Travelers Companies, Inc. announced an increase in its regular quarterly cash dividend and authorized an additional $5.0 billion for share repurchases, following the release of the company's First Quarter 2023 financial results.

Travelers Companies, Inc. announced its Q1 2023 financial results, revealing net income of $975 million, or $4.13 per diluted share, compared to $1.018 billion, or $4.15 per diluted share, in the prior-year quarter. Core income for the quarter was $970 million, or $4.11 per diluted share, down from $1.037 billion, or $4.22 per diluted share, in the prior-year quarter.

The lower core income was due to higher catastrophe losses and lower net favorable prior year reserve development. This decline was partially offset by a higher underlying underwriting gain and higher net investment income. The underlying underwriting gain included a one-time tax benefit of $211 million. Net realized investment gains in the current quarter were $6 million pre-tax ($5 million after-tax), compared to net realized investment losses of $23 million pre-tax ($19 million after-tax) in the prior-year quarter.

The company's consolidated combined ratio was 95.4%, and the underlying combined ratio was 90.6%. The net written premiums for Q1 2023 were $9.396 billion, up 12% from the prior year quarter, with growth in all three segments. The quarter included an elevated level of catastrophe losses of $535 million pre-tax ($422 million after-tax), but it also had a one-time tax benefit of $211 million.

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Dividend Increase and Share Repurchases

Travelers Companies, Inc. declared an 8% increase in its regular quarterly cash dividend to $1.00 per share, up from $0.93 per share, payable on June 30, 2023. This dividend increase marks the company's 17th consecutive annual dividend increase. The Board of Directors also authorized an additional $5.0 billion for share repurchases. The total capital returned to shareholders in Q1 2023 was $680 million, including $462 million of share repurchases.

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Financial Performance and Book Value

The company's book value per share was $99.80, down 6% from March 31, 2022, due to higher interest rates. The adjusted book value per share was $116.55, up 4% over March 31, 2022. Return on equity was 17.5%, up from 15.0% in the prior-year quarter, while core return on equity was 14.5%, down from 15.5% in the prior-year quarter.

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