EX-99.2 3 a992finsupp33125.htm EX-99.2

The Travelers Companies, Inc. Financial Supplement - First Quarter 2025						Exhibit 99.2

			Page Number
Consolidated Results
Financial Highlights			1
Reconciliation to Net Income and Earnings Per Share			2
Statement of Income			3
Net Income by Major Component and Combined Ratio			4
Core Income			5
Selected Statistics - Property and Casualty Operations			6
Written and Earned Premiums - Property and Casualty Operations			7
Business Insurance
Segment Income			8
Segment Income by Major Component and Combined Ratio			9
Selected Statistics			10
Net Written Premiums			11
Bond & Specialty Insurance
Segment Income			12
Segment Income by Major Component and Combined Ratio			13
Selected Statistics			14
Net Written Premiums			15
Personal Insurance
Segment Income (Loss)			16
Segment Income (Loss) by Major Component and Combined Ratio			17
Selected Statistics			18
Net Written Premiums			19
Selected Statistics - Automobile			20
Selected Statistics - Homeowners and Other			21
Supplemental Detail
Interest Expense and Other			22
Consolidated Balance Sheet			23
Investment Portfolio			24
Investment Portfolio - Fixed Maturities Data			25
Investment Income			26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity			27
Reinsurance Recoverables			28
Net Reserves for Losses and Loss Adjustment Expense			29
Asbestos Reserves			30
Capitalization			31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation			32
Statement of Cash Flows			33
Statement of Cash Flows (continued)			34
Glossary of Financial Measures and Description of Reportable Business Segments			35-36

 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

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The Travelers Companies, Inc. Financial Highlights

($ and shares in millions, except for per share data)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net income						$	1,123					$	534					$	1,260					$	2,082					$	395
Net income per share:
Basic						$	4.87					$	2.32					$	5.50					$	9.11					$	1.73
Diluted						$	4.80					$	2.29					$	5.42					$	8.96					$	1.70
Core income						$	1,096					$	585					$	1,218					$	2,126					$	443
Core income per share:
Basic						$	4.75					$	2.54					$	5.31					$	9.30					$	1.94
Diluted						$	4.69					$	2.51					$	5.24					$	9.15					$	1.91
Return on equity						18.0		%				8.6		%				19.2		%				30.0		%				5.6		%
Core return on equity						15.4		%				8.1		%				16.6		%				27.7		%				5.6		%
Total assets, at period end						$	127,410					$	129,315					$	134,588					$	133,189					$	135,977
Total equity, at period end						$	25,022					$	24,862					$	27,696					$	27,864					$	28,191
Book value per share, at period end						$	109.28					$	109.08					$	122.00					$	122.97					$	124.43
Less: Net unrealized investment gains (losses), net of tax						(16.25)						(17.44)						(9.30)						(16.07)						(14.56)
Adjusted book value per share, at period end						$	125.53					$	126.52					$	131.30					$	139.04					$	138.99
Weighted average number of common shares outstanding (basic)						229.0						228.6						227.4						226.9						226.9
Weighted average number of common shares outstanding and common stock equivalents (diluted)						232.0						231.5						230.6						230.7						230.4
Common shares outstanding at period end						229.0						227.9						227.0						226.6						226.6
Common stock dividends declared						$	232					$	245					$	243					$	242					$	241
Common stock repurchased:
Under Board of Directors authorization
Shares						1.2						1.1						1.1						1.0						1.0
Cost						$	250					$	250					$	250					$	250					$	250
Other
Shares						0.6						0.1						—						—						0.4
Cost						$	138					$	3					$	3					$	2					$	108

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

1

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The Travelers Companies, Inc. Reconciliation to Net Income and Earnings per Share

($ and shares in millions, except earnings per share)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net income
Net income						$	1,123					$	534					$	1,260					$	2,082					$	395
Adjustments:
Net realized investment (gains) losses, after-tax						(27)						51						(42)						44						48
Core income						$	1,096					$	585					$	1,218					$	2,126					$	443
Basic earnings per share
Net income						$	4.87					$	2.32					$	5.50					$	9.11					$	1.73
Adjustments:
Net realized investment (gains) losses, after-tax						(0.12)						0.22						(0.19)						0.19						0.21
Core income						$	4.75					$	2.54					$	5.31					$	9.30					$	1.94
Diluted earnings per share
Net income						$	4.80					$	2.29					$	5.42					$	8.96					$	1.70
Adjustments:
Net realized investment (gains) losses, after-tax						(0.11)						0.22						(0.18)						0.19						0.21
Core income						$	4.69					$	2.51					$	5.24					$	9.15					$	1.91

Adjustments to net income and weighted average shares for net income EPS calculations: (1)

Basic and Diluted						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net income, as reported						$	1,123					$	534					$	1,260					$	2,082					$	395
Participating share-based awards - allocated income						(8)						(5)						(10)						(15)						(3)
Net income available to common shareholders - basic and diluted						$	1,115					$	529					$	1,250					$	2,067					$	392
Common Shares
Basic
Weighted average shares outstanding						229.0						228.6						227.4						226.9						226.9
Diluted
Weighted average shares outstanding						229.0						228.6						227.4						226.9						226.9
Weighted average effects of dilutive securities - stock options and performance shares						3.0						2.9						3.2						3.8						3.5
Diluted weighted average shares outstanding						232.0						231.5						230.6						230.7						230.4

