trv-20250717
0000086312false00000863122025-07-172025-07-17


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 _______________________________________
 FORM 8-K
 ______________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): July 17, 2025
 _______________________________________________
The Travelers Companies, Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________
 
Minnesota 001-10898 41-0518860
(State or other jurisdiction of
incorporation)		 (Commission File Number) (I.R.S. Employer
Identification No.)
485 Lexington Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
 
(917) 778-6000
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 _________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, without par value TRV New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 2.02.  Results of Operations and Financial Condition.
 
On July 17, 2025, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended June 30, 2025, and the availability of the Company’s second quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.
 
As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d)                                 Exhibits.
 
Exhibit No. Description
99.1 
   
99.2 
101.1Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL.
104.1Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101.1.)




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, The Travelers Companies, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
  THE TRAVELERS COMPANIES, INC.
   
   
Date: July 17, 2025By:/S/   CHRISTINE K. KALLA
  Name: Christine K. Kalla
  Executive Vice President and General Counsel



g34651mo25i001b12.gif                                            Exhibit 99.1
                                            The Travelers Companies, Inc.
                            485 Lexington Avenue
                                    New York, NY 10017-2630
                                        www.travelers.com
NYSE: TRV
Travelers Reports Excellent Second Quarter and Year-to-Date Results
Second Quarter 2025 Net Income per Diluted Share of $6.53, up 185%, and Return on Equity of 20.9%
Second Quarter 2025 Core Income per Diluted Share of $6.51, up 159%, and Core Return on Equity of 18.8%
•Second quarter net income of $1.509 billion, up 183%, and core income of $1.504 billion, up 157%.
•Consolidated combined ratio improved 9.9 points from the prior year quarter to a very strong 90.3%.
•Underlying combined ratio improved 3.0 points from the prior year quarter to an excellent 84.7%.
•Catastrophe losses were $927 million pre-tax compared to $1.509 billion in the prior year quarter.
•Net favorable prior year reserve development of $315 million pre-tax, with favorable development in all three segments.
•Record net written premiums of $11.543 billion, up 4%, with growth in all three segments.
•Net investment income increased 6% after-tax over the prior year quarter.
•Total capital returned to shareholders of $809 million, including $557 million of share repurchases.
•Strong growth in book value per share, up 20%, and adjusted book value per share, up 14%, compared to the prior year quarter.

New York, July 17, 2025 — The Travelers Companies, Inc. today reported net income of $1.509 billion, or $6.53 per diluted share, for the quarter ended June 30, 2025, compared to $534 million, or $2.29 per diluted share, in the prior year quarter. Core income in the current quarter was $1.504 billion, or $6.51 per diluted share, compared to $585 million, or $2.51 per diluted share, in the prior year quarter. Core income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net favorable prior year reserve development and higher net investment income. Net realized investment gains in the current quarter were $6 million pre-tax ($5 million after-tax), compared to net realized investment losses of $65 million pre-tax ($51 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)Three Months Ended June 30,Six Months Ended June 30,
20252024Change20252024Change
Net written premiums$11,543 $11,115 4 %$22,058 $21,297 4 %
Total revenues$12,116 $11,283 7 $23,926 $22,511 6 
Net income$1,509 $534 183 $1,904 $1,657 15 
per diluted share$6.53 $2.29 185 $8.23 $7.09 16 
Core income$1,504 $585 157 $1,947 $1,681 16 
per diluted share$6.51 $2.51 159 $8.42 $7.20 17 
Diluted weighted average shares outstanding229.3 231.5 (1)229.7 231.8 (1)
Combined ratio90.3 %100.2 %(9.9)pts96.3 %97.1 %(0.8)pts
Underlying combined ratio84.7 %87.7 %(3.0)pts84.7 %87.7 %(3.0)pts
Return on equity20.9 %8.6 %12.3 pts13.4 %13.3 %0.1 pts
Core return on equity18.8 %8.1 %10.7 pts12.3 %11.8 %0.5 pts
As ofChange From
June 30, 2025December 31, 2024June 30, 2024December 31, 2024June 30, 2024
Book value per share$131.11 $122.97 $109.08 7 %20 %
Adjusted book value per share144.57 139.04 126.52 4 %14 %
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
1


“We are pleased to report excellent results for the quarter, with both underwriting and investment income contributing meaningfully to our performance,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We earned core income of $1.5 billion, or $6.51 per diluted share, driven by excellent underlying results, strong net favorable prior year reserve development and higher investment income. Underlying underwriting income of $1.6 billion pre-tax was up 35% over the prior year quarter, driven by 7% growth in net earned premiums to $10.9 billion and a consolidated underlying combined ratio that improved 3 points to an excellent 84.7%. All three segments contributed to these terrific results with strong net earned premiums and excellent reported and underlying profitability. In addition, our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $774 million, driven by strong and reliable returns from our growing fixed income portfolio. During the quarter, we returned more than $800 million of excess capital to shareholders, including $557 million of share repurchases.
“Through skilled execution by our field organization, we grew net written premiums in the second quarter to $11.5 billion. In Business Insurance, we grew net written premiums by 5% to $5.8 billion. Renewal premium change remained strong at 7.7%, with renewal premium change of 8.6% in our core Middle Market business and 10.7% in our small commercial Select business. Retention in the segment remained strong at 85%, and new business was a record $744 million. In Bond & Specialty Insurance, we grew net written premiums by 4% to $1.1 billion, with strong retention of 87% in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums by 5% compared to a particularly strong result in the prior year quarter. In Personal Insurance, net written premiums grew 3% to $4.7 billion, driven by strong renewal premium change in our Homeowners business.
“Our trailing twelve-month core return on equity of 17.1% reflects exceptional underwriting performance and steadily rising returns from our growing fixed income portfolio. Over that period, we grew adjusted book value per share by 14%, after making strategic investments in our business and returning substantial excess capital to shareholders. We’re building on this strong momentum through continued disciplined execution of our proven strategy. With our diversified business operating from a position of strength, we remain highly confident in the outlook for our business.”

2

Consolidated Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024Change
Underwriting gain (loss):$1,022 $(65)$1,087 $717 $512 $205 
Underwriting gain (loss) includes:
Net favorable prior year reserve development315 230 85 693 321 372 
Catastrophes, net of reinsurance(927)(1,509)582 (3,193)(2,221)(972)
Net investment income942 885 57 1,872 1,731 141 
Other income (expense), including interest expense
(89)(99)10 (185)(187)2 
Core income before income taxes1,875 721 1,154 2,404 2,056 348 
Income tax expense371 136 235 457 375 82 
Core income1,504 585 919 1,947 1,681 266 
Net realized investment gains (losses) after income taxes5 (51)56 (43)(24)(19)
Net income$1,509 $534 $975 $1,904 $1,657 $247 
Combined ratio90.3 %100.2 %(9.9)pts96.3 %97.1 %(0.8)pts
Impact on combined ratio
Net favorable prior year reserve development(2.9)pts(2.2)pts(0.7)pts(3.2)pts(1.5)pts(1.7)pts
Catastrophes, net of reinsurance8.5 pts14.7 pts(6.2)pts14.8 pts10.9 pts3.9 pts
Underlying combined ratio84.7 %87.7 %(3.0)pts84.7 %87.7 %(3.0)pts
Net written premiums
Business Insurance$5,792$5,5395 %$11,490$11,1353 %
Bond & Specialty Insurance1,0851,0404 2,0841,9835 
Personal Insurance4,6664,5363 8,4848,1794 
Total$11,543$11,1154 %$22,058$21,2974 %
Second Quarter 2025 Results
(All comparisons vs. second quarter 2024, unless noted otherwise)
Net income of $1.509 billion increased $975 million, driven by higher core income and net realized investment gains compared to net realized investment losses in the prior year quarter. Core income of $1.504 billion increased $919 million, primarily due to lower catastrophe losses, a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income. The underlying underwriting gain benefited from higher business volumes. Net realized investment gains were $6 million pre-tax ($5 million after-tax), compared to net realized investment losses of $65 million pre-tax ($51 million after-tax) in the prior year quarter.
Combined ratio:
•The combined ratio of 90.3% improved 9.9 points due to lower catastrophe losses (6.2 points), an improvement in the underlying combined ratio (3.0 points) and higher net favorable prior year reserve development (0.7 points).
•The underlying combined ratio improved 3.0 points to an excellent 84.7%. 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 severe wind and hail storms in multiple states.

Net investment income of $942 million pre-tax ($774 million after-tax) increased 6%, primarily due to growth in average invested assets and a higher average yield in the long-term fixed income investment portfolio.

3

Net written premiums of $11.543 billion increased 4%. See below for further details by segment.

Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)
 
Net income of $1.904 billion increased $247 million, driven by higher core income, partially offset by higher net realized investment losses. Core income of $1.947 billion increased $266 million, primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $55 million pre-tax ($43 million after-tax), compared to $30 million pre-tax ($24 million after-tax) in the prior year.

Combined ratio:
 
•The combined ratio of 96.3% improved 0.8 points due to an improvement in the underlying combined ratio (3.0 points) and higher net favorable prior year reserve development (1.7 points), partially offset by higher catastrophe losses (3.9 points).

•The underlying combined ratio of 84.7% improved 3.0 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 second quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first three months of 2025.
Net investment income of $1.872 billion pre-tax ($1.537 billion after-tax) increased 8% driven by the same factors described above for the second quarter of 2025.

Net written premiums of $22.058 billion increased 4%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $29.518 billion increased 6% over year-end 2024, primarily due to net income of $1.904 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 $3.831 billion pre-tax ($3.031 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 primarily by lower interest rates. Book value per share of $131.11 increased 20% over June 30, 2024 and 7% over year-end 2024. Adjusted book value per share of $144.57, which excludes net unrealized investment losses, increased 14% over June 30, 2024 and 4% over year-end 2024.

The Company repurchased 2.1 million shares during the second quarter at an average price of $270.27 per share for a total cost of $557 million. At June 30, 2025, the Company had $4.290 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 $28.364 billion, and the ratio of debt-to-capital was 21.4%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 19.8%, 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 September 30, 2025, to shareholders of record at the close of business on September 10, 2025.

