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The Travelers Companies, Inc.
Financial Supplement - Fourth Quarter 2025
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Page Number
Consolidated Results
Financial Highlights1
Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share2
Statement of Income 3
Net Income by Major Component and Combined Ratio4
Core Income5
Selected Statistics - Property and Casualty Operations6
Written and Earned Premiums - Property and Casualty Operations7
Business Insurance
Segment Income 8
Segment Income by Major Component and Combined Ratio9
Selected Statistics10
Net Written Premiums11
Bond & Specialty Insurance
Segment Income12
Segment Income by Major Component and Combined Ratio13
Selected Statistics14
Net Written Premiums15
Personal Insurance
Segment Income (Loss)16
Segment Income (Loss) by Major Component and Combined Ratio17
Selected Statistics18
Net Written Premiums19
Selected Statistics - Automobile20
Selected Statistics - Homeowners and Other21
Supplemental Detail
Interest Expense and Other22
Consolidated Balance Sheet23
Investment Portfolio24
Investment Portfolio - Fixed Maturities Data25
Investment Income26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity27
Reinsurance Recoverables28
Net Reserves for Losses and Loss Adjustment Expense29
Asbestos Reserves30
Capitalization31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation32
Statement of Cash Flows33
Statement of Cash Flows (continued)34
Glossary of Financial Measures and Description of Reportable Business Segments35-36
 The information included in the Financial Supplement is unaudited.  This document should be read in conjunction with the Company’s Form 10-K which will be filed with the Securities and Exchange Commission.
Index
The Travelers Companies, Inc.
Financial Highlights
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($ and shares in millions, except for per share data)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Net income per share:
Basic$4.87 $2.32 $5.50 $9.11 $1.73 $6.63 $8.37 $11.24 $21.76 $27.83 
Diluted$4.80 $2.29 $5.42 $8.96 $1.70 $6.53 $8.24 $11.06 $21.47 $27.43 
Core income$1,096 $585 $1,218 $2,126 $443 $1,504 $1,867 $2,511 $5,025 $6,325 
Core income per share:
Basic$4.75 $2.54 $5.31 $9.30 $1.94 $6.61 $8.27 $11.31 $21.87 $28.00 
Diluted$4.69 $2.51 $5.24 $9.15 $1.91 $6.51 $8.14 $11.13 $21.58 $27.59 
Return on equity18.0 %%8.6 %%19.2 %%30.0 %%5.6 %%20.9 %%24.7 %%31.0 %%19.2 %%21.0 %%
Core return on equity15.4 %%8.1 %%16.6 %%27.7 %%5.6 %%18.8 %%22.6 %%29.6 %%17.2 %%19.4 %%
Total assets, at period end$127,410 $129,315 $134,588 $133,189 $135,977 $138,873 $143,678 $143,708 $133,189 $143,708 
Total equity, at period end$25,022 $24,862 $27,696 $27,864 $28,191 $29,518 $31,609 $32,894 $27,864 $32,894 
Book value per share, at period end$109.28 $109.08 $122.00 $122.97 $124.43 $131.11 $141.72 $151.21 $122.97 $151.21 
Less: Net unrealized investment gains (losses), net of tax(16.25)(17.44)(9.30)(16.07)(14.56)(13.46)(8.83)(6.80)(16.07)(6.80)
Adjusted book value per share, at period end$125.53 $126.52 $131.30 $139.04 $138.99 $144.57 $150.55 $158.01 $139.04 $158.01 
Weighted average number of common shares outstanding (basic)229.0 228.6 227.4 226.9 226.9 225.9 224.1 220.3 228.0 224.2 
Weighted average number of common shares outstanding and common stock equivalents (diluted)232.0 231.5 230.6 230.7 230.4 229.3 227.5 224.0 231.1 227.6 
Common shares outstanding at period end229.0 227.9 227.0 226.6 226.6 225.1 223.0 217.5 226.6 217.5 
Common stock dividends declared$232 $245 $243 $242 $241 $252 $250 $244 $962 $987 
Common stock repurchased:
Under Board of Directors authorization
Shares1.2 1.1 1.1 1.0 1.0 1.8 2.3 5.8 4.4 10.9 
Cost$250 $250 $250 $250 $250 $500 $625 $1,650 $1,000 $3,025 
Other
Shares0.6 0.1 — — 0.4 0.3 — — 0.7 0.7 
Cost$138 $3 $3 $2 $108 $57 $3 $3 $146 $171 