(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

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The Travelers Companies, Inc. Statement of Income - Consolidated

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Premiums						$	10,126					$	10,243					$	10,704					$	10,868					$	10,710
Net investment income						846						885						904						955						930
Fee income						109						115						121						128						119
Net realized investment gains (losses)						35						(65)						55						(55)						(61)
Other revenues						112						105						120						112						112
Total revenues						11,228						11,283						11,904						12,008						11,810
Claims and expenses
Claims and claim adjustment expenses						6,656						7,373						6,996						6,034						8,006
Amortization of deferred acquisition costs						1,698						1,678						1,790						1,807						1,778
General and administrative expenses						1,406						1,478						1,460						1,475						1,459
Interest expense						98						98						98						98						99
Total claims and expenses						9,858						10,627						10,344						9,414						11,342
Income before income taxes						1,370						656						1,560						2,594						468
Income tax expense						247						122						300						512						73
Net income						$	1,123					$	534					$	1,260					$	2,082					$	395
Other statistics
Effective tax rate on net investment income						17.6		%				17.8		%				17.9		%				17.9		%				17.9		%
Net investment income (after-tax)						$	698					$	727					$	742					$	785					$	763
Catastrophes, net of reinsurance:
Pre-tax						$	712					$	1,509					$	939					$	175					$	2,266
After-tax						$	563					$	1,192					$	739					$	138					$	1,790
Prior year reserve development - favorable:
Pre-tax						$	91					$	230					$	126					$	262					$	378
After-tax						$	71					$	182					$	99					$	207					$	297

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

3

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The Travelers Companies, Inc. Net Income by Major Component and Combined Ratio - Consolidated

($ in millions, net of tax)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Underwriting gain (loss)						$	472					$	(58)					$	547					$	1,420					$	(239)
Net investment income						698						727						742						785						763
Other income (expense), including interest expense						(74)						(84)						(71)						(79)						(81)
Core income						1,096						585						1,218						2,126						443
Net realized investment gains (losses)						27						(51)						42						(44)						(48)
Net income						$	1,123					$	534					$	1,260					$	2,082					$	395
Combined ratio (1) (2)
Loss and loss adjustment expense ratio						65.2		%				71.4		%				64.8		%				55.0		%				74.2		%
Underwriting expense ratio						28.7		%				28.8		%				28.4		%				28.2		%				28.3		%
Combined ratio						93.9		%				100.2		%				93.2		%				83.2		%				102.5		%
Impact on combined ratio:
Net favorable prior year reserve development						(0.9)		%				(2.2)		%				(1.2)		%				(2.4)		%				(3.5)		%
Catastrophes, net of reinsurance						7.1		%				14.7		%				8.8		%				1.6		%				21.2		%
Underlying combined ratio						87.7		%				87.7		%				85.6		%				84.0		%				84.8		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	30					$	30					$	28					$	28					$	28
Fee income:
Loss and loss adjustment expenses						$	39					$	42					$	44					$	47					$	45
Underwriting expenses						70						73						77						81						74
Total fee income						$	109					$	115					$	121					$	128					$	119
Non-insurance general and administrative expenses						$	102					$	106					$	106					$	107					$	109

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

4

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The Travelers Companies, Inc. Core Income - Consolidated

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Premiums						$	10,126					$	10,243					$	10,704					$	10,868					$	10,710
Net investment income						846						885						904						955						930
Fee income						109						115						121						128						119
Other revenues						112						105						120						112						112
Total revenues						11,193						11,348						11,849						12,063						11,871
Claims and expenses
Claims and claim adjustment expenses						6,656						7,373						6,996						6,034						8,006
Amortization of deferred acquisition costs						1,698						1,678						1,790						1,807						1,778
General and administrative expenses						1,406						1,478						1,460						1,475						1,459
Interest expense						98						98						98						98						99
Total claims and expenses						9,858						10,627						10,344						9,414						11,342
Core income before income taxes						1,335						721						1,505						2,649						529
Income tax expense						239						136						287						523						86
Core income						$	1,096					$	585					$	1,218					$	2,126					$	443
Other statistics
Effective tax rate on net investment income						17.6		%				17.8		%				17.9		%				17.9		%				17.9		%
Net investment income (after-tax)						$	698					$	727					$	742					$	785					$	763
Catastrophes, net of reinsurance:
Pre-tax						$	712					$	1,509					$	939					$	175					$	2,266
After-tax						$	563					$	1,192					$	739					$	138					$	1,790
Prior year reserve development - favorable:
Pre-tax						$	91					$	230					$	126					$	262					$	378
After-tax						$	71					$	182					$	99					$	207					$	297

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

5

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The Travelers Companies, Inc. Selected Statistics - Property and Casualty Operations