4

Business Insurance Segment Financial Results
 Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024Change
Underwriting gain:$346 $193 $153 $541 $527 $14 
Underwriting gain includes:
Net favorable prior year reserve development79 34 45 153 34 119 
Catastrophes, net of reinsurance
(368)(389)21 (877)(598)(279)
Net investment income662 632 30 1,318 1,241 77 
Other income (expense) 2 (10)12 (7)(19)12 
Segment income before income taxes1,010 815 195 1,852 1,749 103 
Income tax expense197 159 38 356 329 27 
Segment income$813 $656 $157 $1,496 $1,420 $76 
Combined ratio93.6 %96.1 %(2.5)pts94.9 %94.7 %0.2 pts
Impact on combined ratio
Net favorable prior year reserve development(1.4)pts(0.6)pts(0.8)pts(1.4)pts(0.3)pts(1.1)pts
Catastrophes, net of reinsurance
6.7 pts7.5 pts(0.8)pts8.0 pts5.8 pts2.2 pts
Underlying combined ratio88.3 %89.2 %(0.9)pts88.3 %89.2 %(0.9)pts
Net written premiums by market
Domestic
Select Accounts$1,004 $975 3 %$1,980 $1,949 2 %
Middle Market3,034 2,769 10 6,200 5,982 4 
National Accounts329 312 5 641 639 — 
National Property and Other885 912 (3)1,605 1,554 3 
Total Domestic5,252 4,968 6 10,426 10,124 3 
International540 571 (5)1,064 1,011 5 
Total$5,792 $5,539 5 %$11,490 $11,135 3 %
 
Second Quarter 2025 Results
(All comparisons vs. second quarter 2024, unless noted otherwise)
 
Segment income for Business Insurance was $813 million after-tax, an increase of $157 million. Segment income increased primarily due to a higher underlying underwriting gain, 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 93.6% improved 2.5 points due to an improvement in the underlying combined ratio (0.9 points), higher net favorable prior year reserve development (0.8 points) and lower catastrophe losses (0.8 points).
•The underlying combined ratio improved 0.9 points to an excellent 88.3%.
•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.
Net written premiums of $5.792 billion increased 5%, led by strong growth of 10% in our core Middle Market business. This was partially offset by a 3% decline in net written premiums in National Property and Other, reflecting our disciplined underwriting.

5

Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)

Segment income for Business Insurance was $1.496 billion after-tax, an increase of $76 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.
 
Combined ratio:

•The combined ratio of 94.9% increased 0.2 points due to higher catastrophe losses (2.2 points), partially offset by higher net favorable prior year reserve development (1.1 points) and an improvement in the underlying combined ratio (0.9 points).

•The underlying combined ratio improved 0.9 points to an excellent 88.3%.

•Net favorable prior year reserve development was primarily driven by the same factors described above for the second quarter of 2025.
Net written premiums of $11.490 billion increased 3%, after the ceded premium impact of the enhanced casualty reinsurance program that took effect January 1, 2025. This change in reinsurance reduced the segment’s net written premium growth by 2 points, as the full year’s worth of ceded premium was booked in the first quarter of 2025. Premium growth also reflected strong renewal premium change and retention.

6

Bond & Specialty Insurance Segment Financial Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024 Change
Underwriting gain:$196 $115 $81 $366 $259 $107 
Underwriting gain includes:
Net favorable prior year reserve development81 24 57 148 48 100 
Catastrophes, net of reinsurance(5)(40)35 (24)(45)21 
Net investment income107 94 13 209 184 25 
Other income3 5 (2)8 11 (3)
Segment income before income taxes306 214 92 583 454 129 
Income tax expense62 44 18 119 89 30 
Segment income$244 $170 $74 $464 $365 $99 
Combined ratio80.3 %87.7 %(7.4)pts81.4 %86.1 %(4.7)pts
Impact on combined ratio
Net favorable prior year reserve development(8.0)pts(2.5)pts(5.5)pts(7.3)pts(2.5)pts(4.8)pts
Catastrophes, net of reinsurance0.5 pts4.1 pts(3.6)pts1.2 pts2.3 pts(1.1)pts
Underlying combined ratio87.8 %86.1 %1.7 pts87.5 %86.3 %1.2 pts
Net written premiums
Domestic
Management Liability$589 $586 1 %$1,142 $1,129 1 %
Surety342 325 5 675 621 9 
Total Domestic931 911 2 1,817 1,750 4 
International154 129 19 267 233 15 
Total$1,085 $1,040 4 %$2,084 $1,983 5 %

Second Quarter 2025 Results
(All comparisons vs. second quarter 2024, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $244 million after-tax, an increase of $74 million. Segment income increased primarily due to higher net favorable prior year reserve development, lower catastrophe losses and higher net investment income, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:

•The combined ratio of 80.3% improved 7.4 points due to higher net favorable prior year reserve development (5.5 points) and lower catastrophe losses (3.6 points), partially offset by a higher underlying combined ratio (1.7 points).

•The underlying combined ratio was very strong at 87.8%.

•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 $1.085 billion increased 4%, reflecting production growth in both surety and management liability.

7

Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $464 million after-tax, an increase of $99 million. Segment income increased primarily due to higher net favorable prior year reserve development, higher net investment income and lower catastrophe losses, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 81.4% improved 4.7 points due to higher net favorable prior year reserve development (4.8 points) and lower catastrophe losses (1.1 points), partially offset by a higher underlying combined ratio (1.2 points).

•The underlying combined ratio was very strong at 87.5%.

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

Net written premiums of $2.084 billion increased 5%, reflecting the same factors described above for the second quarter of 2025.

Personal Insurance Segment Financial Results
Three Months Ended June 30,Six Months Ended June 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024Change
Underwriting gain (loss):$480 $(373)$853 $(190)$(274)$84 
Underwriting gain (loss) includes:
Net favorable prior year reserve development155 172 (17)392 239 153 
Catastrophes, net of reinsurance(554)(1,080)526 (2,292)(1,578)(714)
Net investment income173 159 14 345 306 39 
Other income17 16 1 35 37 (2)
Segment income (loss) before income taxes670 (198)868 190 69 121 
Income tax expense (benefit)136 (45)181 30 2 28 
Segment income (loss)$534 $(153)$687 $160 $67 $93 
Combined ratio88.4 %108.5 %(20.1)pts101.7 %102.8 %(1.1)pts
Impact on combined ratio
Net favorable prior year reserve development(3.6)pts(4.2)pts0.6 pts(4.5)pts(2.9)pts(1.6)pts
Catastrophes, net of reinsurance12.7 pts26.4 pts(13.7)pts26.6 pts19.5 pts7.1 pts
Underlying combined ratio79.3 %86.3 %(7.0)pts79.6 %86.2 %(6.6)pts
Net written premiums
Domestic
Automobile$1,968 $2,001 (2)%$3,827 $3,860 (1)%
Homeowners and Other2,520 2,347 7 4,333 3,982 9 
Total Domestic4,488 4,348 3 8,160 7,842 4 
International178 188 (5)324 337 (4)
Total$4,666 $4,536 3 %$8,484 $8,179 4 %

8

Second Quarter 2025 Results
(All comparisons vs. second quarter 2024, unless noted otherwise)

Segment income for Personal Insurance was $534 million after-tax, compared with a segment loss of $153 million after-tax in the prior year quarter. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income, 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 88.4% improved 20.1 points due to lower catastrophe losses (13.7 points) and an improvement in the underlying combined ratio (7.0 points), partially offset by lower net favorable prior year reserve development (0.6 points).

•The underlying combined ratio of 79.3% improved 7.0 points, reflecting improvement in both Automobile and Homeowners and Other.

•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.

Net written premiums of $4.666 billion increased 3%, reflecting strong renewal premium change in Homeowners and Other.

Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)
Segment income for Personal Insurance was $160 million after-tax, an increase of $93 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

•The combined ratio of 101.7% improved 1.1 points due to an improvement in the underlying combined ratio (6.6 points) and higher net favorable prior year reserve development (1.6 points), partially offset by higher catastrophe losses (7.1 points).

•The underlying combined ratio of 79.6% improved 6.6 points, reflecting improvement in both Automobile and Homeowners and Other.

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

Net written premiums of $8.484 billion increased 4%, reflecting the same factors described above for the second quarter of 2025.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the financial supplement that is available on our website at Travelers.com. Travelers management will discuss the contents of this release and other relevant topics via webcast at 9:30 a.m. Eastern (8:30 a.m. Central) on Thursday, July 17, 2025. Investors can access the call via webcast at investor.travelers.com or by dialing 1.888.440.6281 within the United States or 1.646.960.0218 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

Following the live event, replays will be available via webcast for one year at investor.travelers.com and by telephone for 30 days by dialing 1.800.770.2030 within the United States or 1.647.362.9199 outside the United States. All callers should use conference ID 5449478.
9


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 more than 30,000 employees and generated revenues of more than $46 billion in 2024. For more information, visit Travelers.com.

Travelers may use its website and/or social media outlets, such as Facebook and X, as distribution channels of material Company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at investor.travelers.com, our Facebook page at facebook.com/travelers and our X account (@Travelers) at x.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at investor.travelers.com.

Travelers is organized into the following reportable business segments:

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom and the Republic of Ireland, as well as Brazil through a joint venture, in each case utilizing various degrees of financially-based underwriting approaches.

Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. Personal Insurance’s primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.
 * * * * *
Forward-Looking Statements

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “ensures,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

•the Company’s outlook, the impact of trends on its business and its future results of operations and financial condition;
•the impact of legislative or regulatory actions or court decisions;
•share repurchase plans;
•future pension plan contributions;
•the sufficiency of the Company’s reserves, including asbestos;
•the impact of emerging claims issues as well as other insurance and non-insurance litigation;
•the cost and availability of reinsurance coverage;
•catastrophe losses and modeling;
•the impact of investment, economic and underwriting market conditions, including interest rates, the impact of tariffs and inflation;
•the Company’s approach to managing its investment portfolio;
•the impact of changing climate conditions;
•strategic and operational initiatives to improve growth, profitability and competitiveness;
•the Company’s competitive advantages and innovation agenda, including executing on that agenda with respect to artificial intelligence;
•the Company’s cybersecurity policies and practices;
•new product offerings;
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•the impact of developments in the tort environment;
•the impact of developments in the geopolitical environment; and
•the sale of our Canadian personal insurance business and the majority of our Canadian commercial insurance business, including with respect to the expected closing of the transaction, use of proceeds, including share repurchases, and financial impact of the sale.

The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

Insurance-Related Risks
•high levels of catastrophe losses;
•actual claims may exceed the Company’s claims and claim adjustment expense reserves, the estimated level of claims and claim adjustment expense reserves may increase, or increases in loss costs may not be offset with sufficient price increases, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation and the impact of tariffs;
•the Company’s continued exposure to asbestos and environmental claims and related litigation;
•the Company is exposed to, and may face adverse developments involving, mass tort claims; and
•the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks
•a period of financial market disruption or an economic downturn;
•the Company’s investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;
•the Company is exposed to credit risk related to reinsurance and structured settlements, and reinsurance coverage may not be available to the Company;
•the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;
•a downgrade in the Company’s claims-paying and financial strength ratings; and
•the Company’s insurance subsidiaries may be unable to pay dividends to the Company’s holding company in sufficient amounts.

Business and Operational Risks
•the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates;
•disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;
•the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;
•the Company's pricing and capital models may provide materially different indications than actual results;
•loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products;
•the Company is subject to additional risks associated with its business outside the United States;
•future pandemics (including new variants of COVID-19); and
•the sale of our Canadian insurance business (excluding surety) to Definity Financial Corporation is subject to closing conditions, including obtaining required regulatory approvals and the satisfaction of other customary closing conditions, and may not occur.
Technology and Intellectual Property Risks
•as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
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•the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
•the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.
Regulatory and Compliance Risks
•changes in regulation, including changes in tax laws; and
•the Company's compliance controls may not be effective.
In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company’s business operations, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.
Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on July 17, 2025, and in our most recent annual report on Form 10-K filed with the SEC on February 13, 2025, in each case as updated by our periodic filings with the SEC.

