United States Insurance 29 Feb 24 – INDUSTRY SNAPSHOTS
Insurance Business - Insurance firms secure major victory in court -
"The industry itself now has a precedent".
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/marine/insurance-firms-secure-major-victory-in-court-478896.aspx
Insurance Business - How telematics is "reshaping" the insurance industry -
Brown & Riding group head on how the tech can uplift the motor segment.
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/auto-motor/how-telematics-is-reshaping-the-insurance-industry-478507.aspx
Insurance Business - US life insurance sales climb again -
In 2023, the total new annualized premium for US life insurance saw a modest increase of 1% from the previous year, reaching a record
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/life-insurance/us-life-insurance-sales-climb-again-478309.aspx
Other Stories
Civic Science - More Americans Shopping for New Car Insurance Amid Rising Costs, Nationwide and Liberty Mutual May Stand to Lose -
Yahoo Finance - Global Atlantic Closes
The Malaysia Reserve -
Bloomberg - Insurers' LNG Support at Odds With Their Climate Ambition, Report Says -
CNBC - The cheapest and best car insurance companies in
Media Release
s
Progressive -
Everest - Everest Announces Leadership Promotions in Reinsurance Division -
The
Impact of Climate Risk on the Insurance Industry - By
Industry Overview
Overviews of Leading Companies
Allstate (NYSE: ALL)
Marsh & McLennan (NYSE: MMC)
Progressive (NYSE: PGR)
The
Associate:
News and Commentary
Insurance Business - Insurance firms secure major victory in court -
"The industry itself now has a precedent".
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/marine/insurance-firms-secure-major-victory-in-court-478896.aspx
Insurance Business - How telematics is "reshaping" the insurance industry -
Brown & Riding group head on how the tech can uplift the motor segment.
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/auto-motor/how-telematics-is-reshaping-the-insurance-industry-478507.aspx
Insurance Business - US life insurance sales climb again -
In 2023, the total new annualized premium for US life insurance saw a modest increase of 1% from the previous year, reaching a record
For the complete story, see:
https://www.insurancebusinessmag.com/us/news/life-insurance/us-life-insurance-sales-climb-again-478309.aspx
Civic Science - More Americans Shopping for New Car Insurance Amid Rising Costs, Nationwide and Liberty Mutual May Stand to Lose -
CivicScience has been steadily tracking changes on the insurance front, including the impact of rising home insurance and health insurance costs.
For the complete story, see:
https://civicscience.com/more-americans-shopping-for-new-car-insurance-amid-rising-costs-nationwide-and-liberty-mutual-may-stand-to-lose/
Yahoo Finance - Global Atlantic Closes
For the complete story, see:
https://finance.yahoo.com/news/global-atlantic-closes-10-billion-131500848.html
The Malaysia Reserve -
According to the LexisNexis Insurance Demand Meter, a "Hot" Q4 2023 spelled continued rate increases, along with improved combined ratios, and now opens a window for insurers to capitalize on continued shopping as they seek a return to profitability in 2024
For the complete story, see:
https://themalaysianreserve.com/2024/02/22/u-s-consumers-continue-to-shop-and-switch-auto-insurance-at-higher-rates-dragging-down-carriers-retention-rates/
Bloomberg - Insurers' LNG Support at Odds With Their Climate Ambition, Report Says -
Chubb,
For the complete story, see:
https://www.bloomberg.com/news/articles/2024-02-21/insurers-lng-support-at-odds-with-their-climate-ambition-report-says
CNBC - The cheapest and best car insurance companies in
Car insurance in
For the complete story, see:
https://www.cnbc.com/select/best-car-insurance-california/
Media Releases
Progressive -
Progressive Insurance®, the number one Commercial Auto insurer in the
The new name reflects the integration of businesses and captures Progressive's expanded expertise in large fleet transportation and niche insurance programs designed for those in the transportation and delivery industries. Progressive acquired the
"This announcement was part of our strategy when we first acquired Protective almost three years ago," said
Before joining Progressive,
Progressive Fleet carries on Protective's priorities to consistently deliver excellent customer service and to provide clients with personal attention and quality coverage, backed by an A (Excellent) rating by
Hay was Global Head of Insurance at
In her more than 35-year career, Hay has had extensive experience in technical accounting, client engagement, change management, risk identification and mitigation and knowledge transfer through training. She has launched multiple initiatives to develop female financial services leaders. Hay was a member of the KPMG Global Financial Services Leadership Team and served on
"We are pleased that Laura has joined
Hay is a member of the board of the
Hay's leadership has been recognized by numerous publications, including as "Elite Woman 2023" by Insurance Business America. She received the No. 1 ranking in The Consulting Report's "Top 25 Financial Services Consulting Leaders" in 2022 and was named "Most Influential Woman in Re/Insurance" by Intelligent Insurer in 2017. Hay was named an "Inspiring Woman in Finance" in 2022 by the
Hay received her Bachelor of Science in mathematics from the
Everest - Everest Announces Leadership Promotions in Reinsurance Division -
"Jill is a consummate leader whose deep experience and collaborative approach have consistently raised the bar for both the reinsurance market and Everest's business," said
Everest also announced that Jiten Voralia has been promoted to Head of North America Treaty Reinsurance, where he will lead the division's treaty reinsurance business across
"Jill and Jiten embody the collaborative, high-performing culture that distinguishes Everest in the market and makes us home to the industry's best talent," said
Since rejoining Everest in 2021 where she spent the first decade of her underwriting career,
Mr. Voralia joined Everest in 2022 as Reinsurance Head of Treaty Casualty & Surety, bringing more than two decades of diverse reinsurance experience to his role. Prior to Everest, Mr. Voralia served in various domestic and global leadership roles at
The
The
The board also declared a dividend of
Impact of Climate Risk on the Insurance Industry
By
Abstract
Climate risk impacts the insurance industry on both sides of the balance sheets. On the one hand, rising weather-related claims are affecting the liability side. At the same time, there is an increasing expectation from investors, shareholders, customers, and other stakeholders for insurers to divest from investments in carbon-intensive industries to low-carbon industries that may impact return on the assets side of the balance sheet.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4330522
The Industry
Digital and talent transformation accelerating as insurers adapt for post pandemic growth.
2021 saw widespread vaccine deployment and easing of pandemic-related restrictions—important catalysts that helped rebuild confidence among people and businesses alike, while fueling economic recovery. But the battle with COVID-19 is far from over, and a level of uncertainty will likely persist— perhaps indefinitely. Might this undermine the insurance industry's outlook heading into 2022? Our research found that despite ongoing COVID-19 concerns, insurers in general expect more rapid growth next year—although nonpandemic challenges around regulation, talent, sustainability, and evolving consumer preferences may present speed bumps. A lot will depend on how effectively insurers manage their investments in people and emerging technologies. Flexible work models, balancing automation with the need to maintain a human touch with customers and being more proactive in bolstering stakeholders' trust should be among the industry's strategic priorities.
Here are some of the key findings from Deloitte's 2022 insurance industry outlook.
Insurers are buckled up to accelerate growth in 2022
Despite lingering concerns about COVID-19 variants, most insurers expect an accelerating economic recovery and additional digital technology investments in 2022. About one-third of the survey respondents expect revenues to be "significantly better" next year. The demand for insurance is expected to keep rising worldwide (figure 1).
Yet the ride could be bumpy.
The challenges insurers face ranges from economic hurdles such as the potential for sustained inflation; to sustainability concerns including climate risk, diversity, and financial inclusion; to rapidly evolving consumer product and purchase preferences.
Attracting (and retaining) talent in an evolving hybrid work environment will be key.
Future of work considerations have also multiplied as carriers seek to create flexible return-to-office strategies while simultaneously struggling to retain and recruit high-level talent in a very competitive job market—particularly for those with advanced technology and data analytics skills.
Insurers need to find ways to balance technology adoption with maintaining the human touch.
Insurers are increasingly dependent on emerging technologies and data sources to drive efficiency, enhance cybersecurity, and expand capabilities across the organization. However, most should also focus on improving the customer experience by both streamlining processes with automation as well as providing customized service where needed and preferred.
With the pandemic have come opportunities to boost stakeholder trust.
On a more fundamental level, many carriers can consider taking steps to bolster trust among stakeholders to boost retention and profitability. This might be achieved in part through greater transparency in how insurers collect and utilize personal data. They can also become more proactive in seeking comprehensive solutions to big picture societal problems—such as mitigating the financial impact of future pandemics and closing coverage gaps for natural catastrophes.
Source: Deloitte Insights.
For full report, see:
https://www2.deloitte.com/content/dam/insights/articles/US164650_CFS-Insurance-industry-outlook/DI_Insurance-industry-outlook.pdf
About ACLI
Who We Are, What We Do
https://www.acli.com/About-ACLI
Membership
ACLI is governed by a Board of Directors—elected by its member companies—which sets policy and guides the actions of the association.
https://www.acli.com/About-ACLI/Membership
Affiliate Program
ONE YEAR OF BENEFITS
ACLI's affiliate program offers service providers a year's worth of benefits to:
Promote their products.
Express their views.
Strengthen their association with leaders in the insurance industry.
In ACLI-sponsored forums, representatives of affiliated industries join insurance executives to develop lasting business relationships while examining the growth of new technologies and future business trends.
For more information see:
https://www.acli.com/About-ACLI/Business-Opportunities/Affiliate-Program
Who is APCIA?
APCIA is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions—protecting families, communities, and businesses in the
With offices in
Key Initiatives are driven by APCIA members and include, but are not limited to:
Protecting insurers' use of actuarially proven underwriting tools;
Reauthorizing the Terrorism Risk Insurance Act to avoid any lapse in the program;
Improving disaster mitigation and land use development to protect against losses from natural disasters;
Bridging the insurance protection gap and promoting resiliency by working with
Fostering insurance innovation and technology in a responsible way;
Supporting comprehensive marijuana standards, including adoption of a federal safe harbour allowing voluntary coverage of state legal marijuana-related activities; stronger safety standards and enforcement, as well as a number of policy elements to reduce the frequency and severity of auto crashes and keep workplaces safe; and
Engaging in international insurance trade and regulatory discussions and advocating for open markets and regulatory standards that recognize
APCIA Membership
APCIA is the leading national property casualty trade association - our members represent nearly 60% of the nation's property and casualty market share. The value of joining APCIA is clear from your first day of membership. It starts with having the most respected, persuasive voice on
APCIA Membership:
Provides you with a national perspective of the P&C insurance industry and not just a small segment.
