Travelers Companies, Inc 10-Q for FY2025 Q1

Travelers Companies, Inc. (TRV)

10-Q 2025-04-16 For: 2025-03-31

Added on April 09, 2026

About this 10-Q

Travelers Companies, Inc filed this 10-Q on April 16, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $11.81B; up 5.2% from $11.23B a year earlier
Net income: $395M; down 64.8% from net income of $1.12B a year earlier
Diluted EPS: $1.70; down 64.6% from $4.80 a year earlier

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Minnesota						41-0518860
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Large accelerated filer	ý	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐


		Page
	Part I — Financial Information

Item 1.	Financial Statements:

	Consolidated Statement of Income (Unaudited) — Three Months Ended March 31, 2025 and 2024	3

	Consolidated Statement of Comprehensive Income (Loss) (Unaudited) — Three Months Ended March 31, 2025 and 2024	4

	Consolidated Balance Sheet — March 31, 2025 (Unaudited) and December 31, 2024	5

	Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) — Three Months Ended March 31, 2025 and 2024	6

	Consolidated Statement of Cash Flows (Unaudited) — Three Months Ended March 31, 2025 and 2024	7

	Notes to Consolidated Financial Statements (Unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	56

Item 4.	Controls and Procedures	56

	Part II — Other Information

Item 1.	Legal Proceedings	56

Item 1A.	Risk Factors	57

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57

Item 5.	Other Information	57

Item 6.	Exhibits	58

	SIGNATURES	59


	Three Months Ended March 31,
	2025		2024
Revenues
Premiums	$	10,710	$	10,126
Net investment income	930		846
Fee income	119		109
Net realized investment gains (losses)	(61)		35
Other revenues	112		112
Total revenues	11,810		11,228
Claims and expenses
Claims and claim adjustment expenses	8,006		6,656
Amortization of deferred acquisition costs	1,778		1,698
General and administrative expenses	1,459		1,406
Interest expense	99		98
Total claims and expenses	11,342		9,858
Income before income taxes	468		1,370
Income tax expense	73		247
Net income	$	395	$	1,123
Net income per share
Basic	$	1.73	$	4.87
Diluted	$	1.70	$	4.80
Weighted average number of common shares outstanding
Basic	226.9		229.0
Diluted	230.4		232.0

Cash dividends declared per common share	$	1.05	$	1.00


	Three Months Ended March 31,
	2025		2024
Net income	$	395	$	1,123
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	436		(752)
Having credit losses recognized in the consolidated statement of income	1		2
Net changes in benefit plan assets and obligations	—		(1)
Net changes in unrealized foreign currency translation	61		(71)
Other comprehensive income (loss) before income taxes	498		(822)
Income tax expense (benefit)	99		(162)
Other comprehensive income (loss), net of taxes	399		(660)
Comprehensive income (loss)	$	794	$	463


	March 31, 2025		December 31, 2024
	(Unaudited)
Assets
Fixed maturities, available for sale, at fair value (amortized cost $89,596 and $88,277; allowance for expected credit losses of $4 and $2)	$	85,421	$	83,666
Equity securities, at fair value (cost $501 and $544)	623		687
Real estate investments	897		902
Short-term securities	4,529		4,766
Other investments	4,226		4,202
Total investments	95,696		94,223
Cash (including restricted cash of $138 and $131)	724		699
Investment income accrued	703		752
Premiums receivable (net of allowance for expected credit losses of $58 and $58)	11,575		11,110
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $128 and $119)	8,105		8,000
Ceded unearned premiums	1,804		1,202
Deferred acquisition costs	3,540		3,494
Deferred taxes	1,639		1,762
Contractholder receivables (net of allowance for expected credit losses of $17 and $18)	3,193		3,171
Goodwill	4,245		4,233
Other intangible assets	356		360
Other assets	4,397		4,183
Total assets	$	135,977	$	133,189
Liabilities
Claims and claim adjustment expense reserves	$	65,976	$	64,093
Unearned premium reserves	22,724		22,289
Contractholder payables	3,210		3,189
Payables for reinsurance premiums	1,092		550
Debt	8,033		8,033
Other liabilities	6,751		7,171
Total liabilities	107,786		105,325
Shareholders’ equity
Common stock (1,750.0 shares authorized; 226.6 and 226.6 shares issued and outstanding)	25,584		25,452
Retained earnings	49,784		49,630
Accumulated other comprehensive loss	(4,568)		(4,967)
Treasury stock, at cost (565.7 and 564.3 shares)	(42,609)		(42,251)
Total shareholders’ equity	28,191		27,864
Total liabilities and shareholders’ equity	$	135,977	$	133,189


