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Travelers Reports Record Net and Core Income per Diluted Share in Fourth Quarter 2019

Company Release - 1/23/2020 6:57 AM ET

Fourth Quarter Net Income per Diluted Share of $3.35, up 44%, and Return on Equity of 13.5%

Fourth Quarter Core Income per Diluted Share of $3.32, up 56%, and Core Return on Equity of 14.8%

Full Year Net Income of $2.622 billion, up 4%, and Return on Equity of 10.5%

Full Year Core Income of $2.537 billion, up 4%, and Core Return on Equity of 10.9%

  • Fourth quarter net income of $873 million and core income of $867 million.
  • Catastrophe losses of $85 million pre-tax decreased from $610 million pre-tax in the prior year quarter.
  • Fourth quarter consolidated combined ratio of 92.4% improved by 5.1 points; underlying combined ratio of 92.1%.
  • Fourth quarter net written premiums of $7.075 billion, up 6%; record full year net written premiums of $29.151 billion, up 5%; both periods reflect growth in all segments.
  • Fourth quarter renewal premium change in domestic Business Insurance of 7.8%, highest level since 2013.
  • Total capital returned to shareholders of $588 million, including $376 million of share repurchases. Full year total capital returned to shareholders of $2.396 billion, including $1.548 billion of share repurchases.
  • Book value per share of $101.55, up 17% from year-end 2018. Adjusted book value per share of $92.76, up 6% from year-end 2018.
  • Board of Directors declared quarterly dividend per share of $0.82.

NEW YORK--(BUSINESS WIRE)-- The Travelers Companies, Inc. today reported net income of $873 million, or $3.35 per diluted share, for the quarter ended December 31, 2019, compared to $621 million, or $2.32 per diluted share, in the prior year quarter. Core income in the current quarter was $867 million, or $3.32 per diluted share, compared to $571 million, or $2.13 per diluted share, in the prior year quarter. Core income increased primarily due to significantly lower catastrophe losses, partially offset by lower net favorable prior year reserve development and a lower underlying underwriting gain (i.e., excluding net favorable prior year reserve development and catastrophe losses), in each case primarily due to the impact of an increasingly challenging tort environment. Net realized investment gains were $12 million pre-tax ($6 million after-tax), compared to $60 million pre-tax ($50 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 December 31,

 

Twelve Months Ended December 31,

 

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

Net written premiums

 

$

7,075

 

 

$

6,691

 

 

6

%

 

$

29,151

 

 

$

27,708

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

8,063

 

 

$

7,796

 

 

3

 

 

$

31,581

 

 

$

30,282

 

 

4

 

 

Net income

 

$

873

 

 

$

621

 

 

41

 

 

$

2,622

 

 

$

2,523

 

 

4

 

 

per diluted share

 

$

3.35

 

 

$

2.32

 

 

44

 

 

$

9.92

 

 

$

9.28

 

 

7

 

 

Core income

 

$

867

 

 

$

571

 

 

52

 

 

$

2,537

 

 

$

2,430

 

 

4

 

 

per diluted share

 

$

3.32

 

 

$

2.13

 

 

56

 

 

$

9.60

 

 

$

8.94

 

 

7

 

 

Diluted weighted average shares outstanding

 

259.0

 

 

266.0

 

 

(3

)

 

262.3

 

 

269.8

 

 

(3

)

 

Combined ratio

 

92.4

%

 

97.5

%

 

(5.1

)

pts

96.5

%

 

96.9

%

 

(0.4

)

pts

Underlying combined ratio

 

92.1

%

 

91.1

%

 

1.0

 

pts

93.2

%

 

92.5

%

 

0.7

 

pts

Return on equity

 

13.5

%

 

10.9

%

 

2.6

 

pts

10.5

%

 

11.0

%

 

(0.5

)

pts

Core return on equity

 

14.8

%

 

10.0

%

 

4.8

 

pts

10.9

%

 

10.7

%

 

0.2

 

pts

 

As of December 31,

 

 

 

 

2019

 

2018

 

Change

Book value per share

 

$

101.55

 

 

$

86.84

 

 

17

%

Adjusted book value per share

 

92.76

 

 

87.27

 

 

6

%

See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

“We are pleased to report fourth quarter core income of $867 million and core return on equity of 14.8%,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Our strong earnings and improved combined ratio of 92.4% benefited from lower catastrophe losses and the continued successful execution of our strategy to grow the top line at attractive returns while improving operating leverage. Earned premiums increased by 4% over the prior year quarter to a record $7.3 billion. Our expense ratio improved to 29.1%, lowering our full year expense ratio to 29.6%, a significant improvement from recent years. These improvements were partially offset by the impacts of ongoing challenges in the tort environment. Our high-quality investment portfolio continued to perform well, generating net investment income of $525 million after-tax. Our results, together with our strong balance sheet, enabled us to return $588 million of excess capital to shareholders this quarter, including $376 million of share repurchases. For the full year, we returned $2.4 billion of excess capital to shareholders, including more than $1.5 billion in share repurchases.