Helps you manage the daunting task of keeping up with compliance changes by state and line of business.
Gives you a voice in shaping our agendas and forming our policy positions.
Serves as an early warning system for bad bills or regulations that could negatively impact your business.
Acts as an extension of your staff - giving you access to 160 staff including state, federal, policy, public affairs and legal experts.
Offers you numerous networking and educational opportunities via meetings, conferences and webinars.
Net Associate Program
If your company is not a carrier, but serves the property casualty insurance industry, APCIA has a program for you. As a Net Associate, you can have access to our website and our powerhouse of information.
Net Associate Program Benefits:
Track legislative and regulatory developments by issue and by state.
Access research and statistical reports by line of business in every state.
Access APCIA publications on topics ranging from marketing to underwriting to claims administration.
Network with APCIA members by attending select APCIA-sponsored meetings, seminars and conferences at a discounted rate.
https://www.apci.org/about/why-join-apcia
About ARIA
Founded in 1932, ARIA has a long tradition of supporting and educating professionals, scholars, and students in the insurance and risk management industry. We create opportunities to share and discuss high quality research, recognizing scholars from diverse backgrounds engaged in open collaboration strengthen our industry and our society. In the spirit of open collaboration and sharing, we host an Annual Meeting which brings together a large and diverse group of experts to share and discuss cutting edge research in risk management and insurance. Additionally, we publish two peer review journals. This open sharing of knowledge and information helps policy makers and practitioners learn from the past, mitigate present risk, and confidently make decisions.
Together, ARIA and its members drive innovation to meet the ever-evolving challenges of our industry. We leverage our collective expertise to promote the efficient management of risk. This helps to strengthen the productive capacity of the economy, provide safety and security, improve social welfare, and enrich people's lives.
ARIA is also dedicated to nurturing the next generation of industry professionals. We work collaboratively with members to drive innovation and excellence in insurance and risk management education. We provide networking, information, recognition, and support to students and professors.
Mission
Founded in 1932, ARIA is a scholarly association devoted to the study of and promotion of risk and insurance economics.
Our membership is comprised of academics, scholars, professionals and industry veterans. Together, through conferences, publications, and recognition, we are a community committed to provide for the mutual association of persons with an interest to study in risk and insurance, to improve the public's understanding of how risk can be more effectively managed, and to support the adoption of new findings by the risk management profession.
ARIA is dedicated to the expansion and improvement of academic instruction to students of risk management and insurance, providing networking, information and support.
Vision
Our vision is to be the world's premier scholarly association whose members continually contribute to solving the world's biggest risk management challenges.
Core Values
Knowledge: We value high quality research conducted using scientifically rigorous methods so policymakers and practitioners can confidently use the results to help guide their decisions.
Community: We believe that an inclusive, active community that embraces open collaboration, improves our members' work, our industry and society as a whole
Society: The various methods used to manage risk are critical to enrich people's lives, strengthen the productive capacity of the economy, and improve social welfare.
Security: We never lose sight of our goal to provide safety and security to financial institutions, companies and our communities through the mitigation of risk.
https://www.aria.org/about-aria/
Leading Companies
Allstate (NYSE: ALL)
About Allstate
https://www.allstate.com/about.aspx?_ga=2.198405036.2085487933.1617851184-955901843.1617851184
Allstate Reports First Quarter 2023 Results
The Allstate Corporation Consolidated Highlights (1)
Three months ended
($ in millions, except per share data and ratios)
2023
2022
% / pts Change
Consolidated revenues
11.8 %
Net income (loss) applicable to common shareholders
(346)
634
NM
per diluted common share (2)
(1.31)
2.25
NM
Adjusted net income (loss)*
(342)
730
NM
per diluted common share* (2)
(1.30)
2.59
NM
Return on Allstate common shareholders' equity (trailing twelve months)
Net income applicable to common shareholders
(13.0)%
15.6 %
(28.6)
Adjusted net income*
(6.7)%
13.0 %
(19.7)
Common shares outstanding (in millions)
263.1
275.7
(4.6)
Book value per common share
58.65
75.46
(22.3)
Consolidated premiums written (3)
12,865
11,859
8.5
Property-Liability insurance premiums earned
11,635
10,498
10.8
Property-Liability combined ratio
Recorded
108.6
97.3
11.3
Underlying combined ratio*
93.3
90.9
2.4
Catastrophe losses
1,691
462
NM
Total policies in force (in thousands)
186,726
190,309
(1.9)
"Allstate's operating strength enabled us to continue implementing the auto insurance profit improvement plan and help over 100,000 customers recover from catastrophe losses in the first quarter, while executing the Transformative Growth initiative," said
essentially offset higher premiums, which combined with exceptionally high first quarter catastrophe losses resulted in an underwriting loss of
"Transformative Growth is critical to navigating the current operating environment and capturing future growth. The new auto insurance product is designed to be affordable, simple and connected and will be available to about one-third of the U.S. market in 2023. Expense reductions are partially offsetting current increases in claims severity and will support increased competitiveness when targeted profitability is restored. Distribution transformation is working, with higher Allstate exclusive agent productivity, expanded product offerings through independent agents and enhanced direct capabilities. Protection Plans continues to expand product coverage and grow internationally. Health and Benefits is rebuilding its operating systems to lower costs and support growth. The combination of an aggressive strategy and Allstate's brand, customer base and financial strength will lead to long-term growth," concluded Wilson.
First Quarter 2023 Results:
Total revenues of
Net loss applicable to common shareholders was
Property-Liability earned premium of
Three months ended
($ in millions)
2023
2022
% / pts Change
Premiums earned
11,635
10,498
10.8
Allstate Brand
9,852
9,011
9.3
National General
1,783
1,487
19.9
Underwriting income (loss)
(1,001)
280
NM
Allstate Brand
(972)
251
NM
National General
(28)
29
NM
Premiums written of
The underlying combined ratio* of 93.3 in the first quarter of 2023 was 2.4 points above the prior year quarter, reflecting higher earned premiums and lower expenses which were offset by increased claim severity and frequency.
The expense ratio of 21.1 in the first quarter of 2023 decreased 2.9 points compared to the first quarter of 2022, driven by lower advertising and operating expenses and higher earned premium growth relative to fixed costs.
Prior year reserve reestimates, excluding catastrophes, were unfavorable
Three months ended
($ in millions, except ratios)
2023
2022
% / pts Change
Premiums written
9.5 %
Allstate Brand
9,705
9,035
7.4
National General
2,078
1,726
20.4
Recorded combined ratio
108.6
97.3
11.3
Allstate Protection auto
104.4
102.1
2.3
Allstate Protection homeowners
119.0
83.9
35.1
Underlying combined ratio*
93.3
90.9
2.4
Allstate Protection auto
102.6
98.8
3.8
Allstate Protection homeowners
67.6
68.0
(0.4)
Allstate Protection auto insurance earned premium increased 11.7%, driven by higher average premiums from rate increases, partially offset by a decline in policies in force. Allstate brand auto net written premium growth of 8.2% compared to the prior year quarter reflects a 16.0% increase in average gross written premium driven by rate increases, partially offset by a decline in policies in force and the impact of a higher proportion of premiums cancelled during the policy term. Allstate brand implemented auto rate increases in 28 locations in the first quarter at an average of 8.4%, or 1.7% on total premiums, which should raise annualized written premiums by approximately
The recorded auto insurance combined ratio of 104.4 in the first quarter of 2023 was 2.3 points above the prior year quarter, reflecting higher accident frequency, current report year claim severity, and catastrophe losses, which were partially offset by increased earned premium, expense reductions and lower adverse non-catastrophe prior year reserve reestimates. The underlying combined ratio* of 102.6 was 3.8 points above the prior year quarter primarily driven by higher incurred losses from increased accident frequency and claim severity across physical damage and injury coverages. We continue to execute a comprehensive plan to improve auto insurance profitability, including raising rates, reducing expenses, lowering growth and enhancing loss cost management.
Allstate Protection homeowners' insurance earned premium grew 12.9%, and policies in force increased 1.4% compared to the first quarter of 2022. Allstate brand net written premium increased 9.4% compared to the prior year quarter, primarily driven by average premium increases due to implemented rate increases and inflation in insured home replacement costs. Allstate brand homeowners implemented rate increases in 18 locations in the first quarter at an average of 13.7%, or 4.9% on total premiums. National General written premiums grew as rates were increased to improve underwriting margins.
The recorded homeowners insurance combined ratio of 119.0 increased 35.1 points compared to the first quarter of 2022, due to elevated catastrophe losses primarily related to five large wind events in March. The underlying combined ratio* of 67.6 decreased by 0.4 points compared to the prior year quarter, driven by higher earned premium and a lower expense ratio, partially offset by higher claim severity.