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. Reconciliations of these measures to the most comparable GAAP measures also follow.

In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.

RECONCILIATION OF NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

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Reconciliation of Net Income to Core Income less Preferred Dividends
Three Months Ended June 30,Six Months Ended June 30,Twelve Months Ended June 30,
($ in millions, after-tax)202520242025202420252024
Net income$1,509 $534 $1,904 $1,657 $5,246 $3,687 
Adjustments:
Net realized investment (gains) losses(5)51 43 24 45 81 
Core income$1,504 $585 $1,947 $1,681 $5,291 $3,768 

Three Months Ended June 30,Six Months Ended June 30,
($ in millions, pre-tax)2025202420252024
Net income$1,881 $656 $2,349 $2,026 
Adjustments:
Net realized investment (gains) losses(6)65 55 30 
Core income$1,875 $721 $2,404 $2,056 
 Twelve Months Ended December 31,Average Annual
($ in millions, after-tax)202420232022202120202005 - 2019
Net income$4,999 $2,991 $2,842 $3,662 $2,697 $3,007 
Less: Loss from discontinued operations— — — — — (29)
Income from continuing operations4,999 2,991 2,842 3,662 2,697 3,036 
Adjustments:
Net realized investment (gains) losses26 81 156 (132)(11)(44)
Impact of changes in tax laws and/or tax rates (1) (2)— — — (8)— 9 
Core income5,025 3,072 2,998 3,522 2,686 3,001 
Less: Preferred dividends— — — — — 2 
Core income, less preferred dividends$5,025 $3,072 $2,998 $3,522 $2,686 $2,999 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Diluted income per share    
Net income$6.53 $2.29 $8.23 $7.09 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.22 0.19 0.11 
Core income$6.51 $2.51 $8.42 $7.20 
Reconciliation of Segment Income (Loss) to Total Core Income
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax)2025202420252024
Business Insurance$813 $656 $1,496 $1,420 
Bond & Specialty Insurance244 170 464 365 
Personal Insurance534 (153)160 67 
Total segment income1,591 673 2,120 1,852 
Interest Expense and Other(87)(88)(173)(171)
Total core income$1,504 $585 $1,947 $1,681 
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RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of June 30,
($ in millions)20252024
Shareholders’ equity$29,518 $24,862 
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity3,031 3,976 
Net realized investment losses, net of tax43 24 
Adjusted shareholders’ equity$32,592 $28,862 
As of December 31,Average Annual
($ in millions)202420232022202120202005 - 2019
Shareholders’ equity$27,864 $24,921 $21,560 $28,887 $29,201 $24,744 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,640 3,129 4,898 (2,415)(4,074)(1,300)
Net realized investment (gains) losses, net of tax26 81 156 (132)(11)(44)
Impact of changes in tax laws and/or tax rates (1) (2)— — — (8)— 19 
Preferred stock— — — — — (42)
Loss from discontinued operations— — — — — 29 
Adjusted shareholders’ equity$31,530 $28,131 $26,614 $26,332 $25,116 $23,406 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) less preferred dividends to adjusted average shareholders’ equity for the periods presented. In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Average shareholders’ equity is (a) the sum of total shareholders’ equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.
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Calculation of Return on Equity and Core Return on Equity
Three Months Ended June 30,Six Months Ended June 30,Twelve Months Ended June 30,
($ in millions, after-tax)202520242025202420252024
Annualized net income$6,036 $2,134 $3,808 $3,313 $5,246 $3,687 
Average shareholders’ equity28,854 24,942 28,441 24,957 27,735 23,320 
Return on equity20.9 %8.6 %13.4 %13.3 %18.9 %15.8 %
Annualized core income$6,015 $2,341 $3,894 $3,362 $5,291 $3,768 
Adjusted average shareholders’ equity32,016 28,817 31,769 28,600 30,879 27,728 
Core return on equity18.8 %8.1 %12.3 %11.8 %17.1 %13.6 %
 Twelve Months Ended 
December 31,		Average Annual
($ in millions, after-tax)202420232022202120202005 - 2019
Net income, less preferred dividends$4,999 $2,991 $2,842 $3,662 $2,697 $3,005 
Average shareholders’ equity25,993 22,031 23,384 28,735 26,892 24,693 
Return on equity19.2 %13.6 %12.2 %12.7 %10.0 %12.2 %
Core income, less preferred dividends$5,025 $3,072 $2,998 $3,522 $2,686 $2,999 
Adjusted average shareholders’ equity29,295 26,772 26,588 25,718 23,790 23,397 
Core return on equity17.2 %11.5 %11.3 %13.7 %11.3 %12.8 %

RECONCILIATION OF NET INCOME TO UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses. In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business. This measure is used to assess each segment’s business performance and as a tool in making business decisions. Underwriting gain, excluding the impact of catastrophes and net favorable (unfavorable) prior year loss reserve development, is the underwriting gain adjusted to exclude claims and claim adjustment expenses, reinstatement premiums and assessments related to catastrophes and loss reserve development related to time periods prior to the current year. In the opinion of the Company’s management, this measure is meaningful to users of the financial statements to understand the Company’s periodic earnings and the variability of earnings caused by the unpredictable nature (i.e., the timing and amount) of catastrophes and loss reserve development. This measure is also referred to as underlying underwriting gain, underlying underwriting margin, underlying underwriting income or underlying underwriting result.

A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally or unintentionally destructive acts, including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core income (loss) and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools.

The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2025 ranges from $20 million to $30 million of losses before reinsurance and taxes.

Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the
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opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax, except as noted)2025202420252024
Net income$1,509 $534 $1,904 $1,657 
Net realized investment (gains) losses(5)51 43 24 
Core income1,504 585 1,947 1,681 
Net investment income(774)(727)(1,537)(1,425)
Other (income) expense, including interest expense78 84 159 158 
Underwriting income (loss)808 (58)569 414 
Income tax expense (benefit) on underwriting results214 (7)148 98 
Pre-tax underwriting income (loss)1,022 (65)717 512 
Pre-tax impact of net favorable prior year reserve development(315)(230)(693)(321)
Pre-tax impact of catastrophes927 1,509 3,193 2,221 
Pre-tax underlying underwriting income$1,634 $1,214 $3,217 $2,412 
Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
 Three Months Ended June 30,Six Months Ended June 30,
($ in millions, after-tax)2025202420252024
Net income$1,509 $534 $1,904 $1,657 
Net realized investment (gains) losses(5)51 43 24 
Core income1,504 585 1,947 1,681 
Net investment income(774)(727)(1,537)(1,425)
Other (income) expense, including interest expense78 84 159 158 
Underwriting income (loss)808 (58)569 414 
Impact of net favorable prior year reserve development(249)(182)(546)(253)
Impact of catastrophes732 1,192 2,522 1,755 
Underlying underwriting income$1,291 $952 $2,545 $1,916 
 Twelve Months Ended December 31,
($ in millions, after-tax)2024202320222021202020192018201720162015201420132012
Net income$4,999 $2,991 $2,842 $3,662 $2,697 $2,622 $2,523 $2,056 $3,014 $3,439 $3,692 $3,673 $2,473 
Net realized investment (gains) losses26 81 156 (132)(11)(85)(93)(142)(47)(2)(51)(106)(32)
Impact of changes in tax laws and/or tax rates (1) (2)
— — — (8)— — — 129 — — — — — 
Core income5,025 3,072 2,998 3,522 2,686 2,537 2,430 2,043 2,967 3,437 3,641 3,567 2,441 
Net investment income(2,952)(2,436)(2,170)(2,541)(1,908)(2,097)(2,102)(1,872)(1,846)(1,905)(2,216)(2,186)(2,316)
Other (income) expense, including interest expense308 337 277 235 232 214 248 179 78 193 159 61 171 
Underwriting income2,381 973 1,105 1,216 1,010 654 576 350 1,199 1,725 1,584 1,442 296 
Impact of net (favorable) unfavorable prior year reserve development(559)(113)(512)(424)(276)47 (409)(378)(510)(617)(616)(552)(622)
Impact of catastrophes2,632 2,361 1,480 1,459 1,274 699 1,355 1,267 576 338 462 387 1,214 
Underlying underwriting income$4,454 $3,221 $2,073 $2,251 $2,008 $1,400 $1,522 $1,239 $1,265 $1,446 $1,430 $1,277 $888 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)
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COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO
 
Combined ratio: For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this earnings release, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.
For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this earnings release, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income, billing and policy fees and other, to net earned premiums.

The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Underlying combined ratio represents the combined ratio excluding the impact of net prior year reserve development and catastrophes. The underlying combined ratio is an indicator of the Company’s underwriting discipline and underwriting profitability for the current accident year.

Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.

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Calculation of the Combined Ratio
Three Months Ended June 30,Six Months Ended June 30,
($ in millions, pre-tax)2025202420252024
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses$6,789 $7,373 $14,795 $14,029 
Less:
Policyholder dividends10 12 23 24 
Allocated fee income45 42 90 81 
Loss ratio numerator$6,734 $7,319 $14,682 $13,924 
Underwriting expense ratio
Amortization of deferred acquisition costs$1,802 $1,678 $3,580 $3,376 
General and administrative expenses (G&A)1,545 1,478 3,004 2,884 
Less:
Non-insurance G&A113 106 222 208 
Allocated fee income79 73 153 143 
Billing and policy fees and other29 30 57 60 
Expense ratio numerator$3,126 $2,947 $6,152 $5,849 
Earned premium$10,921 $10,243 $21,631 $20,369 
Combined ratio (1)
Loss and loss adjustment expense ratio61.7 %71.4 %67.9 %68.4 %
Underwriting expense ratio28.6 %28.8 %28.4 %28.7 %
Combined ratio90.3 %100.2 %96.3 %97.1 %
Impact on combined ratio:
Net favorable prior year reserve development(2.9)%(2.2)%(3.2)%(1.5)%
Catastrophes, net of reinsurance8.5 %14.7 %14.8 %10.9 %
Underlying combined ratio84.7 %87.7 %84.7 %87.7 %
(1)  For purposes of computing ratios, billing and policy fees and other (which are a component of other revenues) are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly are excluded in calculating the combined ratio. 

RECONCILIATION OF BOOK VALUE PER SHARE AND SHAREHOLDERS’ EQUITY TO CERTAIN NON-GAAP MEASURES
 
Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets (i.e., net unrealized investment gains (losses), net of tax), which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves. Tangible book value per share is adjusted book value per share excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. In the opinion of the Company’s management, tangible book value per share is useful in an analysis of a property casualty company’s book value on a nominal basis as it removes certain effects of purchase accounting (i.e., goodwill and other intangible assets), in addition to the effect of changing prices on invested assets.