See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1
The Travelers Companies, Inc.
Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share
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($ and shares in millions, except earnings per share)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net income
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Net realized investment (gains) losses, after-tax(27)51 (42)44 48 (5)(21)15 26 37 
Core income $1,096 $585 $1,218 $2,126 $443 $1,504 $1,867 $2,511 $5,025 $6,325 
Basic
Net income per share$4.87 $2.32 $5.50 $9.11 $1.73 $6.63 $8.37 $11.24 $21.76 $27.83 
Net realized investment (gains) losses, after-tax(0.12)0.22 (0.19)0.19 0.21 (0.02)(0.10)0.07 0.11 0.17 
Core income per share$4.75 $2.54 $5.31 $9.30 $1.94 $6.61 $8.27 $11.31 $21.87 $28.00 
Diluted
Net income per share$4.80 $2.29 $5.42 $8.96 $1.70 $6.53 $8.24 $11.06 $21.47 $27.43 
Net realized investment (gains) losses, after-tax(0.11)0.22 (0.18)0.19 0.21 (0.02)(0.10)0.07 0.11 0.16 
Core income per share$4.69 $2.51 $5.24 $9.15 $1.91 $6.51 $8.14 $11.13 $21.58 $27.59 
Adjustments to net and core income and weighted average shares for net and core income EPS calculations:
Basic and Diluted1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net income, as reported$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Participating share-based awards - allocated net income(8)(5)(10)(15)(3)(11)(13)(19)(38)(46)
Net income available to common shareholders - basic and diluted$1,115 $529 $1,250 $2,067 $392 $1,498 $1,875 $2,477 $4,961 $6,242 
Core income, as reported$1,096 $585 $1,218 $2,126 $443 $1,504 $1,867 $2,511 $5,025 $6,325 
Participating share-based awards - allocated core income(8)(4)(10)(16)(3)(11)(14)(18)(39)(46)
Core income available to common shareholders - basic and diluted$1,088 $581 $1,208 $2,110 $440 $1,493 $1,853 $2,493 $4,986 $6,279 
Common Shares
Basic
Weighted average shares outstanding229.0 228.6 227.4 226.9 226.9 225.9 224.1 220.3 228.0 224.2 
Diluted
Weighted average shares outstanding229.0 228.6 227.4 226.9 226.9 225.9 224.1 220.3 228.0 224.2 
Weighted average effect of dilutive securities - stock options and performance shares3.0 2.9 3.2 3.8 3.5 3.4 3.4 3.7 3.1 3.4 
Diluted weighted average shares outstanding232.0 231.5 230.6 230.7 230.4 229.3 227.5 224.0 231.1 227.6 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2
The Travelers Companies, Inc.
Statement of Income - Consolidated
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Premiums$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $11,135 $11,148 $41,941 $43,914 
Net investment income846 885 904 955 930 942 1,033 1,054 3,590 3,959 
Fee income109 115 121 128 119 124 127 125 473 495 
Net realized investment gains (losses)35 (65)55 (55)(61)6 27 (20)(30)(48)
Other revenues112 105 120 112 112 123 148 125 449 508 
Total revenues11,228 11,283 11,904 12,008 11,810 12,116 12,470 12,432 46,423 48,828 
Claims and expenses
Claims and claim adjustment expenses6,656 7,373 6,996 6,034 8,006 6,789 6,594 5,832 27,059 27,221 
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 1,849 1,837 6,973 7,266 
General and administrative expenses1,406 1,478 1,460 1,475 1,459 1,545 1,572 1,544 5,819 6,120 
Interest expense98 98 98 98 99 99 111 116 392 425 
Total claims and expenses9,858 10,627 10,344 9,414 11,342 10,235 10,126 9,329 40,243 41,032 
Income before income taxes1,370 656 1,560 2,594 468 1,881 2,344 3,103 6,180 7,796 
Income tax expense247 122 300 512 73 372 456 607 1,181 1,508 
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Other statistics
Effective tax rate on net investment income17.6 %%17.8 %%17.9 %%17.9 %%17.9 %%17.9 %%17.8 %%17.7 %%17.8 %%17.8 %%
