US insurance company the Travelers Companies (Travelers) has reported a turnaround with net income of $534m for Q2 2024, compared with a $14m net loss recorded during the same period in 2023.
This increase is primarily attributed to enhanced core income of $585m in the three months that ended on 30 June 2024.
The company’s net income for the first six months of 2024 stood at $1.66bn, up by $696m from a year earlier.
In Q1 2024, the company logged net income of $1.12bn.
Travelers saw its net written premiums climb to $11.11bn during the April–June 2024 quarter, an 8% increase from $10.31bn in Q2 2023.
This growth was consistent across all segments, including business insurance, bond and specialty insurance, and personal insurance.
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By GlobalDataThe company disclosed catastrophe losses amounting to $1.5bn pre-tax, marginally higher than the $1.48bn pre-tax losses in the prior year.
These losses included the impact of severe weather events such as wind and hail storms, particularly in the central and eastern regions of the US.
Travelers also registered a 24% year-on-year rise in net investment income, reaching $885m pre-tax.
The fixed income investment portfolio’s income increased due to a higher average yield and an expansion in fixed maturity investments.
Additionally, income from the non-fixed income investment portfolio saw an uptick, largely driven by elevated private equity partnership returns.
In Q2 2024, Travelers returned total capital of $498m to its shareholders, with $253m returned through share repurchases.
Travelers chairman and CEO Alan Schnitzer said: “We are pleased to have generated a strong bottom line result in a quarter that included a record level of severe convective storms across the United States. Core income of $585m, or $2.51 per diluted share, benefitted from excellent underlying results, favourable net prior year reserve development and higher investment income.
“Through terrific marketplace execution across all three segments, we grew net written premiums in the quarter by 8% to $11.1bn. We continue to be very confident in the outlook for our business.”