	Three Months Ended March 31,
	2025		2024
Cash flows from operating activities
Net income	$	395	$	1,123
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	61		(35)
Depreciation and amortization	188		196
Deferred federal income tax expense	31		42
Amortization of deferred acquisition costs	1,778		1,698
Equity in income from other investments	(53)		(68)
Premiums receivable	(459)		(557)
Reinsurance recoverables	(97)		33
Deferred acquisition costs	(1,822)		(1,776)
Claims and claim adjustment expense reserves	1,818		928
Unearned premium reserves	419		457
Other	(899)		(583)
Net cash provided by operating activities	1,360		1,458
Cash flows from investing activities
Proceeds from maturities of fixed maturities	2,801		1,709
Proceeds from sales of investments:
Fixed maturities	253		942
Equity securities	68		21

Other investments	63		55
Purchases of investments:
Fixed maturities	(4,296)		(3,738)
Equity securities	(25)		(26)
Real estate investments	(7)		(13)
Other investments	(96)		(90)
Net sales of short-term securities	239		454
Securities transactions in the course of settlement	308		111
Acquisition, net of cash acquired	—		(381)
Other	(116)		(81)
Net cash used in investing activities	(808)		(1,037)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorizations	(250)		(250)
Treasury stock acquired — net employee share-based compensation	(102)		(110)
Dividends paid to shareholders	(240)		(229)


Issuance of common stock — employee share options	57		190
Net cash used in financing activities	(535)		(399)
Effect of exchange rate changes on cash and restricted cash	8		(5)
Net increase in cash and restricted cash	25		17
Cash and restricted cash at beginning of year	699		650
Cash and restricted cash at end of period	$	724	$	667
Supplemental disclosure of cash flow information
Income taxes paid	$	24	$	24
Interest paid	$	61	$	60


(for the three months ended March 31, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2025
Premiums	$	5,465	$	995	$	4,250	$	10,710
Net investment income	656		102		172		930
Fee income	108		—		11		119
Other revenues	82		6		24		112
Total segment revenues (1)	6,311		1,103		4,457		11,871
Claims and claim adjustment expenses	3,705		434		3,867		8,006
Amortization of deferred acquisition costs	917		187		674		1,778
General and administrative expenses	847		205		396		1,448
Income tax expense (benefit)	159		57		(106)		110
Segment income (loss) (1)	$	683	$	220	$	(374)	$	529

2024
Premiums	$	5,160	$	956	$	4,010	$	10,126
Net investment income	609		90		147		846
Fee income	101		—		8		109
Other revenues	77		9		26		112
Total segment revenues (1)	5,947		1,055		4,191		11,193
Claims and claim adjustment expenses	3,331		428		2,897		6,656
Amortization of deferred acquisition costs	864		182		652		1,698
General and administrative expenses	818		205		375		1,398
Income tax expense	170		45		47		262
Segment income (1)	$	764	$	195	$	220	$	1,179


	Three Months Ended March 31,
(in millions)	2025		2024
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	823	$	880
Commercial automobile	942		860
Commercial property	937		873
General liability	861		847
Commercial multi-peril	1,400		1,270
Other	19		17
Total Domestic	4,982		4,747
International	483		413
Total Business Insurance	5,465		5,160
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	358		340
General liability	452		426
Other	58		56
Total Domestic	868		822
International	127		134
Total Bond & Specialty Insurance	995		956
Personal Insurance:
Domestic:
Automobile	1,964		1,874
Homeowners and Other	2,121		1,972
Total Domestic	4,085		3,846
International	165		164
Total Personal Insurance	4,250		4,010
Total earned premiums	10,710		10,126
Net investment income	930		846
Fee income	119		109
Other revenues	112		112
Total segment revenues	11,871		11,193