Protection Services revenues increased to
Three months ended
($ in millions)
2023
2022
% / $ Change
Total revenues (1)
7.0 %
Allstate Protection Plans
385
329
17.0
Allstate Dealer Services
148
135
9.6
Allstate Roadside
64
65
(1.5)
Arity
37
62
(40.3)
Allstate Identity Protection
37
36
2.8
Adjusted net income (loss)
Allstate Protection Plans
28
43
(15)
Allstate Dealer Services
7
9
(2)
Allstate Roadside
4
2
2
Arity
(4)
(1)
(3)
Allstate Identity Protection
(1)
—
(1)
Allstate Protection Plans revenue of
Allstate Dealer Services revenue of
Allstate Roadside revenue of
Arity revenue of
Allstate Identity Protection revenue of
Three months ended
($ in millions)
2023
2022
% Change
Premiums and contract charges
(1.1)%
Employer voluntary benefits
255
263
(3.0)
Group health
107
94
13.8
Individual health
101
111
(9.0)
Adjusted net income
56
57
(1.8)
Allstate Investments
Three months ended
($ in millions, except ratios)
2023
2022
$ / pts Change
Net investment income
Market-based investment income (1)
507
323
184
Performance-based investment income (1)
126
306
(180)
Net gains (losses) on investments and derivatives
14
(267)
281
Change in unrealized net capital gains and losses, pre-tax
872
(2,038)
2,910
Total return on investment portfolio
2.4 %
(2.8)%
5.2
Total return on investment portfolio (trailing twelve months)
1.2 %
1.8 %
(0.6)
Market-based investment income was
Performance-based investment income totaled
Commercial real estate is also diversified with approximately
Net gains on investments and derivatives were
Unrealized net capital losses were
Total return on the investment portfolio was 2.4% for the first quarter of 2023. Proactive portfolio management actions continue to defensively position the investment portfolio to the risk of economic recession, including extending fixed income duration and reducing public equity exposure.
"Allstate has the financial strength and asset-liability position to protect customers, fund operating priorities and thrive in a volatile economic environment," said
Liability funding is highly predictable with approximately 75% related to future claim settlements and unearned insurance premiums. Statutory capital in the insurance companies of
For the full financial report, see:
https://www.allstateinvestors.com/static-files/3213a128-fe22-4dd8-8cb5-30b19228a15e
About Us
We're a leading global insurance organization with operations in approximately 80 countries and jurisdictions. We provide a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to support our clients in business and in life through our
What unites us across all of these offerings is our commitment to helping individuals, businesses and communities prepare for and respond to times of uncertainty. Whether serving those facing natural disasters or millions of Americans striving for a financially secure retirement, we have the specialist expertise to help clients better manage risk.
We're also committed to doing the right thing for our people and the communities where we work and live. It's why we seek to offer what matters to our ever-diversifying team - like flexible and creative work environments, professional growth opportunities and forums to advocate for one another and incite change. We encourage employees to give back to the causes they care most about, supporting these efforts through our Volunteer Time Off and Matching Grants Programs.
AIG Reports Third Quarter 2022 Results
Successfully completed the initial public offering (IPO) of
Life and Retirement posted another quarter of strong sales with premiums and deposits of
Net income per diluted common share was
Repurchased
Announced the redemption and repurchase of approximately
THIRD QUARTER NOTEWORTHY ITEMS
Life and Retirement APTI of
Net income attributable to AIG common shareholders was
Adjusted after-tax income attributable to AIG common shareholders was
Return on common equity (ROCE) and Adjusted ROCE* were 25.9% and 3.7%, respectively, on an annualized basis for the third quarter of 2022. Adjusted ROCE was impacted by lower net investment income and catastrophe losses.
AIG Chairman & Chief Executive Officer
"The Corebridge IPO was completed in mid-September and I am very pleased with the successful outcome, which represented a critical milestone for AIG and Corebridge that enables both companies to continue to drive growth and value as market leaders in their respective industries.
"
"Life and Retirement delivered another solid quarter with premiums and deposits of
"In the third quarter, we continued to progress and solidify our excellent partnerships with
"We also continued our disciplined and balanced approach to capital management. We returned
"I am extremely proud of all that has been accomplished by our dedicated colleagues at AIG and Corebridge. We remain well-positioned to continue to drive excellence, deliver improving returns and create long-term value to our shareholders and other stakeholders."
For the third quarter of 2022, pre-tax income from continuing operations was
AATI was
Total consolidated net investment income for the third quarter of 2022 was
Book value per common share was
For the third quarter of 2022, AIG repurchased approximately
The AIG Board of Directors declared a quarterly cash dividend of
The AIG Board of Directors also declared a quarterly cash dividend of
FINANCIAL SUMMARY
Three Months Ended
($ in millions, except per common share amounts)
2021
2022
Net income attributable to AIG common shareholders
1,660
2,702
Net income per diluted share attributable to AIG common shareholders
1.92
3.50
Adjusted pre-tax income (loss)
1,126
725
811
750
Life and Retirement
877
589
Other Operations
(562)
(614)
Net investment income
3,715
2,668
Net investment income, APTI basis
3,276
2,535
Adjusted after-tax income attributable to AIG common shareholders
837
509
Adjusted after-tax income per diluted share attributable to AIG common shareholders
0.97
0.66
Weighted average common shares outstanding - diluted (in millions)
864.0
771.1
Return on common equity
10.2%
25.9%
Adjusted return on common equity
6.5%
3.7%
Book value per common share
77.03
51.58
Adjusted book value per common share
61.80
73.28
Common shares outstanding (in millions)
835.8
747.2
GENERAL INSURANCE
Three Months Ended
($ in millions)
2021
2022
Change
Gross premiums written
9,305
9,238
(1)%
Net premiums written
6,590
6,403
(3.0)%
3,005
3,138
4
North America Commercial Lines
2,576
2,757
7
429
381
(11)
International
3,585
3,265
(9)
International Commercial Lines
2,071
1,992
(4)
1,514
1,273
(16)
Underwriting income (loss)
20
168
NM
%
(166)
(439)
(164)
North America Commercial Lines
(503)
(374)
26
337
(65)
International
186
607
226
International Commercial Lines
(94)
469
International Personal Insurance
280
138
(51)
Net investment income, APTI basis
791
582
(26)%
Adjusted pre-tax income
811
750
(8)%
Return on adjusted segment common equity
7.9%
6.7%
(1.2)
pts
Underwriting ratios:
North America Combined Ratio (CR)
105.7
114.0
8.3
pts
North America Commercial Lines CR
120.0
113.6
(6.4)
North America Personal Insurance CR
14.9
116.4
101.5
International CR
94.7
81.4
(13.3)
International Commercial Lines CR
104.8
75.4
(29.4)
International Personal Insurance CR
82.2
89.8
7.6
99.7
97.3
(2.4)
GI Loss ratio
68.4
67.5
(0.9)
pts
Less: impact on loss ratio
Catastrophe losses and reinstatement premiums
(9.7)
(9.8)
(0.1)
Prior year development, net of reinsurance and prior year premiums
0.5
0.9
0.4
GI Accident year loss ratio, as adjusted
59.2
58.6
(0.6)
GI Expense ratio
31.3
29.8
(1.5)
GI Accident year combined ratio, as adjusted
90.5
88.4
(2.1)
Accident year combined ratio, as adjusted (AYCR):
North America AYCR
91.5
88.2
(3.3)
pts
North America Commercial Lines AYCR
90.5
84.6
(5.9)
North America Personal Insurance AYCR
98.4
112.8
14.4
International AYCR
89.6
88.6
(1.0)
International Commercial Lines AYCR
86.8
80.4
(6.4)
International Personal Insurance AYCR
93.0
99.9
6.9
Net premiums written in the third quarter of 2022 decreased 3% from the prior year quarter, but increased 3% on a constant dollar basis to
Third quarter 2022 APTI decreased by
Commercial Lines underwriting results continued to show strong improvement due to enhanced business mix, and net premiums written grew 2%, or 6% on a constant dollar basis, with continued rate increases. The accident year combined ratio, as adjusted, for North America Commercial Lines improved 5.9 points to 84.6%, and for International Commercial Lines improved 6.4 points to 80.4% compared to the prior year quarter.
LIFE AND RETIREMENT
Three Months Ended
($ in millions, except as indicated)
2021
2022
Change
Adjusted pre-tax income (loss)
877
589
(33)%
Individual Retirement
292
200
(32)
Group Retirement
316
183
(42)
Life Insurance
134
123
(8)
Institutional Markets
135
83
(39)
Premiums and fees
1,756
2,136
22%
Individual Retirement
311
259
(17)
Group Retirement
142
112
(21)
Life Insurance
757
912
20
Institutional Markets
546
853
56
Premiums and deposits
7,234
8,894
23%
Individual Retirement
3,257
3,792
16
Group Retirement
1,831
2,039
11
Life Insurance
1,152
1,166
1
Institutional Markets
994
1,897
91
Net flows
(919)
(92)
90%
Individual Retirement
95
696
NM
Group Retirement
(1,014)
(788)
22
Net investment income, APTI basis
2,435
2,004
(18)%
Return on adjusted segment common equity
12.2%
7.5%
(4.7)
pts
Life and Retirement reported APTI of
Premiums and deposits were higher across all four operating segments; Life and Retirement achieved 23% growth from the prior year quarter largely as a result of robust index annuity deposits and strong fixed annuity deposits combined with transactional activity in Institutional Markets driving higher pension risk transfer and GIC deposits.
The mortality experience in Life Insurance is in line with the previously disclosed estimate of exposure sensitivity of
OTHER OPERATIONS
Three Months Ended
($ in millions)
2021
2022
Change
Corporate and Other
(583)
(518)
11%
Asset Management
213
51
(76)
Adjusted pre-tax loss before consolidation and eliminations
(370)
(467)
(26)
Consolidation and eliminations
(192)
(147)
23
Adjusted pre-tax loss
(562)
(614)
(9)%
Before consolidation and eliminations, the adjusted pre-tax loss reflects lower investment income particularly within alternative investments. This was partially offset by lower corporate interest expense primarily driven by interest savings from debt repurchases and cash tender offers.
LIFE AND RETIREMENT SEPARATION
On
In
Following the IPO, AIG owns 77.7% of the outstanding common stock of Corebridge and continues to consolidate the assets, liabilities, and results of operations of Corebridge in AIG's Condensed Consolidated Financial Statements. The portion of equity interest of Corebridge that AIG does not own is reflected as noncontrolling interest in AIG's Condensed Consolidated Financial Statements.
