US insurance company Travelers has reported a net income of $1.62bn in Q4 2023, up from $819m in the same period of 2022.
Travelers attributed the growth to a higher underlying underwriting gain, reduced catastrophe losses and an increase in net investment income.
The group also benefitted from the personal insurance segment swinging back to profitability.
During Q4, Travelers recorded a 24% increase in net investment income, which amounted to $778m pre-tax ($645m after-tax).
The company’s net written premiums registered a 13% surge, totalling $9.99bn during the three months under review.
The underlying underwriting gain, which benefitted from higher business volumes, was a key factor in the company’s financial performance.
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Travelers’ business insurance segment reported an after-tax income of $957m, marking an increase of $232m.
The bond and specialty insurance segment also reported growth, with an after-tax income of $240m, up by $19m.
Personal Insurance saw a turnaround, reporting an after-tax income of $520m compared with a loss of $61m in Q4 2022.
The company’s board of directors has announced a regular quarterly dividend of $1 per share.
Travelers chairman and CEO Alan Schnitzer said: “Core income, earnings per share and return on equity were all record highs for the quarter, driven by both underwriting and investment results. Looking ahead, the fundamentals across our business are in excellent shape.
“In Business Insurance, we are growing while achieving very strong margins. Our Bond & Specialty business continues to produce excellent returns, and we added to our expert cyber capabilities with the strategic acquisition of Corvus. Our Personal Insurance business is showing significantly improved profitability, and the outlook is for continued improvement.”
Recently, Travelers completed the acquisition of cyber managing general underwriter Corvus Insurance.