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	11,310					$	11,865					$	12,149					$	11,226					$	11,890
Net written premiums						$	10,184					$	11,115					$	11,317					$	10,742					$	10,515
Net earned premiums						$	10,128					$	10,243					$	10,704					$	10,868					$	10,710
Losses and loss adjustment expenses						6,602						7,320						6,940						5,966						7,947
Underwriting expenses						3,012						3,111						3,139						3,038						3,098
Statutory underwriting gain (loss)						514						(188)						625						1,864						(335)
Policyholder dividends						12						12						12						11						13
Statutory underwriting gain (loss) after policyholder dividends						$	502					$	(200)					$	613					$	1,853					$	(348)
Other statutory statistics
Reserves for losses and loss adjustment expenses						$	54,578					$	55,922					$	56,909					$	56,326					$	58,091
Increase (decrease) in reserves						$	861					$	1,344					$	987					$	(583)					$	1,765
Statutory capital and surplus						$	25,329					$	25,210					$	26,191					$	27,715					$	27,785
Net written premiums/surplus (1)						1.62:1						1.66:1						1.63:1						1.56:1						1.57:1

(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

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The Travelers Companies, Inc. Written and Earned Premiums - Property and Casualty Operations

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Written premiums
Gross						$	11,310					$	11,865					$	12,149					$	11,226					$	11,890
Ceded						(1,128)						(750)						(832)						(484)						(1,375)
Net						$	10,182					$	11,115					$	11,317					$	10,742					$	10,515
Earned premiums
Gross						$	10,867					$	11,083					$	11,484					$	11,644					$	11,487
Ceded						(741)						(840)						(780)						(776)						(777)
Net						$	10,126					$	10,243					$	10,704					$	10,868					$	10,710

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

7

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The Travelers Companies, Inc. Segment Income - Business Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Premiums						$	5,160					$	5,168					$	5,474					$	5,543					$	5,465
Net investment income						609						632						642						677						656
Fee income						101						105						109						115						108
Other revenues						77						77						89						79						82
Total revenues						5,947						5,982						6,314						6,414						6,311
Claims and expenses
Claims and claim adjustment expenses						3,331						3,471						3,698						3,179						3,705
Amortization of deferred acquisition costs						864						861						930						933						917
General and administrative expenses						818						835						826						824						847
Total claims and expenses						5,013						5,167						5,454						4,936						5,469
Segment income before income taxes						934						815						860						1,478						842
Income tax expense						170						159						162						290						159
Segment income						$	764					$	656					$	698					$	1,188					$	683
Other statistics
Effective tax rate on net investment income						17.4		%				17.7		%				17.7		%				17.8		%				17.8		%
Net investment income (after-tax)						$	502					$	521					$	528					$	557					$	539
Catastrophes, net of reinsurance:
Pre-tax						$	209					$	389					$	340					$	94					$	509
After-tax						$	166					$	307					$	268					$	74					$	402
Prior year reserve development - favorable (unfavorable):
Pre-tax						$	—					$	34					$	(91)					$	147					$	74
After-tax						$	—					$	26					$	(72)					$	116					$	58

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

8

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The Travelers Companies, Inc. Segment Income by Major Component and Combined Ratio - Business Insurance

($ in millions, net of tax)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Underwriting gain						$	274					$	148					$	176					$	642					$	157
Net investment income						502						521						528						557						539
Other income (expense)						(12)						(13)						(6)						(11)						(13)
Segment income						$	764					$	656					$	698					$	1,188					$	683
Combined ratio (1) (2)
Loss and loss adjustment expense ratio						63.6		%				66.2		%				66.6		%				56.4		%				66.8		%
Underwriting expense ratio						29.7		%				29.9		%				29.2		%				28.8		%				29.4		%
Combined ratio						93.3		%				96.1		%				95.8		%				85.2		%				96.2		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development						—		%				(0.6)		%				1.7		%				(2.7)		%				(1.3)		%
Catastrophes, net of reinsurance						4.1		%				7.5		%				6.2		%				1.7		%				9.3		%
Underlying combined ratio						89.2		%				89.2		%				87.9		%				86.2		%				88.2		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	4					$	4					$	4					$	4					$	4
Fee income:
Loss and loss adjustment expenses						$	39					$	42					$	44					$	47					$	45
Underwriting expenses						62						63						65						68						63
Total fee income						$	101					$	105					$	109					$	115					$	108
Non-insurance general and administrative expenses						$	86					$	87					$	90					$	86					$	91

 

 

 

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

9

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The Travelers Companies, Inc. Selected Statistics - Business Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	6,383					$	6,169					$	6,173					$	5,790					$	6,740
Net written premiums						$	5,598					$	5,539					$	5,517					$	5,426					$	5,698
Net earned premiums						$	5,162					$	5,168					$	5,474					$	5,543					$	5,465
Losses and loss adjustment expenses						3,282						3,422						3,645						3,116						3,650
Underwriting expenses						1,630						1,620						1,583						1,566						1,700
Statutory underwriting gain						250						126						246						861						115
Policyholder dividends						8						7						9						7						9
Statutory underwriting gain after policyholder dividends						$	242					$	119					$	237					$	854					$	106

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

10

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The Travelers Companies, Inc. Net Written Premiums - Business Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net written premiums by market
Domestic
Select Accounts						$	974					$	975					$	885					$	893					$	976
Middle Market						3,213						2,769						3,030						3,011						3,166
National Accounts						327						312						264						356						312
National Property and Other						642						912						896						684						720
Total Domestic						5,156						4,968						5,075						4,944						5,174
International						440						571						442						482						524
Total						$	5,596					$	5,539					$	5,517					$	5,426					$	5,698
Net written premiums by product line
Domestic
Workers’ compensation						$	1,019					$	847					$	795					$	808					$	950
Commercial automobile						964						923						937						954						1,030
Commercial property						763						1,054						1,022						859						873
General liability						965						809						914						903						753
Commercial multi-peril						1,416						1,345						1,367						1,409						1,532
Other						29						(10)						40						11						36
Total Domestic						5,156						4,968						5,075						4,944						5,174
International						440						571						442						482						524
Total						$	5,596					$	5,539					$	5,517					$	5,426					$	5,698

