Travelers Companies had a successful third quarter in 2024, reporting an underwriting gain of $685 million despite facing increased catastrophe losses. The net income rose to $1.26 billion from $404 million in the previous year, thanks to favorable prior year reserve development and higher net investment income.
Compared to Q3 2023, Travelers saw a significant improvement in its underwriting result, moving from a loss to a gain. Catastrophe losses, mainly from hurricane Helene in Florida and severe storms in multiple states, increased to $939 million. However, the company managed to offset this impact with favorable prior year reserve development.
The firm’s combined ratio for Q3 2024 stood at 93.2%, down from 101% in Q3 2023, with growth seen across all business segments. Net written premiums also increased by 8% to $11.3 billion. On the asset side, Travelers reported a $135 million rise in net investment income to $904 million.
Total revenues for the quarter reached $11.9 billion, up from $10.6 billion in the same period last year. Chairman and CEO, Alan Schnitzer, expressed satisfaction with the results, highlighting the strong performance in both underwriting and investment income. He emphasized the company’s focus on profitability, premium growth, and strategic investments.
Travelers’ core income exceeded $1.2 billion for the quarter, generating a core return on equity of 16.6%. The company also returned $496 million of excess capital to shareholders, including share repurchases. With a 10% increase in net earned premiums and improved combined ratio, Travelers is confident in its outlook for the future.
In summary, Travelers Companies managed to navigate through increased catastrophe losses and achieve significant growth in premiums and income. The company’s focus on profitability and strategic investments has positioned it well for the future, with a strong belief in continued success beyond 2025.