Net investment income (after-tax)$698 $727 $742 $785 $763 $774 $850 $867 $2,952 $3,254 
Catastrophes, net of reinsurance:
Pre-tax$712 $1,509 $939 $175 $2,266 $927 $402 $95 $3,335 $3,690 
After-tax$563 $1,192 $739 $138 $1,790 $732 $318 $75 $2,632 $2,915 
Prior year reserve development - favorable:
Pre-tax$91 $230 $126 $262 $378 $315 $22 $321 $709 $1,036 
After-tax$71 $182 $99 $207 $297 $249 $16 $253 $559 $815 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income by Major Component and Combined Ratio - Consolidated
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($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Underwriting gain (loss)$472 $(58)$547 $1,420 $(239)$808 $1,099 $1,729 $2,381 $3,397 
Net investment income698 727 742 785 763 774 850 867 2,952 3,254 
Other income (expense), including interest expense(74)(84)(71)(79)(81)(78)(82)(85)(308)(326)
Core income 1,096 585 1,218 2,126 443 1,504 1,867 2,511 5,025 6,325 
Net realized investment gains (losses)27 (51)42 (44)(48)5 21 (15)(26)(37)
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio65.2 %%71.4 %%64.8 %%55.0 %%74.2 %%61.7 %%58.7 %%51.8 %%64.0 %%61.4 %%
Underwriting expense ratio28.7 %%28.8 %%28.4 %%28.2 %%28.3 %%28.6 %%28.6 %%28.4 %%28.5 %%28.5 %%
Combined ratio93.9 %%100.2 %%93.2 %%83.2 %%102.5 %%90.3 %%87.3 %%80.2 %%92.5 %%89.9 %%
Impact on combined ratio:
Net favorable prior year reserve development(0.9)%%(2.2)%%(1.2)%%(2.4)%%(3.5)%%(2.9)%%(0.2)%%(2.9)%%(1.7)%%(2.4)%%
Catastrophes, net of reinsurance7.1 %%14.7 %%8.8 %%1.6 %%21.2 %%8.5 %%3.6 %%0.9 %%8.0 %%8.4 %%
Underlying combined ratio87.7 %%87.7 %%85.6 %%84.0 %%84.8 %%84.7 %%83.9 %%82.2 %%86.2 %%83.9 %%
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$30 $30 $28 $28 $28 $29 $28 $28 $116 $113 
Fee income:
Loss and loss adjustment expenses$39 $42 $44 $47 $45 $45 $48 $48 $172 $186 
Underwriting expenses70 73 77 81 74 79 79 77 301 309 
Total fee income$109 $115 $121 $128 $119 $124 $127 $125 $473 $495 
Non-insurance general and administrative expenses$102 $106 $106 $107 $109 $113 $131 $110 $421 $463 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Premiums$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $11,135 $11,148 $41,941 $43,914 
Net investment income846 885 904 955 930 942 1,033 1,054 3,590 3,959 
Fee income109 115 121 128 119 124 127 125 473 495 
Other revenues112 105 120 112 112 123 148 125 449 508 
Total revenues
11,193 11,348 11,849 12,063 11,871 12,110 12,443 12,452 46,453 48,876 
Claims and expenses
Claims and claim adjustment expenses6,656 7,373 6,996 6,034 8,006 6,789 6,594 5,832 27,059 27,221 
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 1,849 1,837 6,973 7,266 
General and administrative expenses1,406 1,478 1,460 1,475 1,459 1,545 1,572 1,544 5,819 6,120 
Interest expense98 98 98 98 99 99 111 116 392 425 
Total claims and expenses
9,858 10,627 10,344 9,414 11,342 10,235 10,126 9,329 40,243 41,032 
Core income before income taxes1,335 721 1,505 2,649 529 1,875 2,317 3,123 6,210 7,844 
Income tax expense239 136 287 523 86 371 450 612 1,185 1,519 
Core income $1,096 $585 $1,218 $2,126 $443 $1,504 $1,867 $2,511 $5,025 $6,325 
Other statistics
Effective tax rate on net investment income17.6 %%17.8 %%17.9 %%17.9 %%17.9 %%17.9 %%17.8 %%17.7 %%17.8 %%17.8 %%
Net investment income (after-tax)$698 $727 $742 $785 $763 $774 $850 $867 $2,952 $3,254 
Catastrophes, net of reinsurance:
Pre-tax$712 $1,509 $939 $175 $2,266 $927 $402 $95 $3,335 $3,690 
After-tax$563 $1,192 $739 $138 $1,790 $732 $318 $75 $2,632 $2,915 
Prior year reserve development - favorable:
Pre-tax$91 $230 $126 $262 $378 $315 $22 $321 $709 $1,036 
After-tax$71 $182 $99 $207 $297 $249 $16 $253 $559 $815 