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

11

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The Travelers Companies, Inc. Segment Income - Bond & Specialty Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Premiums						$	956					$	977					$	1,009					$	1,016					$	995
Net investment income						90						94						101						105						102
Other revenues						9						6						7						8						6
Total revenues						1,055						1,077						1,117						1,129						1,103
Claims and expenses
Claims and claim adjustment expenses						428						473						441						432						434
Amortization of deferred acquisition costs						182						183						194						197						187
General and administrative expenses						205						207						203						217						205
Total claims and expenses						815						863						838						846						826
Segment income before income taxes						240						214						279						283						277
Income tax expense						45						44						57						55						57
Segment income						$	195					$	170					$	222					$	228					$	220
Other statistics
Effective tax rate on net investment income						18.0		%				18.2		%				18.8		%				18.5		%				18.4		%
Net investment income (after-tax)						$	74					$	77					$	81					$	87					$	83
Catastrophes, net of reinsurance:
Pre-tax						$	5					$	40					$	4					$	2					$	19
After-tax						$	4					$	31					$	3					$	2					$	15
Prior year reserve development - favorable:
Pre-tax						$	24					$	24					$	36					$	45					$	67
After-tax						$	19					$	19					$	28					$	35					$	52

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

12

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The Travelers Companies, Inc. Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance

($ in millions, net of tax)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Underwriting gain						$	116					$	90					$	135					$	137					$	133
Net investment income						74						77						81						87						83
Other income						5						3						6						4						4
Segment income						$	195					$	170					$	222					$	228					$	220
Combined ratio (1)
Loss and loss adjustment expense ratio						44.4		%				48.0		%				43.4		%				42.1		%				43.2		%
Underwriting expense ratio						40.1		%				39.7		%				39.1		%				40.6		%				39.3		%
Combined ratio						84.5		%				87.7		%				82.5		%				82.7		%				82.5		%
Impact on combined ratio:
Net favorable prior year reserve development						(2.5)		%				(2.5)		%				(3.5)		%				(4.3)		%				(6.7)		%
Catastrophes, net of reinsurance						0.5		%				4.1		%				0.4		%				0.2		%				1.9		%
Underlying combined ratio						86.5		%				86.1		%				85.6		%				86.8		%				87.3		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	—					$	1					$	1					$	—					$	—
Non-insurance general and administrative expenses						$	3					$	1					$	1					$	2					$	1

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

13

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The Travelers Companies, Inc. Selected Statistics - Bond & Specialty Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	1,076					$	1,127					$	1,165					$	1,151					$	1,129
Net written premiums						$	943					$	1,040					$	1,072					$	1,054					$	999
Net earned premiums						$	956					$	977					$	1,009					$	1,016					$	995
Losses and loss adjustment expenses						424						468						438						427						430
Underwriting expenses						411						408						421						421						422
Statutory underwriting gain						121						101						150						168						143
Policyholder dividends						4						5						3						4						4
Statutory underwriting gain after policyholder dividends						$	117					$	96					$	147					$	164					$	139

 

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

14

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The Travelers Companies, Inc. Net Written Premiums - Bond & Specialty Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net written premiums by market
Domestic
Management Liability						$	543					$	586					$	617					$	563					$	553
Surety						296						325						344						329						333
Total Domestic						839						911						961						892						886
International						104						129						111						162						113
Total						$	943					$	1,040					$	1,072					$	1,054					$	999
Net written premiums by product line
Domestic
Fidelity and surety						$	356					$	382					$	411					$	387					$	394
General liability						434						468						479						452						440
Other						49						61						71						53						52
Total Domestic						839						911						961						892						886
International						104						129						111						162						113
Total						$	943					$	1,040					$	1,072					$	1,054					$	999

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

15

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

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Premiums						$	4,010					$	4,098					$	4,221					$	4,309					$	4,250
Net investment income						147						159						161						173						172
Fee income						8						10						12						13						11
Other revenues						26						22						24						25						24
Total revenues						4,191						4,289						4,418						4,520						4,457
Claims and expenses
Claims and claim adjustment expenses						2,897						3,429						2,857						2,423						3,867
Amortization of deferred acquisition costs						652						634						666						677						674
General and administrative expenses						375						424						420						421						396
Total claims and expenses						3,924						4,487						3,943						3,521						4,937
Segment income (loss) before income taxes						267						(198)						475						999						(480)
Income tax expense (benefit)						47						(45)						91						201						(106)
Segment income (loss)						$	220					$	(153)					$	384					$	798					$	(374)
Other statistics
Effective tax rate on net investment income						17.7		%				18.0		%				18.0		%				18.1		%				18.1		%
Net investment income (after-tax)						$	122					$	129					$	133					$	141					$	141
Catastrophes, net of reinsurance:
Pre-tax						$	498					$	1,080					$	595					$	79					$	1,738
After-tax						$	393					$	854					$	468					$	62					$	1,373
Prior year reserve development - favorable:
Pre-tax						$	67					$	172					$	181					$	70					$	237
After-tax						$	52					$	137					$	143					$	56					$	187

