Travelers (NYSE: TRV) reported Q1 EPS of $2.83, $0.09 better than the analyst estimate of $2.74. Revenue for the quarter came in at $7.67 billion versus the consensus estimate of $7.11 billion.

First quarter net income of $796 million and core income of $755 million, up 19% and 11%, respectively.
Consolidated combined ratio of 93.7%; underlying combined ratio of 91.6%.
Record gross written premiums of $7.839 billion up 6%, with growth in all segments; net written premiums of $7.057 billion up 3%; growth in net written premiums reflects a new catastrophe reinsurance treaty.
Total capital returned to shareholders of $625 million, including $421 million of share repurchases.
Book value per share of $92.94, up 7% from year-end 2018; adjusted book value per share of $89.09, up 2% from year-end 2018.

“We are very pleased to report first quarter core income of $755 million, up 11% over the prior year quarter, and core return on equity of 13%,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We delivered strong underwriting results as reflected in our combined ratio of 93.7%. We produced a strong underlying underwriting result thanks to continued underwriting excellence and also through top-line growth and thoughtful expense management, both benefiting from the successful execution of our strategic initiatives. Our high-quality investment portfolio performed well, generating net investment income of $496 million after-tax. While slightly below the result in the prior year quarter due to lower private equity returns, net investment income benefited from higher fixed income returns. These results, along with our strong balance sheet, enabled us to return $625 million of excess capital to our shareholders this quarter, including $421 million of share repurchases. In recognition of our strong financial position and confidence in our business, I am pleased to share that our Board of Directors declared a 6.5% increase in our quarterly cash dividend to $0.82 per share, marking 15 consecutive years of dividend increases with a compound annual growth rate of more than 9% over that period.

“We are also pleased with our continued successful marketplace execution. We generated record gross written premiums of $7.8 billion, a 6% increase over the prior year quarter. Net written premiums, which reflect a new catastrophe reinsurance treaty, grew 3%. In Business Insurance, gross written premiums increased by 6% as we achieved renewal premium change of 6%, including renewal rate change of more than 2%, in both cases the highest levels in almost five years. At the same time, we maintained historically high retention and generated a higher level of new business. In Bond & Specialty Insurance, gross written premiums increased by 4%, driven by continued historically high retention and new business in Domestic Management Liability. In Personal Insurance, gross written premiums increased by 6%, reflecting growth in both our Agency Automobile and Agency Homeowners businesses.

“Our strong first quarter performance in terms of both profitability and production is a terrific start to the year, and we continued to make significant progress on our ambitious innovation agenda. As we discussed in our annual letter to shareholders, our formidable competitive advantages remain the foundation of our success, and by innovating and investing for tomorrow, we will be well positioned to continue delivering industry-leading returns over time.”

For earnings history and earnings-related data on Travelers (TRV) click here.