Net realized investment gains (losses)	(61)		35
Total revenues	$	11,810	$	11,228
Income reconciliation, net of tax
Total segment income	$	529	$	1,179
Interest Expense and Other (1)	(86)		(83)
Core income	443		1,096
Net realized investment gains (losses)	(48)		27

Net income	$	395	$	1,123


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(as of March 31, 2025, in millions)					Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,017	$	—	$	5	$	128	$	4,894
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	19,127		—		18		1,765		17,380
Revenue	9,384		—		14		783		8,615
State general obligation	1,009		—		2		78		933
Pre-refunded	364		—		1		1		364
Total obligations of U.S. states, municipalities and political subdivisions	29,884		—		35		2,627		27,292
Debt securities issued by foreign governments	885		—		10		8		887
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,130		—		123		220		13,033
Corporate and all other bonds	40,680		4		203		1,564		39,315
Total	$	89,596	$	4	$	376	$	4,547	$	85,421



(as of March 31, 2025, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	457	$	128	$	9	$	576
Non-redeemable preferred stock	44		4		1		47
Total	$	501	$	132	$	10	$	623


(as of December 31, 2024, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	500	$	150	$	11	$	639
Non-redeemable preferred stock	44		4		—		48
Total	$	544	$	154	$	11	$	687


	Less than 12 months				12 months or longer				Total
(as of March 31, 2025, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	374	$	—	$	2,574	$	128	$	2,948	$	128
Obligations of U.S. states, municipalities and political subdivisions	8,753		279		15,294		2,348		24,047		2,627
Debt securities issued by foreign governments	35		—		346		8		381		8
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	4,077		60		1,397		160		5,474		220
Corporate and all other bonds	5,461		74		21,083		1,490		26,544		1,564
Total	$	18,700	$	413	$	40,694	$	4,134	$	59,394	$	4,547


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(as of March 31, 2025, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	286		152		—		711		1,149
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3		—		—		—		3
Corporate and all other bonds	4		1		—		—		5
Total	$	293	$	153	$	—	$	711	$	1,157


	Fixed Maturities
	Corporate and All Other Bonds
	As of and For the Three Months Ended
(in millions)	March 31, 2025		March 31, 2024

Balance, beginning of period	$	2	$	5
Additions for expected credit losses on securities where no credit losses were previously recognized	2		3
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—		—
Reductions due to sales/defaults of credit-impaired securities	—		(5)
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—
Balance, end of period	$	4	$	3


(as of March 31, 2025, in millions)	Total		Level 1		Level 2		Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	4,894	$	4,894	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	27,292		—		27,292		—
Debt securities issued by foreign governments	887		—		887		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,033		—		13,030		3
Corporate and all other bonds	39,315		—		39,073		242
Total fixed maturities	85,421		4,894		80,282		245
Equity securities
Common stock	576		568		—		8
Non-redeemable preferred stock	47		16		3		28
Total equity securities	623		584		3		36
Other investments	19		19		—		—
Total	$	86,063	$	5,497	$	80,285	$	281


(as of March 31, 2025, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	4,529	$	4,529	$	783	$	3,699	$	47
Financial liabilities
Debt	$	7,933	$	7,135	$	—	$	7,135	$	—
Commercial paper	100		100		—		100		—


	As of and For the Three Months Ended March 31, 2025				As of and For the Three Months Ended March 31, 2024
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	11,110	$	58	$	10,282	$	69

Current period change for expected credit losses			16				12
Write-offs of uncollectible premiums receivable			16				13
Balance, end of period	$	11,575	$	58	$	10,829	$	68


(as of March 31, 2025, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	188	$	80	$	108
Contract-based	204		196		8
Marketing-related	18		4		14
Total subject to amortization	410		280		130
Not subject to amortization	226		—		226
Total	$	636	$	280	$	356


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit Losses Recognized in the Consolidated Statement of Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2024	$	(3,824)	$	184	$	(224)	$	(1,103)	$	(4,967)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	315		1		—		58		374
Amounts reclassified from AOCI, net of tax	25		—		—		—		25
Net OCI, current period	340		1		—		58		399
Balance, March 31, 2025	$	(3,484)	$	185	$	(224)	$	(1,045)	$	(4,568)


