Travelers Reports Fourth Quarter 2022 Net Income per Diluted Share of $3.44 and Return on Equity of 15.8%

Fourth Quarter 2022 Core Income per Diluted Share of $3.40 and Core Return on Equity of 12.3%

Full Year Net Income of $2.842 billion and Return on Equity of 12.2%

Full Year Core Income of $2.998 billion and Core Return on Equity of 11.3%

• Fourth quarter net income of $819 million and core income of $810 million.
• Results reflect record net earned premium, consolidated combined ratio of 94.5% and underlying combined ratio of 91.4%; underwriting results in commercial businesses were exceptional.
• Catastrophe losses of $459 million pre-tax compared to $36 million pre-tax in the prior year quarter.
• Net written premiums of $8.829 billion, up 10% compared to the prior year quarter; record full year net written premiums of $35.414 billion, up 11% compared to the prior year.
• Net written premium growth in all three segments compared to the prior year quarter; Business Insurance up 11%, Bond & Specialty Insurance up 2% (5% excluding the impact of changes in foreign exchange rates) and Personal Insurance up 13%.
• Total capital returned to shareholders of $721 million, including $501 million of share repurchases; full year total capital returned to shareholders of $2.941 billion, including $2.061 billion of share repurchases.
• Book value per share of $92.90, down 22% from year-end 2021, driven by higher interest rates; adjusted book value per share of $114.00, up 4% from year-end 2021.
• Board of Directors declares regular cash dividend of $0.93 per share.

The Travelers Companies, Inc. today reported net income of $819 million, or $3.44 per diluted share, for the quarter ended December 31, 2022, compared to $1.333 billion, or $5.37 per diluted share, in the prior year quarter. Core income in the current quarter was $810 million, or $3.40 per diluted share, compared to $1.289 billion, or $5.20 per diluted share, in the prior year quarter. Core income decreased primarily due to higher catastrophe losses, a lower underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and lower net investment income, partially offset by higher net favorable prior year reserve development. Net realized investment gains in the current quarter were $7 million pre-tax ($9 million after-tax), compared to $58 million pre-tax ($44 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.