The Travelers Companies enjoyed soaring net income during its 2015 second quarter, thanks, in part to lower catastrophe losses and share repurchases. But net written premiums stayed flat, and investment income took a dive compared to the same period a year ago.
“This quarter is another brick in the wall of exceptional long-term performance,” Travelers Chairman and CEO Jay Fishman said during the company’s earnings conference call.
Travelers’ consolidated net income hit $812 million during, or $2.53 per diluted share during Q2, versus $683 million, or $1.93 per share, over the same period in 2014. Net written premiums came in at just under $6.17 billion, essentially flat compared to $6.16 billion in the 2014 second quarter. Revenue dipped slightly to $6.7 billion, compared to more than $6.78 billion in the year-ago quarter.
Travelers said its combined ratio landed at 90.9 during the quarter, an improvement compared to the 95.1- combined ratio over the same period a year ago. At the same time, investment income took a hit. The figure came in at $632 million during the quarter, but it was at $695 million in the 2014 second quarter.
Fishman said that Q2 was “strong,” and that Travelers produced a “solid investment performance consistent with our expectations.”
For all of the recent market commentary about the industry, our experience remains business as usual,” Fishman added. “Things are very stable and just fine.”
Fishman said that Travelers returned nearly $1 billion to shareholders during the quarter, including about $800 million in share repurchases.
Fishman also commented on the M&A deal environment and the evaluation of Chubb as a target for Travelers. See related story here.