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Reconciliation of Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Gains (Losses), Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share
 As of
($ in millions, except per share amounts)June 30,
2025		December 31,
2024		June 30,
2024
Shareholders’ equity$29,518 $27,864 $24,862 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(3,031)(3,640)(3,976)
Common shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity32,549 31,504 28,838 
Less:
Goodwill4,283 4,233 4,250 
Other intangible assets348 360 371 
Impact of deferred tax on other intangible assets(93)(85)(86)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity$28,011 $26,996 $24,303 
Common shares outstanding225.1 226.6 227.9 
Book value per share$131.11 $122.97 $109.08 
Adjusted book value per share144.57 139.04 126.52 
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity124.42 119.14 106.62 

RECONCILIATION OF TOTAL CAPITALIZATION TO TOTAL CAPITALIZATION EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES), NET OF TAX
 
Total capitalization is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gains (losses) on investments, net of tax, included in shareholders’ equity, is the ratio of debt to total capitalization excluding the after-tax impact of net unrealized investment gains and losses included in shareholders’ equity. In the opinion of the Company’s management, the debt-to-capital ratio is useful in an analysis of the Company’s financial leverage.
 As of
($ in millions)June 30,
2025		December 31,
2024
Debt    $8,034 $8,033 
Shareholders’ equity  29,518 27,864 
Total capitalization  
37,552 35,897 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(3,031)(3,640)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity$40,583 $39,537 
Debt-to-capital ratio  21.4 %22.4 %
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity19.8 %20.3 %
RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)
 As of June 30,
($ in millions)20252024
Invested assets$98,065 $89,511 
Less: Net unrealized investment losses, pre-tax(3,831)(5,043)
Invested assets excluding net unrealized investment losses$101,896 $94,554 
19

  As of December 31,
($ in millions)2024202320222021202020192018201720162015201420132012
Invested assets$94,223 $88,810 $80,454 $87,375 $84,423 $77,884 $72,278 $72,502 $70,488 $70,470 $73,261 $73,160 $73,838 
Less: Net unrealized investment gains (losses), pre-tax(4,609)(3,970)(6,220)3,060 5,175 2,853 (137)1,414 1,112 1,974 3,008 2,030 4,761 
Invested assets excluding net unrealized investment gains (losses)$98,832 $92,780 $86,674 $84,315 $79,248 $75,031 $72,415 $71,088 $69,376 $68,496 $70,253 $71,130 $69,077 

OTHER DEFINITIONS

Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. Net written premiums reflect gross written premiums less premiums ceded to reinsurers.

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. For Personal Insurance, retention is the ratio of the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies. For all of the segments, renewal rate change represents the estimated change in average premium on policies that renew, excluding exposure changes. Exposure is the measure of risk used in the pricing of an insurance product. The change in exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. New business is the amount of written premium related to new policyholders and additional products sold to existing policyholders. These are operating statistics, which are in part dependent on the use of estimates and are therefore subject to change. For Business Insurance, retention, renewal premium change and new business exclude National Accounts. For Bond & Specialty Insurance, retention, renewal premium change and new business exclude surety and other products that are generally sold on a non-recurring, project specific basis. For each of the segments, production statistics referred to herein are domestic only unless otherwise indicated.

Statutory capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.

Holding company liquidity is the total funds available at the holding company level to fund general corporate purposes, primarily the payment of shareholder dividends and debt service. These funds consist of total cash, short-term invested assets and other readily marketable securities held by the holding company.

For a glossary of other financial terms used in this press release, we refer you to the Company’s most recent annual report on Form 10-K filed with the SEC on February 13, 2025, and subsequent periodic filings with the SEC.
 
###
 
Contacts
Media:
Institutional Investors:
Patrick LinehanAbbe Goldstein
917.778.6267917.778.6825


20
The Travelers Companies, Inc.
Financial Supplement - Second Quarter 2025
Exhibit 99.2 image2.gif
Page Number
Consolidated Results
Financial Highlights1
Reconciliation to Net Income and Earnings Per Share2
Statement of Income 3
Net Income by Major Component and Combined Ratio4
Core Income5
Selected Statistics - Property and Casualty Operations6
Written and Earned Premiums - Property and Casualty Operations7
Business Insurance
Segment Income 8
Segment Income by Major Component and Combined Ratio9
Selected Statistics10
Net Written Premiums11
Bond & Specialty Insurance
Segment Income12
Segment Income by Major Component and Combined Ratio13
Selected Statistics14
Net Written Premiums15
Personal Insurance
Segment Income (Loss)16
Segment Income (Loss) by Major Component and Combined Ratio17
Selected Statistics18
Net Written Premiums19
Selected Statistics - Automobile20
Selected Statistics - Homeowners and Other21
Supplemental Detail
Interest Expense and Other22
Consolidated Balance Sheet23
Investment Portfolio24
Investment Portfolio - Fixed Maturities Data25
Investment Income26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity27
Reinsurance Recoverables28
Net Reserves for Losses and Loss Adjustment Expense29
Asbestos Reserves30
Capitalization31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation32
Statement of Cash Flows33
Statement of Cash Flows (continued)34
Glossary of Financial Measures and Description of Reportable Business Segments35-36
 The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.
Index
The Travelers Companies, Inc.
Financial Highlights
image2.gif
($ and shares in millions, except for per share data)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Net income per share:
Basic$4.87 $2.32 $5.50 $9.11 $1.73 $6.63 $7.19 $8.35 
Diluted$4.80 $2.29 $5.42 $8.96 $1.70 $6.53 $7.09 $8.23 
Core income$1,096 $585 $1,218 $2,126 $443 $1,504 $1,681 $1,947 
Core income per share:
Basic$4.75 $2.54 $5.31 $9.30 $1.94 $6.61 $7.29 $8.54 
Diluted$4.69 $2.51 $5.24 $9.15 $1.91 $6.51 $7.20 $8.42 
Return on equity18.0 %8.6 %19.2 %30.0 %5.6 %20.9 %13.3 %13.4 %
Core return on equity15.4 %8.1 %16.6 %27.7 %5.6 %18.8 %11.8 %12.3 %
Total assets, at period end$127,410 $129,315 $134,588 $133,189 $135,977 $138,873 $129,315 $138,873 
Total equity, at period end$25,022 $24,862 $27,696 $27,864 $28,191 $29,518 $24,862 $29,518 
Book value per share, at period end$109.28 $109.08 $122.00 $122.97 $124.43 $131.11 $109.08 $131.11 
Less: Net unrealized investment gains (losses), net of tax(16.25)(17.44)(9.30)(16.07)(14.56)(13.46)(17.44)(13.46)
Adjusted book value per share, at period end$125.53 $126.52 $131.30 $139.04 $138.99 $144.57 $126.52 $144.57 
Weighted average number of common shares outstanding (basic)229.0 228.6 227.4 226.9 226.9 225.9 228.8 226.4 
Weighted average number of common shares outstanding and common stock equivalents (diluted)232.0 231.5 230.6 230.7 230.4 229.3 231.8 229.7 
Common shares outstanding at period end229.0 227.9 227.0 226.6 226.6 225.1 227.9 225.1 
Common stock dividends declared$232 $245 $243 $242 $241 $252 $477 $493 
Common stock repurchased:
Under Board of Directors authorization
Shares1.2 1.1 1.1 1.0 1.0 1.8 2.3 2.8 
Cost$250 $250 $250 $250 $250 $500 $500 $750 
Other
Shares0.6 0.1 — — 0.4 0.3 0.7 0.7 
Cost$138 $3 $3 $2 $108 $57 $141 $165 




See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1
The Travelers Companies, Inc.
Reconciliation to Net Income and Earnings per Share
image2.gif

($ and shares in millions, except earnings per share)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net income
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Adjustments:
Net realized investment (gains) losses, after-tax(27)51 (42)44 48 (5)24 43 
Core income $1,096 $585 $1,218 $2,126 $443 $1,504 $1,681 $1,947 
Basic earnings per share
Net income$4.87 $2.32 $5.50 $9.11 $1.73 $6.63 $7.19 $8.35 
Adjustments:
Net realized investment (gains) losses, after-tax(0.12)0.22 (0.19)0.19 0.21 (0.02)0.10 0.19 
Core income $4.75 $2.54 $5.31 $9.30 $1.94 $6.61 $7.29 $8.54 
Diluted earnings per share
Net income$4.80 $2.29 $5.42 $8.96 $1.70 $6.53 $7.09 $8.23 
Adjustments:
Net realized investment (gains) losses, after-tax(0.11)0.22 (0.18)0.19 0.21 (0.02)0.11 0.19 
Core income $4.69 $2.51 $5.24 $9.15 $1.91 $6.51 $7.20 $8.42 
Adjustments to net income and weighted average shares for net income EPS calculations: (1)
Basic and Diluted1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net income, as reported$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Participating share-based awards - allocated income(8)(5)(10)(15)(3)(11)(13)(14)
Net income available to common shareholders - basic and diluted$1,115 $529 $1,250 $2,067 $392 $1,498 $1,644 $1,890 
Common Shares
Basic
Weighted average shares outstanding229.0 228.6 227.4 226.9 226.9 225.9 228.8 226.4 
Diluted
Weighted average shares outstanding229.0 228.6 227.4 226.9 226.9 225.9 228.8 226.4 
Weighted average effects of dilutive securities - stock options and performance shares3.0 2.9 3.2 3.8 3.5 3.4 3.0 3.3 
Diluted weighted average shares outstanding232.0 231.5 230.6 230.7 230.4 229.3 231.8 229.7 
(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2
The Travelers Companies, Inc.
Statement of Income - Consolidated
image2.gif



