What’s New: In Brief (January 27, 2009)

The Travelers Companies Inc. (Travelers) reported a profit of US$801 million for 2008 Q4, marking a decrease from 2007 Q4 profit of US$1.063 billion.
The company reported a combined ratio of 85.9% and a return on equity of 12.8% for the quarter.
Net written premiums totalled US$5.385 billion for 2008 Q4, compared to US$5.366 billion over the same period last year. Over the full year, net written premiums in 2008 remained flat at US$21.683 billion, compared to US$21.618 billion in 2007.
For the entire year, the company incurred catastrophe losses of US$919 million (after tax), marking a dramatic increase over the US$109 million (after tax) incurred in 2007. The combined ratio for 2008 increased to 91.9% from 87.4% in 2007.
Net investment income decreased slightly throughout last year to US$2.299 billion (after-tax) compared to US$2.915 billion (after-tax) in 2007.
Net realized investment losses totalled US$271 million (after-tax) for 2008, compared to investment gains of US$101 million in 2007.

The William H. McGannon Foundation teamed up with Junior Achievement Central Ontario to host the annual Student Management Training Seminar, offering high school students insight into a career in risk management.
More than 220 students and 33 volunteer advisors from across the Toronto, York, Halton and Peel Region areas participated in the event on Dec. 6, 2008.
A highlight of the event was the two-hour ‘Business Survival Game.’ Students competed in teams of seven, taking on the roles of corporate executives.
The teams developed risk management strategies and risk identifying techniques that were tested with fictional scenarios.
“The game enables them to gain critical knowledge required to ensure the success of their Junior Achievement companies and all future business and life endeavours,” a letter from Junior Achievement says.