On Travelers Q1 2017 Results & What Simply Business means to the global insurer

Here’s the gist of Travelers Q1 2017 Results  –

In The #s:

– core income of $614 million and core return on equity of 10.8%, both of which are impacted by $226 million of after-tax catastrophe losses

– a strong underlying combined ratio of 91.7%

– net investment income increased 9% over the prior year quarter

– stable growth in commercial business driven by high levels of retention of 85% in domestic business insurance and 88% in Bond & Specialty Insurance

– net written premiums up 5% compared to the prior year quarter

About Simply Business

Recall, last month Travelers announced its plans to acquire London-based small business insurance aggregator Simply Business for $490 million. Here’s what CEO Alan Schnitzer has to add on the strategic acquisition:

– ownership of a profitable and growing business in the UK

– access to talent

– access to digital R&D

All in all, the acquisition will ensure that Travelers is positioned to serve the digital customer going forward. But that’s not all. Simply Business had made the decision to bring their model to the US and they are now looking to Travelers to help them with that goal and potentially expanding to other geographies in the future .

Bottom Line: There’s premium. And then there’s quality premium .

Download Travelers Q1 2017 ppt.