On
Additionally, on
Company Profile
Gallagher has operations in 49 countries and, through a network of correspondent brokers and consultants, Gallagher offers client-service capabilities in more than 150 countries around the world. Some of the company's offices are fully staffed with sales, marketing, claims, loss control and other specialists; some function as servicing offices for the various divisions.
https://investor.ajg.com/company-profile
"We had an excellent start to 2023," said
"First quarter primary insurance market conditions are overall consistent with 2022 with renewal premiums up more than 9%. The property reinsurance market is very hard and we are seeing tighter terms and conditions across a broader range of territories - even into casualty reinsurance lines. And, we continue to see growth in our customers' exposure units and payrolls.
"We expect insurance and reinsurance pricing increases to continue throughout 2023 and beyond. Our talented team will leverage our expertise, data and insights to help clients with these challenging insurance market conditions. I believe we are very well positioned for the remainder of 2023!"
Interest and banking costs and debt - At
Clean energy - For 2023, this consists of operating results related to our investments in new clean energy projects and the wind up of our investments in clean coal production plants. The production of IRC Section 45 clean energy tax credits ceased in
Acquisition cos ts - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the
Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rate for the quarters ended
For full financial report, see:
https://investor.ajg.com/news/news-details/2023/Arthur-J.-Gallagher--Co.-Announces-First-Quarter-2023-Financial-Results/default.aspx
About Us
https://www.cinfin.com/about-us/insuring-something-good
First-quarter 2023 net income of
3.1% value creation ratio for the first three months of 2023, compared with negative 6.9% for the same period of 2022.
Financial Highlights
(Dollars in millions, except per share data)
Three months ended
2023
2022
% Change
Revenue Data
Earned premiums
1,918
1,693
13
Investment income, net of expenses
210
185
14
Total revenues
2,241
1,218
84
Income Statement Data
Net income (loss)
225
(266)
nm
Investment gains and losses, after-tax
84
(526)
nm
Non-GAAP operating income*
141
260
(46)
Per Share Data (diluted)
Net income (loss)
1.42
(1.66)
nm
Investment gains and losses, after-tax
0.53
(3.28)
nm
Non-GAAP operating income*
0.89
1.62
(45)
Book value
68.33
74.31
(8)
Cash dividend declared
0.75
0.69
9
Diluted weighted average shares outstanding
158.5
160.4
Insurance Operations Highlights:
100.7% first-quarter 2023 property casualty combined ratio, up from 89.9% for the first quarter of 2022.
6% growth in first-quarter net written premiums, including price increases, premium growth initiatives and a higher level of insured exposures.
Investment and Balance Sheet Highlights
14% or
Three-month increase of 3% in fair value of total investments at
Investment Income Leads Profitability
"Turning to our insurance operations, our first-quarter 2023 combined ratio of 100.7% included 12.8 percentage points related to natural catastrophe losses, more than double our five-year historical first-quarter average.
"The increase in weather-related catastrophes masked the steady improvements we are making to our underlying business. Before catastrophe loss effects, our property casualty combined ratio improved by 0.2 points to 87.9% compared with last year's first quarter. The current accident year combined ratio before catastrophe loss effects also improved, lowering 0.1 points to 90.1% compared with full-year 2022.
"We continued to build on our record of 34 consecutive years of overall favorable reserve development with first-quarter net favorable reserve development on prior accident years up 0.7 points compared with first-quarter 2022."
Maintaining Underwriting Discipline
"We're pleased with the premium increases reported by each of our property casualty segments. Consolidated property casualty first-quarter net written premiums grew 6%, including higher average pricing than the fourth quarter of 2022. Commercial lines pricing rose on average at percentages near the high end of the mid-single-digit range. Excess and surplus lines pricing rose on average at a high-single-digit percentage rate, while personal lines improved to average mid-single-digit percentage rate increases. Ongoing efforts to segment policies should also help improve profitability, as we seek more adequate pricing on individual policies based on their specific characteristics.
"The main driver for our growth continues to come from the excellent relationships we develop and nurture with our agencies. To keep the momentum going, we continue to look for opportunities to appoint new agents while still delivering the superior service that our agents value. So far this year, we've appointed 66 agencies that sell most or all of our property casualty products.
"Our diversified product portfolio also supports our ability to grow profitably. Combined, Cincinnati Global Underwriting Ltd.SM and Cincinnati Re® contributed
Book Value Rises
"Book value increased
In January, the board of directors expressed its confidence in our financial strength by again raising the quarterly cash dividend. Our value creation ratio, which considers those dividends as well as growth in book value, was 3.1% for the first quarter. Our associates remain committed to continual improvement, strengthening our ability to compete by enhancing the advantages of our local independent agencies. That has been and continues to be our plan for creating shareholder value far into the future."
Insurance Operations Highlights
Consolidated Property Casualty Insurance Results
(Dollars in millions)
Three months ended
2023
2022
% Change
Earned premiums
1,841
1,618
14
Fee revenues
2
3
(33)
Total revenues
1,843
1,621
14
Loss and loss expenses
1,317
956
38
Underwriting expenses
536
500
7
Underwriting profit (loss)
(10)
165
nm
Ratios as a percent of earned premiums:
Pt. Change
Loss and loss expenses
71.6 %
59.1 %
12.5
Underwriting expenses
29.1
30.8
(1.7)
Combined ratio
100.7 %
89.9 %
10.8
%
Agency
1,535
1,397
10
Agency new business written premiums
251
244
3
Other written premiums
233
258
(10)
Net written premiums
2,019
1,899
6
Ratios as a percent of earned premiums:
Pt. Change
Current accident year before catastrophe losses
61.0 %
58.5 %
2.5
Current accident year catastrophe losses
13.8
3.1
10.7
Prior accident years before catastrophe losses
(2.2)
(1.2)
(1.0)
Prior accident years catastrophe losses
(1.0)
(1.3)
0.3
Loss and loss expense ratio
71.6 %
59.1 %
12.5
Current accident year combined ratio before catastrophe losses
90.1 %
89.3 %
0.8
For full financial report, see:
https://cincinnatifinancialcorporation.gcs-web.com/news-releases/news-release-details/cincinnati-financial-reports-first-quarter-2023-results
In 1973,
About Everest
Everest is a leading global reinsurance and insurance organization with extensive product and distribution capabilities, a strong balance sheet and an innovative culture. Throughout our history, Everest has maintained its discipline and focus on creating long term value through underwriting excellence and strong risk and capital management.
A global leader in reinsurance and insurance.
For over 40 years, Everest has been a global leader in reinsurance with a broad footprint, deep client relationships, underwriting excellence, responsive service and customized solutions.
Our insurance arm draws upon impressive global resources and financial strength to tailor each policy to meet the individual needs of our customers.
https://www.everestre.com/About-Everest
Everest Re Group Reports First Quarter 2023 Results
19.5%1 GWP Growth and 16.2% Underwriting Income Growth, Led by Record Reinsurance Growth and Strong Pricing Momentum
14.2% Net Income ROE, 17.2 % Operating ROE
91.2% Combined Ratio and 87.5% Attritional Combined Ratio
First Quarter 2023 Highlights
Strong year-over-year improvements in Net Operating Income of
14.1% Total Shareholder Return, 14.2% Net Income ROE, and 17.2% Operating Income ROE
Combined ratios of 91.2% for the Group, 90.8% for Reinsurance and 92.4% for Insurance driven by improved pricing and lower catastrophe losses year-over-year
Strong attritional combined ratios of 87.5% for the Group, 85.9% for Reinsurance and 91.7% for Insurance
Pre-tax underwriting income of
Year-over-year improvement in net investment income of
Strong operating cashflow for the quarter of
"Everest had a strong start to the year, with first quarter results that delivered significant underwriting profit, a 17.2% operating return on equity and a total shareholder return in excess of 14%," said
Summary of First Quarter 2023 Net Income and Other Items
Net Income of
Net operating income of
GAAP combined ratio of 91.2% including 3.7 points of catastrophe losses versus the first quarter 2022 figures of 91.6% including 4.1 points of catastrophe losses
The following table summarizes the Company's Net Income and related financial metrics.
The following information summarizes the Company's underwriting results, on a consolidated basis and by segment - Reinsurance and Insurance, with selected commentary on results by segment.
Underwriting information -
All values in USD millions except for percentages
Q1
2023
Year to Date
2023
Q1
2022
Year to Date
2022
Year on
Q1
Year Change
Year to Date
Gross written premium
3,743
3,743
3,186
3,186
17.5%
17.5%
Net written premium
3,329
3,329
2,812
2,812
18.4%
18.4%
Loss ratio
63.4%
63.4%
64.1%
64.1%
(0.7) pts
(0.7) pts
Commission and brokerage ratio
21.3%
21.3%
21.7%
21.7%
(0.4) pts
(0.4) pts
Other underwriting expenses
6.4%
6.4%
5.8%
5.8%
0.6 pts
0.6 pts
Combined ratio
91.2%
91.2%
91.6%
91.6%
(0.4) pts
(0.4) pts
Attritional combined ratio (1)
87.5%
87.5%
87.4%
87.4%
0.1 pts
0.1 pts
Pre-tax net catastrophe losses (2)
Pre-tax net
110
-
110
-
115
-
115
-
Pre-tax net prior year reserve development
-
-
(1)
(1)
Reinsurance Segment - Quarterly Highlights
Gross written premiums grew 23.2% on a constant dollar basis to
Growth was driven by 19.4% growth in property pro-rata, 27.5% growth in property Cat, 22.1% in Casualty pro-rata as a flight to quality continues across various markets.
Robust pricing momentum at
90-basis point improvement in the attritional loss ratio to 58.0% year over year and an attritional combined ratio of 85.9% vs 86.2% a year ago.