“Turning to the top line, we continue to be pleased with our marketplace execution. Net written premiums increased by 6% to a fourth quarter record of $7.1 billion, marking the twelfth consecutive quarter in which we generated premium growth in all three business segments. In an environment of elevated loss activity and persistently low interest rates, we were once again successful in achieving meaningful improvement in renewal premium change while maintaining high levels of retention. In domestic Business Insurance, renewal premium change was 7.8%, including renewal rate change of 5.1%, in both cases the highest levels since 2013, while retention remained very strong at 84%. In our domestic management liability business in Bond & Specialty Insurance, renewal premium change was 6.6%, the highest level since 2014, while retention remained historically high at 89%. In Personal Insurance, retention and new business remained strong in both Agency Auto and Agency Homeowners. In our Agency Homeowners business, renewal premium change increased to 7.4%, its highest level since 2014.

“In this more challenging tort and low interest rate environment, we generated full year core income in excess of $2.5 billion and core return on equity of 10.9%, demonstrating the strength and resilience of our franchise. We grew full year net written premiums by 5% to a record $29.2 billion and generated cash flow from operations of $5.2 billion, its highest level in more than a decade. Our performance enabled us to continue to make significant investments in support of our ambitious innovation agenda, while growing our investment portfolio and returning a substantial amount of capital to our shareholders. With our significant competitive advantages, including the best talent in the industry and deep experience in successfully managing our diversified business through a variety of market conditions, we remain well positioned to continue to deliver superior returns over time.”

Consolidated Results

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

($ in millions and pre-tax, unless noted otherwise)

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

Underwriting gain:

 

$

513

 

 

$

135

 

 

$

378

 

 

$

833

 

 

$

681

 

 

$

152

 

 

Underwriting gain includes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable (unfavorable) prior year reserve development

 

60

 

 

167

 

 

(107

)

 

(60

)

 

517

 

 

(577

)

 

Catastrophes, net of reinsurance

 

(85

)

 

(610

)

 

525

 

 

(886

)

 

(1,716

)

 

830

 

 

Net investment income

 

616

 

 

630

 

 

(14

)

 

2,468

 

 

2,474

 

 

(6

)

 

Other income (expense), including interest expense

 

(67

)

 

(79

)

 

12

 

 

(276

)

 

(308

)

 

32

 

 

Core income before income taxes

 

1,062

 

 

686

 

 

376

 

 

3,025

 

 

2,847

 

 

178

 

 

Income tax expense

 

195

 

 

115

 

 

80

 

 

488

 

 

417

 

 

71

 

 

Core income

 

867

 

 

571

 

 

296

 

 

2,537

 

 

2,430

 

 

107

 

 

Net realized investment gains after income taxes

 

6

 

 

50

 

 

(44

)

 

85

 

 

93

 

 

(8

)

 

Net income

 

$

873

 

 

$

621

 

 

$

252

 

 

$

2,622

 

 

$

2,523

 

 

$

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

92.4

%

 

97.5

%

 

(5.1

)

pts

96.5

%

 

96.9

%

 

(0.4

)

pts

Impact on combined ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (favorable) unfavorable prior year reserve development

 

(0.8

)

pts

(2.4

)

pts

1.6

 

pts

0.2

 

pts

(1.9

)

pts

2.1

 

pts

Catastrophes, net of reinsurance

 

1.1

 

pts

8.8

 

pts

(7.7

)

pts

3.1

 

pts

6.3

 

pts

(3.2

)

pts

Underlying combined ratio

 

92.1

%

 

91.1

%

 

1.0

 

pts

93.2

%

 

92.5

%

 

0.7

 

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Insurance

 

$

3,703

 

 

$

3,533

 

 

5

%

 

$

15,629

 

 

$

14,956

 

 

4

%

 

Bond & Specialty Insurance

 

714

 

 

657

 

 

9

 

 

2,739

 

 

2,528

 

 

8

 

 

Personal Insurance

 

2,658

 

 

2,501

 

 

6

 

 

10,783

 

 

10,224

 

 

5

 

 

Total

 

$

7,075

 

 

$

6,691

 

 

6

%

 

$

29,151

 

 

$

27,708

 

 

5

%

 

Fourth Quarter 2019 Results
(All comparisons vs. fourth quarter 2018, unless noted otherwise)

Net income of $873 million increased $252 million due to higher core income, partially offset by lower net realized investment gains. Core income of $867 million increased $296 million, primarily due to significantly lower catastrophe losses, partially offset by lower net favorable prior year reserve development and a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 92.4% decreased 5.1 points due to significantly lower catastrophe losses (7.7 points), partially offset by lower net favorable prior year reserve development (1.6 points) and a higher underlying combined ratio (1.0 points).
  • The underlying combined ratio of 92.1% increased 1.0 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 primarily resulted from wind and hail storms in several regions of the United States and a wildfire in California.

Net investment income of $616 million pre-tax ($525 million after-tax) decreased 2%. Income from the fixed income investment portfolio increased due to a higher average level of fixed maturity investments, partially offset by slightly lower interest rates. Private equity partnership returns were lower than in the prior year quarter.

Net written premiums of $7.075 billion increased 6%. See below for further details by segment.

