Travelers Overview – Statutory Filing {filing}
TRAVELERS OVERVIEW Perform & Transform
2 0 2 4
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
Leading
2 0 2 3 N e t W r i t t e n P r e m i u m s
|
|
||
|
51% |
100% P&C |
|
|
|
||
|
|
|
|
|
39% |
||
|
Billion |
93% |
|
|
7% International |
10%
3
Deliberate and Disciplined
Execution
|
Strong Top Line Performance |
7.0% CAGR 2016-2023 |
|
Accelerating Net Written Premium Growth |
2.7% CAGR 2012-2016 |
|
Strong Margins |
89.5% 2023 |
|
Consistently Strong |
91.4% Average 2012-2023 |
|
Underlying Combined Ratio1 |
|
|
Productivity and Efficiency |
>3.4 Point Improvement in |
|
Optimizing Operating Leverage |
Expense Ratio 2016-2023 |
|
Dividend Growth |
7.2% CAGR 2013-2023 |
|
19 Consecutive Years of Dividend Increases |
|
|
Adjusted Book Value Growth2 |
6.4% CAGR 2013-2023 |
|
Long |
|
|
in Adjusted Book Value per Share |
|
|
Financial Highlights |
2023 |
2022 |
2021 |
|||
|
$ in millions, except per share amounts |
||||||
|
Net Written Premiums |
$ |
40,201 |
$ |
35,414 |
$ |
31,959 |
|
Combined Ratio |
97.0% |
95.6% |
94.5% |
|||
|
Underlying Combined Ratio1 |
89.5% |
92.0% |
90.3% |
|||
|
Net Income |
$ |
2,991 |
$ |
2,842 |
$ |
3,662 |
|
Core Income |
$ |
3,072 |
$ |
2,998 |
$ |
3,522 |
|
Core Income Per Diluted Share |
$ |
13.13 |
$ |
12.42 |
$ |
13.94 |
|
Operating Cash Flow |
$ |
7,711 |
$ |
6,465 |
$ |
7,274 |
|
Total Assets |
$ |
125,978 |
$ |
115,717 |
$ |
120,466 |
|
Total Investments |
$ |
88,810 |
$ |
80,454 |
$ |
87,375 |
|
Shareholders' Equity |
$ |
24,921 |
$ |
21,560 |
$ |
28,887 |
|
Book Value Per Share |
$ |
109.19 |
$ |
92.90 |
$ |
119.77 |
|
Adjusted Book Value Per Share2 |
$ |
122.90 |
$ |
114.00 |
$ |
109.76 |
|
Dividends Per Share |
|
|
|
|||
|
Yield |
2.1% |
2.0% |
2.2% |
|||
|
RetuOn Equity |
13.6% |
12.2% |
12.7% |
|||
|
Core RetuOn Equity |
11.5% |
11.3% |
13.7% |
|
4 |
1 |
Excludes the impact of net prior year reserve development and catastrophe losses. |
|
2 |
Excludes net unrealized investment gains (losses), net of tax, included in shareholders' equity. |
Deliberate And Disciplined Execution
Accelerating NWP Growth
|
|
|
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 |
Consistently Strong Underlying Profitability3
|
93.0% |
AVG = 91.4% |
89.5% |
|
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 |
Improving Expense Ratio
|
AVG = 31.7% |
|
28.1% |
|
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 |
|
Higher Underlying Underwriting Income4 |
Higher Cash Flow From Operations |
|
(after-tax) |
|
|
|
|
Growing Invested Assets5
|
|
|||||||
|
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
2012-2016 |
|
|
|||||||
|
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
|
2012-2016 |
|
Avg. |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2012-2016
|
1 |
Represents growth from 2012 through 2016. |
|
|
5 |
2 |
Represents growth from 2016 through 2023. |
|
3 |
Underlying underwriting combined ratio which excludes the impact of net prior year reserve development and catastrophe losses. |
|
|
4 |
Underlying underwriting income which excludes the impact of net prior year reserve development and catastrophe losses. |
|
|
5 |
Invested assets excludes net unrealized investment gains (losses). |
Fortress Balance Sheet
Financial Strength is a Travelers Hallmark
$ in millions
Cash & Investments
Receivables
Other Assets
Total Assets
Loss Reserves
Other Liabilities
Debt
Total Liabilities
Shareholders' Equity
Total Liabilities & Shareholders' Equity
2023
101,057
24,921
2022
94,157
21,560
|
|
A++ |
|
Fitch |
AA |
|
Moody's |
Aa2 |
|
S&P |
AA |
- Very high-quality investment portfolio
-
- 93% of investments in fixed income
- Fixed maturities average weighted quality Aa2, AA
- 99% of fixed maturities at or above investment grade
- 100% of loss reserves attributable to P&C
