Travelers Reports Excellent Fourth Quarter and Full Year Results

Fourth Quarter 2025 Net Income per Diluted Share of $11.06, up 23%, and Core Income per Diluted Share of $11.13, up 22%

Full Year Net Income of $6.288 Billion and Core Income of $6.325 Billion

Fourth Quarter 2025 Return on Equity of 31.0% and Core Return on Equity of 29.6%

Full Year Return on Equity of 21.0% and Core Return on Equity of 19.4%

Board of Directors Authorizes an Additional $5.0 Billion of Share Repurchases

• Fourth quarter net income of $2.496 billion, up 20%, and core income of $2.511 billion, up 18%.
• Consolidated combined ratio improved 3.0 points to 80.2%.
• Underlying combined ratio improved 1.8 points to 82.2%.
• Net investment income increased 10% after-tax to $867 million.
• Record full year operating cash flows of $10.606 billion.
• Total capital returned to shareholders of $1.897 billion, including $1.653 billion of share repurchases.
• Strong growth in book value per share, up 23%, and adjusted book value per share, up 14%, compared to year-end 2024.

NEW YORK–(BUSINESS WIRE)–The Travelers Companies, Inc. today reported net income of $2.496 billion, or $11.06 per diluted share, for the quarter ended December 31, 2025, compared to $2.082 billion, or $8.96 per diluted share, in the prior year quarter. Core income in the current quarter was $2.511 billion, or $11.13 per diluted share, compared to $2.126 billion, or $9.15 per diluted share, in the prior year quarter. Core income increased primarily due to a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net investment income, lower catastrophe losses and higher net favorable prior year reserve development. Net realized investment losses in the current quarter were $20 million pre-tax ($15 million after-tax), compared to $55 million pre-tax ($44 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

“We are pleased to report excellent fourth quarter and full year results driven by strong performance across both underwriting and investments,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Our results this year and over time reflect the power of our earnings engine fueled by the disciplined execution of our strategy across every dimension of our business.

“Core income for the quarter was $2.5 billion, or $11.13 per diluted share, generating core return on equity of 29.6%. Core income benefited from a 3% increase in net earned premiums to $11.1 billion and a combined ratio that improved 3 points to a terrific 80.2%. The business performed exceptionally well across the board, as strong underlying profitability, net favorable prior year reserve development and a lower level of catastrophe losses drove the improvement. All three segments delivered excellent underwriting results on both an underlying and an as-reported basis. Our high-quality investment portfolio generated after-tax net investment income of $867 million. These results, along with our strong balance sheet, enabled us to return $1.9 billion of excess capital to our shareholders this quarter, including $1.7 billion of share repurchases.

“For the full year, core income was up 26% to $6.3 billion, or $27.59 per diluted share, generating core return on equity of 19.4%. During the year, we grew adjusted book value per share by 14%, after returning $4.2 billion of excess capital to shareholders and investing more than $1.5 billion in cutting-edge AI and other technology initiatives.

“Through disciplined marketplace execution across all three segments, we grew net written premiums in the quarter to $10.9 billion. In Business Insurance, we grew net written premiums to $5.5 billion. Retention remained strong at 85%, renewal premium change was 6.1% and new business was very strong at $675 million. In Bond & Specialty Insurance, we grew net written premiums to $1.1 billion, with excellent retention of 87% and positive renewal premium change in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums from a very strong level in the prior year quarter. In Personal Insurance, net written premiums of $4.2 billion reflected continued strong renewal premium change in Homeowners and higher new business in Auto.

“Our proven strategy positions us to continue generating substantial shareholder value. The durability of our underlying business performance provides a powerful foundation. Delivering a compelling value proposition to customers and distribution partners, combined with underwriting excellence across our diversified portfolio and gains in productivity, drives consistently strong profitability and substantial cash flow. Our investment expertise, growing portfolio and higher reinvestment rates are delivering meaningful growth in net investment income. Operating from this position of strength, we remain highly confident in the outlook for Travelers in 2026 and beyond.”

Fourth Quarter 2025 Results

(All comparisons vs. fourth quarter 2024, unless noted otherwise)

Net income of $2.496 billion increased $414 million, driven by higher core income and lower net realized investment losses. Core income of $2.511 billion increased $385 million, primarily due to a higher underlying underwriting gain, higher net investment income, lower catastrophe losses and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $20 million pre-tax ($15 million after-tax), compared to $55 million pre-tax ($44 million after-tax) in the prior year quarter.

Combined ratio:

• The combined ratio of 80.2% improved 3.0 points due to an improvement in the underlying combined ratio (1.8 points), lower catastrophe losses (0.7 points) and higher net favorable prior year reserve development (0.5 points).

• The underlying combined ratio improved 1.8 points to an excellent 82.2%. See below for further details by segment.

• Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

• Catastrophe losses primarily resulted from winter storms in multiple states.

Net investment income of $1.054 billion pre-tax ($867 million after-tax) increased 10%, primarily due to growth in average invested assets and a higher average yield in the long-term fixed income investment portfolio.

Net written premiums of $10.856 billion increased 1%. See below for further details by segment.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Net income of $6.288 billion increased $1.289 billion, driven by higher core income, partially offset by higher net realized investment losses. Core income of $6.325 billion increased $1.300 billion, primarily due to a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $48 million pre-tax ($37 million after-tax), compared to $30 million pre-tax ($26 million after-tax) in the prior year.

