Q2 2024 Travelers Companies Inc Earnings Call Transcript
Key Points
- The Travelers Companies Inc (TRV) reported a strong bottom-line result with core income of $585 million or $2.51 per diluted share.
- Record net earned premium of $10.2 billion and a consolidated underlying combined ratio improved to 87.7%.
- Net written premiums grew by 8% to $11.1 billion, with growth in all three business segments.
- After-tax net investment income increased by 22% from the prior year quarter to $727 million.
- The company generated strong operating cash flows for the seventh consecutive quarter, exceeding $1 billion.
- The second-quarter results included $1.5 billion pretax catastrophe losses due to a record number of severe convective storms.
- The umbrella line required $250 million of reserve strengthening for accident years 2021 through 2023.
- The expense ratio for the second quarter was 28.8%, which is relatively high.
- Retention in the select business unit ticked down to 83% due to efforts to optimize risk return profiles in certain geographies.
- New business in personal insurance was down slightly, reflecting efforts to manage auto profitability and property actions in high-risk areas.
Good morning, ladies and gentlemen. Welcome to the second-quarter results teleconference for Travelers. (Operator Instructions) As a reminder, this conference is being recorded on July 19, 2024. At this time, I would like to turn the conference over to Ms. Abbe Goldstein, Senior Vice President of Investor Relations. Ms. Goldstein, you may begin.
Thank you. Good morning and welcome to Travelers' discussion of our second-quarter 2024 results. We released our press release, financial supplement, and webcast presentation earlier this morning. All of these materials can be found on our website at travelers.com under the Investors section.
Speaking today will be Alan Schnitzer, Chairman and CEO; Dan Frey, Chief Financial Officer; and our three segment presidents, Greg Toczydlowski of business insurance; Jeff Klenk of bond & specialty insurance; and Michael Klein of personal insurance. They will discuss the financial results of our business and the current market environment. They will refer to
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