Full Year 2019 Results
(All comparisons vs. full year 2018, unless noted otherwise)

Net income of $2.622 billion increased $99 million due to higher core income. Core income of $2.537 billion increased by $107 million, primarily due to significantly lower catastrophe losses, partially offset by net unfavorable prior year reserve development in the current year compared to net favorable prior year reserve development in the prior year and a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes. Net realized investment gains of $113 million pre-tax were comparable with the prior year.

Combined ratio:

  • The combined ratio of 96.5% decreased 0.4 points due to significantly lower catastrophe losses (3.2 points), partially offset by net unfavorable prior year reserve development in the current year compared to net favorable prior year reserve development in the prior year (2.1 points) and a higher underlying combined ratio (0.7 points).
  • The underlying combined ratio of 93.2% increased 0.7 points. See below for further details by segment.
  • Net unfavorable prior year reserve development occurred in Business Insurance. Net favorable prior year reserve development occurred in Personal Insurance and Bond & Specialty Insurance. See below for further details by segment. Catastrophe losses included the fourth quarter events described above, as well as winter storms and wind storms in several regions of the United States and Hurricane Dorian in the first nine months of 2019.

Net investment income of $2.468 billion pre-tax ($2.097 billion after-tax) was comparable to the prior year. Income from the fixed income investment portfolio increased due to the impacts of a higher average level of fixed maturity investments and higher long-term and short-term interest rates. Private equity partnership and real estate partnership returns were strong but lower than in the prior year.

Record gross written premiums of $31.063 billion grew 6%. Record net written premiums of $29.151 billion increased 5%, reflecting growth in all segments. Growth in net written premiums was impacted by the Underlying Property Aggregate Catastrophe Excess-of-Loss Reinsurance Treaty entered into effective January 1, 2019 (“the new catastrophe reinsurance treaty”), the entire cost of which impacted net written premiums in the first quarter. Accordingly, the treaty did not impact net written premiums in the final three quarters of the year. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $25.943 billion increased 13% from year-end 2018, primarily due to the impact of lower interest rates on net unrealized investment gains (losses). Net unrealized investment gains included in shareholders’ equity were $2.853 billion pre-tax ($2.246 billion after-tax), compared to net unrealized investment losses of $137 million pre-tax ($113 million after-tax) at year-end 2018. Book value per share of $101.55 increased 17% from year-end 2018, also primarily due to the impact of lower interest rates on net unrealized investment gains (losses). Adjusted book value per share of $92.76, which excludes net unrealized investment gains (losses), increased 6% from year-end 2018.

The Company repurchased 2.9 million shares during the fourth quarter at an average price of $134.34 per share for a total cost of $376 million. Capacity remaining under the existing share repurchase authorization was $1.786 billion at the end of the quarter. Also at the end of the quarter, statutory capital and surplus was $21.330 billion, and the ratio of debt-to-capital was 20.2%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains included in shareholders’ equity was 21.7%, within the Company’s target range of 15% to 25%.

The Board of Directors declared a quarterly dividend of $0.82 per share. The dividend is payable on March 31, 2020, to shareholders of record at the close of business on March 10, 2020.

Business Insurance Segment Financial Results

 

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

($ in millions and pre-tax, unless noted otherwise)

 

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

Underwriting gain (loss):

 

$

87

 

 

$

7

 

 

$

80

 

 

$

(195

)

 

$

76

 

 

$

(271

)

 

Underwriting gain (loss) includes:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable (unfavorable) prior year reserve development

 

8

 

 

48

 

 

(40

)

 

(258

)

 

142

 

 

(400

)

 

Catastrophes, net of reinsurance

 

(48

)

 

(197

)

 

149

 

 

(470

)

 

(639

)

 

169

 

 

Net investment income

 

451

 

 

465

 

 

(14

)

 

1,816

 

 

1,833

 

 

(17

)

 

Other income (expense)

 

 

 

(9

)

 

9

 

 

(6

)

 

(12

)

 

6

 

 

Segment income before income taxes

 

538

 

 

463

 

 

75

 

 

1,615

 

 

1,897

 

 

(282

)

 

Income tax expense

 

90

 

 

72

 

 

18

 

 

223

 

 

259

 

 

(36

)

 

Segment income

 

$

448

 

 

$

391

 

 

$

57

 

 

$

1,392

 

 

$

1,638

 

 

$

(246

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

 

97.5

%

 

99.4

%

 

(1.9

)

pts

100.9

%

 

99.1

%

 

1.8

 

pts

Impact on combined ratio

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (favorable) unfavorable prior year reserve development

 

(0.2

)

pts

(1.2

)

pts

1.0

 

pts

1.7

 

pts

(1.0

)

pts

2.7

 

pts

Catastrophes, net of reinsurance

 

1.3

 

pts

5.2

 

pts

(3.9

)

pts

3.0

 

pts

4.4

 

pts

(1.4

)

pts

Underlying combined ratio

 

96.4

%

 

95.4

%

 

1.0

 

pts

96.2

%

 

95.7

%

 

0.5

 

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums by market

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

 

 

Select Accounts

 

$

675

 

 

$

660

 

 

2

%

 

$

2,911

 

 

$

2,828

 

 

3

%

 

Middle Market

 

2,061

 

 

1,935

 

 

7

 

