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                                            The Travelers Companies, Inc.
                            485 Lexington Avenue
                                    New York, NY 10017-2630
                                        www.travelers.com
NYSE: TRV
Travelers Reports Excellent Third Quarter and Year-to-Date Results
Third Quarter 2025 Net Income per Diluted Share of $8.24, up 52%, and Return on Equity of 24.7%
Third Quarter 2025 Core Income per Diluted Share of $8.14, up 55%, and Core Return on Equity of 22.6%
•Third quarter net income of $1.888 billion, up 50%, and core income of $1.867 billion, up 53%.
•Consolidated combined ratio improved 5.9 points from the prior year quarter to an excellent 87.3%.
•Underlying combined ratio improved 1.7 points from the prior year quarter to an exceptional 83.9%.
•Catastrophe losses were $402 million pre-tax compared to $939 million in the prior year quarter.
•Net investment income increased 15% after-tax over the prior year quarter to $850 million.
•Total capital returned to shareholders of $878 million, including $628 million of share repurchases.
•Strong growth in book value per share, up 16%, and adjusted book value per share, up 15%, compared to the prior year quarter.

New York, October 16, 2025 — 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,
20252024Change20252024Change
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 outstanding227.5 230.6 (1)228.9 231.3 (1)
Combined ratio87.3 %93.2 %(5.9)pts93.2 %95.7 %(2.5)pts
Underlying combined ratio83.9 %85.6 %(1.7)pts84.4 %87.0 %(2.6)pts
Return on equity24.7 %19.2 %5.5 pts17.3 %15.3 %2.0 pts
Core return on equity22.6 %16.6 %6.0 pts15.8 %13.4 %2.4 pts
As ofChange From
September 30, 2025December 31, 2024September 30, 2024December 31, 2024September 30, 2024
Book value per share$141.72 $122.97 $122.00 15 %16 %
Adjusted book value per share150.55 139.04 131.30 8 %15 %
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
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“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.”

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Consolidated Results
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024Change
Underwriting gain:$1,378 $685 $693 $2,095 $1,197 $898 
Underwriting gain includes:
Net favorable prior year reserve development22 126 (104)715 447 268 
Catastrophes, net of reinsurance(402)(939)537 (3,595)(3,160)(435)
Net investment income1,033 904 129 2,905 2,635 270 
Other income (expense), including interest expense
(94)(84)(10)(279)(271)(8)
Core income before income taxes2,317 1,505 812 4,721 3,561 1,160 
Income tax expense450 287 163 907 662 245 
Core income1,867 1,218 649 3,814 2,899 915 
Net realized investment gains (losses) after income taxes21 42 (21)(22)18 (40)
Net income$1,888 $1,260 $628 $3,792 $2,917 $875 
Combined ratio87.3 %93.2 %(5.9)pts93.2 %95.7 %(2.5)pts
Impact on combined ratio
Net favorable prior year reserve development(0.2)pts(1.2)pts1.0 pts(2.2)pts(1.5)pts(0.7)pts
Catastrophes, net of reinsurance3.6 pts8.8 pts(5.2)pts11.0 pts10.2 pts0.8 pts
Underlying combined ratio83.9 %85.6 %(1.7)pts84.4 %87.0 %(2.6)pts
Net written premiums
Business Insurance$5,675$5,5173 %$17,165$16,6523 %
Bond & Specialty Insurance1,0801,0721 3,1643,0554 
Personal Insurance4,7184,728— 13,20212,9072 
Total$11,473$11,3171 %$33,531$32,6143 %
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:
•The combined ratio of 87.3% improved 5.9 points due to lower catastrophe losses (5.2 points) and an improvement in the underlying combined ratio (1.7 points), partially offset by lower net favorable prior year reserve development (1.0 points).
•The underlying combined ratio improved 1.7 points to an exceptional 83.9%. See below for further details by segment.
•Net favorable prior year reserve development in Personal Insurance and Bond & Specialty Insurance was partially offset by net unfavorable prior year reserve development in Business Insurance driven by the Company’s annual in-depth asbestos review. See below for further details by segment.
•Catastrophe losses primarily resulted from severe wind and hail storms in multiple states.

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.
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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:
 
•The combined ratio of 93.2% improved 2.5 points due to an improvement in the underlying combined ratio (2.6 points) and higher net favorable prior year reserve development (0.7 points), partially offset by higher catastrophe losses (0.8 points).

•The underlying combined ratio of 84.4% improved 2.6 points. See below for further details by segment.

