Travelers Companies (TRV) has reported 10.71 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $617 million, or $2.17 a share in the quarter, compared with $691 million, or $2.30 a share for the same period last year. Revenue during the quarter grew 3.83 percent to $6,942 million from $6,686 million in the previous year period. Net premium earned for the quarter increased 3.38 percent or $202 million to $6,183 million.
Total expenses move upBenefits, losses and expenses for the quarter were at $6,182 million, or 99.98 percent of premium earned from $5,769 million or 96.46 percent of premium earned in the last year period. Operating income for the quarter was $760 million, compared with $917 million in the previous year period. Net investment income was at $610 million for the quarter, up 12.13 percent or $66 million from year-ago period. Meanwhile, income from fees and commission for the quarter declined 3.42 percent or $4 million to $113 million. The company has recorded a gain on investments of $10 million in the quarter compared with a loss of $18 million for the previous year period.
"Core income of $614 million and core return on equity of 10.8% reflected unusually high first quarter catastrophe losses that arose from a record number of tornado and hail events," commented Alan Schnitzer, chief executive officer. "We were pleased with our underlying underwriting results and that loss trends were stable and consistent with our expectations for all of our businesses, including personal auto. We were also pleased with our investment results this quarter. Net investment income, which benefited from strong private equity returns, increased 9% on an after-tax basis over the prior year quarter. Our results enabled us to return $476 million to shareholders, including $286 million in share repurchases, while adding additional holding company liquidity to build flexibility for the funding of the Simply Business acquisition. In recognition of our strong financial position, the Board of Directors declared a 7.5% increase in our quarterly cash dividend to $0.72 per share and authorized an additional $5.0 billion of share repurchases.
Operating cash flow declinesTravelers Companies has generated cash of $775 million from operating activities during the quarter, down 8.82 percent or $ 75 million, when compared with the last year period. The company has spent $442 million cash to meet investing activities during the quarter as against cash outgo of $146 million in the last year period.
The company has spent $393 million cash to carry out financing activities during the quarter as against cash outgo of $725 million in the last year period.
Cash and cash equivalents stood at $249 million as on Mar. 31, 2017, down 31.02 percent or $112 million from $361 million on Mar. 31, 2016.
Assets, liabilities remain almost stable
Total assets were almost stable over the past one year at $101,246 million on Mar. 31, 2017.
Return on assets stood at 0.70 percent in the quarter, down 0.07 from 0.77 percent in the last year period. At the same time, return on equity was at 2.61 percent in the quarter, down 0.25 from 2.86 percent in the last year period.
Investments come down marginallyInvestments stood at $71,257 million as on Mar. 31, 2017, down 0.59 percent or $421 million from year-ago. Meanwhile, yield on investments went up 10 basis points to 0.86 percent in the quarter. Meanwhile, reinsurance recoverables moved down 14.66 percent or $1,409 million over the year to $8,199 million on Mar. 31, 2017.
Total debt was at $6,438 million as on Mar. 31, 2017, up 1.48 percent or $94 million from year-ago. Shareholders equity stood at $23,612 million as on Mar. 31, 2017, down 2.29 percent or $554 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.27 percent in the quarter from 0.26 percent in the last year period.
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