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

16

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The Travelers Companies, Inc. Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance

($ in millions, net of tax)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Underwriting gain (loss)						$	82					$	(296)					$	236					$	641					$	(529)
Net investment income						122						129						133						141						141
Other income						16						14						15						16						14
Segment income (loss)						$	220					$	(153)					$	384					$	798					$	(374)
Combined ratio (1)
Loss and loss adjustment expense ratio						72.2		%				83.7		%				67.7		%				56.2		%				91.0		%
Underwriting expense ratio						24.7		%				24.8		%				24.8		%				24.5		%				24.2		%
Combined ratio						96.9		%				108.5		%				92.5		%				80.7		%				115.2		%
Impact on combined ratio:
Net favorable prior year reserve development						(1.6)		%				(4.2)		%				(4.3)		%				(1.6)		%				(5.6)		%
Catastrophes, net of reinsurance						12.4		%				26.4		%				14.1		%				1.8		%				40.9		%
Underlying combined ratio						86.1		%				86.3		%				82.7		%				80.5		%				79.9		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	26					$	25					$	23					$	24					$	24
Fee income						$	8					$	10					$	12					$	13					$	11
Non-insurance general and administrative expenses						$	5					$	6					$	4					$	6					$	6

 

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

17

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The Travelers Companies, Inc. Selected Statistics - Personal Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	3,851					$	4,569					$	4,811					$	4,285					$	4,021
Net written premiums						$	3,643					$	4,536					$	4,728					$	4,262					$	3,818
Net earned premiums						$	4,010					$	4,098					$	4,221					$	4,309					$	4,250
Losses and loss adjustment expenses						2,896						3,430						2,857						2,423						3,867
Underwriting expenses						971						1,083						1,135						1,051						976
Statutory underwriting gain (loss)						$	143					$	(415)					$	229					$	835					$	(593)
Policies in force (in thousands)
Automobile						3,212						3,180						3,158						3,150						3,118
Homeowners and Other						6,235						6,167						6,106						6,060						5,980

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

18

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The Travelers Companies, Inc. Net Written Premiums - Personal Insurance

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net written premiums by product line
Domestic
Automobile						$	1,859					$	2,001					$	2,138					$	1,927					$	1,859
Homeowners and Other						1,635						2,347						2,410						2,158						1,813
Total Domestic						3,494						4,348						4,548						4,085						3,672
International						149						188						180						177						146
Total						$	3,643					$	4,536					$	4,728					$	4,262					$	3,818

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

19

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The Travelers Companies, Inc. Selected Statistics - Personal Insurance - Automobile

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	1,970					$	2,129					$	2,264					$	2,056					$	1,967
Net written premiums						$	1,959					$	2,120					$	2,253					$	2,043					$	1,955
Net earned premiums						$	1,980					$	2,026					$	2,080					$	2,110					$	2,071
Losses and loss adjustment expenses						1,430						1,532						1,477						1,518						1,270
Underwriting expenses						454						468						495						471						444
Statutory underwriting gain						$	96					$	26					$	108					$	121					$	357
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio						72.2		%				75.6		%				71.0		%				71.9		%				61.3		%
Underwriting expense ratio						22.4		%				22.3		%				22.4		%				22.3		%				22.1		%
Combined ratio						94.6		%				97.9		%				93.4		%				94.2		%				83.4		%
Impact on combined ratio:
Net favorable prior year reserve development						(2.3)		%				(1.5)		%				(2.7)		%				(1.5)		%				(6.0)		%
Catastrophes, net of reinsurance						2.0		%				4.2		%				4.9		%				(0.6)		%				1.9		%
Underlying combined ratio						94.9		%				95.2		%				91.2		%				96.3		%				87.5		%
Catastrophes, net of reinsurance:
Pre-tax						$	39					$	85					$	103					$	(13)					$	39
After-tax						$	31					$	67					$	81					$	(10)					$	30
Prior year reserve development - favorable:
Pre-tax						$	45					$	30					$	56					$	31					$	125
After-tax						$	34					$	26					$	45					$	25					$	98
Policies in force (in thousands)						3,212						3,180						3,158						3,150						3,118
Change from prior year quarter						(1.1)		%				(1.4)		%				(2.0)		%				(2.3)		%				(2.9)		%
Change from prior quarter						(0.3)		%				(1.0)		%				(0.7)		%				(0.3)		%				(1.0)		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	15					$	15					$	14					$	15					$	14
Fee income						$	4					$	5					$	7					$	7					$	6

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

20

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The Travelers Companies, Inc. Selected Statistics - Personal Insurance - Homeowners and Other