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

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

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Business Insurance Segment Financial Results
 Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024Change
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 income727 642 85 2,045 1,883 162 
Other income (expense) (1)(1)— (8)(20)12 
Segment income before income taxes1,118 860 258 2,970 2,609 361 
Income tax expense211 162 49 567 491 76 
Segment income$907 $698 $209 $2,403 $2,118 $285 
Combined ratio92.9 %95.8 %(2.9)pts94.2 %95.1 %(0.9)pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development2.2 pts1.7 pts0.5 pts(0.2)pts0.4 pts(0.6)pts
Catastrophes, net of reinsurance
2.4 pts6.2 pts(3.8)pts6.1 pts5.9 pts0.2 pts
Underlying combined ratio88.3 %87.9 %0.4 pts88.3 %88.8 %(0.5)pts
Net written premiums by market
Domestic
Select Accounts$920 $885 4 %$2,900 $2,834 2 %
Middle Market3,232 3,030 7 9,432 9,012 5 
National Accounts273 264 3 914 903 1 
National Property and Other841 896 (6)2,446 2,450 — 
Total Domestic5,266 5,075 4 15,692 15,199 3 
International409 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:

•The combined ratio of 92.9% improved 2.9 points due to lower catastrophe losses (3.8 points), partially offset by higher net unfavorable prior year reserve development (0.5 points) and a higher underlying combined ratio (0.4 points).
•The underlying combined ratio was an excellent 88.3%.
•The annual asbestos review resulted in a charge of $277 million. Excluding the asbestos charge, net favorable prior year reserve development was $152 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years.
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.

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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:

•The combined ratio of 94.2% improved 0.9 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in prior year period (0.6 points) and an improvement in the underlying combined ratio (0.5 points), partially offset by higher catastrophe losses (0.2 points).

•The underlying combined ratio improved 0.5 points to an excellent 88.3%.

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

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Bond & Specialty Insurance Segment Financial Results
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)20252024Change20252024 Change
Underwriting gain:$188 $172 $16 $554 $431 $123 
Underwriting gain includes:
Net favorable prior year reserve development43 36 7 191 84 107 
Catastrophes, net of reinsurance— (4)4 (24)(49)25 
Net investment income116 101 15 325 285 40 
Other income7 6 1 15 17 (2)
Segment income before income taxes311 279 32 894 733 161 
Income tax expense61 57 4 180 146 34 
Segment income$250 $222 $28 $714 $587 $127 
Combined ratio81.6 %82.5 %(0.9)pts81.5 %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— pts0.4 pts(0.4)pts0.8 pts1.7 pts(0.9)pts
Underlying combined ratio85.8 %85.6 %0.2 pts86.9 %86.1 %0.8 pts
Net written premiums
Domestic
Management Liability$613 $617 (1)%$1,755 $1,746 1 %
Surety342 344 (1)1,017 965 5 
Total Domestic955 961 (1)2,772 2,711 2 
International125 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:

•The combined ratio of 81.6% improved 0.9 points due to higher net favorable prior year reserve development (0.7 points) and lower catastrophe losses (0.4 points), partially offset by a higher underlying combined ratio (0.2 points).

•The underlying combined ratio was very strong at 85.8%.

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

Net written premiums of $1.080 billion increased 1%.

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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:

•The combined ratio of 81.5% improved 3.4 points due to higher net favorable prior year reserve development (3.3 points) and lower catastrophe losses (0.9 points), partially offset by a higher underlying combined ratio (0.8 points).

•The underlying combined ratio was very strong at 86.9%.

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

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)20252024Change20252024Change
Underwriting gain:$798 $294 $504 $608 $20 $588 
Underwriting gain includes:
Net favorable prior year reserve development104 181 (77)496 420 76 
Catastrophes, net of reinsurance(263)(595)332 (2,555)(2,173)(382)
Net investment income190 161 29 535 467 68 
Other income24 20 4 59 57 2 
Segment income before income taxes1,012 475 537 1,202 544 658 
Income tax expense205 91 114 235 93 142 
Segment income$807 $384 $423 $967 $451 $516 
Combined ratio81.3 %92.5 %(11.2)pts94.8 %99.2 %(4.4)pts
Impact on combined ratio
Net favorable prior year reserve development(2.4)pts(4.3)pts1.9 pts(3.8)pts(3.4)pts(0.4)pts
Catastrophes, net of reinsurance6.0 pts14.1 pts(8.1)pts19.7 pts17.6 pts2.1 pts
Underlying combined ratio77.7 %82.7 %(5.0)pts78.9 %85.0 %(6.1)pts
Net written premiums
Domestic
Automobile$2,062 $2,138 (4)%$5,889 $5,998 (2)%
Homeowners and Other2,489 2,410 3 6,822 6,392 7 
Total Domestic4,551 4,548 — 12,711 12,390 3 
International167 180 (7)491 517 (5)
Total$4,718 $4,728 — %$13,202 $12,907 2 %

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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:

•The combined ratio of 81.3% improved 11.2 points due to lower catastrophe losses (8.1 points) and an improvement in the underlying combined ratio (5.0 points), partially offset by lower net favorable prior year reserve development (1.9 points).

