Travelers’ 2Q earnings bounce back with pandemic under better control

Photo | HBJ File Travelers Cos.’ Hartford campus.

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By Zachary Vasile

The Travelers Cos. shot from the red into the black during the second quarter of 2021, with earnings rebounding now that much of the financial instability associated with the height of the COVID-19 pandemic last year has calmed.

During the second quarter of 2021, the New York-based property and casualty insurer, with major operations in downtown Hartford, generated net income of $934 million, or $3.66 per diluted share, up from a loss of $40 million, or 16 cents per diluted share, in the year-ago period.

Chairman and CEO Alan Schnitzer attributed the gains to higher underlying underwriting income and a lower level of catastrophe-related losses.

Net written premiums grew across the firm’s personal, business and bond and speciality insurance segments, and policies in force in both the home and auto insurance segments are at record levels due to strong retention and growth in new business.

Net investment income of $818 million pre-tax, or $682 million after-tax, increased from $268 million pre-tax, or $251 million after-tax, in the prior year quarter. Net written premiums of $8 billion increased 11%.

The company said it returned a total of $625 million in excess capital to shareholders, including $401 million of share repurchases.