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September 11, 2024 Property and Casualty News No comments

Travelers Overview – Statutory Filing {filing}

U.S. Markets via PUBT

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

Leading U.S. Domestic P&C Carrier

2 0 2 3 N e t W r i t t e n P r e m i u m s

	Business Insurance
	51%	100% P&C
	$20.4 Billion
Personal Insurance	$40.2
39%
Billion	93% U.S.

$15.9 Billion	7% International

Bond & Specialty Insurance

10%

$3.9 Billion

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 Track Record of Growth
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	$ 3.93	$ 3.67	$ 3.49
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

$40.2B

$22.4B

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)	$7.7B
$3.2B

Growing Invested Assets5

$92.8B

$1.3B
Avg.	2017	2018	2019	2020	2021	2022	2023
2012-2016

$3.7B
Avg.	2017	2018	2019	2020	2021	2022	2023
2012-2016

$69.7B

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

December 31,

2023

$ 90,148 19,575 16,255

$ 125,978

$ 82,499 10,527 8,031

101,057

24,921

$ 125,978

December 31,Sheet

2022

$ 81,903 18,009 15,805

$ 115,717

$ 76,889 9,976 7,292

94,157

21,560

$ 115,717

A.M. Best	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 in April 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%

16%

14%

12%

10%

U.S. P&C Insurers1

TRV Core Retuon Equity Risk-Free Rate (10Y Treasury Yield)2

TRV ROE	U.S. P&C Insurers ROE1
TRV Average ROE	U.S. P&C Insurers Average ROE1

7	1	2023 Forecast: © 2024 Conning, Inc., as published in Conning's Property-Casualty Forecast & Analysis by Line of Insurance, 2023 Q4 edition. Used with permission. Historical data: © 2024 S&P Global Market Intelligence LLC. Used with permission.
2	10Y Treasury yield is calculated as average of each year

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•

10.1

2016

Ÿ•

13.3

Ÿ•

9.0

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•

11.3

Ÿ•

9.5

2021

Ÿ•

13.7

Ÿ•

11.3

2022

Ÿ•

11.3

Ÿ•

9.8

2023

Ÿ•

11.5

Ÿ•

13.1

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. ©️ Bloomberg Finance L.P. Used with permission of Bloomberg
8	2	Volatility as measured by Sharpe Ratio, calculated as the mean of Company "X" 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,
less the 10-Year U.S. Treasury mean for each respective year divided by Company "X" Operating ROE standard deviation; Peer Group includes: AIG, ALL, CB, CINF, CNA, HIG, PGR, THG and WRB. ©️ Bloomberg Finance L.P. Used with permission of Bloomberg

Strong Long-Term Track Record

Core EPS (Diluted)

Growth

CAGR 7.0%

$13.13

$6.21

20122023

Dividends Per Share

Growth

CAGR 7.4 %

$3.93

$1.79

20122023

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
company capital			Holding
maintained at		Holding
	company
levels needed to	Excess capital in	company
liquidity
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

$54.8

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 $73.60 per share and $13.7 billion1 in dividends.

10	1 Through December 31, 2023

Attachments

Disclaimer

The Travelers Companies Inc. published this content on 11 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 11, 2024 at 17:30:34 UTC.