•The underlying combined ratio of 77.7% improved 5.0 points, reflecting improvement in both Homeowners and Other and Automobile.

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

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:

•The combined ratio of 94.8% improved 4.4 points due to an improvement in the underlying combined ratio (6.1 points) and higher net favorable prior year reserve development (0.4 points), partially offset by higher catastrophe losses (2.1 points).

•The underlying combined ratio of 78.9% improved 6.1 points, reflecting improvement in both Homeowners and Other and Automobile.

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

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.
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About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of more than $46 billion in 2024. For more information, visit Travelers.com.

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

Travelers is organized into the following reportable business segments:

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

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

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

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

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

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

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

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

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

Business and Operational Risks
•the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change, including with respect to artificial intelligence, and changing customer preferences on the insurance industry and the markets in which it operates;
•disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;
•the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;
•the Company's pricing and capital models may provide materially different indications than actual results;
•loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products;
•the Company is subject to additional risks associated with its business outside the United States;
•future pandemics (including new variants of COVID-19); and
•the sale of our Canadian insurance business (excluding surety) to Definity Financial Corporation is subject to closing conditions, including obtaining required regulatory approvals and the satisfaction of other customary closing conditions, and may not occur.
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Technology and Intellectual Property Risks
•as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
•the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
•the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.
Regulatory and Compliance Risks
•changes in regulation, including changes in tax laws; and
•the Company's compliance controls may not be effective.
In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company’s business operations, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.
Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on 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
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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)202520242025202420252024
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)2025202420252024
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)202420232022202120202005 - 2019
Net income$4,999 $2,991 $2,842 $3,662 $2,697 $3,007 
Less: Loss from discontinued operations— — — — — (29)
Income from continuing operations4,999 2,991 2,842 3,662 2,697 3,036 
Adjustments:
Net realized investment (gains) losses26 81 156 (132)(11)(44)
Impact of changes in tax laws and/or tax rates (1) (2)— — — (8)— 9 
Core income5,025 3,072 2,998 3,522 2,686 3,001 
Less: Preferred dividends— — — — — 2 
Core income, less preferred dividends$5,025 $3,072 $2,998 $3,522 $2,686 $2,999 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
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)2025202420252024
Business Insurance$907 $698 $2,403 $2,118 
Bond & Specialty Insurance250 222 714 587 
Personal Insurance807 384 967 451 
Total segment income1,964 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 
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RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

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

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of September 30,
($ in millions)20252024
Shareholders’ equity$31,609 $27,696 
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity1,970 2,111 
Net realized investment (gains) losses, net of tax22 (18)
Adjusted shareholders’ equity$33,601 $29,789 
As of December 31,Average Annual
($ in millions)202420232022202120202005 - 2019
Shareholders’ equity$27,864 $24,921 $21,560 $28,887 $29,201 $24,744 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,640 3,129 4,898 (2,415)(4,074)(1,300)
Net realized investment (gains) losses, net of tax26 81 156 (132)(11)(44)
Impact of changes in tax laws and/or tax rates (1) (2)— — — (8)— 19 
Preferred stock— — — — — (42)
Loss from discontinued operations— — — — — 29 
Adjusted shareholders’ equity$31,530 $28,131 $26,614 $26,332 $25,116 $23,406 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

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

Average shareholders’ equity is (a) the sum of total shareholders’ equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.
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Calculation of Return on Equity and Core Return on Equity
Three Months Ended September 30,Nine Months Ended September 30,Twelve Months Ended September 30,
($ in millions, after-tax)202520242025202420252024
Annualized net income$7,554 $5,041 $5,057 $3,889 $5,874 $4,543 
Average shareholders’ equity30,563 26,279 29,148 25,398 28,806 24,661 
Return on equity24.7 %19.2 %17.3 %15.3 %20.4 %18.4 %
Annualized core income$7,467 $4,870 $5,085 $3,865 $5,940 $4,532 
Adjusted average shareholders’ equity33,053 29,301 32,197 28,834 31,817 28,438 
Core return on equity22.6 %16.6 %15.8 %13.4 %18.7 %15.9 %
 Twelve Months Ended 
December 31,		Average Annual
($ in millions, after-tax)202420232022202120202005 - 2019
Net income, less preferred dividends$4,999 $2,991 $2,842 $3,662 $2,697 $3,005 
Average shareholders’ equity25,993 22,031 23,384 28,735 26,892 24,693 
Return on equity19.2 %13.6 %12.2 %12.7 %10.0 %12.2 %
Core income, less preferred dividends$5,025 $3,072 $2,998 $3,522 $2,686 $2,999 
Adjusted average shareholders’ equity29,295 26,772 26,588 25,718 23,790 23,397 
Core return on equity17.2 %11.5 %11.3 %13.7 %11.3 %12.8 %

