Record Earnings Quarter
Core operating income of $3 billion was up 29%, leading to EPS of $7.49 per share, up 31% from a year ago. Published underwriting income of $2.3 billion was up 55% from a year ago, with a record combined ratio of 81.8%.
Strong Premium Growth
Total company premiums grew 7.5%, with consumer up almost 16% and commercial up 3.3%. Premiums in the Life Insurance division grew over 24.5%.
Robust Investment Income
Adjusted net investment income was a record $1.8 billion, up 8.3%. The fixed income portfolio yield is 5.1% with new money rate averaging 5.2%.
Increased Share Buybacks
The company returned $1.6 billion of capital to shareholders during the quarter, including $1.2 billion in share repurchases.
Tangible Book Value Growth
Tangible book value growth was 17% per share from a year ago and 6.6% from the previous quarter.
Strong International Growth
International business premiums in the Overseas General division were up 9.7%. Asia grew over 14%, Europe grew almost 5%, and Latin America grew over 10.5%.