentation, Apr 19, 2022
Slide 1: First Quarter 2022 Results
FIRST QUARTER 2022 RESULTS APRIL 19, 2022
Slide 2: Creates Shareholder Value
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 R VA L U E Objective: Mid–Teens Core ROE Over Time
Slide 3: First Quarter 2022 Overview
FIRST QUARTER 2022 OVERVIEW Travelers Reports Excellent First Quarter Results, Including Strong Earnings and Premium Growth First Quarter 2022 Net Income per Diluted Share of $4.15, up 45%, and Return on Equity of 15.0% First Quarter 2022 Core Income per Diluted Share of $4.22, up 55%, and Core Retu
Slide 4: Consolidated Performance
CONSOLIDATED PERFORMANCE ($in millions, except per share amounts, after-tax, except for premiums) FIRST QUARTER 2022 2021 Change Core income $__ 1,037 699 48 % per diluted share $ 422 $ 273 55 % adindtedi revellers Net favorable prior year reserve development $ 122 $ 249 Catastrophes, net of reinsur
Slide 5: Very Strong Financial Position
VERY STRONG FINANCIAL POSITION ($ and shares in millions, except per share amounts) March 31, December 31, Capital 2022 2021 . q _ + Ator above target levels for all rating agencies. Debt $ TE $ 7280 + Repurchased 3.3 million shares during first quarter 2022 for a total of $559 Common equity? 26,922
Slide 6: Total Fixed Income and Non-Fixed Income
TOTAL • • FIXED INCOME2 NON-FIXED INCOME2
Slide 7: 8.9% 8.8% 8.5% 0.9% 8.3% 8.0% 7.8% 0.2% 7.2% 7.0% 1.5% 1.1% 6.9% 3.3%
8.9% 8.8% 8.5% 0.9% 8.3% 8.0% 7.8% 0.2% 7.2% 7.0% 1.5% 1.1% 6.9% 3.3% 2.7% 1.3% 0.3% 0.7% 0.3% 0.1% 1.6% 0.2% 4.9% 4.6% 4.4% 7.8% 3.1% 6.2% 2.7% 6.4% 6.1% 2.8% 5.7% 5.5% 5.6% 5.4% 1.8% 2017
Slide 8: Business Insurance Performance
BUSINESS INSURANCE PERFORMANCE ($in millions) FIRST QUARTER 2022 2021 Change Segment income S$ 669 $ 317 111 % Loss and loss adjustment expense ratio 60.7 % 72.2 % Underwriting expense ratio 30.2 31.3 Combined ratio* 90.9 % 103.5 % 12.6 pts Net favorable prior year reserve development 2.8 3.5 Catast
Slide 9: Domestic Business Insurance (ex. National Accounts)
DOMESTIC BUSINESS INSURANCE (EX. NATIONAL ACCOUNTS) ILLUSTRATIVE BUSINESS STATISTICS i Renewal Premium Change! % 4+ Renewal Rate Change? % 10% i — =& Exposure/Other % _ —a 7.9% 9 os — 7.0% —— 6.2% 6% 5.1% —a- = 9 —_i— . a 4.4% 2% (Sin millions) 10°21 20°21 3Q’21 40°21 10°22 Retention 83% 84% 85% 85%
Slide 10: Domestic Business Insurance: Select Accounts
DOMESTIC BUSINESS INSURANCE: SELECT ACCOUNTS ILLUSTRATIVE BUSINESS STATISTICS “ cusuaremam tunes = = enscal 2 Change? % 10% xposure/Other % 8% —i — 6% ~ —o — 4.1% 4.1% 4.0% 4% G a —i— 3.4% ° Ene 2.9% —s 2% (Sin millions) 10’21 20°21 30°21 40°21 10°22 Retention 79% 80% 82% 82% 83% Renewal premium cha
Slide 11: Domestic Business Insurance: Middle Market
DOMESTIC BUSINESS INSURANCE: MIDDLE MARKET ILLUSTRATIVE BUSINESS STATISTICS -B- Renewal Premium Change! % “iE Renewal Rate Change?% -B- Exposure/Other % —— 10% 8% 6% 4% 2% (Sin millions) 10°21 Retention 86% Renewal premium change 8.7% New business $266 —— 20°21 3Q’21 40°21 19°22 87% 87% 87% 89% 9.3%
Slide 12: Bond & Specialty Insurance Performance
BOND & SPECIALTY INSURANCE PERFORMANCE ($in millions) FIRST QUARTER 2022 2021 Change Segment income $217 $137 58 % Loss and loss adjustment expense ratio 42.8 % 49.9 % Underwriting expense ratio 35.2 35.3 Combined ratio* 78.0 % 85.2 % 7.2 pts Net favorable prior year reserve development 4.3 2.1 Cata
Slide 13: Domestic Bond & Specialty Insurance
DOMESTIC BOND & SPECIALTY INSURANCE ($in millions) ILLUSTRATIVE BUSINESS STATISTICS Management Liability * Retention Renewal premium change 2 New business 2021 2022 1Q 2Q 3Q 4Q 1Q 87% 86% 86% 86% 86% 11.2% 12.7% 13.1% 10.9% 12.0% $50 $54 $49 $47 $56
Slide 14: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE ($in millions) FIRST QUARTER 2022 2021 Change Segment income $225 $ 314 (28) % Loss and loss adjustment expense ratio 69.5 % 63.6 % Underwriting expense ratio 25.8 26.7 Combined ratio* 95.3 % 90.3 % (5.0) pts Net favorable prior year reserve development 0.1 5.9 Catastr
Slide 15: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE FIRST QUARTER 2022 2021 Change Automobile Loss and loss adjustment ratio 75.8 % 57.2 % Underwriting expense ratio 25) 24.6 Combined ratio* 99.3 % 81.8 % (17.5) pts Net favorable (unfavorable) prior year reserve development (Ox) 5.2 Catastrophes, net of reinsurance (0.2
Slide 16: Illustrative Business Statistics
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
Slide 17: Total International Insurance
TOTAL INTERNATIONAL INSURANCE ILLUSTRATIVE BUSINESS STATISTICS International * Retention Renewal premium change New business ($ in millions) 2021 2022 1Q 2Q 3Q 4Q ie) 80% 80% 80% 83% 82% 7.0% 7.7% 4.6% 8.4% 8.2% $71 $96 $72 $82 $75
Slide 18: Appendix
APPENDIX
Slide 19: Explanatory Note
E X P L A N ATO RY N O T E • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 20: Disclosure
20 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
Slide 21: investor.travelers.com
21 investor.travelers.com
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