($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Premiums$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $20,369 $21,631 
Net investment income846 885 904 955 930 942 1,731 1,872 
Fee income109 115 121 128 119 124 224 243 
Net realized investment gains (losses)35 (65)55 (55)(61)6 (30)(55)
Other revenues112 105 120 112 112 123 217 235 
Total revenues11,228 11,283 11,904 12,008 11,810 12,116 22,511 23,926 
Claims and expenses
Claims and claim adjustment expenses6,656 7,373 6,996 6,034 8,006 6,789 14,029 14,795 
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 3,376 3,580 
General and administrative expenses1,406 1,478 1,460 1,475 1,459 1,545 2,884 3,004 
Interest expense98 98 98 98 99 99 196 198 
Total claims and expenses9,858 10,627 10,344 9,414 11,342 10,235 20,485 21,577 
Income before income taxes1,370 656 1,560 2,594 468 1,881 2,026 2,349 
Income tax expense247 122 300 512 73 372 369 445 
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Other statistics
Effective tax rate on net investment income17.6 %17.8 %17.9 %17.9 %17.9 %17.9 %17.7 %17.9 %
Net investment income (after-tax)$698 $727 $742 $785 $763 $774 $1,425 $1,537 
Catastrophes, net of reinsurance:
Pre-tax$712 $1,509 $939 $175 $2,266 $927 $2,221 $3,193 
After-tax$563 $1,192 $739 $138 $1,790 $732 $1,755 $2,522 
Prior year reserve development - favorable:
Pre-tax$91 $230 $126 $262 $378 $315 $321 $693 
After-tax$71 $182 $99 $207 $297 $249 $253 $546 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income by Major Component and Combined Ratio - Consolidated
image2.gif
($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Underwriting gain (loss)$472 $(58)$547 $1,420 $(239)$808 $414 $569 
Net investment income698 727 742 785 763 774 1,425 1,537 
Other income (expense), including interest expense(74)(84)(71)(79)(81)(78)(158)(159)
Core income 1,096 585 1,218 2,126 443 1,504 1,681 1,947 
Net realized investment gains (losses)27 (51)42 (44)(48)5 (24)(43)
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio65.2 %71.4 %64.8 %55.0 %74.2 %61.7 %68.4 %67.9 %
Underwriting expense ratio28.7 %28.8 %28.4 %28.2 %28.3 %28.6 %28.7 %28.4 %
Combined ratio93.9 %100.2 %93.2 %83.2 %102.5 %90.3 %97.1 %96.3 %
Impact on combined ratio:
Net favorable prior year reserve development(0.9)%(2.2)%(1.2)%(2.4)%(3.5)%(2.9)%(1.5)%(3.2)%
Catastrophes, net of reinsurance7.1 %14.7 %8.8 %1.6 %21.2 %8.5 %10.9 %14.8 %
Underlying combined ratio87.7 %87.7 %85.6 %84.0 %84.8 %84.7 %87.7 %84.7 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$30 $30 $28 $28 $28 $29 $60 $57 
Fee income:
Loss and loss adjustment expenses$39 $42 $44 $47 $45 $45 $81 $90 
Underwriting expenses70 73 77 81 74 79 143 153 
Total fee income$109 $115 $121 $128 $119 $124 $224 $243 
Non-insurance general and administrative expenses$102 $106 $106 $107 $109 $113 $208 $222 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Premiums$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $20,369 $21,631 
Net investment income846 885 904 955 930 942 1,731 1,872 
Fee income109 115 121 128 119 124 224 243 
Other revenues112 105 120 112 112 123 217 235 
Total revenues
11,193 11,348 11,849 12,063 11,871 12,110 22,541 23,981 
Claims and expenses
Claims and claim adjustment expenses6,656 7,373 6,996 6,034 8,006 6,789 14,029 14,795 
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 3,376 3,580 
General and administrative expenses1,406 1,478 1,460 1,475 1,459 1,545 2,884 3,004 
Interest expense98 98 98 98 99 99 196 198 
Total claims and expenses
9,858 10,627 10,344 9,414 11,342 10,235 20,485 21,577 
Core income before income taxes1,335 721 1,505 2,649 529 1,875 2,056 2,404 
Income tax expense239 136 287 523 86 371 375 457 
Core income $1,096 $585 $1,218 $2,126 $443 $1,504 $1,681 $1,947 
Other statistics
Effective tax rate on net investment income17.6 %17.8 %17.9 %17.9 %17.9 %17.9 %17.7 %17.9 %
Net investment income (after-tax)$698 $727 $742 $785 $763 $774 $1,425 $1,537 
Catastrophes, net of reinsurance:
Pre-tax$712 $1,509 $939 $175 $2,266 $927 $2,221 $3,193 
After-tax$563 $1,192 $739 $138 $1,790 $732 $1,755 $2,522 
Prior year reserve development - favorable:
Pre-tax$91 $230 $126 $262 $378 $315 $321 $693 
After-tax$71 $182 $99 $207 $297 $249 $253 $546 









See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting
Gross written premiums$11,310 $11,865 $12,149 $11,226 $11,890 $12,225 $23,175 $24,115 
Net written premiums$10,184 $11,115 $11,317 $10,742 $10,515 $11,516 $21,299 $22,031 
Net earned premiums$10,128 $10,243 $10,704 $10,868 $10,710 $10,897 $20,371 $21,607 
Losses and loss adjustment expenses6,602 7,320 6,940 5,966 7,947 6,731 13,922 14,678 
Underwriting expenses3,012 3,111 3,139 3,038 3,098 3,260 6,123 6,358 
Statutory underwriting gain (loss) 514 (188)625 1,864 (335)906 326 571 
Policyholder dividends12 12 12 11 13 10 24 23 
Statutory underwriting gain (loss) after policyholder dividends$502 $(200)$613 $1,853 $(348)$896 $302 $548 
Other statutory statistics
Reserves for losses and loss adjustment expenses$54,578 $55,922 $56,909 $56,326 $58,091 $59,072 $55,922 $59,072 
Increase (decrease) in reserves$861 $1,344 $987 $(583)$1,765 $981 $2,205 $2,746 
Statutory capital and surplus$25,329 $25,210 $26,191 $27,715 $27,785 $28,364 $25,210 $28,364 
Net written premiums/surplus (1)1.62:11.66:11.63:11.56:11.57:1 1.55:1 1.66:11.55:1

(1)  Based on 12 months of rolling net written premiums.
 

















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Written premiums
Gross$11,310 $11,865 $12,149 $11,226 $11,890 $12,251 $23,175 $24,141 
Ceded(1,128)(750)(832)(484)(1,375)(708)(1,878)(2,083)
Net$10,182 $11,115 $11,317 $10,742 $10,515 $11,543 $21,297 $22,058 
Earned premiums
Gross$10,867 $11,083 $11,484 $11,644 $11,487 $11,749 $21,950 $23,236 
Ceded(741)(840)(780)(776)(777)(828)(1,581)(1,605)
Net$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $20,369 $21,631 






























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

7
The Travelers Companies, Inc.
Segment Income - Business Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Premiums$5,160 $5,168 $5,474 $5,543 $5,465 $5,545 $10,328 $11,010 
Net investment income609 632 642 677 656 662 1,241 1,318 
Fee income101 105 109 115 108 111 206 219 
Other revenues77 77 89 79 82 95 154 177 
Total revenues
5,947 5,982 6,314 6,414 6,311 6,413 11,929 12,724 
Claims and expenses
Claims and claim adjustment expenses3,331 3,471 3,698 3,179 3,705 3,584 6,802 7,289 
Amortization of deferred acquisition costs864 861 930 933 917 944 1,725 1,861 
General and administrative expenses818 835 826 824 847 875 1,653 1,722 
Total claims and expenses
5,013 5,167 5,454 4,936 5,469 5,403 10,180 10,872 
Segment income before income taxes934 815 860 1,478 842 1,010 1,749 1,852 
Income tax expense170 159 162 290 159 197 329 356 
Segment income $764 $656 $698 $1,188 $683 $813 $1,420 $1,496 
Other statistics
Effective tax rate on net investment income17.4 %17.7 %17.7 %17.8 %17.8 %17.7 %17.6 %17.8 %
Net investment income (after-tax)$502 $521 $528 $557 $539 $545 $1,023 $1,084 
Catastrophes, net of reinsurance:
Pre-tax$209 $389 $340 $94 $509 $368 $598 $877 
After-tax$166 $307 $268 $74 $402 $291 $473 $693 
Prior year reserve development - favorable (unfavorable):
Pre-tax$— $34 $(91)$147 $74 $79 $34 $153 
After-tax$— $26 $(72)$116 $58 $62 $26 $120 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
8
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Business Insurance
image2.gif


($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Underwriting gain$274 $148 $176 $642 $157 $274 $422 $431 
Net investment income502 521 528 557 539 545 1,023 1,084 
Other income (expense)(12)(13)(6)(11)(13)(6)(25)(19)
Segment income$764 $656 $698 $1,188 $683 $813 $1,420 $1,496 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio63.6 %66.2 %66.6 %56.4 %66.8 %63.7 %64.9 %65.3 %
Underwriting expense ratio29.7 %29.9 %29.2 %28.8 %29.4 %29.9 %29.8 %29.6 %
Combined ratio93.3 %96.1 %95.8 %85.2 %96.2 %93.6 %94.7 %94.9 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development— %(0.6)%1.7 %(2.7)%(1.3)%(1.4)%(0.3)%(1.4)%
Catastrophes, net of reinsurance4.1 %7.5 %6.2 %1.7 %9.3 %6.7 %5.8 %8.0 %
Underlying combined ratio89.2 %89.2 %87.9 %86.2 %88.2 %88.3 %89.2 %88.3 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$4 $4 $4 $4 $4 $5 $8 $9 
Fee income:
Loss and loss adjustment expenses$39 $42 $44 $47 $45 $45 $81 $90 
Underwriting expenses62 63 65 68 63 66 125 129 
Total fee income$101 $105 $109 $115 $108 $111 $206 $219 
Non-insurance general and administrative expenses$86 $87 $90 $86 $91 $93 $173 $184 
 
 
 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
9
The Travelers Companies, Inc.
Selected Statistics - Business Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting
Gross written premiums$6,383 $6,169 $6,173 $5,790 $6,740 $6,359 $12,552 $13,099 
Net written premiums$5,598 $5,539 $5,517 $5,426 $5,698 $5,765 $11,137 $11,463 
Net earned premiums$5,162 $5,168 $5,474 $5,543 $5,465 $5,521 $10,330 $10,986 
Losses and loss adjustment expenses3,282 3,422 3,645 3,116 3,650 3,530 6,704 7,180 
Underwriting expenses1,630 1,620 1,583 1,566 1,700 1,704 3,250 3,404 
Statutory underwriting gain250 126 246 861 115 287 376 402 
Policyholder dividends8 7 9 7 9 5 15 14 
Statutory underwriting gain after policyholder dividends$242 $119 $237 $854 $106 $282 $361 $388 





























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

10
The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net written premiums by market      
Domestic      
Select Accounts$974 $975 $885 $893 $976 $1,004 $1,949 $1,980 
Middle Market3,213 2,769 3,030 3,011 3,166 3,034 5,982 6,200 
National Accounts327 312 264 356 312 329 639 641 
National Property and Other642 912 896 684 720 885 1,554 1,605 
Total Domestic5,156 4,968 5,075 4,944 5,174 5,252 10,124 10,426 
International440 571 442 482 524 540 1,011 1,064 
Total$5,596 $5,539 $5,517 $5,426 $5,698 $5,792 $11,135 $11,490 
Net written premiums by product line      
Domestic      
Workers’ compensation$1,019 $847 $795 $808 $950 $821 $1,866 $1,771 
Commercial automobile964 923 937 954 1,030 1,019 1,887 2,049 
Commercial property763 1,054 1,022 859 873 1,051 1,817 1,924 
General liability965 809 914 903 753 878 1,774 1,631 
Commercial multi-peril1,416 1,345 1,367 1,409 1,532 1,486 2,761 3,018 
Other29 (10)40 11 36 (3)19 33 
Total Domestic5,156 4,968 5,075 4,944 5,174 5,252 10,124 10,426 
International440 571 442 482 524 540 1,011 1,064 
Total$5,596 $5,539 $5,517 $5,426 $5,698 $5,792 $11,135 $11,490 










