Travelers 2Q17 Earnings Call Notes

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Alan Schnitzer

An active weather year

“This has been an active weather year, with first half after-tax catastrophe losses of $488 million or 6 points on the combined ratio. To put that in some context, this was our highest level of first half catastrophe losses since 2011. While relatively high, the level of weather losses this quarter and year are within an over time range that we plan and price for. And we are confident that we are appropriately managing our exposures.”

Piloting investments in AI and robotics

“We are focused on our digital agenda on advancing the way we leverage data on exploring and piloting smart investments and things like AI and robotics on setting the standard in terms of the experience for our customers and distribution partners and as always on being as productive and efficient as possible. So as much as we are relentlessly committed to day-to-day execution we are just as committed to our long-term strategic position.”

Lowering price to generate incremental premium is a fools errand

“Yes, Josh. We have always thought that lowering price to generate incremental premium is a fool’s errand, because we operate in a very competitive marketplace and you just end up with same relative market share at lower profitability. And once you lower the price and consequently lower the margins on the business you are keeping, then you got to write a whole lot of new business to get that margin back. So, we don’t feel like that strategy. “