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

5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting
Gross written premiums$11,310 $11,865 $12,149 $11,226 $11,890 $12,225 $12,292 $11,296 $46,550 $47,703 
Net written premiums$10,184 $11,115 $11,317 $10,742 $10,515 $11,516 $11,472 $10,856 $43,358 $44,359 
Net earned premiums$10,128 $10,243 $10,704 $10,868 $10,710 $10,897 $11,133 $11,146 $41,943 $43,886 
Losses and loss adjustment expenses6,602 7,320 6,940 5,966 7,947 6,731 6,537 5,768 26,828 26,983 
Underwriting expenses3,012 3,111 3,139 3,038 3,098 3,260 3,239 3,114 12,300 12,711 
Statutory underwriting gain (loss) 514 (188)625 1,864 (335)906 1,357 2,264 2,815 4,192 
Policyholder dividends12 12 12 11 13 10 12 10 47 45 
Statutory underwriting gain (loss) after policyholder dividends$502 $(200)$613 $1,853 $(348)$896 $1,345 $2,254 $2,768 $4,147 
Other statutory statistics
Reserves for losses and loss adjustment expenses$54,578 $55,922 $56,909 $56,326 $58,091 $59,072 $59,620 $59,747 $56,326 $59,747 
Increase (decrease) in reserves$861 $1,344 $987 $(583)$1,765 $981 $548 $127 $2,609 $3,421 
Statutory capital and surplus$25,329 $25,210 $26,191 $27,715 $27,785 $28,364 $29,965 $31,064 $27,715 $31,064 
Net written premiums/surplus (1)1.62:11.66:11.63:11.56:11.57:1 1.55:1 1.48:1 1.43:1 1.56:11.43:1

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

















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

6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Written premiums
Gross$11,310 $11,865 $12,149 $11,226 $11,890 $12,251 $12,293 $11,296 $46,550 $47,730 
Ceded(1,128)(750)(832)(484)(1,375)(708)(820)(440)(3,194)(3,343)
Net$10,182 $11,115 $11,317 $10,742 $10,515 $11,543 $11,473 $10,856 $43,356 $44,387 
Earned premiums
Gross$10,867 $11,083 $11,484 $11,644 $11,487 $11,749 $11,964 $11,952 $45,078 $47,152 
Ceded(741)(840)(780)(776)(777)(828)(829)(804)(3,137)(3,238)
Net$10,126 $10,243 $10,704 $10,868 $10,710 $10,921 $11,135 $11,148 $41,941 $43,914 






























