Travelers Estimates Impact of UK Ogden Discount Rate Change
March 20 2017 - 7:00AM
Business Wire
The Travelers Companies, Inc. (NYSE: TRV) today announced the
estimated impact of the recent decision by the UK Ministry of
Justice to reduce the discount rate applied to lump-sum bodily
injury payouts, known as the Ogden rate, from +2.5% to -0.75%.
Travelers expects to record an increase to prior year loss
reserves of approximately $62 million pre-tax ($51 million
after-tax) in its first quarter 2017 operating results as a result
of the change in discount rate, relating primarily to its Public
Liability and Commercial Auto Liability lines of business in the
United Kingdom. Approximately two-thirds of the impact relates to
certain books of business that the company had previously exited
and are currently in run-off. The company expects that any impact
to its future operating results as a result of this change will be
insignificant.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider
of property casualty insurance for auto, home and business. A
component of the Dow Jones Industrial Average, Travelers has
approximately 30,000 employees and generated revenues of
approximately $28 billion in 2016. For more information, visit
www.travelers.com.
Forward-Looking Statements
All statements in this press release, other than statements of
historical facts, are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results of matters addressed in these forward-looking
statements involve risks and uncertainties, including that the
recent decision reducing the discount rate goes into effect as and
when expected, and may differ substantially from those expressed or
implied. Some of the factors that could cause actual results to
differ are discussed under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the company’s most recent Form 10-K filed
with the Securities and Exchange Commission (SEC) on February 16,
2017, as updated by our periodic filings with the SEC. The
forward-looking statements in this release speak only as of the
date of this release, and we undertake no obligation to update any
forward-looking statements.
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The Travelers Companies, Inc.Investors:Gabriella Nawi,
917-778-6844orMedia:Patrick Linehan, 917-778-6267
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