See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
11
The Travelers Companies, Inc.
Segment Income - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Premiums$956 $977 $1,009 $1,016 $995 $1,021 $1,933 $2,016 
Net investment income90 94 101 105 102 107 184 209 
Other revenues9 6 7 8 6 5 15 11 
Total revenues1,055 1,077 1,117 1,129 1,103 1,133 2,132 2,236 
Claims and expenses
Claims and claim adjustment expenses428 473 441 432 434 418 901 852 
Amortization of deferred acquisition costs182 183 194 197 187 195 365 382 
General and administrative expenses205 207 203 217 205 214 412 419 
Total claims and expenses815 863 838 846 826 827 1,678 1,653 
Segment income before income taxes240 214 279 283 277 306 454 583 
Income tax expense45 44 57 55 57 62 89 119 
Segment income$195 $170 $222 $228 $220 $244 $365 $464 
Other statistics
Effective tax rate on net investment income18.0 %18.2 %18.8 %18.5 %18.4 %18.5 %18.1 %18.5 %
Net investment income (after-tax)$74 $77 $81 $87 $83 $88 $151 $171 
Catastrophes, net of reinsurance:
Pre-tax$5 $40 $4 $2 $19 $5 $45 $24 
After-tax$4 $31 $3 $2 $15 $4 $35 $19 
Prior year reserve development - favorable:
Pre-tax$24 $24 $36 $45 $67 $81 $48 $148 
After-tax$19 $19 $28 $35 $52 $65 $38 $117 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

12
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance
image2.gif
($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Underwriting gain$116 $90 $135 $137 $133 $154 $206 $287 
Net investment income74 77 81 87 83 88 151 171 
Other income5 3 6 4 4 2 8 6 
Segment income$195 $170 $222 $228 $220 $244 $365 $464 
Combined ratio (1)
Loss and loss adjustment expense ratio44.4 %48.0 %43.4 %42.1 %43.2 %40.5 %46.2 %41.8 %
Underwriting expense ratio40.1 %39.7 %39.1 %40.6 %39.3 %39.8 %39.9 %39.6 %
Combined ratio84.5 %87.7 %82.5 %82.7 %82.5 %80.3 %86.1 %81.4 %
Impact on combined ratio:
Net favorable prior year reserve development(2.5)%(2.5)%(3.5)%(4.3)%(6.7)%(8.0)%(2.5)%(7.3)%
Catastrophes, net of reinsurance0.5 %4.1 %0.4 %0.2 %1.9 %0.5 %2.3 %1.2 %
Underlying combined ratio86.5 %86.1 %85.6 %86.8 %87.3 %87.8 %86.3 %87.5 %
(1)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$— $1 $1 $— $— $— $1 $— 
Non-insurance general and administrative expenses$3 $1 $1 $2 $1 $2 $4 $3 















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
13
The Travelers Companies, Inc.
Selected Statistics - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting      
Gross written premiums$1,076 $1,127 $1,165 $1,151 $1,129 $1,166 $2,203 $2,295 
Net written premiums$943 $1,040 $1,072 $1,054 $999 $1,085 $1,983 $2,084 
Net earned premiums$956 $977 $1,009 $1,016 $995 $1,021 $1,933 $2,016 
Losses and loss adjustment expenses424 468 438 427 430 414 892 844 
Underwriting expenses411 408 421 421 422 434 819 856 
Statutory underwriting gain121 101 150 168 143 173 222 316 
Policyholder dividends4 5 3 4 4 5 9 9 
Statutory underwriting gain after policyholder dividends$117 $96 $147 $164 $139 $168 $213 $307 
 




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

14
The Travelers Companies, Inc.
Net Written Premiums - Bond & Specialty Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net written premiums by market
Domestic
Management Liability$543 $586 $617 $563 $553 $589 $1,129 $1,142 
Surety296 325 344 329 333 342 621 675 
Total Domestic839 911 961 892 886 931 1,750 1,817 
International104 129 111 162 113 154 233 267 
Total$943 $1,040 $1,072 $1,054 $999 $1,085 $1,983 $2,084 
Net written premiums by product line
Domestic
Fidelity and surety$356 $382 $411 $387 $394 $400 $738 $794 
General liability434 468 479 452 440 469 902 909 
Other49 61 71 53 52 62 110 114 
Total Domestic839 911 961 892 886 931 1,750 1,817 
International104 129 111 162 113 154 233 267 
Total$943 $1,040 $1,072 $1,054 $999 $1,085 $1,983 $2,084 


















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

15
The Travelers Companies, Inc.
Segment Income (Loss) - Personal Insurance
image2.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Premiums$4,010 $4,098 $4,221 $4,309 $4,250 $4,355 $8,108 $8,605 
Net investment income147 159 161 173 172 173 306 345 
Fee income8 10 12 13 11 13 18 24 
Other revenues26 22 24 25 24 23 48 47 
Total revenues4,191 4,289 4,418 4,520 4,457 4,564 8,480 9,021 
Claims and expenses
Claims and claim adjustment expenses2,897 3,429 2,857 2,423 3,867 2,787 6,326 6,654 
Amortization of deferred acquisition costs652 634 666 677 674 663 1,286 1,337 
General and administrative expenses375 424 420 421 396 444 799 840 
Total claims and expenses3,924 4,487 3,943 3,521 4,937 3,894 8,411 8,831 
Segment income (loss) before income taxes267 (198)475 999 (480)670 69 190 
Income tax expense (benefit)47 (45)91 201 (106)136 2 30 
Segment income (loss)$220 $(153)$384 $798 $(374)$534 $67 $160 
Other statistics
Effective tax rate on net investment income17.7 %18.0 %18.0 %18.1 %18.1 %18.0 %17.9 %18.0 %
Net investment income (after-tax)$122 $129 $133 $141 $141 $141 $251 $282 
Catastrophes, net of reinsurance:
Pre-tax$498 $1,080 $595 $79 $1,738 $554 $1,578 $2,292 
After-tax$393 $854 $468 $62 $1,373 $437 $1,247 $1,810 
Prior year reserve development - favorable:
Pre-tax$67 $172 $181 $70 $237 $155 $239 $392 
After-tax$52 $137 $143 $56 $187 $122 $189 $309 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
16
The Travelers Companies, Inc.
Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
image2.gif

($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Underwriting gain (loss)$82 $(296)$236 $641 $(529)$380 $(214)$(149)
Net investment income122 129 133 141 141 141 251 282 
Other income16 14 15 16 14 13 30 27 
Segment income (loss)$220 $(153)$384 $798 $(374)$534 $67 $160 
Combined ratio (1)
Loss and loss adjustment expense ratio72.2 %83.7 %67.7 %56.2 %91.0 %64.0 %78.0 %77.4 %
Underwriting expense ratio24.7 %24.8 %24.8 %24.5 %24.2 %24.4 %24.8 %24.3 %
Combined ratio96.9 %108.5 %92.5 %80.7 %115.2 %88.4 %102.8 %101.7 %
Impact on combined ratio:
Net favorable prior year reserve development(1.6)%(4.2)%(4.3)%(1.6)%(5.6)%(3.6)%(2.9)%(4.5)%
Catastrophes, net of reinsurance12.4 %26.4 %14.1 %1.8 %40.9 %12.7 %19.5 %26.6 %
Underlying combined ratio86.1 %86.3 %82.7 %80.5 %79.9 %79.3 %86.2 %79.6 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$26 $25 $23 $24 $24 $24 $51 $48 
Fee income$8 $10 $12 $13 $11 $13 $18 $24 
Non-insurance general and administrative expenses$5 $6 $4 $6 $6 $6 $11 $12 


 







See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

17
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
image2.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting
Gross written premiums$3,851 $4,569 $4,811 $4,285 $4,021 $4,700 $8,420 $8,721 
Net written premiums$3,643 $4,536 $4,728 $4,262 $3,818 $4,666 $8,179 $8,484 
Net earned premiums$4,010 $4,098 $4,221 $4,309 $4,250 $4,355 $8,108 $8,605 
Losses and loss adjustment expenses2,896 3,430 2,857 2,423 3,867 2,787 6,326 6,654 
Underwriting expenses971 1,083 1,135 1,051 976 1,122 2,054 2,098 
Statutory underwriting gain (loss)$143 $(415)$229 $835 $(593)$446 $(272)$(147)
Policies in force (in thousands)
Automobile3,212 3,180 3,158 3,150 3,118 3,083 3,180 3,083 
Homeowners and Other6,235 6,167 6,106 6,060 5,980 5,882 6,167 5,882 




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

18
The Travelers Companies, Inc.
Net Written Premiums - Personal Insurance
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net written premiums by product line
Domestic
Automobile$1,859 $2,001 $2,138 $1,927 $1,859 $1,968 $3,860 $3,827 
Homeowners and Other1,635 2,347 2,410 2,158 1,813 2,520 3,982 4,333 
Total Domestic3,494 4,348 4,548 4,085 3,672 4,488 7,842 8,160 
International149 188 180 177 146 178 337 324 
Total$3,643 $4,536 $4,728 $4,262 $3,818 $4,666 $8,179 $8,484 































