Travelers Reports Strong First Quarter 2021 Net Income per Diluted Share of $2.87, up 23%, and Return on Equity of 10.2%

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The Travelers Companies reported a Q1 2021 net income of $733 million, or $2.87 per diluted share, up from $600 million the previous year. Core income rose to $699 million ($2.73 per diluted share), driven by favorable reserve developments and increased net investment income. However, higher catastrophe losses partially offset these gains. Additionally, net realized investment gains reached $44 million pre-tax against losses of $98 million in Q1 2020. The company’s share repurchase program positively impacted earnings per share.

Positive

Q1 2021 net income increased to $733 million from $600 million year-over-year.
Core income improved to $699 million compared to $676 million in the previous year.
Net realized investment gains were $44 million, a significant turnaround from $98 million in losses in Q1 2020.
The impact of share repurchases contributed to increased earnings per share.

Negative

Higher catastrophe losses were reported, which offset some of the income gains.

04/20/2021 - 06:57 AM

The Travelers Companies, Inc. today reported net income of $733 million, or $2.87 per diluted share, for the quarter ended March 31, 2021, compared to $600 million, or $2.33 per diluted share, in the prior year quarter. Core income in the current quarter was $699 million, or $2.73 per diluted share, compared to $676 million, or $2.62 per diluted share, in the prior year quarter. Core income increased primarily due to higher net favorable prior year reserve development, a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and higher net investment income, partially offset by higher catastrophe losses. Net realized investment gains in the current quarter were $44 million pre-tax ($34 million after-tax), compared to net realized investment losses of $98 million pre-tax ($76 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)

Three Months Ended March 31,

2021

2020

Change

Net written premiums

7,505

7,346

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