Pre-tax catastrophe losses of
Underwriting information - Reinsurance segmen
All values in USD millions except for percentages
Q1
2023
Year to Date
2023
Q1
2022
Year to Date
2022
Year on Year
Q1
Change
Year to Date
Gross written premium
2,637
2,637
2,186
2,186
20.6%
20.6%
Net written premium
2,454
2,454
2,081
2,081
17.9%
17.9%
Loss ratio
62.9%
62.9%
64.1%
64.1%
(1.2) pts
(1.2) pts
Commission and brokerage ratio
25.0%
25.0%
24.9%
24.9%
0.1 pts
0.1 pts
Other underwriting expenses
2.8%
2.8%
2.4%
2.4%
0.4 pts
0.4 pts
Combined ratio
90.8%
90.8%
91.4%
91.4%
(0.6) pts
(0.6) pts
Attritional combined ratio (1)
85.9%
85.9%
86.2%
86.2%
(0.3) pts
(0.3) pts
Pre-tax net catastrophe losses (2)
Pre-tax net
Pre-tax net prior year reserve development
108
-
-
108
-
-
110
- (2)
110
- (2)
Insurance Segment - Quarterly Highlights
Gross written premiums of
Strong underwriting profit of
Lower catastrophe losses in the quarter at
Attritional loss ratio of 64.2% slightly up over prior year resulting in attritional combined ratio of 91.7%.
The quarter included a one-time current accident-year adjustment of
Disciplined expense management of 27.7%, an improvement of 10 basis points over prior year.
Rate accelerated sequentially for the second straight quarter, driven by property and umbrella.
Underwriting information - Insurance segment
All values in USD millions except for percentages
Q1
2023
Year to Date
2023
Q1
2022
Year to Date
2022
Year on Year Change
Q1 Year to Date
Gross written premium
1,106
1,106
1,001
1,001
10.5% 10.5%
Net written premium
875
875
731
731
19.7% 19.7%
Loss ratio
64.7%
64.7%
64.1%
64.1%
0.6 pts 0.6 pts
Commission and brokerage ratio
11.8%
11.8%
12.5%
12.5%
(0.7) pts (0.7) pts
Other underwriting expenses
15.9%
15.9%
15.3%
15.3%
0.6 pts 0.6 pts
Combined ratio
92.4%
92.4%
91.9%
91.9%
0.5 pts 0.5 pts
Attritional combined ratio (1)
91.7%
91.7%
90.9%
90.9%
0.8 pts 0.8 pts
Pre-tax net catastrophe losses (2)
Pre-tax net
Pre-tax net prior year reserve development
2
-
-
2
-
-
5
- 1
5
- 1
Investments and Shareholders' Equity as of
Total invested assets and cash of
Shareholders' equity of
Shareholders' equity excluding unrealized gains (losses) on AFS fixed maturity investments of
Book value per share of
Book value per share excluding unrealized gains (losses) on AFS fixed maturity investments of
Common share dividends declared and paid in the quarter of
file:///C:/Users/User/Dropbox/PC/Downloads/1Q23-Everest-Earnings-Press-Release.pdf
About
With roots going back to 1900,
With
https://www.globelifeinsurance.com/about
First Quarter 2023 Results
The results included herein reflect the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI).
HIGHLIGHTS:
Net income as an ROE was 22.9% for the three months ended
At the Liberty National Division, life net sales and health net sales increased over the year-ago quarter by 27% and 14%, respectively. Additionally, life premiums increased 6% and the average producing agent count increased 13% over the year-ago quarter.
At the Family Heritage Division, health premiums increased 7% and health net sales increased 21% over the year-ago quarter. Additionally, the average producing agent count increased 18% over the year-ago quarter.
At the American Income Life Division, life premiums increased 5% over the year-ago quarter. Additionally, the average producing agent count increased 4% over the year-ago quarter.
1.2 million shares of
RESULTS OF OPERATIONS
Net operating income, a non-GAAP (1) financial measure, has been used consistently by
For full financial report, see:
https://investors.globelifeinsurance.com/financial-reports-and-other-financial-information/2023/quarter-1/1_1st_q_2023_earnings_release_gl_final
The corporation positions itself as a value investor with a long-term focus. In recent years, Loews has also allocated significant capital for share buybacks.[4] In the three years ended
About Us
Loews's multi-industry holding company structure is a key factor in our ability to create value, providing us with the freedom to make investments across a broad spectrum of industries, wherever we perceive the opportunity to enhance returns to our shareholders. Loews is traded on the
LOEWS CORPORATION REPORTS NET INCOME OF
Third Quarter highlights:
The parent company posted higher investment returns on equity securities and short-term investments.
Book value per share, excluding AOCI, increased to
As of
CEO commentary:
"Loews had another good quarter with strong performance across each of our consolidated subsidiaries. CNA reported strong underwriting results and net income despite high industry catastrophe losses." -
Consolidated highlights:
Three Months
Nine Months
(In millions, except per share data)
2023
2022 (a)
2023
2022 (a)
Net income attributable to
net investment gains (losses)
Net investment gains (losses):
CNA
(27)
(76)
(75)
(115)
36
Total net investment gains (losses):
(27)
(76)
(39)
(115)
Net income (loss) attributable to
Net income (loss) per share
Book value per share
Book value per share excluding AOCI
79.92
74.88
Three months ended
CNA:
Net income attributable to
Core income increased to
The annual
Results include higher net investment income from limited partnerships, common stock investments and fixed income securities.
Property and Casualty underwriting results were higher due to improved underlying underwriting income and lower net catastrophe losses, partially offset by lower favorable net prior year loss reserve development.
Net written premium growth of 6%.
Property and Casualty combined ratio was 94.3% compared to 95.8%. Property and Casualty underlying combined ratio was 90.4% compared to 91.1%.
Net income was positively impacted by lower investment losses on fixed maturity securities.
Boardwalk:
Net income increased
EBITDA increased
Net income and EBITDA increased due to higher revenues from re-contracting at higher rates, higher natural gas liquids and other hydrocarbons transportation revenues, recently completed growth projects and improved storage and parking and lending revenues due to favorable market conditions. These increases were partially offset by increased repairs and maintenance costs associated with pipeline safety regulatory requirements, as well as higher employee related expenses .
Net income decreased
Adjusted EBITDA decreased
Net income decreased due to lower equity income from joint ventures driven by decreased overall occupancy rates and higher operating costs.
Corporate & Other:
Net loss increased
The company recorded a charge of
Excluding this charge, results improved
Nine months ended
CNA's Property and Casualty underwriting results were lower due to higher net catastrophe losses and unfavorable net prior year loss reserve development in 2023 compared to favorable net prior year loss reserve development in 202, partially offset by improved underlying underwriting income.
Property and Casualty combined ratio was 94.0% compared to 93.0%. Property and Casualty underlying combined ratio was 90.8% compared to 91.1%.
CNA's net written premiums increased 9%.
All other segment drivers of results for the nine months ended
Share Purchases:
On
For the three months ended
Loews has repurchased an additional 1.0 million shares for
For the three months ended
Depending on market conditions, Loews may from time to time purchase shares of its and its subsidiaries' outstanding common stock in the open market, in privately negotiated transactions or otherwise.
Reconciliation of GAAP Measures to Non-GAAP Measures
This news release contains financial measures that are not in accordance with accounting principles generally accepted in
Marsh & McLennan (NYSE: MMC)
About Us
Marsh - Insurance broking and risk management solutions
GuyCarpenter - Reinsurance and capital strategies
OliverWyman - Strategy, economic and brand consulting
https://www.mmc.com/content/dam/mmc-web/v3/aboutus/MMC-At-A-Glance-Brochure_Apr2021.pdf
MARSH McLENNAN REPORTS THIRD QUARTER 2022 RESULTS
GAAP Revenue Increases 4%; Underlying Revenue Rises 8%
Growth in GAAP Operating Income of 7% and Adjusted Operating Income of 12%
Third Quarter GAAP EPS Rises 3% to
Nine Months GAAP EPS Rises 12% to
As previously announced,
Consolidated Results
Consolidated revenue in the third quarter of 2022 was
For the nine months ended
Risk & Insurance Services
Risk & Insurance Services revenue was
Marsh's revenue in the third quarter was
Consulting
Consulting revenue was
Oliver Wyman's revenue in the third quarter was
Other Items
The Company repurchased 3.1 million shares of stock for
For full financial report, see:
https://irnews.marshmclennan.com/static-files/82132071-2b24-4b93-bee3-ee803104f974
About Us
https://investor.metlife.com/overview/default.aspx
First Quarter Results Summary:
Net income of
Adjusted earnings of
Book value of
Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of
Return on equity (ROE) of 0.2 percent.
Adjusted ROE, excluding AOCI other than FCTA, of 11.3 percent.
Holding company cash and liquid assets of
Commenting on the company's results,
*Long-Duration Targeted Improvements (LDTI)
Financial results presented in this news release reflect LDTI accounting, pursuant to Financial Accounting Standards Board Accounting Standards Update No. 2018-12, which became effective on
First Quarter 2023 Summary
($ in millions, except per share data)
Three months ended
2023
2022
Change
Premiums, fees and other revenues
(9)%
Net investment income
4,645
4,284
8%
Net investment gains (losses)
(684)
(517)
Net derivative gains (losses)
(90)
(951)
Total revenues
Adjusted premiums, fees and other revenues
(8)%
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)
3%
Net income (loss)
(99)%
Net income (loss) per share
(99)%
Adjusted earnings
(30)%
Adjusted earnings per share
(25)%
Adjusted earnings, excluding total notable items
(30)%
Adjusted earnings, excluding total notable items per share
(25)%
Book value per share
(22)%
Book value per share, excluding AOCI other than FCTA
2%
Expense ratio
20.3%
18.0%
Direct expense ratio, excluding total notable items related to direct expenses and PRT
12.0%
11.9%
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT
20.0%
19.5%
ROE
0.2%
14.9%
Adjusted ROE, excluding AOCI other than FCTA
11.3%
15.7%
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)
11.3%
15.7%
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.
