Travelers Cos Inc. Inc. posted strong revenue during the second quarter on Tuesday, but the company's management is still concerned about the continued impact of social inflation and how lawsuits through reconsidered courts could affect its operations.
Hartford, Connecticut-based insurers, reported net income of $ 934 million for the quarter, compared to a loss of $ 40 million last year, due to higher net investment income, lower disaster losses and favorable reserve development from previous years. Net premiums improved 11% to $ 8.355 billion and the overall share improved by 8.4 points to 95.3%.
In the business insurance segment, net premiums increased by 5% to $ 3.98 billion. Renewal premiums increased by 9.5% ̵
The segment "benefits from a strong change in the renewal premium" and "trends return to pre-pandemic levels", says Greg Tocydlowski, Traveler's President of Business Insurance. Healthy exposure growth in the segment "reflects improved trends in our customers' business prospects," he said.
The insurer also continued to see a favorable frequency activity in work compensation. "We thought we'd hit the bottom a couple of blocks back," Tocydlowski said.
"As we continue to work with agencies in their loss-making recommendations, they will be less negative. I think the key will be how they deal with 2020."
million and its personal insurance segments reported a net contribution of $ 3.301 billion, an increase of 16% over the previous year in both segments.
Inflation – both monetary and social – was a topic of concern for the revenue conversation, and CFO Dan Frey noted that the insurer is "aware of the inflation environment" and the uncertainty surrounding it.
"We have considered that social inflation has not gone anywhere and that the elevated level of losses we saw … pre-pandemic will persist," he said. "I think it will be a while before we see courts working through backlogs" of pandemic cases. "We think the social in Inflation is as strong as ever, and it is reflected in our numbers. "