 

8,630

 

 

8,214

 

 

5

 

 

National Accounts

 

251

 

 

247

 

 

2

 

 

1,051

 

 

1,025

 

 

3

 

 

National Property and Other

 

437

 

 

422

 

 

4

 

 

1,965

 

 

1,805

 

 

9

 

 

Total Domestic

 

3,424

 

 

3,264

 

 

5

 

 

14,557

 

 

13,872

 

 

5

 

 

International

 

279

 

 

269

 

 

4

 

 

1,072

 

 

1,084

 

 

(1

)

 

Total

 

$

3,703

 

 

$

3,533

 

 

5

%

 

$

15,629

 

 

$

14,956

 

 

4

%

 

Fourth Quarter 2019 Results
(All comparisons vs. fourth quarter 2018, unless noted otherwise)

Segment income for Business Insurance was $448 million after-tax, an increase of $57 million. Segment income increased primarily due to significantly lower catastrophe losses, partially offset by lower net favorable prior year reserve development and a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 97.5% decreased 1.9 points due to significantly lower catastrophe losses (3.9 points), partially offset by lower net favorable prior year reserve development (1.0 points) and a higher underlying combined ratio (1.0 points).
  • The underlying combined ratio of 96.4% increased 1.0 points, primarily driven by the impacts of (1) higher loss estimates in the general liability product line for primary and excess coverages and in the commercial automobile product line, including the current quarter impacts of higher loss estimates initially reflected in the first nine months of the year, and (2) a higher level of international loss activity, partially offset by (3) lower loss estimates in the workers’ compensation product line due to the current quarter impacts of lower loss estimates initially reflected in the first nine months of the year and (4) a lower underwriting expense ratio. The underlying combined ratios in both the current and prior year quarters are elevated due to comparable impacts from the re-estimation of losses incurred in the first nine months of each year.
  • Net favorable prior year reserve development was primarily driven by the following:

Workers’ compensation - better than expected loss experience in the segment’s domestic operations for multiple accident years.

Largely offset by:

General liability - higher than expected loss experience in the segment’s domestic operations for primary and excess coverages primarily for recent accident years; and

Commercial multi-peril - higher than expected loss experience in the segment’s domestic operations primarily for recent accident years.

Net written premiums of $3.703 billion increased 5%, benefiting from continued strong retention and new business, as well as higher renewal premium change.

Full Year 2019 Results
(All comparisons vs. full year 2018, unless noted otherwise)

Segment income for Business Insurance was $1.392 billion after-tax, a decrease of $246 million. Segment income decreased primarily due to net unfavorable prior year reserve development in the current year compared to net favorable prior year reserve development in the prior year and a lower underlying underwriting gain, partially offset by lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 100.9% increased 1.8 points due to net unfavorable prior year reserve development in the current year compared to net favorable prior year reserve development in the prior year (2.7 points) and a higher underlying combined ratio (0.5 points), partially offset by lower catastrophe losses (1.4 points).
  • The underlying combined ratio of 96.2% increased 0.5 points, primarily driven by the impacts of higher loss estimates in the general liability product line for primary and excess coverages and the commercial automobile product line, partially offset by a lower underwriting expense ratio.
  • Net unfavorable prior year reserve development was primarily driven by the following:

General liability (excluding asbestos and environmental) - higher than expected loss experience in the segment’s domestic operations for primary and excess coverages for multiple accident years, including the impact for accident years 2009 and prior related to the enactment of legislation by a number of states that extended the statute of limitations for childhood sexual molestation claims;

Commercial automobile - higher than expected loss experience in the segment’s domestic operations for recent accident years;

Asbestos reserves - an increase of $220 million, primarily in the segment’s domestic general liability product line;

Commercial multi-peril - higher than expected loss experience in the segment’s domestic operations for recent accident years; and

Environmental reserves - an increase of $76 million, primarily in the segment’s domestic general liability product line.

Partially offset by:

Workers’ compensation - better than expected loss experience in the segment’s domestic operations for multiple accident years; and

Commercial property - better than expected loss experience in the segment’s domestic operations for recent accident years.

Gross written premiums of $17.151 billion grew 6%, benefiting from continued strong retention, higher renewal premium change and higher levels of new business. Net written premiums of $15.629 billion increased 4%. Growth in net written premiums was impacted by the new catastrophe reinsurance treaty.

Bond & Specialty Insurance Segment Financial Results

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

($ in millions and pre-tax, unless noted otherwise)

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

Underwriting gain:

$

142

 

 

$

214

 

 

$

(72

)

 

$

515

 

 

$

740

 

 

$

(225

)

 

Underwriting gain includes:

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable prior year reserve development

20

 

 

89

 

 

(69

)

 

65

 

 

266

 

 

(201

)

 

Catastrophes, net of reinsurance

(1

)

 

(7

)

 

6

 

 

(5

)

 

(16

)

 

11

 

 

Net investment income

60

 

 

61

 

 

(1

)

 

233

 

 

233

 

 

 

 

Other income

5

 

 

5

 

 

 

 

21

 

 

18

 

 

3

 

 

Segment income before income taxes

207

 

 

280

 

 

(73

)

 

769

 

 