See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
19
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Automobile
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting
Gross written premiums$1,970 $2,129 $2,264 $2,056 $1,967 $2,083 $4,099 $4,050 
Net written premiums$1,959 $2,120 $2,253 $2,043 $1,955 $2,074 $4,079 $4,029 
Net earned premiums$1,980 $2,026 $2,080 $2,110 $2,071 $2,091 $4,006 $4,162 
Losses and loss adjustment expenses1,430 1,532 1,477 1,518 1,270 1,320 2,962 2,590 
Underwriting expenses454 468 495 471 444 477 922 921 
Statutory underwriting gain$96 $26 $108 $121 $357 $294 $122 $651 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio72.2 %75.6 %71.0 %71.9 %61.3 %63.1 %74.0 %62.2 %
Underwriting expense ratio22.4 %22.3 %22.4 %22.3 %22.1 %22.2 %22.3 %22.1 %
Combined ratio94.6 %97.9 %93.4 %94.2 %83.4 %85.3 %96.3 %84.3 %
Impact on combined ratio:
Net favorable prior year reserve development(2.3)%(1.5)%(2.7)%(1.5)%(6.0)%(5.0)%(1.9)%(5.5)%
Catastrophes, net of reinsurance2.0 %4.2 %4.9 %(0.6)%1.9 %1.3 %3.1 %1.6 %
Underlying combined ratio94.9 %95.2 %91.2 %96.3 %87.5 %89.0 %95.1 %88.2 %
Catastrophes, net of reinsurance:
Pre-tax$39 $85 $103 $(13)$39 $27 $124 $66 
After-tax$31 $67 $81 $(10)$30 $22 $98 $52 
Prior year reserve development - favorable:
Pre-tax$45 $30 $56 $31 $125 $104 $75 $229 
After-tax$34 $26 $45 $25 $98 $83 $60 $181 
Policies in force (in thousands)3,212 3,180 3,158 3,150 3,118 3,083 
Change from prior year quarter(1.1)%(1.4)%(2.0)%(2.3)%(2.9)%(3.1)%
Change from prior quarter(0.3)%(1.0)%(0.7)%(0.3)%(1.0)%(1.1)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$15 $15 $14 $15 $14 $15 $30 $29 
Fee income$4 $5 $7 $7 $6 $6 $9 $12 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
20
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Homeowners and Other
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory underwriting
Gross written premiums$1,881 $2,440 $2,547 $2,229 $2,054 $2,617 $4,321 $4,671 
Net written premiums$1,684 $2,416 $2,475 $2,219 $1,863 $2,592 $4,100 $4,455 
Net earned premiums$2,030 $2,072 $2,141 $2,199 $2,179 $2,264 $4,102 $4,443 
Losses and loss adjustment expenses1,466 1,898 1,380 905 2,597 1,467 3,364 4,064 
Underwriting expenses517 615 640 580 532 645 1,132 1,177 
Statutory underwriting gain (loss)$47 $(441)$121 $714 $(950)$152 $(394)$(798)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio72.2 %91.6 %64.5 %41.2 %119.2 %64.8 %82.0 %91.5 %
Underwriting expense ratio26.9 %27.2 %27.0 %26.6 %26.3 %26.5 %27.1 %26.4 %
Combined ratio99.1 %118.8 %91.5 %67.8 %145.5 %91.3 %109.1 %117.9 %
Impact on combined ratio:
Net favorable prior year reserve development(1.1)%(6.8)%(5.9)%(1.8)%(5.1)%(2.2)%(4.0)%(3.6)%
Catastrophes, net of reinsurance22.6 %48.0 %23.0 %4.2 %78.0 %23.2 %35.5 %50.1 %
Underlying combined ratio77.6 %77.6 %74.4 %65.4 %72.6 %70.3 %77.6 %71.4 %
Catastrophes, net of reinsurance:
Pre-tax$459 $995 $492 $92 $1,699 $527 $1,454 $2,226 
After-tax$362 $787 $387 $72 $1,343 $415 $1,149 $1,758 
Prior year reserve development - favorable:
Pre-tax$22 $142 $125 $39 $112 $51 $164 $163 
After-tax$18 $111 $98 $31 $89 $39 $129 $128 
Policies in force (in thousands)6,235 6,167 6,106 6,060 5,980 5,882 
Change from prior year quarter(1.9)%(3.0)%(3.8)%(3.7)%(4.1)%(4.6)%
Change from prior quarter(0.9)%(1.1)%(1.0)%(0.8)%(1.3)%(1.6)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Billing and policy fees and other$11 $10 $9 $9 $10 $9 $21 $19 
Fee income$4 $5 $5 $6 $5 $7 $9 $12 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
21
The Travelers Companies, Inc.
Interest Expense and Other
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Revenues
Other revenues$— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense98 98 98 98 99 99 196 198 
General and administrative expenses8 12 11 13 11 12 20 23 
Total claims and expenses106 110 109 111 110 111 216 221 
Loss before income tax benefit(106)(110)(109)(111)(110)(111)(216)(221)
Income tax benefit(23)(22)(23)(23)(24)(24)(45)(48)
Loss$(83)$(88)$(86)$(88)$(86)$(87)$(171)$(173)




























See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2.gif
($ and shares in millions)June 30,
2025		December 31,
2024
Assets
Fixed maturities, available for sale, at fair value (amortized cost $91,406 and $88,277; allowance for expected credit losses of $4 and $2)
$87,569 $83,666 
Equity securities, at fair value (cost $505 and $544)
651 687 
Real estate investments891 902 
Short-term securities4,748 4,766 
Other investments4,206 4,202 
Total investments98,065 94,223 
Cash (including restricted cash of $138 and $131)
659 699 
Investment income accrued785 752 
Premiums receivable (net of allowance for expected credit losses of $61 and $58)
12,042 11,110 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $127 and $119)
8,059 8,000 
Ceded unearned premiums1,692 1,202 
Deferred acquisition costs3,667 3,494 
Deferred taxes1,630 1,762 
Contractholder receivables (net of allowance for expected credit losses of $17 and $18)
3,095 3,171 
Goodwill4,283 4,233 
Other intangible assets348 360 
Other assets4,548 4,183 
Total assets$138,873 $133,189 
Liabilities
Claims and claim adjustment expense reserves$66,941 $64,093 
Unearned premium reserves23,288 22,289 
Contractholder payables3,112 3,189 
Payables for reinsurance premiums987 550 
Debt8,034 8,033 
Other liabilities6,993 7,171 
Total liabilities109,355 105,325 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 225.1 and 226.6 shares issued and outstanding)
25,728 25,452 
Retained earnings51,041 49,630 
Accumulated other comprehensive loss(4,085)(4,967)
Treasury stock, at cost (567.8 and 564.3 shares)
(43,166)(42,251)
Total shareholders’ equity29,518 27,864 
Total liabilities and shareholders’ equity$138,873 $133,189 


23
The Travelers Companies, Inc.
Investment Portfolio
image2.gif
(at carrying value, $ in millions)June 30,
2025		Pre-tax Book
Yield (1)		December 31,
2024		Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$63,588 3.98 %$61,012 3.87 %
Tax-exempt fixed maturities23,981 3.15 %22,654 3.00 %
Total fixed maturities87,569 3.74 %83,666 3.63 %
Non-redeemable preferred stocks43 2.20 %48 2.20 %
Common stocks608 639 
Total equity securities651 687 
Real estate investments891 902 
Short-term securities4,748 4.43 %4,766 4.54 %
Private equities2,806 2,815 
Hedge funds208 219 
Real estate partnerships862 858 
Other investments330 310 
Total other investments4,206 4,202 
Total investments$98,065 $94,223 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(3,031)$(3,640)

(1)  Yields are provided for those investments with an embedded book yield.





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2.gif
(at carrying value, $ in millions)June 30,
2025		December 31,
2024
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$3,843 $5,570 
Obligations of U.S. states and political subdivisions:
Pre-refunded575 572 
All other27,985 26,613 
Total28,560 27,185 
Debt securities issued by foreign governments978 909 
Mortgage-backed securities - principally obligations of U.S. Government agencies13,112 12,605 
Corporate and all other bonds41,076 37,397 
Total fixed maturities$87,569 $83,666 
Fixed Maturities
Quality Characteristics (1)
June 30, 2025December 31, 2024
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$24,519 28.0 %$40,411 48.3 %
Aa32,429 37.0 15,278 18.3 
A18,507 21.1 16,181 19.3 
Baa11,084 12.7 10,816 12.9 
Total investment grade86,539 98.8 82,686 98.8 
Ba736 0.8 686 0.8 
B254 0.3 247 0.3 
Caa and lower40 0.1 47 0.1 
Total below investment grade1,030 1.2 980 1.2 
Total fixed maturities$87,569 100.0 %$83,666 100.0 %
Average weighted quality Aa2, AAAa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases4.6 4.3 

 

(1)  Rated using external rating agencies or by Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.
25
The Travelers Companies, Inc.
Investment Income
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Gross investment income
Fixed maturities$692 $709 $749 $798 $812 $833 $1,401 $1,645 
Short-term securities70 70 77 63 57 55 140 112 
Other98 118 90 103 76 67 216 143 
860 897 916 964 945 955 1,757 1,900 
Investment expenses14 12 12 9 15 13 26 28 
Net investment income, pre-tax846 885 904 955 930 942 1,731 1,872 
Income taxes148 158 162 170 167 168 306 335 
Net investment income, after-tax$698 $727 $742 $785 $763 $774 $1,425 $1,537 
Effective tax rate17.6 %17.8 %17.9 %17.9 %17.9 %17.9 %17.7 %17.9 %
Average invested assets (1)$94,677$95,402$97,736$100,046$101,000$102,173$95,062$101,634
Average yield pre-tax (1)3.6 %3.7 %3.7 %3.8 %3.7 %3.7 %3.6 %3.7 %
Average yield after-tax2.9 %3.0 %3.0 %3.1 %3.0 %3.0 %3.0 %3.0 %

(1)  Excludes net unrealized investment gains (losses), and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.

26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
image2.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Net realized investment gains (losses)
Fixed maturities$(40)$(35)$(17)$(39)$(31)$(17)$(75)$(48)
Equity securities 79 (28)53 (5)(22)20 51 (2)
Other (4)(2)19 (11)(8)3 (6)(5)
Realized investment gains (losses) before tax35 (65)55 (55)(61)6 (30)(55)
Related taxes8 (14)13 (11)(13)1 (6)(12)
Net realized investment gains (losses)$27 $(51)$42 $(44)$(48)$5 $(24)$(43)
Gross investment gains$85 $7 $85 $10 $4 $41 $92 $45 
Gross investment losses before impairments(47)(72)(25)(63)(63)(35)(119)(98)
Net investment gains (losses) before impairments38 (65)60 (53)(59)6 (27)(53)
Net impairment (charges) recoveries(3)— (5)(2)(2)— (3)(2)
Net realized investment gains (losses) before tax35 (65)55 (55)(61)6 (30)(55)
Related taxes8 (14)13 (11)(13)1 (6)(12)
Net realized investment gains (losses)$27 $(51)$42 $(44)$(48)$5 $(24)$(43)
($ in millions)March 31,
2024		June 30,
2024		September 30,
2024		December 31,
2024		March 31,
2025		June 30,
2025
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities$(4,718)$(5,042)$(2,672)$(4,609)$(4,171)$(3,833)
Other (2)(1)— — (1)2 
Unrealized investment gains (losses) before tax(4,720)(5,043)(2,672)(4,609)(4,172)(3,831)
Related taxes (999)(1,067)(561)(969)(873)(800)
Balance, end of period$(3,721)$(3,976)$(2,111)$(3,640)$(3,299)$(3,031)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2.gif
($ in millions)June 30, 2025December 31, 2024
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$4,161 $3,962 
Gross structured settlements (2)2,586 2,626 
Mandatory pools and associations (3) 1,439 1,531 
Gross reinsurance recoverables (4)8,186 8,119 
Allowance for estimated uncollectible reinsurance (5)(127)(119)
Net reinsurance recoverables$8,059 $8,000 
(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
ReinsurerA.M. Best Rating of Group's Predominant ReinsurerJune 30, 2025
Swiss Re GroupA+ second highest of 16 ratings$710 
Berkshire HathawayA++ highest of 16 ratings446 
Munich Re GroupA+ second highest of 16 ratings332 
Axa GroupA+ second highest of 16 ratings172 
Arch Insurance GroupA+ second highest of 16 ratings171 
The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.


(2)  Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion.  In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments.  The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

The Company’s top five groups included in gross structured settlements is as follows:
GroupA.M. Best Rating of Group's Predominant InsurerJune 30, 2025
Fidelity & Guaranty Life Group  A third highest of 16 ratings$645 
Genworth Financial Group B- eighth highest of 16 ratings315 
John Hancock GroupA+ second highest of 16 ratings218 
Symetra Financial CorporationA third highest of 16 ratings196 
Brighthouse Financial, Inc.A third highest of 16 ratings168 

(3)  The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in.  These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market.  The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state.  In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities. 

