Travelers (NYSE: TRV) reported Q1 EPS of $2.62, $0.26 worse than the analyst estimate of $2.88. Revenue for the quarter came in at $7.35 billion versus the consensus estimate of $7.43 billion.

First Quarter 2020 Core Income per Diluted Share of $2.62 and Core Return on Equity of 11.5%

• First quarter net income of $600 million and core income of $676 million.
• Catastrophe losses of $333 million pre-tax compared to $193 million pre-tax in the prior year quarter.
• COVID-19-related net charges of $86 million pre-tax ($68 million after-tax) included in underwriting gain.
• Consolidated combined ratio of 95.5%; underlying combined ratio of 91.3%.
• Net written premiums of $7.346 billion, up 4%; reflecting growth in all segments.
• Total capital returned to shareholders of $681 million, including $471 million of share repurchases.
• Book value per share of $99.69; adjusted book value per share of $92.63.
• Board of Directors declares regular quarterly cash dividend of $0.85 per share, an increase of 4%.

"The events of the last few months have been challenging, and our hearts go out to all those affected by the COVID-19 global pandemic,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We appreciate the thoughtful actions taken by our government leaders, at all levels, to support individuals and businesses. In addition, we would like to extend our deep gratitude for the heroic efforts of healthcare workers and first responders, as well as the contributions from food, delivery and all other essential workers. I would also like to acknowledge and thank my 30,000 colleagues for their exceptional response to this crisis. Due to their commitment, resourcefulness and compassion, we have continued to seamlessly serve our customers, agent and broker partners and communities. As a company, we are grateful that we are in a position to support those impacted by COVID-19, including through customer billing relief, our Stay-at-Home Auto Premium Credit Program, our Distribution Support Plan accelerating the payment of more than $100 million of commissions for agents and brokers and a direct $5 million pledge to assist hard hit families and communities. In addition, consistent with 16 consecutive years of dividend increases and as a reflection of confidence in our business, our Board of Directors declared a 4% increase in our quarterly dividend to $0.85 per share. This dividend payment will put much-needed cash into the hands of millions of individuals who own our shares directly and indirectly through their investments in mutual funds, 401(k) plans and other retirement accounts.

“Turning to our financial results for the first quarter, core income was $676 million, and core return on equity was 11.5%. Underlying underwriting income in the quarter was higher than in the prior year period, benefiting from record first quarter net earned premium of $7.2 billion and an underlying combined ratio which improved to 91.3%. These strong underlying results, which included the impact of charges related to the COVID-19 pandemic, were more than offset by higher catastrophe losses. Our high-quality investment portfolio generated net investment income of $519 million after-tax. These results, along with our strong balance sheet, enabled us to return $681 million of excess capital to our shareholders this quarter, including $471 million of share repurchases.

“We grew net written premiums by 4% in the quarter to more than $7.3 billion, with all segments contributing. In Business Insurance, renewal premium change was 7.8%, including renewal rate change of 6.2%, while retention remained very strong. In Bond & Specialty Insurance, net written premiums increased by 13%, reflecting strong production across our Management Liability and Surety businesses. In Personal Insurance, net written premiums increased by 8%, with Agency Homeowners up 18% and Agency Auto up 3%, with both lines benefiting from strong production.

“Although there are many uncertainties surrounding COVID-19’s impact on our global economy and on us, it has been in the most challenging circumstances that the strength of our AA-rated franchise and the value we provide to all of our stakeholders shine through. Our balance sheet is extremely strong, our debt-to-capital ratio is comfortably within our target range, our holding company liquidity of $1.6 billion is well above our target level and we have a very high-quality investment portfolio. We have the talent, technology, risk management processes and procedures, and, importantly, financial strength to manage through these extraordinary times and to continue to deliver meaningful shareholder value over time.”

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