	Three Months Ended March 31,
(in millions, except per share amounts)	2025		2024
Basic and Diluted
Net income, as reported	$	395	$	1,123
Participating share-based awards — allocated income	(3)		(8)
Net income available to common shareholders — basic and diluted	$	392	$	1,115
Common Shares
Basic
Weighted average shares outstanding	226.9		229.0
Diluted
Weighted average shares outstanding	226.9		229.0
Weighted average effects of dilutive securities — stock options and performance shares	3.5		3.0
Total	230.4		232.0
Net Income per Common Share
Basic	$	1.73	$	4.87
Diluted	$	1.70	$	4.80


Stock Options	Number	Weighted Average Exercise Price		Weighted Average Contractual Life Remaining	Aggregate Intrinsic Value ($ in millions)
Vested at end of period (1)	6,574,989	$	156.75	5.6 years	$	708
Exercisable at end of period	5,159,733	$	141.41	4.7 years	$	635


	Pension Plans				Postretirement Benefit Plans
(for the three months ended March 31, in millions)	2025		2024		2025		2024
Net Periodic Benefit Cost (Benefit):
Service cost	$	28	$	29	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	44		43		1		1
Expected return on plan assets	(70)		(75)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		(1)		(1)
Net actuarial (gain) loss	4		2		(3)		(2)
Total non-service cost (benefit)	(22)		(30)		(3)		(2)
Net periodic benefit cost (benefit)	$	6	$	(1)	$	(3)	$	(2)


	Three Months Ended March 31,
(in millions, except ratio and per share amounts)	2025			2024
Revenues
Premiums	$	10,710		$	10,126
Net investment income	930			846
Fee income	119			109
Net realized investment gains (losses)	(61)			35
Other revenues	112			112
Total revenues	11,810			11,228
Claims and expenses
Claims and claim adjustment expenses	8,006			6,656
Amortization of deferred acquisition costs	1,778			1,698
General and administrative expenses	1,459			1,406
Interest expense	99			98
Total claims and expenses	11,342			9,858
Income before income taxes	468			1,370
Income tax expense	73			247
Net income	$	395		$	1,123
Net income per share
Basic	$	1.73		$	4.87
Diluted	$	1.70		$	4.80
Combined ratio
Loss and loss adjustment expense ratio	74.2		%	65.2		%
Underwriting expense ratio	28.3			28.7
Combined ratio	102.5		%	93.9		%


	Three Months Ended March 31,
(dollars in millions)	2025			2024
Average investments (1)	$	101,000		$	94,677
Pre-tax net investment income	930			846
After-tax net investment income	763			698
Average pre-tax yield (2)	3.7		%	3.6		%
Average after-tax yield (2)	3.0		%	2.9		%


	Losses Incurred/Unfavorable (Favorable) Prior Year Reserve Development
	Three Months Ended March 31,
			Estimated Ultimate Losses
(in millions, pre-tax and net of reinsurance)	2025	2024		March 31, 2025	December 31, 2024
2023
PCS Serial Number:
25 — Severe wind and hail storms	—	(2)		147	147
32 — Severe wind and hail storms	(4)	1		131	135
33 — Severe wind and hail storms	(1)	—		188	189
35 — Severe wind and hail storms	5	(2)		145	140
38 — Severe wind and hail storms	3	—		116	113
42 — Severe wind and hail storms	(1)	9		136	137
48 — Severe wind and hail storms	4	—		148	144
49 — Severe wind and hail storms	(4)	(1)		131	135
51 — Severe wind and hail storms	3	—		234	231
63 — Severe wind and hail storms	1	—		131	130
75 — Severe wind and hail storms	(3)	1		170	173
2024
PCS Serial Number:
26 — Severe wind and hail storms	(2)	259		259	261
39 — Severe wind and hail storms	(2)	n/a		248	250
42 — Severe wind and hail storms	(3)	n/a		158	161
44 — Severe wind and hail storms	1	n/a		172	171
45 — Severe wind and hail storms	3	n/a		162	159
46 — Severe wind and hail storms	1	n/a		183	182
61 — Severe wind and hail storms	(1)	n/a		143	144
77 — Hurricane Helene	(29)	n/a		704	733
2025
PCS Serial Number:
11 — California wildfire – Palisades fire	1,339	n/a		1,339	n/a
12 — California wildfire – Eaton fire	392	n/a		392	n/a
24 — Severe wind and hail storms	315	n/a		315	n/a


