Travelers’ Q4 Net Income Rises To Record High Of $1.3B

The Travelers Companies, Inc. has today reported record net income of $1.3 billion for the fourth-quarter of 2020, driven by an improved underwriting gain, higher favourable reserve development and investment income, and a reduction in catastrophe losses.

At just over $1.3 billion, the insurer’s net income increased by a significant $437 million from the same period in 2019.

Contributing to the year-on-year improvement is higher net investment income of $677 million in Q4 2020, as well as a $442 million rise in its underwriting gain to $955 million.

The underwriting gain includes net favourable prior year reserve development of $180 million against $60 million in Q4 2019, and catastrophe losses, net of reinsurance, of just $29 million, compared with $85 million a year earlier.