The Travelers Companies, Inc.
- The Travelers Companies is a leading provider of property casualty insurance for auto, home and business.
- The company operate primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland.
The Travelers Companies, Inc. (NYSE: TRV, LSE: 0R03) is a leading provider of property casualty insurance for auto, home and business. The company offer its global customers primarily through independent agents and brokers. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and operations in the United States and selected international markets. The company generated revenues of approximately $37 billion in 2022.
Travelers Introduces Innovation Network for Construction Industry
February 14, 2023; The Travelers Companies, Inc. launched the Travelers Innovation Network for Construction, an online platform providing construction customers with access to industry insights, as well as a curated group of technology providers and solutions aimed at improving productivity and safety on job sites.
The Travelers Innovation Network for Construction allows construction customers to search for targeted technology solutions and guidance that can help them overcome work site, employee and business risk exposures and challenges, including those related to water loss detection, ergonomics, site monitoring and equipment management. Eligible customers also can qualify for discounts on certain products or services presented on the platform.
Diluted net income per share of $11.77 in 2022 decreased by 19% from diluted net income per share of $14.49 in 2021. Net income of $2.84 billion in 2022 decreased by 22% from net income of $3.66 billion in 2021. Net favorable prior year reserve development in 2022 and 2021 was $649 million and $538 million, respectively. Catastrophe losses in 2022 and 2021 were $1.88 billion and $1.85 billion, respectively.
Earned premiums in 2022 were $33.76 billion, $2.91 billion or 9% higher than in 2021. In Business Insurance, earned premiums in 2022 increased by 9% over 2021. Earned premiums in Business Insurance in 2021 were negatively impacted by lower net written premiums primarily in the latter half of 2020 due to a modest reduction in exposures and a decrease in new business volume, in each case impacted by COVID-19 and related economic conditions. In Bond & Specialty Insurance, earned premiums in 2022 increased by 9% over 2021. In Personal Insurance, earned premiums in 2022 increased by 11% over 2021. Earned premiums in Bond & Specialty Insurance and Personal Insurance in 2021 were not materially impacted by COVID-19 and related economic conditions.
Net investment income in 2022 was $2.56 billion, $471 million or 16% lower than in 2021. Net investment income from fixed maturity investments in 2022 was $2.11 billion, $124 million higher than in 2021. The increase primarily resulted from a higher average level of fixed maturity investments and higher average yields. Net investment income from short-term securities in 2022 was $73 million, $66 million higher than in 2021. The increase primarily resulted from higher short-term average yields, partially offset by a lower level of short-term investments. The Company's remaining investment portfolios had net investment income of $419 million in 2022, $658 million lower than in 2021, primarily reflecting the impact of lower returns from private equity partnerships as compared to very strong returns in 2021.
Fee income in 2022 was $412 million, $10 million higher than in 2021. Other revenues in 2022 were $351 million, $4 million lower than 2021. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
The combined ratio of 95.6% in 2022 was 1.1 points higher than the combined ratio of 94.5% in 2021. The loss and loss adjustment expense ratio of 67.1% in 2022 was 2.0 points higher than the loss and loss adjustment expense ratio of 65.1% in 2021. The underwriting expense ratio of 28.5% in 2022 was 0.9 points lower than the underwriting expense ratio of 29.4% in 2021.
The Travelers Companies, Inc. is a holding company principally engaged, through its subsidiaries, in providing a wide range of commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.
Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.
Bond & Specialty Insurance
Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil in each case utilizing various degrees of financially-based underwriting approaches.
Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. Personal Insurance's primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.
The Company’s claim functions are managed through its Claims Services organization, with locations in the United States and in the other countries where it does business. With approximately 13,000 employees, Claims Services employs a group of professionals with diverse skills, including claim adjusters, appraisers, attorneys, investigators, engineers, accountants, nurses, data and analytics professionals, system specialists and training, management and support personnel. Approved external service providers, such as investigators, attorneys and, when necessary, independent adjusters and appraisers, are available for use as appropriate.
The Company reinsures a portion of the risks it underwrites in order to manage its exposure to losses and to protect its capital. The Company cedes to reinsurers a portion of these risks and pays premiums based upon the risk and exposure of the policies subject to such reinsurance. The Company utilizes a variety of reinsurance agreements to manage its exposure to large property and casualty losses, including facultative as well as catastrophe and individual risk treaties. Ceded reinsurance involves credit risk, except with regard to mandatory pools and associations, and is predominantly subject to aggregate loss limits. Although the reinsurer is liable to the Company to the extent of the reinsurance ceded, the Company remains liable as the direct insurer on all risks reinsured
The majority of funds available for investment are deployed in a widely diversified portfolio of high quality, liquid, taxable U.S. government, tax-exempt and taxable U.S. municipal and taxable corporate and U.S. agency mortgage-backed bonds. The Company regularly monitors the effective duration of its fixed maturity investments, and the Company’s investment purchases and sales are executed with the objective of having adequate funds available to satisfy its insurance and debt obligations.
To deal with the increasing threat of fire Alexander Wilkin, secretary of the Minnesota Territory, and 16 other St. Paul businessmen established the St. Paul Fire and Marine Insurance Company.
|1853||Travelers was founded in Hartford, Connecticut, as the St. Paul Fire and Marine Insurance Company to provide insurance for transportation companies.|
|1864||The company changed its name to Travelers Insurance Company and expanded its services to include accident and health insurance.|
|1897||Travelers became the first company to offer automobile insurance, introducing a policy that covered liability and property damage.|
|1903||The company began offering life insurance policies.|
|1904||Travelers introduced a disability insurance policy that provided benefits to policyholders who were injured or disabled and unable to work.|
|1919||Travelers established a research laboratory to study fire protection and safety measures.|
|1956||Established a weather research center.|
|1969||Travelers merged with the Commercial Credit Company, a consumer finance company.|
|1993||The company merged with Primerica Corporation, a financial services company, to become Travelers Corporation.|
|1998||Travelers Corporation merged with Citicorp to form Citigroup, a financial services conglomerate.|
|2002||Citigroup spun off Travelers Property Casualty Corp. as a separate company, with the new company being named The Travelers Companies, Inc.|
|2004||Travelers acquired the property and casualty business of The St. Paul Companies, making it one of the largest property and casualty insurance companies in the United States.|
|2007||Travelers acquired a majority interest in J. Malucelli, a Brazilian surety and credit insurer.|
|2009||The company acquired a 49.9% interest in the Citigroup-owned insurance company, Lloyd's of London.|
|2013||Travelers acquired The Dominion of Canada General Insurance Company, expanding its presence in Canada.|
|2019||Partnered with Groundspeed Analytics, Inc. to use artificial intelligence to simplify the new business and policy renewal process.|
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