Travelers(US:TRV)2024-07-19 10:59Financial Performance - Net income for Q2 2024 was $534 million, compared to a net loss of $14 million in Q2 2023, representing a significant turnaround [4]. - Core income for Q2 2024 was $585 million, up from $15 million in Q2 2023, indicating strong operational performance [4]. - Diluted earnings per share for Q2 2024 was $2.29, compared to $(0.07) in Q2 2023, reflecting improved profitability [4]. - The company reported a year-to-date net income of $1,657 million for Q2 2024, compared to $961 million for the same period in 2023 [10]. - The company reported net income of $534 million for Q2 2024, down from $1,123 million in Q1 2024 [16]. Revenue and Premiums - Total revenues for Q2 2024 reached $11,348 million, up 2.8% from $11,193 million in Q1 2024 [16]. - Premiums written in Q2 2024 were $10,243 million, a 1.2% increase from $10,126 million in Q1 2024 [16]. - Gross written premiums for Q2 2024 were $6,169 million, compared to $5,662 million in Q2 2023, reflecting an increase of 8.9% [32]. - Net written premiums for Q2 2024 amounted to $5,539 million, up from $5,175 million in Q2 2023, indicating a growth of 7.0% [34]. - Total revenues for 2Q2023 reached $10,098 million, up from $9,704 million in 1Q2023, representing a 4.1% increase [10]. Assets and Equity - Total assets at the end of Q2 2024 were $129.315 billion, an increase from $120.573 billion at the end of Q2 2023 [4]. - Total equity at the end of Q2 2024 was $24.862 billion, compared to $21.855 billion at the end of Q2 2023, showing growth in shareholder value [4]. - The adjusted book value per share at the end of Q2 2024 was $126.52, up from $115.45 at the end of Q2 2023, indicating a stronger financial position [4]. - The company’s total capital is a combination of total shareholders' equity and debt, with a focus on maintaining a healthy debt-to-capital ratio [110]. Claims and Expenses - Total claims and expenses for Q2 2024 were $10,627 million, an increase from $9,858 million in Q1 2024 [16]. - Losses and loss adjustment expenses for Q2 2024 were $3,422 million, up from $3,251 million in Q2 2023, representing a 5.3% increase [32]. - The combined ratio for Q2 2024 improved to 100.2%, down from 106.5% in Q2 2023 [16]. - The loss and loss adjustment expense ratio for Q2 2024 was 71.4%, compared to 65.2% in Q1 2024 [16]. Investment Income - Net investment income for Q2 2024 was $727 million, an increase of 4.2% from $698 million in Q1 2024 [16]. - The net investment income, after-tax, for 2Q2024 is $727 million, an increase from $557 million in 2Q2023, representing a growth of 30.6% [79]. - The gross investment income for YTD 2Q2024 reached $1,757 million, up from $1,399 million for YTD 2Q2023, reflecting a growth of approximately 25.7% [79]. Shareholder Returns - The company declared common stock dividends of $245 million in Q2 2024, compared to $233 million in Q2 2023, reflecting a commitment to returning value to shareholders [4]. - The company repurchased 1.1 million shares at a cost of $250 million in Q2 2024, demonstrating a proactive approach to capital management [4]. - The company’s treasury stock acquired through share repurchase authorizations totaled $499 million for YTD 2Q2024, compared to $794 million in the same period last year, indicating a reduction in buyback activity [104]. Tax and Regulatory - The effective tax rate on net investment income for Q2 2024 was 17.8%, compared to 17.6% in Q1 2024 [16]. - The effective tax rate on net investment income for YTD Q2 2024 was 17.6%, compared to 16.1% in YTD Q2 2023 [25]. Segment Performance - Segment income for Business Insurance in Q1 2024 was $764 million, an increase from $756 million in Q1 2023 [25]. - Segment income for Bond & Specialty Insurance in Q1 2024 was $195 million, down from $207 million in Q1 2023, a decrease of 5.8% [37]. - The combined ratio improved to 108.5% in 2Q2024 from 122.0% in 2Q2023, indicating better underwriting performance [52]. Catastrophic Events - Catastrophes, net of reinsurance, impacted the combined ratio by 4.1% in 2Q2024, compared to 1.5% in the previous year, highlighting increased exposure to catastrophic events [40]. - Catastrophes, net of reinsurance, had a pre-tax impact of $1,080 million in 2Q2024, compared to $1,064 million in 2Q2023 [49].