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Travelers stays open to strategic acquisitions after strong Q2
Travelers posted $2.2 billion in second-quarter core income, and said it can finance acquisitions using excess capital.
Travelers said it remains interested in strategic acquisitions after reporting a strong second quarter, with $2.2 billion in core income, or $10.04 per diluted share. The insurer also cited underwriting gains and higher investment income, which helped lift core return on equity to 24.9%.
Travelers reported net written premiums of $11.5 billion, with Business Insurance at $6.0 billion. That figure was up 5% after adjusting for the sale of Travelers’ Canadian business, while Personal Insurance segment income came in at $827 million with a 79.5% combined ratio.
On retention, Travelers said it held 82% in auto and 85% in homeowners and other. Chairman and CEO Alan Schnitzer, speaking on the company’s July 17 earnings call, said Travelers is highly attuned to M and A opportunities and believes it can finance an attractive deal using excess capital.
Travelers last announced acquisition was cyber insurer Corvus Insurance, bought for about $435 million in November 2023 and closed in January 2024. That means the company has gone roughly two and a half years without another announced deal, and earlier transactions include Trov in 2022 and Simply Business for about $490 million in 2017.