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Travelers Reports Second Quarter Net Income and Core Income per Diluted Share of $2.11 and $1.92, Respectively, Including Catastrophe Losses of $0.93 per Diluted Share

The Travelers Companies, Inc. today reported net income of $595 million, or $2.11 per diluted share, for the quarter ended June 30, 2017, compared to $664 million, or $2.24 per diluted share, in the prior year quarter due to lower core income, partially offset by higher net realized investment gains. Core income in the current quarter was $543 million, or $1.92 per diluted share, compared to $649 million, or $2.20 per diluted share, in the prior year quarter due to lower net favorable prior year reserve development, higher catastrophe losses and a lower underlying underwriting gain (i.e., excluding net favorable prior year reserve development and catastrophe losses), partially offset by higher net investment income. The underlying underwriting gain declined due to the timing impact of higher loss estimates in personal auto bodily injury liability coverages that were consistent with the higher loss trends recognized in the last half of 2016 and higher non-catastrophe weather-related losses. Net realized investment gains of $80 million pre-tax ($52 million after-tax) in the current quarter, compared to $19 million pre-tax ($15 million after-tax) in the prior year quarter, were primarily driven by gains on the sale of equity securities. Per diluted share amounts benefited from the impact of share repurchases.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax,

Three Months Ended June 30,

Six Months Ended June 30,
except for premiums & revenues) 2017 2016 Change 2017 2016 Change
Net written premiums $ 6,640 $ 6,345 5 % $ 13,135 $ 12,511 5 %
Total revenues $ 7,184 $ 6,785 6 $ 14,126 $ 13,471 5
Net income $ 595 $ 664 (10 ) $ 1,212 $ 1,355 (11 )
per diluted share $ 2.11 $ 2.24 (6 ) $ 4.28 $ 4.55 (6 )
Core income $ 543 $ 649 (16 ) $ 1,157 $ 1,347 (14 )
per diluted share $ 1.92 $ 2.20 (13 ) $ 4.08 $ 4.52 (10 )
Diluted weighted average 280.0 293.6 (5 ) 281.2 295.6 (5 )
shares outstanding
Combined ratio 96.7 % 93.1 % 3.6 pts 96.4 % 92.7 % 3.7 pts
Underlying combined ratio 93.5 % 92.3 % 1.2 pts 92.7 % 91.2 % 1.5 pts
Return on equity 10.0 % 10.9 % (0.9 ) pts 10.3 % 11.2 % (0.9 ) pts
Core return on equity 9.5 % 11.6 % ...

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