(4) Of the total reinsurance recoverables at June 30, 2025, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.92 billion, or 88%, were rated by A.M. Best Company.  The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better.  The remaining 12% of reinsurance recoverables comprised the following:  5% related to captive insurance companies, 1% related to voluntary pools and 6% were balances from other companies not rated by A.M. Best Company.  Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors.  For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. 
28
The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period$40,833 $41,391 $42,050 $42,960 $42,909 $43,742 $40,833 $42,909 
Incurred3,282 3,422 3,645 3,116 3,650 3,530 6,704 7,180 
Paid(2,697)(2,758)(2,786)(3,066)(2,847)(2,890)(5,455)(5,737)
Foreign exchange and other(27)(5)51 (101)30 95 (32)125 
End of period$41,391 $42,050 $42,960 $42,909 $43,742 $44,477 $42,050 $44,477 
Bond & Specialty Insurance
Beginning of period$4,521 $4,626 $4,773 $4,931 $4,938 $5,072 $4,521 $4,938 
Incurred424 468 438 427 430 414 892 844 
Paid(306)(320)(332)(344)(325)(307)(626)(632)
Foreign exchange and other(13)(1)52 (76)29 70 (14)99 
End of period$4,626 $4,773 $4,931 $4,938 $5,072 $5,249 $4,773 $5,249 
Personal Insurance
Beginning of period$8,363 $8,561 $9,099 $9,018 $8,479 $9,277 $8,363 $8,479 
Incurred2,896 3,430 2,857 2,423 3,867 2,787 6,326 6,654 
Paid(2,678)(2,885)(2,948)(2,908)(3,069)(2,767)(5,563)(5,836)
Foreign exchange and other(20)(7)10 (54)— 49 (27)49 
End of period$8,561 $9,099 $9,018 $8,479 $9,277 $9,346 $9,099 $9,346 
Total
Beginning of period$53,717 $54,578 $55,922 $56,909 $56,326 $58,091 $53,717 $56,326 
Incurred6,602 7,320 6,940 5,966 7,947 6,731 13,922 14,678 
Paid(5,681)(5,963)(6,066)(6,318)(6,241)(5,964)(11,644)(12,205)
Foreign exchange and other(60)(13)113 (231)59 214 (73)273 
End of period$54,578 $55,922 $56,909 $56,326 $58,091 $59,072 $55,922 $59,072 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $242 $— $— $— $— $— 
All other— (34)(151)(147)(74)(79)(34)(153)
Total Business Insurance (1)— (34)91 (147)(74)(79)(34)(153)
Bond & Specialty Insurance(24)(24)(36)(45)(67)(81)(48)(148)
Personal Insurance(67)(172)(181)(70)(237)(155)(239)(392)
Total$(91)$(230)$(126)$(262)$(378)$(315)$(321)$(693)
(1)  Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
29
The Travelers Companies, Inc.
Asbestos Reserves
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Asbestos reserves
Beginning reserves:
Gross$1,768 $1,686 $1,612 $1,815 $1,708 $1,636 $1,768 $1,708 
Ceded(390)(382)(368)(395)(370)(357)(390)(370)
Net1,378 1,304 1,244 1,420 1,338 1,279 1,378 1,338 
Incurred losses and loss expenses:
Gross— — 279 — — — — — 
Ceded— — (37)— — — — — 
Paid loss and loss expenses:
Gross82 74 77 106 72 83 156 155 
Ceded(8)(13)(11)(25)(13)(39)(21)(52)
Foreign exchange and other:
Gross— — 1 (1)— 2 — 2 
Ceded— 1 (1)— — — 1 — 
Ending reserves:
Gross1,686 1,612 1,815 1,708 1,636 1,555 1,612 1,555 
Ceded(382)(368)(395)(370)(357)(318)(368)(318)
Net$1,304 $1,244 $1,420 $1,338 $1,279 $1,237 $1,244 $1,237 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2.gif
($ in millions)June 30,
2025		December 31,
2024
Debt
Short-term debt
Commercial paper$100 $100 
7.75% Senior notes due April 15, 2026200 — 
Total short-term debt300 100 
Long-term debt
7.75% Senior notes due April 15, 2026— 200 
7.625% Junior subordinated debentures due December 15, 2027125 125 
6.375% Senior notes due March 15, 2033 (1)500 500 
6.75% Senior notes due June 20, 2036 (1)400 400 
6.25% Senior notes due June 15, 2037 (1)800 800 
5.35% Senior notes due November 1, 2040 (1)750 750 
4.60% Senior notes due August 1, 2043 (1)500 500 
4.30% Senior notes due August 25, 2045 (1)400 400 
8.50% Junior subordinated debentures due December 15, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 73 
4.00% Senior notes due May 30, 2047 (1)700 700 
4.05% Senior notes due March 7, 2048 (1)500 500 
4.10% Senior notes due March 4, 2049 (1)500 500 
2.55% Senior notes due April 27, 2050 (1)500 500 
3.05% Senior notes due June 8, 2051 (1)750 750 
5.45% Senior notes due May 25, 2053 (1)750 750 
Total long-term debt7,804 8,004 
Unamortized fair value adjustment33 34 
Unamortized debt issuance costs(103)(105)
7,734 7,933 
Total debt8,034 8,033 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)32,549 31,504 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$40,583 $39,537 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)19.8 %20.3 %
(1)  Redeemable anytime with “make-whole” premium. 

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
31
The Travelers Companies, Inc.
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation
image2.gif
($ in millions)June 30,
2025 (1)		December 31,
2024
Statutory capital and surplus$28,364 $27,715 
GAAP adjustments
Goodwill and intangible assets3,644 3,635 
Investments(3,305)(3,982)
Noninsurance companies(4,032)(4,350)
Deferred acquisition costs3,524 3,371 
Deferred federal income tax79 218 
Current federal income tax(5)(5)
Reinsurance recoverables44 44 
Furniture, equipment & software935 960 
Agents balances212 230 
Other58 28 
Total GAAP adjustments1,154 149 
GAAP shareholders’ equity$29,518 $27,864 

(1) Estimated and Preliminary
 




















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
32
The Travelers Companies, Inc.
Statement of Cash Flows
image2.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Cash flows from operating activities
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,657 $1,904 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses(35)65 (55)55 61 (6)30 55 
Depreciation and amortization196 182 174 163 188 164 378 352 
Deferred federal income tax expense (benefit)42 (85)(59)(50)31 (83)(43)(52)
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 3,376 3,580 
Equity in income from other investments(68)(89)(63)(74)(53)(42)(157)(95)
Premiums receivable(557)(664)234 128 (459)(438)(1,221)(897)
Reinsurance recoverables33 (34)74 38 (97)78 (1)(19)
Deferred acquisition costs(1,776)(1,807)(1,856)(1,734)(1,822)(1,917)(3,583)(3,739)
Claims and claim adjustment expense reserves928 1,384 755 (387)1,818 725 2,312 2,543 
Unearned premium reserves457 788 659 (416)419 495 1,245 914 
Other(583)(275)962 452 (899)47 (858)(852)
Net cash provided by operating activities1,458 1,677 3,875 2,064 1,360 2,334 3,135 3,694 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,709 2,464 1,817 2,547 2,801 3,071 4,173 5,872 
Proceeds from sales of investments:
Fixed maturities942 308 225 159 253 348 1,250 601 
Equity securities21 41 31 50 68 32 62 100 
Real estate investments— — 64 — — — — — 
Other investments55 55 101 211 63 79 110 142 
Purchases of investments:
Fixed maturities(3,738)(4,349)(4,273)(4,772)(4,296)(4,847)(8,087)(9,143)
Equity securities(26)(21)(33)(44)(25)(35)(47)(60)
Real estate investments(13)(11)(10)(14)(7)(6)(24)(13)
Other investments(90)(95)(98)(113)(96)(80)(185)(176)
Net sales (purchases) of short-term securities454 330 (1,126)712 239 (215)784 24 
Securities transactions in the course of settlement111 247 24 (326)308 64 358 372 
Acquisition, net of cash acquired(381)(1)— — — — (382)— 
Other(81)(111)(113)(103)(116)(127)(192)(243)
Net cash used in investing activities(1,037)(1,143)(3,391)(1,693)(808)(1,716)(2,180)(2,524)

33
The Travelers Companies, Inc.
Statement of Cash Flows (Continued)
image2.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q2025YTD 2Q2024YTD 2Q2025
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(250)(249)(248)(256)(250)(500)(499)(750)
Treasury stock acquired - net employee share-based compensation(110)(1)(1)(2)(102)(22)(111)(124)
Dividends paid to shareholders(229)(244)(238)(240)(240)(250)(473)(490)
Issuance of common stock - employee share options190 22 33 76 57 70 212 127 
Net cash used in financing activities(399)(472)(454)(422)(535)(702)(871)(1,237)
Effect of exchange rate changes on cash and restricted cash(5)— 13 (22)8 19 (5)27 
Net increase (decrease) in cash and restricted cash17 62 43 (73)25 (65)79 (40)
Cash and restricted cash at beginning of period650 667 729 772 699 724 650 699 
Cash and restricted cash at end of period$667 $729 $772 $699 $724 $659 $729 $659 
Supplemental disclosure of cash flow information
Income taxes paid$24 $831 $92 $363 $24 $538 $855 $562 
Interest paid$60 $135 $60 $135 $61 $136 $195 $197 

34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
image2.gif
The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below.  In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.
 
In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance. 
 
Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.
 
Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.
 
Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable.  Segment income (loss) is determined in the same manner as core income (loss) on a segment basis.  Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions.  Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies.  Core income (loss) per share is core income (loss) on a per common share basis.
 
Average shareholders’ equity is (a) the sum of total shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.  Adjusted shareholders’ equity is shareholders’ equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)).  Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of
($ in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025June 30, 2025
Shareholders’ equity$25,022 $24,862 $27,696 $27,864 $28,191 $29,518 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,721 3,976 2,111 3,640 3,299 3,031 
Net realized investment (gains) losses, net of tax(27)24 (18)26 48 43 
Adjusted shareholders’ equity$28,716 $28,862 $29,789 $31,530 $31,538 $32,592 
Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented.  Core return on equity is the ratio of annualized core income (loss) to adjusted average shareholders’ equity for the periods presented.  In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management. 

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses.  In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business.  This measure is used to assess each segment’s business performance and as a tool in making business decisions.
 
A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure.  Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount.  Their effects are included in net and core income and claims and claim adjustment expense reserves upon occurrence.  A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools.  The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company.  Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2025 ranges from $20 million to $30 million of losses before reinsurance and taxes.
 
Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years.  In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.
 
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The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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Combined ratio  For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators.  The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums.  For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio.  For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums.  Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.
 
The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.
 
Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.
 
Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Net written premiums reflect gross written premiums less premiums ceded to reinsurers.
 
Book value per share is total common shareholders’ equity divided by the number of common shares outstanding.  Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.
 
Total capital is the sum of total shareholders’ equity and debt.  Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity.  In the opinion of the Company’s management, the debt to capital ratio is useful in an analysis of the Company’s financial leverage.
 
Statutory capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
 
Travelers has organized its businesses into the following reportable business segments:
 
Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.  Business Insurance is organized as follows:  Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited.  Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements.
 
Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches.  The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.
 
Bond & Specialty Insurance’s surety business in Brazil is conducted through Junto Holding Brasil S.A. (Junto). The Company owns 49.5% of Junto, a market leader in surety coverages in Brazil. This joint venture investment is accounted for using the equity method and is included in “other investments” on the consolidated balance sheet.
 
Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

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