Travelers’ Q4 Net Income Skyrockets as Personal Lines Reverses Underwriting Loss

Net income at The Travelers Cos. for the last quarter of 2023 about doubled compared to the same time in 2022, to $1.6 billion on lower catastrophe losses and a return to profitable results in the personal insurance segment.

The $1.6 billion net income for fourth quarter 2023 was compared to $819 million during the same period the prior year. Catastrophes net of reinsurance for Q4 2023 was $125 million compared to $459 million in 2022.

In personal lines, Travelers returned to an underwriting gain of $499 million in the fourth quarter 2023 compared to a loss of $209 million in Q4 2022. The quarterly catastrophe losses in the segment were $79 million compared to $325 million in 2022. Segment income was $520 million compared to a loss of $61 million in Q4 2022. The combined ratio improved to 86.8 from 105.3 the prior year.

Overall, Travelers recorded a combined ratio of 85.8 in Q4 2023 compared to 94.5 in Q4 2022. In the business insurance segment, the combined ratio improved three points to 86.5.

Consolidated net premiums grew by 13% to nearly $10 billion during the final three months of 2023.

For the full year, net income increased to about $3 billion from $2.8 billion a year ago, but underwriting income was down $370 million to $966 million. The combined ratio for 2023 was 97 compared to 95.6 in 2022.

Work still needs to be done in returning underwriting income in personal lines to the black. The segment finished 2023 with an underwriting loss of $817 million compared to a loss of $738 million the year prior. The personal lines combined ratio for the year was 104.8, with an income loss of $128 million. The 2023 combined ratio was nearly identical to that of 2022.