	Gross Written Premiums
	Three Months Ended March 31,
(in millions)	2025		2024
Business Insurance	$	6,740	$	6,383
Bond & Specialty Insurance	1,129		1,076
Personal Insurance	4,021		3,851
Total	$	11,890	$	11,310


	Net Written Premiums
	Three Months Ended March 31,
(in millions)	2025		2024
Business Insurance	$	5,698	$	5,596
Bond & Specialty Insurance	999		943
Personal Insurance	3,818		3,643
Total	$	10,515	$	10,182


(as of and for the three months ended March 31, in millions)	2025		2024
Beginning reserves:
Gross	$	1,708	$	1,768
Ceded	(370)		(390)
Net	1,338		1,378
Incurred losses and loss adjustment expenses:
Gross	—		—
Ceded	—		—
Net	—		—
Paid loss and loss adjustment expenses:
Gross	72		82
Ceded	(13)		(8)
Net	59		74
Foreign exchange and other:
Gross	—		—
Ceded	—		—
Net	—		—
Ending reserves:
Gross	1,636		1,686
Ceded	(357)		(382)
Net	$	1,279	$	1,304


Period Beginning	Period Ending	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)
January 1, 2025	January 31, 2025	7,343	$	245.44	—	$	5,040
February 1, 2025	February 28, 2025	681,675	$	246.35	251,042	$	4,976
March 1, 2025	March 31, 2025	725,535	$	258.70	722,087	$	4,790
Total		1,414,553	$	252.68	973,129	$	4,790


Exhibit Number						Description of Exhibit

3.1						Amended and Restated Articles of Incorporation of The Travelers Companies, Inc., as amended and restated May 23, 2013, were filed as Exhibit 3.1 to the Company’s current report on Form 8-K filed on May 24, 2013, and are incorporated herein by reference.

3.2						Bylaws of The Travelers Companies, Inc. as Amended and Restated December 7, 2022, were filed as Exhibit 3.2 to the Company’s current report on Form 8-K filed on December 12, 2022, and are incorporated herein by reference.



31.1†						Certification of Alan D. Schnitzer, Chairman and Chief Executive Officer of the Company, as required by Section 302 of the Sarbanes-Oxley Act of 2002.

31.2†						Certification of Daniel S. Frey, Executive Vice President and Chief Financial Officer of the Company, as required by Section 302 of the Sarbanes-Oxley Act of 2002.

32.1†						Certification of Alan D. Schnitzer, Chairman and Chief Executive Officer of the Company, as required by Section 906 of the Sarbanes-Oxley Act of 2002.

32.2†						Certification of Daniel S. Frey, Executive Vice President and Chief Financial Officer of the Company, as required by Section 906 of the Sarbanes-Oxley Act of 2002.

101.1†						The following information from The Travelers Companies, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 formatted in Inline XBRL: (i) Consolidated Statement of Income for the three months ended March 31, 2025 and 2024; (ii) Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024; (iii) Consolidated Balance Sheet at March 31, 2025 and December 31, 2024; (iv) Consolidated Statement of Changes in Shareholders’ Equity for the three months ended March 31, 2025 and 2024; (v) Consolidated Statement of Cash Flows for the three months ended March 31, 2025 and 2024; (vi) Notes to Consolidated Financial Statements; and (vii) the cover page.

104.1						Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101.1).


		THE TRAVELERS COMPANIES, INC.
		(Registrant)

Date: April 16, 2025	By	/S/ CHRISTINE K. KALLA
		Christine K. Kalla Executive Vice President and General Counsel (Authorized Signatory)

Date: April 16, 2025	By	/S/ PAUL E. MUNSON
		Paul E. Munson Senior Vice President and Corporate Controller (Principal Accounting Officer)