Travelers CEO pleased with 'terrific' Q4 2020 results as profits soar amid pandemic
Property/casualty insurer Travelers Companies' profits soared in the final quarter of 2020, driven by an improved underwriting gain, higher net favorable prior year reserve development and investment income, and lower catastrophe losses.
The company reported a profit of $1.3 billion for the quarter ended December 31, 2020, compared with $873 million in the prior year quarter.
Its consolidated combined ratio improved 5.7 points to 86.7 percent, compared with 92.4 percent in the same period a year ago.
For the quarter, net written premiums grew 3 percent to $7.27 billion, driven by continued strong renewal rate change and retention in all three business segments, including record renewal rate change in business insurance and bond & specialty insurance.
Alan Schnitzer, Travelers' chairman and chief executive officer, said he is very pleased with the "terrific" fourth quarter results in a challenging economic and operating environment.
“Our top line remained remarkably resilient this quarter and throughout the year,” he said. “Our ability to deliver strong results over this past year in the face of an historic pandemic, a record number of PCS catastrophe events and historically low interest rates reflects the value of underwriting excellence, our leading data and analytics, the dedication of our highly engaged and talented workforce and the significant value we bring to our customers and distribution partners.”
He added: “Looking forward, we believe we are well positioned to capitalize on the opportunities ahead as the economy reopens and to continue to deliver meaningful shareholder value over time.”
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