Combined ratio:

• The combined ratio of 89.9% improved 2.6 points due to an improvement in the underlying combined ratio (2.3 points) and higher net favorable prior year reserve development (0.7 points), partially offset by higher catastrophe losses (0.4 points).

• The underlying combined ratio of 83.9% improved 2.3 points. See below for further details by segment.

• Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

• Catastrophe losses included the fourth quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first nine months of 2025.

Net investment income of $3.959 billion pre-tax ($3.254 billion after-tax) increased 10% driven by the same factors described above for the fourth quarter of 2025.

Net written premiums of $44.387 billion increased 2%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $32.894 billion increased 18% over year-end 2024, primarily due to net income of $6.288 billion and lower net unrealized investment losses, partially offset by common share repurchases and dividends to shareholders. Net unrealized investment losses included in shareholders’ equity were $1.862 billion pre-tax ($1.478 billion after-tax), compared to $4.609 billion pre-tax ($3.640 billion after-tax) at year-end 2024. The decrease in net unrealized investment losses was driven by lower interest rates. Book value per share of $151.21 increased 23% over year-end 2024. Adjusted book value per share of $158.01, which excludes net unrealized investment losses, increased 14% over year-end 2024.

The Company repurchased 5.8 million shares during the fourth quarter at an average price of $285.04 per share for a total cost of $1.653 billion. At December 31, 2025, the Company had $2.015 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors. At the end of the quarter, statutory capital and surplus was $31.064 billion, and the ratio of debt-to-capital was 22.0%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 21.2%, within the Company’s target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $1.10 per share. The dividend is payable March 31, 2026, to shareholders of record at the close of business on March 10, 2026. The Board of Directors also authorized an additional $5.0 billion of share repurchases. This amount is in addition to the $2.015 billion that remained from previous authorizations as of December 31, 2025. This authorization does not have a stated expiration date. The timing and actual number of shares to be repurchased will depend on a variety of factors, including the factors described below in the Forward-Looking Statements section.

Fourth Quarter 2025 Results

(All comparisons vs. fourth quarter 2024, unless noted otherwise)

Segment income for Business Insurance was $1.292 billion after-tax, an increase of $104 million. Segment income increased primarily due to higher net investment income, higher net favorable prior year reserve development and lower catastrophe losses, partially offset by a lower underlying underwriting gain.

Combined ratio:

• The combined ratio of 84.4% improved 0.8 points due to higher net favorable prior year reserve development (0.9 points) and lower catastrophe losses (0.7 points), partially offset by a higher underlying combined ratio (0.8 points).

• The underlying combined ratio was an excellent 87.0%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years.

Net written premiums of $5.514 billion increased 2%, led by growth of 4% in our Select Accounts small commercial business and 3% in our core Middle Market business, partially offset by a decline in net written premiums in National Property, reflecting disciplined underwriting.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Segment income for Business Insurance was $3.695 billion after-tax, an increase of $389 million. Segment income increased primarily due to higher net investment income, a higher underlying underwriting gain and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

• The combined ratio of 91.7% improved 0.8 points due to higher net favorable prior year reserve development (0.7 points) and an improvement in the underlying combined ratio (0.1 points).

• The underlying combined ratio was an excellent 88.0%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by an addition to reserves related to run-off operations, including an addition to asbestos reserves of $277 million.

Net written premiums of $22.679 billion increased 3%, led by growth of 4% in our core Middle Market business and 3% in our Select Accounts small commercial business.

Fourth Quarter 2025 Results

(All comparisons vs. fourth quarter 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $236 million after-tax, an increase of $8 million. Segment income increased primarily due to higher net investment income and a higher underlying underwriting gain, partially offset by lower net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

• The combined ratio of 83.0% increased 0.3 points due to lower net favorable prior year reserve development (1.5 points), partially offset by a lower underlying combined ratio (1.1 points) and lower catastrophe losses (0.1 points).

• The underlying combined ratio was very strong at 85.7%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years.

Net written premiums of $1.098 billion increased 4%, reflecting production growth in both surety and management liability.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $950 million after-tax, an increase of $135 million. Segment income increased primarily due to higher net favorable prior year reserve development, higher net investment income and lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

• The combined ratio of 81.9% improved 2.4 points due to higher net favorable prior year reserve development (2.1 points) and lower catastrophe losses (0.6 points), partially offset by a higher underlying combined ratio (0.3 points).

• The underlying combined ratio was very strong at 86.6%.

• Net favorable prior year reserve development was primarily driven by the same factors described above for the fourth quarter of 2025.

Net written premiums of $4.262 billion increased 4%, reflecting the same factors described above for the fourth quarter of 2025.

Fourth Quarter 2025 Results

(All comparisons vs. fourth quarter 2024, unless noted otherwise)

Segment income for Personal Insurance was $1.086 billion after-tax, an increase of $288 million. Segment income increased primarily due to a higher underlying underwriting gain, lower catastrophe losses, higher net investment income and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

• The combined ratio of 74.0% improved 6.7 points due to an improvement in the underlying combined ratio (5.4 points), lower catastrophe losses (1.0 points) and higher net favorable prior year reserve development (0.3 points).

• The underlying combined ratio of 75.1% improved 5.4 points, reflecting improvement in both Homeowners and Other and Automobile.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in both the Automobile and Homeowners and Other product lines for recent accident years.

Contacts

Media:

Patrick Linehan

917.778.6267

Institutional Investors:

Abbe Goldstein

917.778.6825

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