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory underwriting
Gross written premiums						$	1,881					$	2,440					$	2,547					$	2,229					$	2,054
Net written premiums						$	1,684					$	2,416					$	2,475					$	2,219					$	1,863
Net earned premiums						$	2,030					$	2,072					$	2,141					$	2,199					$	2,179
Losses and loss adjustment expenses						1,466						1,898						1,380						905						2,597
Underwriting expenses						517						615						640						580						532
Statutory underwriting gain (loss)						$	47					$	(441)					$	121					$	714					$	(950)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio						72.2		%				91.6		%				64.5		%				41.2		%				119.2		%
Underwriting expense ratio						26.9		%				27.2		%				27.0		%				26.6		%				26.3		%
Combined ratio						99.1		%				118.8		%				91.5		%				67.8		%				145.5		%
Impact on combined ratio:
Net favorable prior year reserve development						(1.1)		%				(6.8)		%				(5.9)		%				(1.8)		%				(5.1)		%
Catastrophes, net of reinsurance						22.6		%				48.0		%				23.0		%				4.2		%				78.0		%
Underlying combined ratio						77.6		%				77.6		%				74.4		%				65.4		%				72.6		%
Catastrophes, net of reinsurance:
Pre-tax						$	459					$	995					$	492					$	92					$	1,699
After-tax						$	362					$	787					$	387					$	72					$	1,343
Prior year reserve development - favorable:
Pre-tax						$	22					$	142					$	125					$	39					$	112
After-tax						$	18					$	111					$	98					$	31					$	89
Policies in force (in thousands)						6,235						6,167						6,106						6,060						5,980
Change from prior year quarter						(1.9)		%				(3.0)		%				(3.8)		%				(3.7)		%				(4.1)		%
Change from prior quarter						(0.9)		%				(1.1)		%				(1.0)		%				(0.8)		%				(1.3)		%
(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)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Billing and policy fees and other						$	11					$	10					$	9					$	9					$	10
Fee income						$	4					$	5					$	5					$	6					$	5

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

21

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The Travelers Companies, Inc. Interest Expense and Other

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Revenues
Other revenues						$	—					$	—					$	—					$	—					$	—
Claims and expenses
Interest expense						98						98						98						98						99
General and administrative expenses						8						12						11						13						11
Total claims and expenses						106						110						109						111						110
Loss before income tax benefit						(106)						(110)						(109)						(111)						(110)
Income tax benefit						(23)						(22)						(23)						(23)						(24)
Loss						$	(83)					$	(88)					$	(86)					$	(88)					$	(86)

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

22

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The Travelers Companies, Inc. Consolidated Balance Sheet

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

23

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The Travelers Companies, Inc. Investment Portfolio

(at carrying value, $ in millions)						March 31, 2025						Pre-tax Book Yield (1)						December 31, 2024						Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities						$	62,676					3.93		%				$	61,012					3.87		%
Tax-exempt fixed maturities						22,745						3.06		%				22,654						3.00		%
Total fixed maturities						85,421						3.69		%				83,666						3.63		%
Non-redeemable preferred stocks						47						2.18		%				48						2.20		%
Common stocks						576												639
Total equity securities						623												687
Real estate investments						897												902
Short-term securities						4,529						4.42		%				4,766						4.54		%
Private equities						2,840												2,815
Hedge funds						207												219
Real estate partnerships						863												858
Other investments						316												310
Total other investments						4,226												4,202
Total investments						$	95,696											$	94,223
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity						$	(3,299)											$	(3,640)

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

24

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The Travelers Companies, Inc. Investment Portfolio - Fixed Maturities Data

(at carrying value, $ in millions)						March 31, 2025												December 31, 2024
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies						$	4,894											$	5,570
Obligations of U.S. states and political subdivisions:
Pre-refunded						364												572
All other						26,928												26,613
Total						27,292												27,185
Debt securities issued by foreign governments						887												909
Mortgage-backed securities - principally obligations of U.S. Government agencies						13,033												12,605
Corporate and all other bonds						39,315												37,397
Total fixed maturities						$	85,421											$	83,666
Fixed Maturities Quality Characteristics (1)
						March 31, 2025												December 31, 2024
						Amount						% of Total						Amount						% of Total
Quality Ratings
Aaa						$	40,336					47.2		%				$	40,411					48.3		%
Aa						15,584						18.3						15,278						18.3
A						17,285						20.2						16,181						19.3
Baa						11,222						13.1						10,816						12.9
Total investment grade						84,427						98.8						82,686						98.8
Ba						700						0.8						686						0.8
B						252						0.3						247						0.3
Caa and lower						42						0.1						47						0.1
Total below investment grade						994						1.2						980						1.2
Total fixed maturities						$	85,421					100.0		%				$	83,666					100.0		%
Average weighted quality						Aa2, AA												Aa2, 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 purchases						4.5												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

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The Travelers Companies, Inc. Investment Income

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Gross investment income
Fixed maturities						$	692					$	709					$	749					$	798					$	812
Short-term securities						70						70						77						63						57
Other						98						118						90						103						76
						860						897						916						964						945
Investment expenses						14						12						12						9						15
Net investment income, pre-tax						846						885						904						955						930
Income taxes						148						158						162						170						167
Net investment income, after-tax						$	698					$	727					$	742					$	785					$	763
Effective tax rate						17.6		%				17.8		%				17.9		%				17.9		%				17.9		%
Average invested assets (1)						$94,677						$95,402						$97,736						$100,046						$101,000
Average yield pre-tax (1)						3.6		%				3.7		%				3.7		%				3.8		%				3.7		%
Average yield after-tax						2.9		%				3.0		%				3.0		%				3.1		%				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.