Supplemental slides for the first quarter of 2023, titled "1Q23 Supplemental Slides," are available on the
Total Company Discussion
Net investment income was
Net investment losses were
Net income was
Adjusted Earnings by Segment Summary*
Three months ended
Segment
Change from
prior-year period
Change from prior-year
period (on a constant currency basis)
7%
(53)%
(52)%
59%
51%
9%
30%
(55)%
Business Discussions
All comparisons of the results for the first quarter of 2023 in the business discussions that follow are with the first quarter of 2022, unless otherwise noted. There were no notable items in the first quarter of 2023, as indicated in the notable items table which follows the Business Discussions section of this release.
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
7%
Adjusted premiums, fees and other revenues
(13)%
Adjusted premiums, fees and other revenues, excluding PRT
4%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
Group Benefits
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
162%
Adjusted premiums, fees and other revenues
1%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
Sales were up 15 percent, driven by strong growth across all market segments.
Retirement and Income Solutions
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
(27)%
Adjusted premiums, fees and other revenues
(62)%
Adjusted premiums, fees and other revenues, excluding PRT
43%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
Excluding pension risk transfers, adjusted premiums, fees and other revenues were
Sales were down 54 percent, primarily due to lower stable value and pension risk transfer sales, partially offset by strong structured settlement sales.
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
(53)%
Adjusted earnings (constant currency)
(52)%
Adjusted premiums, fees and other revenues
(9)%
Notable item(s)
(2)%
Adjusted earnings were
Adjusted premiums, fees and other revenues were
Sales were
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
59%
Adjusted earnings (constant currency)
51%
Adjusted premiums, fees and other revenues
32%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
26 percent on a constant currency basis, driven by strong sales and solid persistency across the region.
Sales were
EMEA
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
9%
Adjusted earnings (constant currency)
30%
Adjusted premiums, fees and other revenues
(3)%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
Sales were
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
(55)%
Adjusted premiums, fees and other revenues
(8)%
Notable item(s)
Adjusted earnings were
Adjusted premiums, fees and other revenues were
CORPORATE & OTHER
($ in millions)
Three months ended
Three months ended
Change
Adjusted earnings
Notable item(s)
Adjusted loss of
INVESTMENTS
($ in millions)
Three months ended
Three months ended
Change
Adjusted net investment income
(8)%
Adjusted net investment income was
Progressive (NYSE: PGR)
About Us
Progressive provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes; it is the third largest auto insurer in the country, a leading seller of motorcycle and commercial auto insurance, and one of the top 15 homeowners insurance carriers.
Founded in 1937, Progressive continues its long history of offering shopping tools and services that save customers time and money, like Name Your Price®, Snapshot®, and HomeQuote Explorer®.
The Common Shares of
https://www.progressive.com/about/who-we-are/
Progressive Reports
Quarter
(Millions, except per share amounts and ratios; unaudited)
2022
2021
Change
2022
2021
Change
Net premiums written
3,877.1
3,627.3
7 %
12,422.1
11,480.3
8 %
Net premiums earned
3,770.2
3,459.9
9 %
12,147.9
10,982.3
11 %
Net income (loss)
(436.7)
132.8
(429) %
(542.9)
790.1
(169) %
Per share available to common shareholders 1
(0.75)
0.22
(438) %
(0.94)
1.34
(170) %
Total pretax net realized gains (losses) on securities
(564.2)
124.2
(554) %
(1,177.7)
461.8
(355) %
Combined ratio
94.7
100.5
(5.8) pts.
95.6
96.5
(0.9) pts.
Average equivalent common shares 1
584.3
586.8
0 %
584.3
586.8
0 %
Since we reported a net loss, the amounts reported for
June
(Thousands; unaudited)
2022
2021
Change
Policies in
Personal Lines
Agency
7,619.5
8,014.2
(5) %
Direct - auto
9,557.0
9,581.3
0 %
Total personal auto
17,176.5
17,595.5
(2) %
Total special lines
5,485.0
5,211.7
5 %
Total Personal Lines
22,661.5
22,807.2
(1) %
Total Commercial Lines
1,024.6
916.6
12 %
Total Property business
2,823.0
2,655.5
6 %
Companywide Total
26,509.1
26,379.3
0 %
See Progressive's complete monthly earnings release, including the "Monthly Commentary," for additional information.
About Us
For more than 140 years,
https://www.prudential.com/about
Year to date new business performance remains strong
Performance highlights on a constant1 (and actual) exchange rate basis for the nine months ended
Year to date new business profit2 was up 37 per cent (34 per cent) to
Year to date APE sales4 were up 40 per cent (36 per cent) to
APE new business sales4 (APE sales) and EEV new business profit2(NBP)
Actual exchange rate
Constant exchange rate
YTD
YTD
Change %
YTD
Change %
APE sales
NBP
APE sales
NBP
APE sales
NBP
APE sales
NBP
APE sales
NBP
Total
4,417
2,143
3,247
1,597
36%
34%
3,147
1,562
40%
37%
Total new business margin (%)
49%
49%
50%
CEO
"Consumer demand in
"We are focused on the execution of our recently announced five-year strategy designed to enhance the Group's operational efficiency and increase the productivity of our agency and bank distribution channels. We continue to build our core capabilities across our strategic pillars of Customer, Distribution and Health and supporting enablers including Technology. In this regard we have recently appointed
Going forward, Prudential plans to provide business performance updates for the first three months and nine months of the year.
Outlook
Our diversified business model and strong capitalisation positions us well to navigate ongoing challenges in the macro-economic and geopolitical environment. Looking forward the environment continues to be challenging but new business momentum has continued into the fourth quarter supported by our multi-market growth engine.
Performance summary for the nine months ended
APE sales grew significantly compared with the same period in 2022 and, excluding economic impacts, new business margins improved3 due to positive developments in channel and geographic mix. Health and protection products accounted for 37 per cent of our total new business profit. APE sales through the agency channel increased by 81 per cent while new business profits were up 62 per
Market highlights for the nine months ended
In
In the Chinese Mainland, our pro-active actions to diversify product mix and the implementation of the anticipated regulatory changes resulted, as expected, in a decline in APE sales at CITIC Prudential Life (CPL) in the first nine months of the year. CPL's APE sales declined further in the third quarter when compared with the prior period due to the revisions to products required by the regulatory changes for bancassurance announced in the quarter. New business profit for the agency channel grew in the first nine months offset by a decline in the bancassurance channel. New business margins improved for both channels in the discrete third quarter supported by a shift in product mix to health and protection, particularly within the agency channel. Agency productivity measured by cases per active agent recorded double-digit growth in the third quarter8. We are confident that the continued focus on quality establishes a good foundation for future growth.
Within our larger ASEAN5 based businesses:
In
In
Both ICICI Prudential Life and
Eastspring's third party flows (excluding money market funds and funds managed on behalf of M&G) increased in the third quarter to give a total year to date net inflow of
https://www.prudentialplc.com/en/news-and-insights/all-news/news-releases/2023/06-11-2023
The
About Us
The
Key Facts:
Founded: 1810
Employees: Approximately 18,500
Headquarters:
The
Sells products primarily through a network of independent agents and brokers.
Only nationally endorsed direct auto and home insurance program for
Our history:
The
The
Since 1947, more than 111 million children have been deputized as part of the company's Junior Fire Marshal® program - one of the oldest corporate-sponsored public education programs in the country.
Market Rankings:
No. 2 in fully insured disability inforce²
No. 3 in fully insured disability sales²
No. 2 workers' compensation insurer, based on direct written premiums¹
No. 2 combined fully insured life and disability inforce²
No. 5 commercial multi-peril carrier, based on direct written premiums¹
https://s0.hfdstatic.com/sites/the_hartford/files/facts-about-the-hartford.pdf
The Hartford Announces Second Quarter 2023 Financial Results
Second quarter 2023 net income available to common stockholders of
Net income ROE for the trailing 12 months of 14.4% and core earnings ROE* for the same period of 13.6%.
Property & Casualty (P&C) written premiums rose 11% in second quarter 2023, driven by Commercial Lines premium growth of 12%. Group Benefits fully insured ongoing premium growth of 7% in second quarter 2023.
P&C current accident year (CAY) catastrophe (CAT) losses of
Commercial Lines second quarter combined ratio of 91.2 and underlying combined ratio* of 88.3.
Group Benefits second quarter net income margin of 7.0% and core earnings margin* of 7.6%.
Returned
The
"The
The
Swift continued, "Over several successive quarters, our results affirm that our strategy is working with the combination of underwriting excellence, product breadth, and technology advantages. With this consistent track record, we are confident in our ability to deliver core earnings ROEs in the 14 to 15 percent range."
CONSOLIDATED RESULTS:
Three Months Ended
($ in millions except per share data)
Change
Net income available to common stockholders
23%
Net income available to common stockholders per diluted share 1
31%
Core earnings
(18)%
Core earnings per diluted share
(13)%
Book value per diluted share
5%
Book value per diluted share (ex. accumulated other comprehensive income (AOCI)) 2
7%
Net income available to common stockholders' return on equity (ROE) 3 , last 12-months
14.4%
13.1%
1.3
Core earnings ROE 3 , last 12-months
13.6%
14.0%
(0.4)
Second quarter 2023 net income available to common stockholders was
Second quarter 2023 core earnings of
An increase in earnings generated by 9% growth in P&C earned premium and 7% growth in Group Benefits fully insured ongoing premium.
P&C CAY CAT losses of
Commercial Lines loss and loss adjustment expense ratio of 59.7 compared with 55.3 in second quarter 2022, including 1.7 points of higher CATs and 2.1 points of less favorable prior accident year development (PYD). Underlying loss and loss adjustment expense ratio* increased 0.7 points, to 56.8 in second quarter 2023 from 56.1 in second quarter 2022, primarily driven by a slightly higher loss ratio in workers' compensation, as expected.
Personal Lines loss and loss adjustment expense ratio of 89.2 compared with 73.4 in second quarter 2022, including 5.9 points of higher CATs and 0.4 points of favorable PYD in 2023. Underlying loss and loss adjustment expense ratio of 76.1 in second quarter 2023 compared with 65.7 in second quarter 2022, with the increase largely due to higher severity in auto liability and physical damage, partially offset by earned pricing increases benefiting both auto and homeowners.
