Travelers(TRV) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2024 was $1,260 million, compared to$ 404 million in Q3 2023, representing a significant increase of 212% year-over-year[4] - Core income for Q3 2024 reached $1,218 million, up from$ 454 million in Q3 2023, indicating a growth of 168%[4] - The diluted earnings per share for Q3 2024 was $5.42, compared to$ 1.74 in Q3 2023, reflecting a year-over-year increase of 212%[4] - Net income for Q3 2023 was $404 million, a decrease from$ 975 million in Q1 2023, while YTD net income for 3Q2023 reached $1,365 million[10] - Core income for Q3 2023 was$ 454 million, with a core income per share of $1.97, while YTD core income reached$ 1,439 million[10] - The company reported a diluted earnings per share of $1.74 for Q3 2023, compared to$ 4.13 in Q2 2023, with YTD diluted earnings per share of $5.83[10] - Net income for 3Q2024 is$ 1,365 million, up from $1,260 million in 3Q2023, reflecting an increase of approximately 8.3%[100] Assets and Equity - Total assets at the end of Q3 2024 were$ 134,588 million, an increase from $121,384 million at the end of Q3 2023, marking a growth of 10.8%[4] - The total equity at the end of Q3 2024 was$ 27,696 million, up from $19,978 million at the end of Q3 2023, representing a growth of 38.5%[4] - Book value per share at the end of Q3 2024 was$ 122.00, compared to $87.47 in Q3 2023, indicating a year-over-year increase of 39.4%[4] - The company's total shareholders' equity increased to$ 27,696 million, up from $24,921 million, reflecting a growth of 11.1%[71] - Common equity increased to$ 29,807 million from $28,050 million, reflecting a growth of approximately 6.3%[95] Revenue and Premiums - Total revenues for Q3 2024 are projected to be$ 11,849 million, compared to $10,700 million in Q3 2023, indicating a 10.7% growth[16] - Premiums for Q3 2024 are projected at$ 10,704 million, compared to $9,718 million in Q3 2023, marking a 10.2% rise[16] - Total revenues for Q3 2023 were$ 10,635 million, up from $10,098 million in Q2 2023, with YTD revenues of$ 30,437 million compared to $34,415 million in YTD 3Q2024[10] - Gross written premiums for Q3 2023 were$ 11,263 million, an increase of 8.8% compared to Q3 2022[19] - Net written premiums for YTD Q3 2024 reached $32,616 million, up 7.9% from$ 30,207 million in YTD Q3 2023[19] Investment Performance - The company reported net unrealized investment gains of $(9.30) million in Q3 2024, compared to$ (28.31) million in Q3 2023, showing an improvement in investment performance[4] - Net investment income for Q3 2024 is expected to reach $742 million, up from$ 640 million in Q3 2023, a 15.9% increase[16] - Net investment income increased to $458 million in 3Q2023, up from$ 426 million in 2Q2023, contributing to a year-to-date total of $1,551 million[28] - The average yield pre-tax on investments improved to 3.7% for YTD 3Q2024, compared to 3.2% for the same period in 2023[79] - The company experienced a net realized investment loss of$ 25 million for YTD 3Q2024, contrasting with a net gain of $94 million in the same period last year[100] Underwriting Performance - The combined ratio improved to 93.2% in Q3 2024 from 101.0% in Q3 2023, reflecting better underwriting performance[13] - The loss and loss adjustment expense ratio decreased to 64.8% in Q3 2024 from 73.0% in Q3 2023, indicating improved claims management[13] - The combined ratio improved to 99.1% in 3Q2023, down from 100.1% in 2Q2023, indicating better underwriting performance[28] - The underwriting gain for 3Q2023 was$ 190 million, a decrease from $265 million in 3Q2022, with YTD 3Q2023 underwriting gain at$ 493 million compared to $341 million for YTD 3Q2024[39] - The combined ratio for 1Q2024 improved to 94.6%, down from 104.7% in 1Q2023, showing enhanced underwriting performance[60] Claims and Expenses - Claims and claim adjustment expenses for Q3 2023 were$ 7,149 million, a decrease from $7,227 million in Q2 2023, with YTD claims totaling$ 20,335 million[10] - The claims and claim adjustment expenses for Personal Insurance decreased from $9,516 million in YTD 3Q2023 to$ 9,183 million in YTD 3Q2024, a reduction of 3.5%[47] - The total incurred losses and loss expenses for Q3 2023 amounted to $7,091 million, with a year-to-date total of$ 20,176 million[90] - Business insurance incurred losses for Q3 2023 were $3,467 million, with a year-to-date total of$ 9,576 million[90] - The ending reserves for asbestos in Q3 2023 were $1,848 million, reflecting a gross increase from$ 1,620 million at the beginning of the period[92] Tax and Dividends - The effective tax rate on net investment income for Q3 2024 is projected at 17.9%, compared to 16.8% in Q3 2023[16] - The company declared dividends of $243 million in Q3 2024, slightly down from$ 232 million in Q3 2023[4] - The effective tax rate on net investment income for Q3 2023 was 16.8%, up from 16.5% in Q2 2023[10] - The company paid dividends totaling $238 million in Q3 2023, which is consistent with the previous quarter's payment of$ 232 million[102] Strategic Outlook - The company anticipates continued growth in premiums and revenues, projecting Q4 2023 revenues to exceed $11 billion[10] - The company expects continued market expansion and product development, aiming for improved underwriting performance in the upcoming quarters[36] - The company plans to expand its market presence through strategic acquisitions and new product developments in the upcoming quarters[104] - The company has a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited, enhancing its international operations[108]