- Continued strong capitalization to support the Company's business operations
- Debt-to-capitalratio1 of 22.3% comfortably within target range of 15%-25%
- Next maturing long-term debt of
$200 million inApril 2026
|
6 6 |
1 Excludes net unrealized investment gains (losses), net of tax, included in shareholders' equity |
Industry-Leading Returns Over Time
Core ROE: Strong Margin Over the Risk-Free Rate
Core Retuon Equity vs. Risk -Free Rate
ROE Consistently Outperforms
TRV vs. Industry
16%
14%
12%
10%
8%
6%
4%
2%
0%
16%
14%
12%
10%
8%
6%
4%
2%
0%
TRV Core Retuon Equity Risk-Free Rate (10Y Treasury Yield)2
|
TRV ROE |
|
|
TRV Average ROE |
|
|
7 |
1 |
2023 Forecast: © 2024 |
|
2 |
10Y |
Industry-Leading Returns Over Time
Outperformance Relative to Peers
Accompanied by Significantly
Lower Volatility
2014
1 Ÿ•
|
2 |
Ÿ• |
|
3 |
15.5 |
|
4 |
Ÿ• |
|
5 |
Ÿ• |
|
6 |
Ÿ• |
|
7 |
Ÿ• |
|
8 |
Ÿ• |
|
9 |
Ÿ• |
10 Ÿ•
|
Median |
10.8 |
|
TRV Rank |
3 |
2015
Ÿ•
15.2
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
10.1
2
2016
Ÿ•
13.3
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
9.0
2
Core ROE1
|
2017 |
2018 |
2019 |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
9.0 |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
10.7 |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
10.9 |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
Ÿ• |
Ÿ• |
Ÿ• |
||
|
7.6 |
9.5 |
10.3 |
||
|
3 |
4 |
5 |
||
2020
Ÿ•
Ÿ•
Ÿ•
Ÿ•
11.3
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
9.5
5
2021
Ÿ•
Ÿ•
13.7
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
11.3
3
2022
Ÿ•
Ÿ•
Ÿ•
11.3
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
9.8
4
2023
Ÿ•
Ÿ•
Ÿ•
Ÿ•
Ÿ•
11.5
Ÿ•
Ÿ•
Ÿ•
Ÿ•
13.1
6
Volatility of Core Retuon Equity
vs. Peers
Low
10Y Volatility2
High
TRV Core Retuon Equity
2014-23 Core Retuon Equity (Average)1
|
1 |
Operating ROE as Reported from Bloomberg or Net Income ROE ex-Realized Gains and Losses as calculated by Bloomberg ("Normalized ROE") if Operating ROE is not disclosed. ©️ |
|
|
8 |
2 |
Volatility as measured by |
|
less the 10-Year |
Strong Long-Term
Core EPS (Diluted)
Growth
CAGR 7.0%
20122023
Dividends Per Share
Growth
CAGR 7.4 %
20122023
9
Balanced Approach to Capital Management
Our first objective for the capital we generate is to reinvest it in our business - organically and inorganically
We continue to invest in everything from talent to technology to further our innovation agenda and advance our other strategic
objectives
|
Operating |
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company capital |
Holding |
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maintained at |
Holding |
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|
company |
||||
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levels needed to |
Excess capital in |
company |
||
|
liquidity |
||||
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support current |
operating |
leverage |
||
|
maintained in |
Excess capital |
|||
|
business profile |
companies |
maintained at |
||
|
excess of |
returned |
|||
|
and growth |
transferred to |
level consistent |
||
|
amount equal to |
to shareholders |
|||
|
opportunities |
holding company |
with our capital |
||
|
one year's |
||||
|
consistent with |
strength |
|||
|
dividends and |
||||
|
our capital |
objective |
|||
|
interest |
||||
|
strength |
||||
|
objective |
When we cannot reinvest consistent with our objective of generating industry-leading returns over time, we will return
excess capital to our shareholders
Dividends
Billion
Share Repurchases
Since 2006, the year of the initial share repurchase authorization, TRV has returned $54.7 billion1 of capital to shareholders: $41.1 billion1 in share repurchases at an average price of
|
10 |
1 Through |
Attachments
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