991

 

 

(222

)

 

Income tax expense

40

 

 

60

 

 

(20

)

 

151

 

 

198

 

 

(47

)

 

Segment income

$

167

 

 

$

220

 

 

$

(53

)

 

$

618

 

 

$

793

 

 

$

(175

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

78.6

%

 

64.8

%

 

13.8

 

pts

79.5

%

 

69.0

%

 

10.5

 

pts

Impact on combined ratio

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable prior year reserve development

(2.9

)

pts

(14.4

)

pts

11.5

 

pts

(2.5

)

pts

(11.0

)

pts

8.5

 

pts

Catastrophes, net of reinsurance

0.2

 

pts

1.1

 

pts

(0.9

)

pts

0.2

 

pts

0.6

 

pts

(0.4

)

pts

Underlying combined ratio

81.3

%

 

78.1

%

 

3.2

 

pts

81.8

%

 

79.4

%

 

2.4

 

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

 

Management Liability

$

411

 

 

$

366

 

 

12

%

 

$

1,605

 

 

$

1,455

 

 

10

%

 

Surety

206

 

 

198

 

 

4

 

 

866

 

 

835

 

 

4

 

 

Total Domestic

617

 

 

564

 

 

9

 

 

2,471

 

 

2,290

 

 

8

 

 

International

97

 

 

93

 

 

4

 

 

268

 

 

238

 

 

13

 

 

Total

$

714

 

 

$

657

 

 

9

%

 

$

2,739

 

 

$

2,528

 

 

8

%

 

Fourth Quarter 2019 Results
(All comparisons vs. fourth quarter 2018, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $167 million after-tax, a decrease of $53 million. Segment income decreased primarily due to lower net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 78.6% increased 13.8 points due to lower net favorable prior year reserve development (11.5 points) and a higher underlying combined ratio (3.2 points), partially offset by lower catastrophe losses (0.9 points).
  • The underlying combined ratio of 81.3% remained very strong. The increase of 3.2 points from the prior year quarter reflected higher loss estimates related to management liability coverages due to the current quarter impacts of higher loss estimates initially reflected in the first nine months of the year and a particular loss reflected in the current quarter, partially offset by lower surety loss estimates and a lower underwriting expense ratio.
  • Net favorable prior year reserve development was driven by better than expected loss experience in the domestic fidelity and surety product line for multiple accident years.

Net written premiums of $714 million increased 9%, reflecting continued strong retention, increased levels of renewal premium change and strong new business in management liability and continued strong surety production.

Full Year 2019 Results
(All comparisons vs. full year 2018, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $618 million after-tax, a decrease of $175 million. Segment income decreased primarily due to lower net favorable prior year reserve development and a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 79.5% increased 10.5 points due to lower net favorable prior year reserve development (8.5 points) and a higher underlying combined ratio (2.4 points), partially offset by lower catastrophe losses (0.4 points).
  • The underlying combined ratio of 81.8% remained very strong.
  • Net favorable prior year reserve development was driven by better than expected loss experience in the domestic general liability product line for management liability coverages and in the fidelity and surety product line for multiple accident years.

Net written premiums of $2.739 billion increased 8% and benefited from the same factors as discussed above for the fourth quarter 2019.

Personal Insurance Segment Financial Results

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

($ in millions and pre-tax, unless noted otherwise)

2019

 

2018

 

Change

 

2019

 

2018

 

Change

 

Underwriting gain (loss):

$

284

 

 

$

(86

)

 

$

370

 

 

$

513

 

 

$

(135

)

 

$

648

 

 

Underwriting gain (loss) includes:

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable prior year reserve development

32

 

 

30

 

 

2

 

 

133

 

 

109

 

 

24

 

 

Catastrophes, net of reinsurance

(36

)

 

(406

)

 

370

 

 

(411

)

 

(1,061

)

 

650

 

 

Net investment income

105

 

 

104

 

 

1

 

 

419

 

 

408

 

 

11

 

 

Other income

22

 

 

18

 

 

4

 

 

87

 

 

66

 

 

21

 

 

Segment income before income taxes

411

 

 

36

 

 

375

 

 

1,019

 

 

339

 

 

680

 

 

Income tax expense

84

 

 

4

 

 

80

 

 

195

 

 

42

 

 

153

 

 

Segment income

$

327

 

 

$

32

 

 

$

295

 

 

$

824

 

 

$

297

 

 

$

527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined ratio

88.5

%

 

102.6

%

 

(14.1

)

pts

94.2

%

 

100.6

%

 

(6.4

)

pts

Impact on combined ratio

 

 

 

 

 

 

 

 

 

 

 

 

Net favorable prior year reserve development

(1.2

)

pts

(1.1

)

pts

(0.1

)

pts

(1.3

)

pts

(1.1

)

pts

(0.2

)

pts

Catastrophes, net of reinsurance

1.3

 

pts

15.9

 

pts

(14.6

)

pts

4.0

 

pts

10.7

 

pts

(6.7

)

pts

Underlying combined ratio

88.4

%

 

87.8

%

 

0.6

 

pts

91.5

%

 

91.0

%

 

0.5

 

pts

 

 

 

 

 

 

 

 

