Travelers(US:TRV)2024-07-19 11:00Financial Performance - Total revenues for the three months ended June 30, 2024, increased to $11,283 million, up 11.7% from $10,098 million in the same period of 2023[17] - Net income for the three months ended June 30, 2024, was $534 million, compared to a net loss of $14 million in the same period of 2023, representing a significant turnaround[17] - Premiums for the six months ended June 30, 2024, rose to $20,369 million, an increase of 12.7% from $18,070 million in the same period of 2023[17] - Net income for the six months ended June 30, 2024, was $1,657 million, compared to $961 million for the same period in 2023, representing a 72.5% increase[27] - Total reportable segment revenues for Q2 2024 reached $11,348 million, a 12.0% increase from $10,133 million in Q2 2023[38] - The company reported a net income of $1,657 million for the first half of 2024, compared to $961 million in the same period of 2023[42] - The total earned premiums for the first half of 2024 were $20,369 million, an increase of 12.8% from $18,070 million in the first half of 2023[42] - The company reported a net income of $534 million for the second quarter of 2024, or $2.32 per share basic and $2.29 per share diluted[158] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $129,315 million, an increase from $125,978 million as of December 31, 2023[22] - Total liabilities increased to $104,453 million as of June 30, 2024, compared to $101,057 million as of December 31, 2023[22] - Shareholders' equity as of June 30, 2024, was $24,862 million, a slight decrease from $24,921 million as of December 31, 2023[22] - Cash at the end of the period was $729 million, up from $605 million at the end of June 2023, representing a 20.5% increase[27] - The total fair value of invested assets at June 30, 2024, was $79,851 million, with $6,579 million classified as Level 1, $72,928 million as Level 2, and $344 million as Level 3[79] Investment Performance - The company reported net realized investment losses of $65 million for the three months ended June 30, 2024, compared to losses of $35 million in the same period of 2023[17] - Net investment income for the first half of 2024 was $1,731 million, a 25.9% increase compared to $1,375 million in the same period of 2023[39] - The company recognized net gains on equity securities of $51 million for the six months ended June 30, 2024, compared to $3 million for the same period in 2023[53] - The company reported unrealized investment losses primarily due to increases in interest rates, which are considered temporary[63] Claims and Expenses - Claims and claim adjustment expenses for the three months ended June 30, 2024, were $7,373 million, slightly up from $7,227 million in the same period of 2023[17] - Total claims and claim adjustment expense reserves increased to $63.85 billion as of June 30, 2024, up from $61.62 billion at the end of 2023, reflecting a $2.23 billion increase[111] - Estimated claims and claim adjustment expenses for the current year were $14.21 billion, with a decrease of $232 million for claims arising in prior years[112] - For the first six months of 2024, claims and claim adjustment expenses totaled $14.03 billion, reflecting a 6% increase compared to the same period in 2023[179] Shareholder Returns - The company declared cash dividends of $1.05 per common share for the three months ended June 30, 2024, compared to $1.00 in the same period of 2023[17] - The company repurchased 1.1 million common shares for a total cost of $250 million during the three months ended June 30, 2024, with an average cost per share of $211.22[133] - Total capital returned to shareholders in Q2 2024 was $498 million, consisting of $253 million in share repurchases and $245 million in dividends[161] Tax and Other Income - The income tax expense for the three months ended June 30, 2024, was $(71) million, compared to $(190) million for the same period in 2023[132] - The effective tax rate for Q2 2024 was 19%, significantly lower than 71% in Q2 2023, primarily due to a $704 million increase in income before income taxes[189] Operational Metrics - The combined ratio for the quarter was 100.2%, indicating a break-even point in underwriting performance[158] - The combined ratio improved to 96.1% in Q2 2024 from 100.1% in Q2 2023[201] - The underwriting expense ratio improved to 29.9% in Q2 2024 from 30.1% in Q2 2023[201]