Travelers Reports Excellent Third Quarter and Year-to-Date Results
NEW YORK--( BUSINESS WIRE)--The Travelers Companies, Inc. today reported net income of $1.888 billion, or $8.24 per diluted share, for the quarter ended September 30, 2025, compared to $1.260 billion, or $5.42 per diluted share, in the prior year quarter. Core income in the current quarter was $1.867 billion, or $8.14 per diluted share, compared to $1.218 billion, or $5.24 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) and higher net investment income, partially offset by lower net favorable prior year reserve development. Net realized investment gains in the current quarter were $27 million pre-tax ($21 million after-tax), compared to $55 million pre-tax ($42 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)
Three Months Ended September 30,
Nine Months Ended September 30,
2025
2024
Change
2025
2024
Change
Net written premiums
$
11,473
$
11,317
1
%
$
33,531
$
32,614
3
%
Total revenues
$
12,470
$
11,904
5
$
36,396
$
34,415
6
Net income
$
1,888
$
1,260
50
$
3,792
$
2,917
30
per diluted share
$
8.24
$
5.42
52
$
16.45
$
12.51
31
Core income
$
1,867
$
1,218
53
$
3,814
$
2,899
32
per diluted share
$
8.14
$
5.24
55
$
16.54
$
12.43
33
Diluted weighted average shares outstanding
227.5
230.6
(1
)
228.9
231.3
(1
)
Combined ratio
87.3
%
93.2
%
(5.9
)
pts
93.2
%
95.7
%
(2.5
)
pts
Underlying combined ratio
83.9
%
85.6
%
(1.7
)
pts
84.4
%
87.0
%
(2.6
)
pts
Return on equity
24.7
%
19.2
%
5.5
pts
17.3
%
15.3
%
2.0
pts
Core return on equity
22.6
%
16.6
%
6.0
pts
15.8
%
13.4
%
2.4
pts
As of
Change From
September 30, 2025
December 31, 2024
September 30, 2024
December 31, 2024
September 30, 2024
Book value per share
$
141.72
$
122.97
$
122.00
15
%
16
%
Adjusted book value per share
150.55
139.04
131.30
8
%
15
%
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
“We are very pleased to report another quarter of excellent results,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We earned core income of $1.9 billion, or $8.14 per diluted share, generating core return on equity of 22.6%. Very strong underwriting results and higher investment income drove the bottom line. Underwriting income of $1.4 billion pre-tax more than doubled compared to the prior year quarter, benefiting from both a lower level of catastrophe losses and higher underlying underwriting income. The underlying result was driven by higher net earned premiums and an underlying combined ratio that improved to an exceptional 83.9%. Underwriting income was higher in all three segments. Our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $850 million, up 15%. During the quarter, we returned almost $900 million of excess capital to shareholders, including $628 million of share repurchases.
“In the third quarter, we grew net written premiums to $11.5 billion with terrific execution by our field organization. In Business Insurance, we grew net written premiums by 3% to $5.7 billion, led by 4% growth in our domestic business. We grew our leading Middle Market business and our Select Accounts small commercial business by 7% and 4%, respectively. Renewal premium change in the segment of 7.1% and retention of 85% both remained strong. In Bond & Specialty Insurance, we grew net written premiums to $1.1 billion, with higher renewal premium change and continued strong retention of 87% in our high-quality management liability business. Net written premium in our market-leading surety business remained strong. In Personal Insurance, net written premiums were $4.7 billion with strong renewal premium change in our Homeowners business.
“Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance driven by competitive advantages that distinguish us in the marketplace along with the returns from our more than $100 billion investment portfolio. Over this same period, we grew adjusted book value per share by 15%, after returning more than $2.7 billion of excess capital to shareholders and making substantial investments in transformative technology. Looking ahead, this strong momentum, the benefit of scale and the compelling opportunities before us give us great confidence in the outlook for our business.”
