The Travelers Companies, Inc. (NYSE:TRV) Q4 2014 Earnings Conference Call - Final Transcript

Jan 22, 2015 • 09:00 am ET


The Travelers Companies, Inc. (NYSE:TRV) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen. Welcome to the Fourth Quarter Results Teleconference for Travelers. We ask that you hold all questions until the completion of formal remarks, at which time you will be given instructions for the question-and-answer session. As a reminder, this conference is being recorded, January 22nd, 2015. At this time, I would like to turn the conference over to Ms. Gabriella Nawi, Senior Vice President of Investor Relations. Ms. Nawi, you may begin.

Gabriella Nawi

Thank you, Tina. Good morning, all, and welcome to Travelers discussion of our fourth quarter and full year 2014 results. Hopefully, all of you have seen our press release, financial supplement and webcast presentation released earlier this morning. All of these materials can be found on our website at under the Investors section.

Speaking today will be Jay Fishman, Chairman and CEO; Jay Benet, Vice Chairman and Chief Financial Officer; Brian MacLean, President and Chief Operating Officer; Alan Schnitzer, Vice Chairman, Chief Executive Officer of Business and International Insurance; and Doreen Spadorcia, Vice Chairman, Chief Executive Officer of Claim, Personal Insurance and Bond & Specialty Insurance. They will discuss the financial results of our business and the current market environment.

They will refer to the webcast presentation as they go through prepared remarks and then we will take questions. Before I turn it over to Jay, I would like to draw your attention to the explanatory note included at the end of the webcast. Our presentation today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance.

Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors. These factors are described in our earnings press release and in our most recent 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement and other materials that are available in the Investors section on our website,

With that, Jay Fishman.

Jay Fishman

Thank you, Gabi. Good morning everyone and thank you for joining us today. As you have already seen from our release this morning, we closed out this year with record results. We achieved record levels of net income per diluted share for both the quarter and the full year of $3.11 and $10.70, respectively. Our return on equity and operating return on equity were also very strong in the quarter, bringing our full year return on equity to 14.6% and operating return on equity to 15.5%.

But just as important is what's behind those numbers. Across the organization, we couldn't be more pleased with how we have executed on our business strategies, including our approach to the marketplace in domestic business insurance, the introduction of Quantum 2.0 and moving our personal insurance business to be better positioned, the continuing evolution of our international