 

 

 

 

 

Net written premiums

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

 

 

 

 

 

 

 

 

 

 

 

Agency (1)

 

 

 

 

 

 

 

 

 

 

 

 

Automobile

$

1,253

 

 

$

1,226

 

 

2

%

 

$

5,124

 

 

$

4,972

 

 

3

%

 

Homeowners and Other

1,145

 

 

1,011

 

 

13

 

 

4,540

 

 

4,148

 

 

9

 

 

Total Agency

2,398

 

 

2,237

 

 

7

 

 

9,664

 

 

9,120

 

 

6

 

 

Direct to Consumer

99

 

 

97

 

 

2

 

 

412

 

 

396

 

 

4

 

 

Total Domestic

2,497

 

 

2,334

 

 

7

 

 

10,076

 

 

9,516

 

 

6

 

 

International

161

 

 

167

 

 

(4

)

 

707

 

 

708

 

 

 

 

Total

$

2,658

 

 

$

2,501

 

 

6

%

 

$

10,783

 

 

$

10,224

 

 

5

%

 

(1) Represents business sold through agents, brokers and other intermediaries, and excludes direct to consumer and international.

Fourth Quarter 2019 Results
(All comparisons vs. fourth quarter 2018, unless noted otherwise)

Segment income for Personal Insurance was $327 million after-tax, an increase of $295 million. Segment income increased primarily due to significantly lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 88.5% decreased 14.1 points due to significantly lower catastrophe losses (14.6 points) and higher net favorable prior year reserve development (0.1 points), partially offset by a higher underlying combined ratio (0.6 points).
  • The underlying combined ratio of 88.4% increased 0.6 points, primarily reflecting a comparison to a low level of loss activity in the prior year quarter for Agency Automobile.
  • Net favorable prior year reserve development was driven by better than expected loss experience in the automobile product line and homeowners and other product line for multiple accident years.

Net written premiums of $2.658 billion increased 6%. Agency Automobile net written premiums increased 2%, driven by strong retention, renewal premium change of 3% and higher levels of new business. Agency Homeowners and Other net written premiums increased 13%, driven by strong retention, renewal premium change of 7% and higher levels of new business.

Full Year 2019 Results
(All comparisons vs. full year 2018, unless noted otherwise)

Segment income for Personal Insurance was $824 million after-tax, an increase of $527 million. Segment income increased primarily due to significantly lower catastrophe losses and higher net favorable prior year reserve development, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

  • The combined ratio of 94.2% improved 6.4 points due to significantly lower catastrophe losses (6.7 points) and higher net favorable prior year reserve development (0.2 points), partially offset by a higher underlying combined ratio (0.5 points).
  • The underlying combined ratio of 91.5% increased 0.5 points, primarily driven by the impacts of (1) higher non-catastrophe weather-related losses in Agency Homeowners and Other and (2) the new catastrophe reinsurance treaty, mostly impacting Agency Homeowners and Other, partially offset by (3) earned pricing that exceeded loss cost trends in Agency Automobile and (4) a lower underwriting expense ratio.
  • Net favorable prior year reserve development was driven by better than expected loss experience in the domestic automobile and homeowners and other product lines for recent accident years.

Gross written premiums of $10.981 billion grew 6%. Net written premiums of $10.783 billion increased 5%.

Agency Automobile gross written premiums of $5.154 billion grew 3%, driven by strong retention, renewal premium change of 4% and higher levels of new business. Net written premiums increased 3%.

Agency Homeowners and Other gross written premiums of $4.685 billion grew 11% driven by strong retention, renewal premium change of 7% and higher levels of new business. Net written premiums increased 9%.

Growth in net written premiums was impacted by the new catastrophe reinsurance treaty.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the financial supplement that is available on our website at www.travelers.com. Travelers management will discuss the contents of this release and other relevant topics via webcast at 9 a.m. Eastern (8 a.m. Central) on Thursday, January 23, 2020. Investors can access the call via webcast at http://investor.travelers.com or by dialing 1.844.895.1976 within the United States and 1.647.689.5389 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

Following the live event, an audio playback of the webcast and the slide presentation will be available on the same website.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 31,000 employees and generated revenues of approximately $32 billion in 2019. For more information, visit www.travelers.com.

Travelers may use its website and/or social media outlets, such as Facebook and Twitter, as distribution channels of material Company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at http://investor.travelers.com, our Facebook page at https://www.facebook.com/travelers and our Twitter account (@Travelers) at https://twitter.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at http://investor.travelers.com.

Travelers is organized into the following reportable business segments:

Business Insurance - Business Insurance offers a broad array of property and casualty insurance and insurance-related 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 as a corporate member of Lloyd’s.

Bond & Specialty Insurance - Bond & Specialty Insurance provides surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers in the United States and certain specialty insurance products in Canada, the United Kingdom and the Republic of Ireland, as well as Brazil through a joint venture, utilizing various degrees of financially-based underwriting approaches.