Consolidated Results
Three Months Ended September 30,
Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)
2025
2024
Change
2025
2024
Change
Underwriting gain:
$
1,378
$
685
$
693
$
2,095
$
1,197
$
898
Underwriting gain includes:
Net favorable prior year reserve development
22
126
(104
)
715
447
268
Catastrophes, net of reinsurance
(402
)
(939
)
537
(3,595
)
(3,160
)
(435
)
Net investment income
1,033
904
129
2,905
2,635
270
Other income (expense), including interest expense
(94
)
(84
)
(10
)
(279
)
(271
)
(8
)
Core income before income taxes
2,317
1,505
812
4,721
3,561
1,160
Income tax expense
450
287
163
907
662
245
Core income
1,867
1,218
649
3,814
2,899
915
Net realized investment gains (losses) after income taxes
21
42
(21
)
(22
)
18
(40
)
Net income
$
1,888
$
1,260
$
628
$
3,792
$
2,917
$
875
Combined ratio
87.3
%
93.2
%
(5.9
)
pts
93.2
%
95.7
%
(2.5
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(0.2
)
pts
(1.2
)
pts
1.0
pts
(2.2
)
pts
(1.5
)
pts
(0.7
)
pts
Catastrophes, net of reinsurance
3.6
pts
8.8
pts
(5.2
)
pts
11.0
pts
10.2
pts
0.8
pts
Underlying combined ratio
83.9
%
85.6
%
(1.7
)
pts
84.4
%
87.0
%
(2.6
)
pts
Net written premiums
Business Insurance
$
5,675
$
5,517
3
%
$
17,165
$
16,652
3
%
Bond & Specialty Insurance
1,080
1,072
1
3,164
3,055
4
Personal Insurance
4,718
4,728
—
13,202
12,907
2
Total
$
11,473
$
11,317
1
%
$
33,531
$
32,614
3
%
Third Quarter 2025 Results
(All comparisons vs. third quarter 2024, unless noted otherwise)
Net income of $1.888 billion increased $628 million, driven by higher core income, partially offset by lower net realized investment gains. Core income of $1.867 billion increased $649 million, 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. Net realized investment gains were $27 million pre-tax ($21 million after-tax), compared to $55 million pre-tax ($42 million after-tax) in the prior year quarter.
Combined ratio:
Net investment income of $1.033 billion pre-tax ($850 million after-tax) increased 14%, primarily due to growth in average invested assets and a higher average yield in the long-term fixed income investment portfolio.
Net written premiums of $11.473 billion increased 1%. 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 $3.792 billion increased $875 million, driven by higher core income, partially offset by net realized investment losses compared to net realized investment gains in the prior year period. Core income of $3.814 billion increased $915 million, primarily due to a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $28 million pre-tax ($22 million after-tax), compared to net realized investment gains of $25 million pre-tax ($18 million after-tax) in the prior year period.
Combined ratio:
Net investment income of $2.905 billion pre-tax ($2.387 billion after-tax) increased 10% driven by the same factors described above for the third quarter of 2025.
Net written premiums of $33.531 billion increased 3%. See below for further details by segment.
Shareholders’ Equity
Shareholders’ equity of $31.609 billion increased 13% over year-end 2024, primarily due to net income of $3.792 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 $2.484 billion pre-tax ($1.970 billion after-tax), compared to $4.609 billion pre-tax ($3.640 billion after-tax) at year-end 2024. The decrease in net unrealized investment losses was driven by lower interest rates. Book value per share of $141.72 increased 16% over September 30, 2024 and 15% over year-end 2024. Adjusted book value per share of $150.55, which excludes net unrealized investment losses, increased 15% over September 30, 2024 and 8% over year-end 2024.
The Company repurchased 2.3 million shares during the third quarter at an average price of $271.73 per share for a total cost of $628 million. At September 30, 2025, the Company had $3.665 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 $29.965 billion, and the ratio of debt-to-capital was 22.7%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 21.6%, within the Company’s target range of 15% to 25%.
The Board of Directors declared a regular quarterly dividend of $1.10 per share. The dividend is payable December 31, 2025, to shareholders of record at the close of business on December 10, 2025.
