Business Analysis of Travelers Companies

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Travelers Companies

TRAVELERS COMPANIES

Business Overview

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The company operates through three segments: Business and International Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business and International Insurance segment offers property and casualty products, including commercial multi-peril, commercial property, general liability, commercial automobile, and workers' compensation; and personal property, employers' liability, public and product liability, professional indemnity, commercial property, surety, marine, aviation, personal accident, and kidnap and ransom insurance. This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; first party that provides traditional and customized property insurance programs to large and mid-sized customers; and specialized distribution, which markets and underwrites its products through brokers, wholesale agents, program managers, and specialized retail agents. The Bond & Specialty Insurance segment provides fidelity and surety and general liability products, as well as others, such as property, workers' compensation, commercial automobile, and commercial multi-peril insurance products. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. The company distributes its products primarily through independent agencies and brokers. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

Travelers Companies

Travelers Companies


R&P Rank: 95
Sector: Insurance
Industry:Property & Casualty Insurance
H.Q Location:Minnesota
Website: www.travelers.com
Company Address:
385 WASHINGTON ST, SAINT PAUL MN 55102
Ph:651-310-7911

Business Analysis of Travelers Companies

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Travelers Companies compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Travelers Companies to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Travelers Companies with an interactive chart.

  1. Revenue Growth: Travelers Companies reported a revenue growth of 3.0% year-on-year during 2016. Property & Casualty Insurance Industry grew at 6.6% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Travelers Companies spent 54.6% of its total revenues on COGS. Property & Casualty Insurance industry average (COGS share of revenue) in the same period was 65.6%
  3. R&D share of Revenues: Travelers Companies R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Travelers Companies spent 15.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Property & Casualty Insurance industry average SG&A spending in the same period was 14.9%
  5. Inventory share of Revenues: Travelers Companies Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Travelers Companies invested 17.7% of its total revenues on Accounts Payable (A/P) Property & Casualty Insurance industry average Accounts Payable investment in the same period was 18.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Travelers Companies invested 71.0% of its total revenues on Accounts Receivable (A/R). Property & Casualty Insurance industry average Accounts Receivable investment in the same period was 33.0%
  8. PP&E share of Revenues: Travelers Companies PP&E share of Revenues details are not available because either company does not share the data or we do not have it
  9. Intangibles share of Revenues: As a percentage of revenue, Travelers Companies invested 13.9% of its total revenues on Intangibles. Property & Casualty Insurance industry average Intangibles investment in the same period was 29.7%
  10. Net Margins: Travelers Companies Net Margins in the year 2016 were 10.9%. Property & Casualty Insurance industry average Net Margins in the same period were 8.2%

Sector and Industry Association of Travelers Companies

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Travelers Companies is associated with Financials Sector Group, Insurance Sector, and Property & Casualty Insurance Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of Travelers Companies

With $27.6 billion revenues, Travelers Companies ranked number 5 of all the companies in the US Property & Casualty Insurance industry. There were a total of 66 public companies in the US Property & Casualty Insurance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Property & Casualty Insurance industry by revenues during 2016 were:

  1. Berkshire Hathaway ($223.6 billion)
  2. AIG ($52.4 billion)
  3. Allstate ($36.5 billion)
  4. Chubb ($31.5 billion)
  5. Travelers Companies ($27.6 billion)
  6. Progressive ($23.4 billion)
  7. Hartford Financial Services Group ($18.3 billion)
  8. Loews ($13.1 billion)
  9. XL Group ($10.5 billion)
  10. CNA Financial ($9.4 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Travelers Companiesand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of travelers-companies

AIG (AIG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

American International Group Inc with $52 billion revenues in the year 2016 was the number 2 Property & Casualty Insurance company. Read this report to know the top competitors of AIG and identify growth and cost optimization opportunities of AIG

Allstate (ALL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Allstate Corp with $37 billion revenues in the year 2016 was the number 3 Property & Casualty Insurance company. Read this report to know the top competitors of Allstate and identify growth and cost optimization opportunities of Allstate

Chubb (CB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Chubb Ltd with $31 billion revenues in the year 2016 was the number 4 Property & Casualty Insurance company. Read this report to know the top competitors of Chubb and identify growth and cost optimization opportunities of Chubb

Progressive (PGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Progressive Corp with $23 billion revenues in the year 2016 was the number 6 Property & Casualty Insurance company. Read this report to know the top competitors of Progressive and identify growth and cost optimization opportunities of Progressive

Hartford Financial Services Group (HIG) Business Analysis – Analyze Historical Performance,...

Hartford Financial Services Group Inc with $18 billion revenues in the year 2016 was the number 7 Property & Casualty Insurance company. Read this report to know the top competitors of Hartford Financial Services Group and identify growth and cost optimization opportunities of Hartford Financial Services Group

Loews (L) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Loews Corp with $13 billion revenues in the year 2016 was the number 8 Property & Casualty Insurance company. Read this report to know the top competitors of Loews and identify growth and cost optimization opportunities of Loews

Revenues Analysis

Travelers Companies (TRV) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Travelers Companies, Inc. (TRV) from 2012 to 2016. Travelers Companies generated a total of $27.6 billion revenues during 2016. Travelers Companies reported a revenue growth of 3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Travelers Companies (TRV) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Travelers Companies, Inc. (TRV) from 2002 to 2016. Travelers Companies generated a total of $27.6 billion revenues during 2016. Travelers Companies reported a revenue growth of 3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Travelers Companies (TRV) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Travelers Companies, Inc. (TRV) revenue growth with Property & Casualty Insurance industry growth during the last five years from 2012 to 2016. Travelers Companies reported a revenue growth of 3% year-over-year during 2016. The Property & Casualty Insurance industry growth was 6.6% year-over-year during 2016. Travelers Companies growth was slower than the industry during 2016.

Profit Analysis

Travelers Companies (TRV) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Travelers Companies, Inc. (TRV) from 2012 to 2016. Travelers Companies reported a total net income of $3 billion during 2016. Travelers Companies generated a total of $27.6 billion revenues during 2016. Travelers Companies net profit margin was 10.9% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.