Personal Insurance- Personal Insurance writes a broad range of property and casualty insurance covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

* * * * *

Forward-Looking Statements

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

  • the Company’s outlook and its future results of operations and financial condition (including, among other things, anticipated premium volume, premium rates, renewal premium changes, underwriting margins and underlying underwriting margins, net and core income, investment income and performance, loss costs, return on equity, core return on equity and expected current returns, and combined ratios and underlying combined ratios);
  • share repurchase plans;
  • future pension plan contributions;
  • the sufficiency of the Company’s asbestos and other reserves;
  • the impact of emerging claims issues as well as other insurance and non-insurance litigation;
  • the potential benefit associated with the Company’s ability to recover on its subrogation claims;
  • the cost and availability of reinsurance coverage;
  • catastrophe losses;
  • the impact of investment (including changes in interest rates), economic (including inflation, changes in tax law, changes in commodity prices and fluctuations in foreign currency exchange rates) and underwriting market conditions;
  • strategic and operational initiatives to improve profitability and competitiveness;
  • the Company’s competitive advantages;
  • new product offerings;
  • the impact of new or potential regulations imposed or to be imposed by the United States or other nations, including tariffs or other barriers to international trade; and
  • the impact of developments in the tort environment, such as increased attorney involvement in insurance claims and legislation allowing victims of sexual abuse to file or proceed with claims that otherwise would have been time-barred.

The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

  • high levels of catastrophe losses, including as a result of factors such as changing climate conditions and increased concentrations of insured properties in catastrophe-prone areas, could materially and adversely affect the Company’s results of operations, its financial position and/or liquidity, and could adversely impact the Company’s ratings, the Company’s ability to raise capital and the availability and cost of reinsurance;
  • if actual claims exceed the Company’s claims and claim adjustment expense reserves, or if changes in the estimated level of claims and claim adjustment expense reserves are necessary, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments in which the Company operates, the Company’s financial results could be materially and adversely affected;
  • during or following a period of financial market disruption or an economic downturn, the Company’s business could be materially and adversely affected;
  • the Company’s investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;
  • the intense competition that the Company faces, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates, could harm its ability to maintain or increase its business volumes and its profitability;
  • the Company’s business could be harmed because of its potential exposure to asbestos and environmental claims and related litigation;
  • disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape could adversely affect the Company;
  • the Company is exposed to, and may face adverse developments involving, mass tort claims such as those relating to exposure to potentially harmful products or substances;
  • the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims and have a material adverse impact on the Company’s results of operations;
  • the Company may not be able to collect all amounts due to it from reinsurers, reinsurance coverage may not be available to the Company in the future at commercially reasonable rates or at all and we are exposed to credit risk related to our structured settlements;
  • the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;
  • within the United States, the Company’s businesses are heavily regulated by the states in which it conducts business, including licensing, market conduct and financial supervision, and changes in regulation may reduce the Company’s profitability and limit its growth;
  • a downgrade in the Company’s claims-paying and financial strength ratings could adversely impact the Company’s business volumes, adversely impact the Company’s ability to access the capital markets and increase the Company’s borrowing costs;
  • the inability of the Company’s insurance subsidiaries to pay dividends to the Company’s holding company in sufficient amounts would harm the Company’s ability to meet its obligations, pay future shareholder dividends and/or make future share repurchases;
  • the Company’s efforts to develop new products, expand in targeted markets or improve business processes and workflows may not be successful and may create enhanced risks;
  • the Company may be adversely affected if its pricing and capital models provide materially different indications than actual results;
  • the Company’s business success and profitability depend, in part, on effective information technology systems and on continuing to develop and implement improvements in technology, particularly as its business processes become more digital;
  • if the Company experiences difficulties with technology, data and network security (including as a result of cyber attacks), outsourcing relationships or cloud-based technology, the Company’s ability to conduct its business could be negatively impacted;
  • the Company is also subject to a number of additional risks associated with its business outside the United States, such as foreign currency exchange fluctuations (including with respect to the valuation of the Company’s foreign investments and interests in joint ventures) and restrictive regulations as well as the risks and uncertainties associated with the United Kingdom’s withdrawal from the European Union;
  • regulatory changes outside of the United States, including in Canada, the United Kingdom, the Republic of Ireland and the European Union, could adversely impact the Company’s results of operations and limit its growth;
  • loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products could reduce the Company’s future profitability;
  • acquisitions and integration of acquired businesses may result in operating difficulties and other unintended consequences;
  • the Company could be adversely affected if its controls designed to ensure compliance with guidelines, policies and legal and regulatory standards are not effective;
  • the Company’s businesses may be adversely affected if it is unable to hire and retain qualified employees;
  • intellectual property is important to the Company’s business, and the Company may be unable to protect and enforce its own intellectual property or the Company may be subject to claims for infringing the intellectual property of others;
  • changes in federal regulation could impose significant burdens on the Company, and otherwise adversely impact the Company’s results;
  • changes in U.S. tax laws or in the tax laws of other jurisdictions where the Company operates could adversely impact the Company; and
  • the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels commensurate with the Company’s desired ratings from independent rating agencies, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions and other factors.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 14, 2019, as updated by our periodic filings with the SEC.

*****

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. Reconciliations of these measures to the most comparable GAAP measures also follow.

In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.

