Primary insurance group The Travelers Companies Inc. has reported a 39% year-on-year decrease in net income to $819 million for the fourth quarter of 2022, compared to $1.33 billion from the same period last year.
Notably, net income for the full year also fell by 22% to $2.84 billion, compared to 2021’s $3.66 billion.
Core income for Q4 was $810 million, compared to $1.28 billion, in the prior year quarter. Travelers noted that the decrease was primarily due to higher catastrophe losses, a lower underlying underwriting gain, and lower net investment income.
At the same time, Travelers reported $2.99 billion in core income for the full year, a 15% decrease from 2021’s $3.52 billion.
Furthermore, net written premiums for the quarter were $8.82 billion, up 10% from last years $7.99 billion. Travelers also reported net written premiums of $35.41 billion for the full year, an 11% increase compared to the prior years $31.95 billion.
Travelers also saw net written premium growth in all three of its core segments. Business Insurance grew 11% to $4.39 billion, compared to last years $3.96 billion.
In its Bond & Specialty Insurance line, net written premiums were $924 million for the quarter, a 2% increase from last years $905 million.
Lastly, in its Personal Insurance line, net written premiums rose by 13% to $3.51 billion, compared to $3.12 billion from the prior year period.
Overall, Travelers’ combined ratio for the quarter was 94.5%, compared to 88% from Q421, while combined ratio for the year stood at 95.6% compared to 94.5% from 2021.
The firm’s underlying combined ratio for the quarter was 91.4%, compared to 88.7% from the prior year period.
Commenting on the results, Alan Schnitzer, Chairman and Chief Executive Officer, said: “We are pleased to report solid fourth quarter 2022 results, particularly in light of the significant winter storm that swept across the U.S. and Canada in the last week of the year. Results in our commercial businesses were exceptional, with another quarter of strong growth at very attractive margins. Underlying results in Personal Insurance remain challenged by elevated industrywide loss costs. We recorded another quarter of progress with strong pricing and other actions to address these challenges.”
He continued, “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 Business Insurance. Our high-quality investment portfolio generated after-tax net investment income of $2.2 billion for the year. Our underwriting and investment results, together with our strong balance sheet, enabled us to return nearly $3 billion of excess capital to shareholders, including more than $2 billion of share repurchases, while also growing adjusted book value per share and making important investments in our business.
“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.”