RECONCILIATION OF NET INCOME TO UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS

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

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

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

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

Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, after-tax, except as noted)2025202420252024
Net income$1,888 $1,260 $3,792 $2,917 
Net realized investment (gains) losses(21)(42)22 (18)
Core income1,867 1,218 3,814 2,899 
Net investment income(850)(742)(2,387)(2,167)
Other (income) expense, including interest expense82 71 241 229 
Underwriting income1,099 547 1,668 961 
Income tax expense on underwriting results279 138 427 236 
Pre-tax underwriting income1,378 685 2,095 1,197 
Pre-tax impact of net favorable prior year reserve development(22)(126)(715)(447)
Pre-tax impact of catastrophes402 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)2025202420252024
Net income$1,888 $1,260 $3,792 $2,917 
Net realized investment (gains) losses(21)(42)22 (18)
Core income1,867 1,218 3,814 2,899 
Net investment income(850)(742)(2,387)(2,167)
Other (income) expense, including interest expense82 71 241 229 
Underwriting income1,099 547 1,668 961 
Impact of net favorable prior year reserve development(16)(99)(562)(352)
Impact of catastrophes318 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)2024202320222021202020192018201720162015201420132012
Net income$4,999 $2,991 $2,842 $3,662 $2,697 $2,622 $2,523 $2,056 $3,014 $3,439 $3,692 $3,673 $2,473 
Net realized investment (gains) losses26 81 156 (132)(11)(85)(93)(142)(47)(2)(51)(106)(32)
Impact of changes in tax laws and/or tax rates (1) (2)
— — — (8)— — — 129 — — — — — 
Core income5,025 3,072 2,998 3,522 2,686 2,537 2,430 2,043 2,967 3,437 3,641 3,567 2,441 
Net investment income(2,952)(2,436)(2,170)(2,541)(1,908)(2,097)(2,102)(1,872)(1,846)(1,905)(2,216)(2,186)(2,316)
Other (income) expense, including interest expense308 337 277 235 232 214 248 179 78 193 159 61 171 
Underwriting income2,381 973 1,105 1,216 1,010 654 576 350 1,199 1,725 1,584 1,442 296 
Impact of net (favorable) unfavorable prior year reserve development(559)(113)(512)(424)(276)47 (409)(378)(510)(617)(616)(552)(622)
Impact of catastrophes2,632 2,361 1,480 1,459 1,274 699 1,355 1,267 576 338 462 387 1,214 
Underlying underwriting income$4,454 $3,221 $2,073 $2,251 $2,008 $1,400 $1,522 $1,239 $1,265 $1,446 $1,430 $1,277 $888 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)
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COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO
 
Combined ratio: For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this earnings release, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.
For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

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

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

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

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

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Calculation of the Combined Ratio
Three Months Ended September 30,Nine Months Ended September 30,
($ in millions, pre-tax)2025202420252024
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses$6,594 $6,996 $21,389 $21,025 
Less:
Policyholder dividends12 12 35 36 
Allocated fee income48 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&A131 106 353 314 
Allocated fee income79 77 232 220 
Billing and policy fees and other28 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 ratio58.7 %64.8 %64.7 %67.1 %
Underwriting expense ratio28.6 %28.4 %28.5 %28.6 %
Combined ratio87.3 %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 reinsurance3.6 %8.8 %11.0 %10.2 %
Underlying combined ratio83.9 %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.

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Reconciliation of Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Gains (Losses), Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share
 As of
($ in millions, except per share amounts)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’ equity33,579 31,504 29,807 
Less:
Goodwill4,271 4,233 4,273 
Other intangible assets342 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 outstanding223.0 226.6 227.0 
Book value per share$141.72 $122.97 $122.00 
Adjusted book value per share150.55 139.04 131.30 
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity130.28 119.14 111.25 

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 $39,537 
Debt-to-capital ratio  22.7 %22.4 %
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity21.6 %20.3 %
RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)
 As of September 30,
($ in millions)20252024
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 $98,122 
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  As of December 31,
($ in millions)2024202320222021202020192018201720162015201420132012
Invested assets$94,223 $88,810 $80,454 $87,375 $84,423 $77,884 $72,278 $72,502 $70,488 $70,470 $73,261 $73,160 $73,838 
Less: Net unrealized investment gains (losses), pre-tax(4,609)(3,970)(6,220)3,060 5,175 2,853 (137)1,414 1,112 1,974 3,008 2,030 4,761 
Invested assets excluding net unrealized investment gains (losses)$98,832 $92,780 $86,674 $84,315 $79,248 $75,031 $72,415 $71,088 $69,376 $68,496 $70,253 $71,130 $69,077 

OTHER DEFINITIONS

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

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

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

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

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


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