RECONCILIATION OF NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Reconciliation of Net Income to Core Income less Preferred Dividends

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

($ in millions, after-tax)

 

2019

 

2018

 

2019

 

2018

Net income

 

$

873

 

 

$

621

 

 

$

2,622

 

 

$

2,523

 

Less: Net realized investment gains

 

(6

)

 

(50

)

 

(85

)

 

(93

)

Core income

 

$

867

 

 

$

571

 

 

$

2,537

 

 

$

2,430

 

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

($ in millions, pre-tax)

 

2019

 

2018

 

2019

 

2018

Net income

 

$

1,074

 

 

$

746

 

 

$

3,138

 

 

$

2,961

 

Less: Net realized investment gains

 

(12

)

 

(60

)

 

(113

)

 

(114

)

Core income

 

$

1,062

 

 

$

686

 

 

$

3,025

 

 

$

2,847

 

 

Twelve Months Ended December 31,

($ in millions, after-tax)

 

2019

 

2018

 

2017

 

2016

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

2006

 

2005

Net income

 

$2,622

 

$2,523

 

$2,056

 

$3,014

 

$3,439

 

$3,692

 

$3,673

 

$2,473

 

$1,426

 

$3,216

 

$3,622

 

$2,924

 

$4,601

 

$4,208

 

$1,622

Less: Loss from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(439)

Income from continuing operations

 

2,622

 

2,523

 

2,056

 

3,014

 

3,439

 

3,692

 

3,673

 

2,473

 

1,426

 

3,216

 

3,622

 

2,924

 

4,601

 

4,208

 

2,061

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized investment (gains) losses

 

(85)

 

(93)

 

(142)

 

(47)

 

(2)

 

(51)

 

(106)

 

(32)

 

(36)

 

(173)

 

(22)

 

271

 

(101)

 

(8)

 

(35)

Impact of TCJA at enactment (1)

 

 

 

129

 

 

 

 

 

 

 

 

 

 

 

 

Core income

 

2,537

 

2,430

 

2,043

 

2,967

 

3,437

 

3,641

 

3,567

 

2,441

 

1,390

 

3,043

 

3,600

 

3,195

 

4,500

 

4,200

 

2,026

Less: Preferred dividends

 

 

 

 

 

 

 

 

 

1

 

3

 

3

 

4

 

4

 

5

 

6

Core income, less preferred dividends

 

$2,537

 

$2,430

 

$2,043

 

$2,967

 

$3,437

 

$3,641

 

$3,567

 

$2,441

 

$1,389

 

$3,040

 

$3,597

 

$3,191

 

$4,496

 

$4,195

 

$2,020

(1) Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income per Share to Core Income per Share on a Basic and Diluted Basis

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

 

2019

 

2018

 

2019

 

2018

Basic income per share

 

 

 

 

 

 

 

 

Net income

 

$

3.37

 

 

$

2.33

 

 

$

10.01

 

 

$

9.37

 

Adjustments:

 

 

 

 

 

 

 

 

Net realized investment gains, after-tax

 

(0.02

)

 

(0.18

)

 

(0.32

)

 

(0.35

)

Core income

 

$

3.35

 

 

$

2.15

 

 

$

9.69

 

 

$

9.02

 

Diluted income per share

 

 

 

 

 

 

 

 

Net income

 

$

3.35

 

 

$

2.32

 

 

$

9.92

 

 

$

9.28

 

Adjustments:

 

 

 

 

 

 

 

 

Net realized investment gains, after-tax

 

(0.03

)

 

(0.19

)

 

(0.32

)

 

(0.34

)

Core income

 

$

3.32

 

 

$

2.13

 

 

$

9.60

 

 

$

8.94

 

 

Reconciliation of Segment Income to Total Core Income

 

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

($ in millions, after-tax)

 

2019

 

2018

 

2019

 

2018

Business Insurance

 

$

448

 

 

$

391

 

 

$

1,392

 

 

$

1,638

 

Bond & Specialty Insurance

 

167

 

 

220

 

 

618

 

 

793

 

Personal Insurance

 

327

 

 

32

 

 

824

 

 

297

 

Total segment income

 

942

 

 

643

 

 

2,834

 

 

2,728

 

Interest Expense and Other

 

(75

)

 

(72

)

 

(297

)

 

(298

)

Total core income

 

$

867

 

 

$

571

 

 

$

2,537

 

 

$

2,430

 

RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity

 

 

 

As of December 31,

($ in millions)

 

2019

 

2018

 

2017

 

2016

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

2007

 

2006

 

2005

Shareholders’ equity

 

$25,943

 

$22,894

 

$23,731

 

$23,221

 

$23,598

 

$24,836

 

$24,796

 

$25,405

 

$24,477

 

$25,475

 

$27,415

 

$25,319

 

$26,616

 

$25,135

 

$22,303

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity

 

(2,246)

 

113

 

(1,112)

 

(730)

 

(1,289)

 

(1,966)

 

(1,322)

 

(3,103)

 

(2,871)

 

(1,859)

 

(1,856)

 

146

 

(620)

 

(453)

 

(327)

Net realized investment (gains) losses, net of tax

 

(85)

 

(93)

 

(142)

 

(47)

 

(2)

 

(51)

 

(106)

 

(32)