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

7
The Travelers Companies, Inc.
Segment Income - Business Insurance
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Premiums$5,160 $5,168 $5,474 $5,543 $5,465 $5,545 $5,700 $5,702 $21,345 $22,412 
Net investment income609 632 642 677 656 662 727 737 2,560 2,782 
Fee income101 105 109 115 108 111 114 112 430 445 
Other revenues77 77 89 79 82 95 111 91 322 379 
Total revenues
5,947 5,982 6,314 6,414 6,311 6,413 6,652 6,642 24,657 26,018 
Claims and expenses
Claims and claim adjustment expenses3,331 3,471 3,698 3,179 3,705 3,584 3,667 3,198 13,679 14,154 
Amortization of deferred acquisition costs864 861 930 933 917 944 973 962 3,588 3,796 
General and administrative expenses818 835 826 824 847 875 894 866 3,303 3,482 
Total claims and expenses
5,013 5,167 5,454 4,936 5,469 5,403 5,534 5,026 20,570 21,432 
Segment income before income taxes934 815 860 1,478 842 1,010 1,118 1,616 4,087 4,586 
Income tax expense170 159 162 290 159 197 211 324 781 891 
Segment income $764 $656 $698 $1,188 $683 $813 $907 $1,292 $3,306 $3,695 
Other statistics
Effective tax rate on net investment income17.4 %%17.7 %%17.7 %%17.8 %%17.8 %%17.7 %%17.7 %%17.5 %%17.7 %%17.7 %%
Net investment income (after-tax)$502 $521 $528 $557 $539 $545 $598 $607 $2,108 $2,289 
Catastrophes, net of reinsurance:
Pre-tax$209 $389 $340 $94 $509 $368 $139 $57 $1,032 $1,073 
After-tax$166 $307 $268 $74 $402 $291 $110 $44 $815 $847 
Prior year reserve development - favorable (unfavorable):
Pre-tax$— $34 $(91)$147 $74 $79 $(125)$205 $90 $233 
After-tax$— $26 $(72)$116 $58 $62 $(99)$162 $70 $183 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
8
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Business Insurance
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($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Underwriting gain$274 $148 $176 $642 $157 $274 $318 $690 $1,240 $1,439 
Net investment income502 521 528 557 539 545 598 607 2,108 2,289 
Other income (expense)(12)(13)(6)(11)(13)(6)(9)(5)(42)(33)
Segment income$764 $656 $698 $1,188 $683 $813 $907 $1,292 $3,306 $3,695 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio63.6 %%66.2 %%66.6 %%56.4 %%66.8 %%63.7 %%63.3 %%55.1 %%63.1 %%62.2 %%
Underwriting expense ratio29.7 %%29.9 %%29.2 %%28.8 %%29.4 %%29.9 %%29.6 %%29.3 %%29.4 %%29.5 %%
Combined ratio93.3 %%96.1 %%95.8 %%85.2 %%96.2 %%93.6 %%92.9 %%84.4 %%92.5 %%91.7 %%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development— %%(0.6)%%1.7 %%(2.7)%%(1.3)%%(1.4)%%2.2 %%(3.6)%%(0.4)%%(1.1)%%
Catastrophes, net of reinsurance4.1 %%7.5 %%6.2 %%1.7 %%9.3 %%6.7 %%2.4 %%1.0 %%4.8 %%4.8 %%
Underlying combined ratio89.2 %%89.2 %%87.9 %%86.2 %%88.2 %%88.3 %%88.3 %%87.0 %%88.1 %%88.0 %%
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$4 $4 $4 $4 $4 $5 $4 $4 $16 $17 
Fee income:
Loss and loss adjustment expenses$39 $42 $44 $47 $45 $45 $48 $48 $172 $186 
Underwriting expenses62 63 65 68 63 66 66 64 258 259 
Total fee income$101 $105 $109 $115 $108 $111 $114 $112 $430 $445 
Non-insurance general and administrative expenses$86 $87 $90 $86 $91 $93 $112 $89 $349 $385 
 
 
 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
9
The Travelers Companies, Inc.
Selected Statistics - Business Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting
Gross written premiums$6,383 $6,169 $6,173 $5,790 $6,740 $6,359 $6,284 $5,840 $24,515 $25,223 
Net written premiums$5,598 $5,539 $5,517 $5,426 $5,698 $5,765 $5,674 $5,514 $22,080 $22,651 
Net earned premiums$5,162 $5,168 $5,474 $5,543 $5,465 $5,521 $5,698 $5,700 $21,347 $22,384 
Losses and loss adjustment expenses3,282 3,422 3,645 3,116 3,650 3,530 3,614 3,138 13,465 13,932 
Underwriting expenses1,630 1,620 1,583 1,566 1,700 1,704 1,654 1,615 6,399 6,673 
Statutory underwriting gain250 126 246 861 115 287 430 947 1,483 1,779 
Policyholder dividends8 7 9 7 9 5 9 5 31 28 
Statutory underwriting gain after policyholder dividends$242 $119 $237 $854 $106 $282 $421 $942 $1,452 $1,751 





























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

10
The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net written premiums by market          
Domestic          
Select Accounts$974 $975 $885 $893 $976 $1,004 $920 $930 $3,727 $3,830 
Middle Market3,213 2,769 3,030 3,011 3,166 3,034 3,232 3,109 12,023 12,541 
National Accounts327 312 264 356 312 329 273 348 1,259 1,262 
National Property and Other642 912 896 684 720 885 841 666 3,134 3,112 
Total Domestic5,156 4,968 5,075 4,944 5,174 5,252 5,266 5,053 20,143 20,745 
International440 571 442 482 524 540 409 461 1,935 1,934 
Total$5,596 $5,539 $5,517 $5,426 $5,698 $5,792 $5,675 $5,514 $22,078 $22,679 
Net written premiums by product line          
Domestic          
Workers’ compensation$1,019 $847 $795 $808 $950 $821 $792 $786 $3,469 $3,349 
Commercial automobile964 923 937 954 1,030 1,019 1,030 1,017 3,778 4,096 
Commercial property763 1,054 1,022 859 873 1,051 961 820 3,698 3,705 
General liability965 809 914 903 753 878 998 967 3,591 3,596 
Commercial multi-peril1,416 1,345 1,367 1,409 1,532 1,486 1,447 1,461 5,537 5,926 
Other29 (10)40 11 36 (3)38 2 70 73 
Total Domestic5,156 4,968 5,075 4,944 5,174 5,252 5,266 5,053 20,143 20,745 
International440 571 442 482 524 540 409 461 1,935 1,934 
Total$5,596 $5,539 $5,517 $5,426 $5,698 $5,792 $5,675 $5,514 $22,078 $22,679 