Business Insurance Segment Financial Results
Three Months Ended September 30,
Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)
2025
2024
Change
2025
2024
Change
Underwriting gain:
$
392
$
219
$
173
$
933
$
746
$
187
Underwriting gain includes:
Net favorable (unfavorable) prior year reserve development
(125
)
(91
)
(34
)
28
(57
)
85
Catastrophes, net of reinsurance
(139
)
(340
)
201
(1,016
)
(938
)
(78
)
Net investment income
727
642
85
2,045
1,883
162
Other income (expense)
(1
)
(1
)
—
(8
)
(20
)
12
Segment income before income taxes
1,118
860
258
2,970
2,609
361
Income tax expense
211
162
49
567
491
76
Segment income
$
907
$
698
$
209
$
2,403
$
2,118
$
285
Combined ratio
92.9
%
95.8
%
(2.9
)
pts
94.2
%
95.1
%
(0.9
)
pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development
2.2
pts
1.7
pts
0.5
pts
(0.2
)
pts
0.4
pts
(0.6
)
pts
Catastrophes, net of reinsurance
2.4
pts
6.2
pts
(3.8
)
pts
6.1
pts
5.9
pts
0.2
pts
Underlying combined ratio
88.3
%
87.9
%
0.4
pts
88.3
%
88.8
%
(0.5
)
pts
Net written premiums by market
Domestic
Select Accounts
$
920
$
885
4
%
$
2,900
$
2,834
2
%
Middle Market
3,232
3,030
7
9,432
9,012
5
National Accounts
273
264
3
914
903
1
National Property and Other
841
896
(6
)
2,446
2,450
—
Total Domestic
5,266
5,075
4
15,692
15,199
3
International
409
442
(7
)
1,473
1,453
1
Total
$
5,675
$
5,517
3
%
$
17,165
$
16,652
3
%
Third Quarter 2025 Results
(All comparisons vs. third quarter 2024, unless noted otherwise)
Segment income for Business Insurance was $907 million after-tax, an increase of $209 million. Segment income increased primarily due to lower catastrophe losses and higher net investment income, partially offset by higher net unfavorable prior year reserve development.
Combined ratio:
Net written premiums of $5.675 billion increased 3%, led by strong growth of 7% in our core Middle Market business. This was partially offset by a 6% decline in net written premiums in National Property and Other, reflecting disciplined underwriting.
Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)
Segment income for Business Insurance was $2.403 billion after-tax, an increase of $285 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net investment income and net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year period, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:
Net written premiums of $17.165 billion increased 3%, after the ceded premium impact of the enhanced casualty reinsurance program that took effect January 1, 2025. This change in reinsurance reduced the segment’s net written premium growth by 1 point, as the full year’s worth of ceded premium was recorded in the first quarter of 2025. Premium growth also reflected strong renewal premium change and retention.
Bond & Specialty Insurance Segment Financial Results
Three Months Ended September 30,
Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)
2025
2024
Change
2025
2024
Change
Underwriting gain:
$
188
$
172
$
16
$
554
$
431
$
123
Underwriting gain includes:
Net favorable prior year reserve development
43
36
7
191
84
107
Catastrophes, net of reinsurance
—
(4
)
4
(24
)
(49
)
25
Net investment income
116
101
15
325
285
40
Other income
7
6
1
15
17
(2
)
Segment income before income taxes
311
279
32
894
733
161
Income tax expense
61
57
4
180
146
34
Segment income
$
250
$
222
$
28
$
714
$
587
$
127
Combined ratio
81.6
%
82.5
%
(0.9
)
pts
81.5
%
84.9
%
(3.4
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(4.2
)
pts
(3.5
)
pts
(0.7
)
pts
(6.2
)
pts
(2.9
)
pts
(3.3
)
pts
Catastrophes, net of reinsurance
—
pts
0.4
pts
(0.4
)
pts
0.8
pts
1.7
pts
(0.9
)
pts
Underlying combined ratio
85.8
%
85.6
%
0.2
pts
86.9
%
86.1
%
0.8
pts
Net written premiums
Domestic
Management Liability
$
613
$
617
(1
)%
$
1,755
$
1,746
1
%
Surety
342
344
(1
)
1,017
965
5
Total Domestic
955
961
(1
)
2,772
2,711
2
International
125
111
13
392
344
14
Total
$
1,080
$
1,072
1
%
$
3,164
$
3,055
4
%
Third Quarter 2025 Results
(All comparisons vs. third quarter 2024, unless noted otherwise)
Segment income for Bond & Specialty Insurance was $250 million after-tax, an increase of $28 million. Segment income increased primarily due to higher net investment income, a higher underlying underwriting gain, higher net favorable prior year reserve development and lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:
Net written premiums of $1.080 billion increased 1%.
Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)
Segment income for Bond & Specialty Insurance was $714 million after-tax, an increase of $127 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:
Net written premiums of $3.164 billion increased 4%, reflecting production growth in both surety and management liability.
Personal Insurance Segment Financial Results
Three Months Ended September 30,
Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)
2025
2024
Change
2025
2024
Change
Underwriting gain:
$
798
$
294
$
504
$
608
$
20
$
588
Underwriting gain includes:
Net favorable prior year reserve development
104
181
(77
)
496
420
76
Catastrophes, net of reinsurance
(263
)
(595
)
332
(2,555
)
(2,173
)
(382
)
Net investment income
190
161
29
535
467
68
Other income
24
20
4
59
57
2
Segment income before income taxes
1,012
475
537
1,202
544
658
Income tax expense
205
91
114
235
93
142
Segment income
$
807
$
384
$
423
$
967
$
451
$
516
Combined ratio
81.3
%
92.5
%
(11.2
)
pts
94.8
%
99.2
%
(4.4
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(2.4
)
pts
(4.3
)
pts
1.9
pts
(3.8
)
pts
(3.4
)
pts
(0.4
)
pts
Catastrophes, net of reinsurance
6.0
pts
14.1
pts
(8.1
)
pts
19.7
pts
17.6
pts
2.1
pts
Underlying combined ratio
77.7
%
82.7
%
(5.0
)
pts
78.9
%
85.0
%
(6.1
)
pts
Net written premiums
Domestic
Automobile
$
2,062
$
2,138
(4
)%
$
5,889
$
5,998
(2
)%
Homeowners and Other
2,489
2,410
3
6,822
6,392
7
Total Domestic
4,551
4,548
—
12,711
12,390
3
International
167
180
(7
)
491
517
(5
)
Total
$
4,718
$
4,728
—
%
$
13,202
$
12,907
2
%
Third Quarter 2025 Results
(All comparisons vs. third quarter 2024, unless noted otherwise)
Segment income for Personal Insurance was $807 million after-tax, an increase of $423 million. 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:
Net written premiums of $4.718 billion were comparable to the prior year quarter.
Year-to-Date 2025 Results
(All comparisons vs. year-to-date 2024, unless noted otherwise)
Segment income for Personal Insurance was $967 million after-tax, an increase of $516 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:
Net written premiums of $13.202 billion increased 2%, reflecting strong renewal premium change in Homeowners and Other.
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 9:00 a.m. Eastern (8:00 a.m. Central) on Thursday, October 16, 2025. Investors can access the call via webcast at investor.travelers.com and 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 seven 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.
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 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
Financial, Economic and Credit Risks
Business and Operational Risks
Technology and Intellectual Property Risks
Regulatory and Compliance Risks
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 October 16, 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.
