Travelers 2012 Annual Report Download - page 85

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is a discussion and analysis of the Company’s financial condition and results of
operations.
FINANCIAL HIGHLIGHTS
2012 Consolidated Results of Operations
• Net income of $2.47 billion, or $6.35 per share basic and $6.30 diluted
• Net earned premiums of $22.36 billion
• Catastrophe losses of $1.86 billion ($1.21 billion after-tax)
• Net favorable prior year reserve development of $940 million ($622 million after-tax)
• GAAP combined ratio of 97.1%
• Net investment income of $2.89 billion ($2.32 billion after-tax)
• Operating cash flows of $3.23 billion
2012 Consolidated Financial Condition
• Total investments of $73.84 billion; fixed maturities and short-term securities comprise 93% of
total investments
• Total assets of $104.94 billion
• Total debt of $6.35 billion, resulting in a debt-to-total capital ratio of 20.0% (22.2% excluding
net unrealized investment gains, net of tax)
• Repurchased 22.4 million common shares for total cost of $1.45 billion under share repurchase
authorization
• Shareholders’ equity of $25.41 billion
• Book value per common share of $67.31
• Holding company liquidity of $2.03 billion
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