Group Benefits loss ratio was 72.1% compared with 70.1% driven primarily by favorable prior quarter reserve development in group life benefiting the 2022 period and higher group life severity in the 2023 period.
The expense ratios improved across P&C and Group Benefits from second quarter 2022, driven by the impact of higher earned premium, incremental savings from the Hartford Next operational transformation and cost reduction program and lower incentive compensation, as well as lower marketing spend in Personal Lines.
Net investment income of
Book value per diluted share (excluding AOCI) of
Net income available to common stockholders' ROE (net income ROE) for the 12-month period ending
Core earnings ROE for the 12-month period ending
BUSINESS RESULTS:
Commercial Lines
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net income
18%
Core earnings
(9%)
Written premiums
12%
Underwriting gain 1
(24%)
Underlying underwriting gain 1
9%
Losses and loss adjustment expense ratio
Current accident year before catastrophes
56.8
56.1
0.7
Current accident year catastrophes
4.3
2.6
1.7
Favorable prior accident year development
(1.3)
(3.4)
2.1
Expenses
31.3
31.7
(0.4)
Policyholder dividends
0.2
0.3
(0.1)
Combined ratio
91.2
87.3
3.9
Impact of catastrophes and PYD on combined ratio
(3.0)
0.8
(3.8)
Underlying combined ratio
88.3
88.1
0.2
Second quarter 2023 net income of
Commercial Lines core earnings of
Net favorable PYD within core earnings of
An underlying loss and loss adjustment expense ratio of 56.8, in second quarter 2023 compared with 56.1 in second quarter 2022, with the increase primarily driven by a slightly higher loss ratio in workers' compensation, as expected.
10% growth in earned premium.
Net investment income of
Combined ratio was 91.2 in second quarter 2023, 3.9 points higher than 87.3 in second quarter 2022, primarily due to 1.7 points of higher
Small Commercial combined ratio of 90.8 compared with 85.2 in second quarter 2022, including 2.7 points of higher CAY CATs and 0.2 points of less favorable PYD. Underlying combined ratio of 89.7 increased from 86.9 in second quarter 2022, primarily due to higher non-CAT property losses and a higher loss ratio in workers' compensation, as expected, partially offset by a lower expense ratio.
Middle & Large Commercial combined ratio of 93.6 compared with 95.6 in second quarter 2022, including 1.8 points of higher CAY CATs and a 0.3 point increase in unfavorable PYD. Underlying combined ratio of 88.7 reached record profitability and improved 4.2 points from 92.9 in second quarter 2022, due to lower non-CAT property losses when compared to elevated losses in the prior year period and a lower expense ratio.
Global Specialty combined ratio of 87.3 compared with 85.0 in second quarter 2022, including 0.6 points of less favorable PYD, partially offset by 0.2 points of lower CAY CATs. The underlying combined ratio of 85.0 increased 1.9 points from second quarter 2022, primarily due to slightly elevated losses in a run-off line within our international book and a higher expense ratio.
The Commercial Lines expense ratio of 31.3 improved 0.4 points from second quarter 2022, driven by the impact of higher earned premium, lower incentive compensation and incremental savings from the Hartford Next program, partially offset by investments in technology and higher underwriting staffing costs.
Second quarter 2023 written premiums of
Personal Lines
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net income (loss)
(
NM
Core earnings (loss)
(
NM
Written premiums
6%
Underwriting loss
NM
Underlying underwriting gain (loss)
NM
Losses and loss adjustment expense ratio
Current accident year before catastrophes
76.1
65.7
10.4
Current accident year catastrophes
13.6
7.7
5.9
Unfavorable (favorable) prior accident year development
(0.4)
0.0
(0.4)
Expenses
25.7
28.4
(2.7)
Combined ratio
114.9
101.8
13.1
Impact of catastrophes and PYD on combined ratio
(13.2)
(7.7)
(5.5)
Underlying combined ratio
101.7
94.1
7.6
Net loss of
Personal Lines core loss of
An underlying loss and loss adjustment expense ratio of 76.1 in second quarter 2023 compared with 65.7 in second quarter 2022, with the increase primarily driven by higher severity in auto liability and physical damage, partially offset by high single-digit renewal earned pricing increases in auto and double-digit earned pricing increases in homeowners.
Net investment income, of
Combined ratio of 114.9 in second quarter 2023, compared with 101.8 in second quarter 2022, primarily due to a 10.4 point increase in the underlying loss and loss adjustment expense ratio, and a 5.9 point increase in the CAY CAT ratio, partially offset by 0.4 points of favorable PYD in second quarter 2023. Underlying combined ratio of 101.7 compared with 94.1 in second quarter 2022, primarily due to an increase in the underlying loss and loss adjustment expense ratio in auto, partially offset by a 2.7 point improvement in the expense ratio.
Auto combined ratio of 116.4 compared with 101.2 in second quarter 2022. The underlying combined ratio of 111.8 increased from 100.0 in second quarter 2022, primarily due to an increase in auto liability and physical damage severity, partially offset by an increase in earned pricing and a lower expense ratio.
Homeowners combined ratio of 115.1 compared with 103.1 in second quarter 2022. The underlying combined ratio of 79.6 improved from 82.0 in second quarter 2022, primarily due to a lower expense ratio, and the effect of double-digit earned pricing increases which offset the change in weather and non-weather loss costs.
The expense ratio of 25.7 improved 2.7 points from second quarter 2022, primarily driven by lower direct marketing costs and, to a lesser extent, the impact of higher earned premium and incremental savings from the Hartford Next program.
Written premiums in second quarter 2023 were
Higher renewal written price increases in auto and homeowners in response to increased loss cost trends.
An increase in homeowners' new business.
A slight increase in auto policy count retention with homeowners' retention flat.
A partial offset from a decline in auto new business.
Group Benefits
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net income
14%
Core earnings
(18%)
Fully insured ongoing premiums
7%
Loss ratio
72.1%
70.1%
2.0
Expense ratio
24.5%
25.2%
(0.7)
Net income margin
7.0%
6.7%
0.3
Core earnings margin
7.6%
9.9%
(2.3)
Net income of
Core earnings were
Fully insured ongoing premiums were up 7% compared with second quarter 2022, driven by strong persistency and new business sales as well as an increase in exposure on existing accounts. Fully insured ongoing sales were
Loss ratio of 72.1% increased 2.0 points from second quarter 2022.
Group life loss ratio of 84.1% increased 5.5 points. The prior year loss ratio included favorable prior quarter development of
Group disability loss ratio was 67.0% compared with 66.3% in second quarter 2022. Favorable long-term disability claim incidence and strong recoveries in 2023 were more than offset by modestly higher short-term disability and Paid Family Leave incidence when compared to the 2022 period.
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net income
32%
Core earnings
0%
Daily average Hartford Funds AUM
(7)%
Mutual Funds and exchange-traded funds (ETF) net flows
38%
Total Hartford Funds AUM
2%
Net income of
Core earnings of
Daily average AUM of
Mutual fund and ETF net outflows totaled
Corporate
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net loss
63%
Net loss available to common stockholders
59%
Core loss
19%
Net investment income, before tax
167%
Interest expense and preferred dividends, before tax
(2)%
Net loss available to common stockholders of
Second quarter 2023 core loss of
INVESTMENT INCOME AND PORTFOLIO DATA:
Three Months Ended
($ in millions, unless otherwise noted)
Change
Net investment income, before tax
—%
Annualized investment yield, before tax
3.9%
3.9%
0.0
Annualized investment yield, before tax, excluding LPs 1
4.0%
3.0%
1.0
Annualized LP yield, before tax
2.9%
17.3%
(14.4)
Annualized investment yield, after tax
3.1%
3.2%
(0.1)
Second quarter 2023 consolidated net investment income of
Second quarter 2023 included
Net realized losses of
Total invested assets of
The
About Us
We help people and companies in
A FORTUNE 500® company, we're known for our innovative ideas and real-life solutions that help customers make financial progress, no matter their income or portfolio size.
And while we have employees around the world, we're all bound by a common purpose: to give you the financial tools, resources, and information you need so you can live the life you want.
What's most important to us …
Meet the needs of our more than 34 million customers, who rely on our expertise in retirement, insurance and asset management.
Attract, develop and retain the best people in the business, offering them a diverse and inclusive work environment in offices in 25 nations and territories.
Give back to the communities where our employees live and work, supporting programs that help people learn more, earn more, and save more.
Deliver value for our shareholders, who have placed their trust in us (Nasdaq: PFG).
Financial Data:
Total assets under management -
Total GAAP revenues -
Net income attributable to Principal® -
Non-GAAP operating earnings2 -
Non-GAAP operating ROE - 11%
https://secure02.principal.com/publicvsupply/GetFile?fm=DD730&ty=VOP&EXT=.VOP
Principal Financial Group® Announces Full Year and Fourth Quarter 2022 Results
Company Highlights
Full year 2022 net income attributable to PFG of
Full year 2022 non-GAAP operating earnings of
Deployed
Assets under management (AUM) of
Company declares first quarter 2023 common stock dividend of
Principal Financial Group® (Nasdaq: PFG) announced results for full year and fourth quarter of 2022.
Non-GAAP net income attributable to PFG excluding loss from exited business1for the 12 months ending
Non-GAAP operating earnings for the 12 months ending
Quarterly common stock dividend of
"2022 was a transformative year for Principal®. Guided by a clear strategy, we made meaningful progress towards our goals," said
"We continue to transform our company to deliver even greater value to our customers and shareholders. We have de-risked our portfolio, reduced our balance sheet risk, and our business is less capital intensive. With a sharpened focus on higher growth markets and segments, we're investing in our businesses that leverage our competitive advantages, while returning more capital to our shareholders."