Reconciliation of Net Income to Core Income less Preferred Dividends
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended
September 30,
($ in millions, after-tax)
2025
2024
2025
2024
2025
2024
Net income
$
1,888
$
1,260
$
3,792
$
2,917
$
5,874
$
4,543
Adjustments:
Net realized investment (gains) losses
(21
)
(42
)
22
(18
)
66
(11
)
Core income
$
1,867
$
1,218
$
3,814
$
2,899
$
5,940
$
4,532
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions, pre-tax)
2025
2024
2025
2024
Net income
$
2,344
$
1,560
$
4,693
$
3,586
Adjustments:
Net realized investment (gains) losses
(27
)
(55
)
28
(25
)
Core income
$
2,317
$
1,505
$
4,721
$
3,561
Twelve Months Ended December 31,
Average
Annual
($ in millions, after-tax)
2024
2023
2022
2021
2020
2005 - 2019
Net income
$
4,999
$
2,991
$
2,842
$
3,662
$
2,697
$
3,007
Less: Loss from discontinued operations
—
—
—
—
—
(29
)
Income from continuing operations
4,999
2,991
2,842
3,662
2,697
3,036
Adjustments:
Net realized investment (gains) losses
26
81
156
(132
)
(11
)
(44
)
Impact of changes in tax laws and/or tax rates (1) (2)
—
—
—
(8
)
—
9
Core income
5,025
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
September 30,
Nine Months Ended
September 30,
2025
2024
2025
2024
Diluted income per share
Net income
$
8.24
$
5.42
$
16.45
$
12.51
Adjustments:
Net realized investment (gains) losses, after-tax
(0.10
)
(0.18
)
0.09
(0.08
)
Core income
$
8.14
$
5.24
$
16.54
$
12.43
Reconciliation of Segment Income to Total Core Income
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions, after-tax)
2025
2024
2025
2024
Business Insurance
$
907
$
698
$
2,403
$
2,118
Bond & Specialty Insurance
250
222
714
587
Personal Insurance
807
384
967
451
Total segment income
1,964
1,304
4,084
3,156
Interest Expense and Other
(97
)
(86
)
(270
)
(257
)
Total core income
$
1,867
$
1,218
$
3,814
$
2,899
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 September 30,
($ in millions)
2025
2024
Shareholders’ equity
$
31,609
$
27,696
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity
1,970
2,111
Net realized investment (gains) losses, net of tax
22
(18
)
Adjusted shareholders’ equity
$
33,601
$
29,789
As of December 31,
Average
Annual
($ in millions)
2024
2023
2022
2021
2020
2005 - 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’ equity
3,640
3,129
4,898
(2,415
)
(4,074
)
(1,300
)
Net realized investment (gains) losses, net of tax
26
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.
Calculation of Return on Equity and Core Return on Equity
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended
September 30,
($ in millions, after-tax)
2025
2024
2025
2024
2025
2024
Annualized net income
$
7,554
$
5,041
$
5,057
$
3,889
$
5,874
$
4,543
Average shareholders’ equity
30,563
26,279
29,148
25,398
28,806
24,661
Return on equity
24.7
%
19.2
%
17.3
%
15.3
%
20.4
%
18.4
%
Annualized core income
$
7,467
$
4,870
$
5,085
$
3,865
$
5,940
$
4,532
Adjusted average shareholders’ equity
33,053
29,301
32,197
28,834
31,817
28,438
Core return on equity
22.6
%
16.6
%
15.8
%
13.4
%
18.7
%
15.9
%
Twelve Months Ended
December 31,
Average
Annual
($ in millions, after-tax)
2024
2023
2022
2021
2020
2005 - 2019
Net income, less preferred dividends
$
4,999
$
2,991
$
2,842
$
3,662
$
2,697
$
3,005
Average shareholders’ equity
25,993
22,031
23,384
28,735
26,892
24,693
Return on equity
19.2
%
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’ equity
29,295
26,772
26,588
25,718
23,790
23,397
Core return on equity
17.2
%
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 $30 million of losses before reinsurance and taxes.
Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.
Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions, after-tax, except as noted)
2025
2024
2025
2024
Net income
$
1,888
$
1,260
$
3,792
$
2,917
Net realized investment (gains) losses
(21
)
(42
)
22
(18
)
Core income
1,867
1,218
3,814
2,899
Net investment income
(850
)
(742
)
(2,387
)
(2,167
)
Other (income) expense, including interest expense
82
71
241
229
Underwriting income
1,099
547
1,668
961
Income tax expense on underwriting results
279
138
427
236
Pre-tax underwriting income
1,378
685
2,095
1,197
Pre-tax impact of net favorable prior year reserve development
(22
)
(126
)
(715
)
(447
)
Pre-tax impact of catastrophes
402
939
3,595
3,160
Pre-tax underlying underwriting income
$
1,758
$
1,498
$
4,975
$
3,910
Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions, after-tax)
2025
2024
2025
2024
Net income
$
1,888
$
1,260
$
3,792
$
2,917
Net realized investment (gains) losses
(21
)
(42
)
22
(18
)
Core income
1,867
1,218
3,814
2,899
Net investment income
(850
)
(742
)
(2,387
)
(2,167
)
Other (income) expense, including interest expense
82
71
241
229
Underwriting income
1,099
547
1,668
961
Impact of net favorable prior year reserve development
(16
)
(99
)
(562
)
(352
)
Impact of catastrophes
318
739
2,840
2,494
Underlying underwriting income
$
1,401
$
1,187
$
3,946
$
3,103
Twelve Months Ended December 31,
($ in millions, after-tax)
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
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) losses
26
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 income
5,025
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 expense
308
337
277
235
232
214
248
179
78
193
159
61
171
Underwriting income
2,381
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 catastrophes
2,632
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)
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.
Calculation of the Combined Ratio
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions, pre-tax)
2025
2024
2025
2024
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses
$
6,594
$
6,996
$
21,389
$
21,025
Less:
Policyholder dividends
12
12
35
36
Allocated fee income
48
44
138
125
Loss ratio numerator
$
6,534
$
6,940
$
21,216
$
20,864
Underwriting expense ratio
Amortization of deferred acquisition costs
$
1,849
$
1,790
$
5,429
$
5,166
General and administrative expenses (G&A)
1,572
1,460
4,576
4,344
Less:
Non-insurance G&A
131
106
353
314
Allocated fee income
79
77
232
220
Billing and policy fees and other
28
28
85
88
Expense ratio numerator
$
3,183
$
3,039
$
9,335
$
8,888
Earned premium
$
11,135
$
10,704
$
32,766
$
31,073
Combined ratio (1)
Loss and loss adjustment expense ratio
58.7
%
64.8
%
64.7
%
67.1
%
Underwriting expense ratio
28.6
%
28.4
%
28.5
%
28.6
%
Combined ratio
87.3
%
93.2
%
93.2
%
95.7
%
Impact on combined ratio:
Net favorable prior year reserve development
(0.2
)%
(1.2
)%
(2.2
)%
(1.5
)%
Catastrophes, net of reinsurance
3.6
%
8.8
%
11.0
%
10.2
%
Underlying combined ratio
83.9
%
85.6
%
84.4
%
87.0
%
(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.
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)
September 30,
2025
December 31,
2024
September 30,
2024
Shareholders’ equity
$
31,609
$
27,864
$
27,696
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity
(1,970
)
(3,640
)
(2,111
)
Common shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
33,579
31,504
29,807
Less:
Goodwill
4,271
4,233
4,273
Other intangible assets
342
360
368
Impact of deferred tax on other intangible assets
(92
)
(85
)
(91
)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
$
29,058
$
26,996
$
25,257
Common shares outstanding
223.0
226.6
227.0
Book value per share
$
141.72
$
122.97
$
122.00
Adjusted book value per share
150.55
139.04
131.30
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
130.28
119.14
111.25
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)
September 30,
2025
December 31,
2024
Debt
$
9,267
$
8,033
Shareholders’ equity
31,609
27,864
Total capitalization
40,876
35,897
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity
(1,970
)
(3,640
)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity
$
42,846
$
39,537
Debt-to-capital ratio
22.7
%
22.4
%
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity
21.6
%
20.3
%
RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)
As of September 30,
($ in millions)
2025
2024
Invested assets
$
103,684
$
95,450
Less: Net unrealized investment losses, pre-tax
(2,484
)
(2,672
)
Invested assets excluding net unrealized investment losses
$
106,168
$
98,122
As of December 31,
($ in millions)
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
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.