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

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Net realized investment gains (losses)
Fixed maturities						$	(40)					$	(35)					$	(17)					$	(39)					$	(31)
Equity securities						79						(28)						53						(5)						(22)
Other						(4)						(2)						19						(11)						(8)
Realized investment gains (losses) before tax						35						(65)						55						(55)						(61)
Related taxes						8						(14)						13						(11)						(13)
Net realized investment gains (losses)						$	27					$	(51)					$	42					$	(44)					$	(48)
Gross investment gains						$	85					$	7					$	85					$	10					$	4
Gross investment losses before impairments						(47)						(72)						(25)						(63)						(63)
Net investment gains (losses) before impairments						38						(65)						60						(53)						(59)
Net impairment (charges) recoveries						(3)						—						(5)						(2)						(2)
Net realized investment gains (losses) before tax						35						(65)						55						(55)						(61)
Related taxes						8						(14)						13						(11)						(13)
Net realized investment gains (losses)						$	27					$	(51)					$	42					$	(44)					$	(48)
($ in millions)						March 31, 2024						June 30, 2024						September 30, 2024						December 31, 2024						March 31, 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)
Other						(2)						(1)						—						—						(1)
Unrealized investment gains (losses) before tax						(4,720)						(5,043)						(2,672)						(4,609)						(4,172)
Related taxes						(999)						(1,067)						(561)						(969)						(873)
Balance, end of period						$	(3,721)					$	(3,976)					$	(2,111)					$	(3,640)					$	(3,299)

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The Travelers Companies, Inc. Reinsurance Recoverables

($ in millions)						March 31, 2025						December 31, 2024
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)						$	4,131					$	3,962
Gross structured settlements (2)						2,589						2,626
Mandatory pools and associations (3)						1,513						1,531
Gross reinsurance recoverables (4)						8,233						8,119
Allowance for estimated uncollectible reinsurance (5)						(128)						(119)
Net reinsurance recoverables						$	8,105					$	8,000

(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:

Reinsurer

A.M. Best Rating of Group's Predominant Reinsurer

March 31, 2025

Swiss Re Group

A+ second highest of 16 ratings

$

704

Berkshire Hathaway

A++ highest of 16 ratings

454

Munich Re Group

A+ second highest of 16 ratings

337

Axa Group

A+ second highest of 16 ratings

178

Arch Insurance Group

A+ second highest of 16 ratings

172

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:

Group

A.M. Best Rating of Group's Predominant Insurer

March 31, 2025

Fidelity & Guaranty Life Group

A third highest of 16 ratings

$

650

Genworth Financial Group

B- eighth highest of 16 ratings

311

John Hancock Group

A+ second highest of 16 ratings

215

Symetra Financial Corporation

A third highest of 16 ratings

197

Brighthouse Financial, Inc.

A third highest of 16 ratings

171

(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 March 31, 2025, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.93 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. 

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The Travelers Companies, Inc. Net Reserves for Losses and Loss Adjustment Expense

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period						$	40,833					$	41,391					$	42,050					$	42,960					$	42,909
Incurred						3,282						3,422						3,645						3,116						3,650
Paid						(2,697)						(2,758)						(2,786)						(3,066)						(2,847)
Foreign exchange and other						(27)						(5)						51						(101)						30
End of period						$	41,391					$	42,050					$	42,960					$	42,909					$	43,742
Bond & Specialty Insurance
Beginning of period						$	4,521					$	4,626					$	4,773					$	4,931					$	4,938
Incurred						424						468						438						427						430
Paid						(306)						(320)						(332)						(344)						(325)
Foreign exchange and other						(13)						(1)						52						(76)						29
End of period						$	4,626					$	4,773					$	4,931					$	4,938					$	5,072
Personal Insurance
Beginning of period						$	8,363					$	8,561					$	9,099					$	9,018					$	8,479
Incurred						2,896						3,430						2,857						2,423						3,867
Paid						(2,678)						(2,885)						(2,948)						(2,908)						(3,069)
Foreign exchange and other						(20)						(7)						10						(54)						—
End of period						$	8,561					$	9,099					$	9,018					$	8,479					$	9,277
Total
Beginning of period						$	53,717					$	54,578					$	55,922					$	56,909					$	56,326
Incurred						6,602						7,320						6,940						5,966						7,947
Paid						(5,681)						(5,963)						(6,066)						(6,318)						(6,241)
Foreign exchange and other						(60)						(13)						113						(231)						59
End of period						$	54,578					$	55,922					$	56,909					$	56,326					$	58,091
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos						$	—					$	—					$	242					$	—					$	—
All other						—						(34)						(151)						(147)						(74)
Total Business Insurance (1)						—						(34)						91						(147)						(74)
Bond & Specialty Insurance						(24)						(24)						(36)						(45)						(67)
Personal Insurance						(67)						(172)						(181)						(70)						(237)
Total						$	(91)					$	(230)					$	(126)					$	(262)					$	(378)

(1)  Excludes accretion of discount.