Other highlights
Full Year 2022
RIS - Fee recurring deposits increased 26% over 2021
RIS - Spread sales of
Specialty Benefits premium and fee growth of 11%, due to record full year sales, strong retention, and employment growth
Individual Life business market sales increase 73% from 2021, including strong growth of company owned life insurance (COLI), used to fund non-qualified deferred compensation plans.
Total company AUM of
Strong long-term investment performance4: 61% of Principal investment options above median on a three-year basis, 72% on a five-year basis, and 78% on a ten-year basis; additionally, 53% of fund-level AUM had a 4- or 5-star rating from Morningstar
Deployed
Strong financial position
Statutory risk-based capital (RBC) ratio for
Segment Results
Retirement and Income Solutions - Fee
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings 6
2%
18%
Net revenue 7
(9)%
(1)%
Pre-tax return on net revenue 8
25.8%
22.8%
23.2%
19.6%
Pre-tax operating earnings increased
Net revenue decreased
Retirement and Income Solutions - Spread
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings
(46)%
(16)%
Net revenue
(43)%
(19)%
Pre-tax return on net revenue
76.4%
81.7%
83.0%
79.9%
Pre-tax operating earnings decreased
Net revenue decreased
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings
(28)%
(15)%
Operating revenues less pass-through expenses 9
(16)%
(5)%
Pre-tax return on operating revenues less pass-through expenses
36.8%
42.8%
38.6%
42.8%
Total PGI assets under management (billions)
(15)%
PGI sourced assets under management (billions)
(12)%
Pre-tax operating earnings decreased
Operating revenues less pass-through expenses decreased
in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings
(13)%
0%
Combined net revenue
(at PFG share)
(14)%
(5)%
Pre-tax return on combined net revenue (at PFG share)
37.7%
37.2%
33.4%
31.8%
Assets under management (billions)
3%
Pre-tax operating earnings decreased
Combined net revenue (at PFG share) decreased
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings
52%
41%
Premium and fees
11%
11%
Pre-tax return on premium and fees 10
13.7%
10.0%
12.9%
10.1%
Incurred loss ratio
60.7%
64.2%
62.5%
65.0%
Pre-tax operating earnings increased
Premium and fees increased
Incurred loss ratio decreased primarily due to lower COVID claims.
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating earnings (losses)
(9)%
(20)%
Premium and fees
(29)%
(25)%
Pre-tax return on premium and fees
13.4%
10.4%
18.3%
17.1%
Pre-tax operating earnings decreased
Premium and fees decreased
Corporate
(in millions except percentages or otherwise noted)
Quarter
Trailing Twelve Months
4Q22
4Q21
% Change
4Q22
4Q21
% Change
Pre-tax operating losses
8%
(28)%
Pre-tax operating losses decreased
For the full financial report, see:
Company Profile
https://investor.travelers.com/home/default.aspx
Travelers Reports Fourth Quarter 2022 Net Income per Diluted Share of
Fourth Quarter 2022 Core Income per Diluted Share of
Full Year
Full Year Core Income of
Fourth quarter net income of
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
Net written premiums of
Net written premium growth in all three segments compared to the prior year quarter;
Total capital returned to shareholders of
Book value per share of
Board of Directors declares regular cash dividend of
Consolidated Highlights
"We are pleased to report solid fourth quarter 2022 results, particularly in light of the significant winter storm that swept across the
"Core income for the fourth quarter was
"Our best-in-class marketplace execution produced 10% growth in net written premiums this quarter to almost
"Our full year 2022 results benefited from higher core income from our commercial businesses, driven by record net earned premiums and strong profitability, including our best-ever underlying combined ratio in
"Our results this year cap off a decade of terrific performance. Over that period, we have significantly accelerated premium growth while generating superior returns with industry low volatility. Given our track record of successfully investing in differentiating capabilities and our ambitious roadmap, we are confident in the outlook for Travelers."
Consolidated Results
Fourth Quarter 2022 Results
(All comparisons vs. fourth quarter 2021, unless noted otherwise)
Net income of
Combined ratio:
The combined ratio of 94.5% increased 6.5 points due to higher catastrophe losses (4.7 points) and a higher underlying combined ratio (2.7 points), partially offset by higher net favorable prior year reserve development (0.9 points).
The underlying combined ratio of 91.4% increased 2.7 points. See below for further details by segment.
Net favorable prior year reserve development occurred in all three segments. See below for further details by segment.
Catastrophe losses primarily resulted from a significant winter storm that impacted most of the
Net investment income of
Net written premiums of
Business Insurance Segment Financial Results
Full Year 2022 Results
(All comparisons vs. full year 2021, unless noted otherwise)
Net income of
Combined ratio:
The combined ratio of 95.6% increased 1.1 points due to a higher underlying combined ratio (1.7 points), partially offset by a smaller impact from catastrophe losses (0.5 points) and higher net favorable prior year reserve development (0.1 points).
The underlying combined ratio of 92.0% increased 1.7 points. See below for further details by segment.
Net favorable prior year reserve development occurred in all segments. See below for further details by segment.
Catastrophe losses included the fourth quarter winter storm described above, as well as Hurricanes Ian and Fiona and severe wind and hail storms in several regions of
Net investment income of
Net written premiums of
Shareholders' Equity
Shareholders' equity of
The Company repurchased 2.7 million shares during the fourth quarter at an average price of
The Board of Directors declared a regular quarterly dividend of
Bond & Specialty Insurance Segment Financial Results
Fourth Quarter 2022 Results
(All comparisons vs. fourth quarter 2021, unless noted otherwise)
Segment income for
Combined ratio:
The combined ratio of 89.5% increased 2.5 points due to higher catastrophe losses (3.8 points), partially offset by higher net favorable prior year reserve development (1.0 points) and a lower underlying combined ratio (0.3 points).
The underlying combined ratio improved 0.3 points to a very strong 89.5%.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations' workers' compensation product line for multiple accident years, partially offset by an addition to reserves in the domestic operations' general liability product line for excess coverages (excluding asbestos and environmental) for multiple accident years.
Net written premiums of
Personal Insurance Segment Financial Results
Full Year 2022 Results
(All comparisons vs. full year 2021, unless noted otherwise)
Segment income for
Combined ratio:
The combined ratio of 92.5% improved 3.2 points due to lower catastrophe losses (1.3 points), higher net favorable prior year reserve development (1.1 points) and a lower underlying combined ratio (0.8 points).
The underlying combined ratio improved 0.8 points to a very strong 90.9%, driven primarily by a 1.0 point improvement in the expense ratio.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in the domestic operations' workers' compensation product line for multiple accident years and in the commercial property and commercial multi-peril product lines for recent accident years, partially offset by an addition to asbestos reserves of
Net written premiums of
Full Year 2022 Results
(All comparisons vs. full year 2021, unless noted otherwise)
Segment loss for
Combined ratio:
The combined ratio of 104.9% increased 8.4 points due to a higher underlying combined ratio (6.0 points), lower net favorable prior year reserve development (1.9 points) and higher catastrophe losses (0.5 points).
The underlying combined ratio of 96.2% increased 6.0 points, driven primarily by elevated losses in both the automobile and homeowners and other product lines, partially offset by a lower expense ratio.
Net favorable prior year reserve development was not significant in the current year.
Net written premiums of
About Us
Founded in 1967,
Our competitive advantage lies in our long-term strategy of decentralized operations, allowing each of our Berkley companies to identify and respond quickly and effectively to changing market conditions and local customer needs. This decentralized structure provides financial accountability and incentives to local management and enables us to attract and retain the highest caliber professionals.
We have the expertise and resources to utilize our strengths in the present environment, and the flexibility to anticipate, innovate and respond to whatever opportunities and challenges the future may hold.
https://www.berkley.com/about-us
W. R. Berkley Corporation Reports First Quarter Results
Summary Financial Data
(Amounts in thousands, except per share data)
Gross premiums written
3,049,317
2,859,837
Net premiums written
2,574,824
2,413,254
Net income to common stockholders
294,126
590,638
Net income per diluted share
1.06
2.12
Operating income (1)
275,966
306,921
Operating income per diluted share
1.00
1.10
Return on equity (2)
17.4%
35.5%
Operating return on equity (1) (2)
16.4%
18.5%
Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.
Return on equity and operating return on equity represent net income and operating income, respectively, expressed on an annualized basis as a percentage of beginning of year common stockholders' equity.
First quarter highlights included:
Return on equity of 17.4%.
Book value per share grew 7.2% prior to dividends and share repurchases.
Net investment income grew 28.8% to
Average rate increases excluding workers' compensation were approximately 8.3%.
Pre-tax underwriting income of
The current accident year combined ratio before catastrophe losses of 1.9 loss ratio points was 87.7%.
The reported combined ratio was 90.6%, including current accident year catastrophe losses of
Total capital returned to shareholders was
The Company commented:
The Company reported strong results for the first quarter of 2023, with continued strong underwriting performance and significant growth in investment income. The annualized return on equity was 17.4% and growth in book value per share, prior to dividends and share repurchases, was 7.2%.
The business continued to grow in areas that we anticipate will meet or exceed our targeted risk-adjusted return. While there is greater evidence that market segments and lines of business are not all moving in lock-step, our structure and discipline enable us to execute on and manage each of these cycles to optimize profitability, even as we maintain a prudent view of loss trends. We continue to carefully evaluate the available opportunities to deploy capital as we selectively expand our business.
Net investment income grew almost 29% during the quarter as an increasingly greater portion of the fixed-maturity portfolio was (re)invested at higher interest rates. We maintained the short duration and high quality of our fixed-maturity portfolio, given the inverted yield curve and market volatility.
The Company continues to focus on risk-adjusted return in all aspects of its business. Over time, this discipline has allowed us to navigate risks and embrace opportunities to deliver superior results for our shareholders. We remain encouraged about the opportunities that we see in 2023 and beyond.
For full financial report, see:
https://ir.berkley.com/news/news-details/2023/W.-R.-Berkley-Corporation-Reports-First-Quarter-Results/default.aspx
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