Presentation
TRAVELERS
Investor Presentation -
L O N G - TERM FINANCIAL STRATEGY
|
Generation of |
Balanced |
|
|
Meaningful 
|
top-tier earnings |
approach to |
|
and sustainable |
and capital |
rightsizing capital |
|
competitive |
substantially |
and growing book |
|
advantages |
in excess of |
value per share |
|
growth needs |
over time |
CREATE SHAREHOLDER VALUE
Objective: Mid-Teens Core ROE Over Time
2
INVESTING IN THE FUTURE INSIDE IMPROVING RESULTS
Chart
Technology Investments &
Routine but Necessary Expenditures
Strategic
Investment
Routine but
Necessary
Expenditures
2016 2017 2018 2019 2020 2021
- Meaningfully increased our overalltechnology spend over the last five years
- Significantlyreduced our expense ratio at the same time through our strategic focus on optimizing productivity and efficiency
- Improved the mix of our technology spend
- Increased our spending on strategic technology
initiatives by 50%
- Reduced routine but necessary expenditures
3
Accelerating Net Written Premium
Growth
|
|
|||||||||
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
INNOVATION SUCCESS
Improving Underlying Combined Ratio3
|
93.0% |
AVG = 91.5% |
90.3% |
|||||||
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
Improving Expense Ratio
|
AVG = 31.7% |
|||||||||
|
29.4% |
|||||||||
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Increasing Underlying Underwriting Income3 |
Increasing Cash Flow from Operations |
Growing Invested Assets4 |
|
|
(after-tax) |
|
|
|
|
|
|||
|
|
|
|||||||
|
|
||||||||
|
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
|
2012-2016 |
2012-2016 |
||||||||||||||||
|
2012-2016 |
|||||||||||||||||
|
4 |
1 |
Represents growth from 2012 through 2016 |
3 Excludes the impacts of catastrophes and prior year reserve development |
|
2 |
Represents growth from 2016 through 2021 |
4 Invested assets excludes net unrealized investment gains (losses) |
|
SELECT P&C PEERS - 10 YEAR CORE RETURN ON EQUITY
Tr a v e l e r s c o n s i s t e n t l y o u t p e r f o r m s p e e r g r o u p m e d i a n
Core ROE as Reported1
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
||||||||||||||||||||||
|
1 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
2 |
|
TRV |
15.5 |
|
TRV |
15.2 TRV |
13.3 |
|
|
|
|
|
|||||||||||||||||||
|
3 |
|
|
TRV |
15.5 |
|
|
|
|
|
|
|
||||||||||||||||||||
|
4 |
TRV |
11.0 |
|
|
|
|
TRV |
9.0 |
|
|
|
TRV |
13.7 |
||||||||||||||||||
|
5 |
|
|
|
|
|
|
TRV |
10.7 |
|
TRV |
11.3 |
|
|||||||||||||||||||
|
6 |
|
|
|
|
|
|
|
TRV |
10.9 |
|
|
||||||||||||||||||||
|
7 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
8 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
9 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
10 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
11 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Median |
8.6 |
9.9 |
10.3 |
10.4 |
10.4 |
7.7 |
10.1 |
10.9 |
10.5 |
12.4 |
|||||||||||||||||||||
|
TRV Rank |
4 |
2 |
3 |
2 |
2 |
4 |
5 |
6 |
5 |
4 |
|
5 |
1 Operating ROE as Reported (or Net Income ROE ex-Realized Gains and Losses as calculated by Bloomberg if Operating ROE is not disclosed). |
|
©️ |
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
Disclaimer
Definity Becomes the First Canadian P&C Insurer to Transition Core Insurance Platform to Guidewire Cloud
Logistics Insurance Market to See Huge Growth by 2027: Allianz, Dawson, Liberty Mutual Insurance
Advisor News
- Your client wants to cash out an annuity. Here’s what to consider
- How student loan debt impacts 401(k) balances
- The ‘sandwich generation’ faces compounded barriers to retirement savings
- Benefit Costs Squeeze Schools, Driving Cuts, Tax Hikes And Difficult Tradeoffs
- Why client insurance needs could change even if their life doesn’t
More Advisor NewsAnnuity News
- AM Best to Discuss Its Views on Private Credit Surge and Risks at 2026 NAIC/NIPR Insurance Summit
- OID recovers $260M in life insurance benefits
- NUNN BILLS TO COMBAT PAYMENT SCAMS, CUT FINANCIAL RED TAPE PASS FINANCIAL SERVICES COMMITTEE
- SS&C Black Diamond Expands Annuities & Insurance Marketplace with New Insurance Capabilities and Carriers
- Regulators urged to sharply limit hypothetical data in annuity illustrations
More Annuity NewsHealth/Employee Benefits News
Life Insurance News