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

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The Travelers Companies, Inc. Asbestos Reserves

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Asbestos reserves
Beginning reserves:
Gross						$	1,768					$	1,686					$	1,612					$	1,815					$	1,708
Ceded						(390)						(382)						(368)						(395)						(370)
Net						1,378						1,304						1,244						1,420						1,338
Incurred losses and loss expenses:
Gross						—						—						279						—						—
Ceded						—						—						(37)						—						—
Paid loss and loss expenses:
Gross						82						74						77						106						72
Ceded						(8)						(13)						(11)						(25)						(13)
Foreign exchange and other:
Gross						—						—						1						(1)						—
Ceded						—						1						(1)						—						—
Ending reserves:
Gross						1,686						1,612						1,815						1,708						1,636
Ceded						(382)						(368)						(395)						(370)						(357)
Net						$	1,304					$	1,244					$	1,420					$	1,338					$	1,279

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

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The Travelers Companies, Inc. Capitalization

($ in millions)						March 31, 2025						December 31, 2024
Debt
Short-term debt
Commercial paper						$	100					$	100
Total short-term debt						100						100
Long-term debt
7.75% Senior notes due April 15, 2026						200						200
7.625% Junior subordinated debentures due December 15, 2027						125						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, 2045						56						56
3.75% Senior notes due May 15, 2046 (1)						500						500
8.312% Junior subordinated debentures due July 1, 2046						73						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 debt						8,004						8,004
Unamortized fair value adjustment						33						34
Unamortized debt issuance costs						(104)						(105)
						7,933						7,933
Total debt						8,033						8,033
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)						31,490						31,504
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)						$	39,523					$	39,537
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)						20.3		%				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.

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The Travelers Companies, Inc. Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation

($ in millions)						March 31, 2025 (1)						December 31, 2024
Statutory capital and surplus						$	27,785					$	27,715
GAAP adjustments
Goodwill and intangible assets						3,634						3,635
Investments						(3,571)						(3,982)
Noninsurance companies						(4,524)						(4,350)
Deferred acquisition costs						3,407						3,371
Deferred federal income tax						146						218
Current federal income tax						(4)						(5)
Reinsurance recoverables						44						44
Furniture, equipment & software						940						960
Agents balances						235						230
Other						99						28
Total GAAP adjustments						406						149
GAAP shareholders’ equity						$	28,191					$	27,864

(1) Estimated and Preliminary

 

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

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The Travelers Companies, Inc. Statement of Cash Flows

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Cash flows from operating activities
Net income						$	1,123					$	534					$	1,260					$	2,082					$	395
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses						(35)						65						(55)						55						61
Depreciation and amortization						196						182						174						163						188
Deferred federal income tax expense (benefit)						42						(85)						(59)						(50)						31
Amortization of deferred acquisition costs						1,698						1,678						1,790						1,807						1,778
Equity in income from other investments						(68)						(89)						(63)						(74)						(53)
Premiums receivable						(557)						(664)						234						128						(459)
Reinsurance recoverables						33						(34)						74						38						(97)
Deferred acquisition costs						(1,776)						(1,807)						(1,856)						(1,734)						(1,822)
Claims and claim adjustment expense reserves						928						1,384						755						(387)						1,818
Unearned premium reserves						457						788						659						(416)						419
Other						(583)						(275)						962						452						(899)
Net cash provided by operating activities						1,458						1,677						3,875						2,064						1,360
Cash flows from investing activities
Proceeds from maturities of fixed maturities						1,709						2,464						1,817						2,547						2,801
Proceeds from sales of investments:
Fixed maturities						942						308						225						159						253
Equity securities						21						41						31						50						68
Real estate investments						—						—						64						—						—
Other investments						55						55						101						211						63
Purchases of investments:
Fixed maturities						(3,738)						(4,349)						(4,273)						(4,772)						(4,296)
Equity securities						(26)						(21)						(33)						(44)						(25)
Real estate investments						(13)						(11)						(10)						(14)						(7)
Other investments						(90)						(95)						(98)						(113)						(96)
Net sales (purchases) of short-term securities						454						330						(1,126)						712						239
Securities transactions in the course of settlement						111						247						24						(326)						308
Acquisition, net of cash acquired						(381)						(1)						—						—						—
Other						(81)						(111)						(113)						(103)						(116)
Net cash used in investing activities						(1,037)						(1,143)						(3,391)						(1,693)						(808)

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The Travelers Companies, Inc. Statement of Cash Flows (Continued)

($ in millions)						1Q2024						2Q2024						3Q2024						4Q2024						1Q2025
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations						(250)						(249)						(248)						(256)						(250)
Treasury stock acquired - net employee share-based compensation						(110)						(1)						(1)						(2)						(102)
Dividends paid to shareholders						(229)						(244)						(238)						(240)						(240)
Issuance of common stock - employee share options						190						22						33						76						57
Net cash used in financing activities						(399)						(472)						(454)						(422)						(535)
Effect of exchange rate changes on cash and restricted cash						(5)						—						13						(22)						8
Net increase (decrease) in cash and restricted cash						17						62						43						(73)						25
Cash and restricted cash at beginning of period						650						667						729						772						699
Cash and restricted cash at end of period						$	667					$	729					$	772					$	699					$	724
Supplemental disclosure of cash flow information
Income taxes paid						$	24					$	831					$	92					$	363					$	24
Interest paid						$	60					$	135					$	60					$	135					$	61

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The Travelers Companies, Inc. Glossary of Financial Measures and Description of Reportable Business Segments

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, 2024						June 30, 2024						September 30, 2024						December 31, 2024						March 31, 2025
Shareholders’ equity						$	25,022					$	24,862					$	27,696					$	27,864					$	28,191
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity						3,721						3,976						2,111						3,640						3,299
Net realized investment (gains) losses, net of tax						(27)						24						(18)						26						48
Adjusted shareholders’ equity						$	28,716					$	28,862					$	29,789					$	31,530					$	31,538

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

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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