See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
11
The Travelers Companies, Inc.
Segment Income - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Premiums$956 $977 $1,009 $1,016 $995 $1,021 $1,042 $1,049 $3,958 $4,107 
Net investment income90 94 101 105 102 107 116 120 390 445 
Other revenues9 6 7 8 6 5 8 8 30 27 
Total revenues1,055 1,077 1,117 1,129 1,103 1,133 1,166 1,177 4,378 4,579 
Claims and expenses
Claims and claim adjustment expenses428 473 441 432 434 418 451 461 1,774 1,764 
Amortization of deferred acquisition costs182 183 194 197 187 195 197 199 756 778 
General and administrative expenses205 207 203 217 205 214 207 217 832 843 
Total claims and expenses815 863 838 846 826 827 855 877 3,362 3,385 
Segment income before income taxes240 214 279 283 277 306 311 300 1,016 1,194 
Income tax expense45 44 57 55 57 62 61 64 201 244 
Segment income$195 $170 $222 $228 $220 $244 $250 $236 $815 $950 
Other statistics
Effective tax rate on net investment income18.0 %%18.2 %%18.8 %%18.5 %%18.4 %%18.5 %%17.7 %%18.4 %%18.4 %%18.3 %%
Net investment income (after-tax)$74 $77 $81 $87 $83 $88 $95 $98 $319 $364 
Catastrophes, net of reinsurance:
Pre-tax$5 $40 $4 $2 $19 $5 $— $1 $51 $25 
After-tax$4 $31 $3 $2 $15 $4 $— $1 $40 $20 
Prior year reserve development - favorable:
Pre-tax$24 $24 $36 $45 $67 $81 $43 $30 $129 $221 
After-tax$19 $19 $28 $35 $52 $65 $33 $24 $101 $174 












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

12
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance
image2a.gif
($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Underwriting gain$116 $90 $135 $137 $133 $154 $150 $132 $478 $569 
Net investment income74 77 81 87 83 88 95 98 319 364 
Other income5 3 6 4 4 2 5 6 18 17 
Segment income$195 $170 $222 $228 $220 $244 $250 $236 $815 $950 
Combined ratio (1)
Loss and loss adjustment expense ratio44.4 %%48.0 %%43.4 %%42.1 %%43.2 %%40.5 %%42.9 %%43.5 %%44.4 %%42.6 %%
Underwriting expense ratio40.1 %%39.7 %%39.1 %%40.6 %%39.3 %%39.8 %%38.7 %%39.5 %%39.9 %%39.3 %%
Combined ratio84.5 %%87.7 %%82.5 %%82.7 %%82.5 %%80.3 %%81.6 %%83.0 %%84.3 %%81.9 %%
Impact on combined ratio:
Net favorable prior year reserve development(2.5)%%(2.5)%%(3.5)%%(4.3)%%(6.7)%%(8.0)%%(4.2)%%(2.8)%%(3.3)%%(5.4)%%
Catastrophes, net of reinsurance0.5 %%4.1 %%0.4 %%0.2 %%1.9 %%0.5 %%— %%0.1 %%1.3 %%0.7 %%
Underlying combined ratio86.5 %%86.1 %%85.6 %%86.8 %%87.3 %%87.8 %%85.8 %%85.7 %%86.3 %%86.6 %%
(1)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$— $1 $1 $— $— $— $1 $— $2 $1 
Non-insurance general and administrative expenses$3 $1 $1 $2 $1 $2 $1 $2 $7 $6 















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
13
The Travelers Companies, Inc.
Selected Statistics - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting          
Gross written premiums$1,076 $1,127 $1,165 $1,151 $1,129 $1,166 $1,160 $1,192 $4,519 $4,647 
Net written premiums$943 $1,040 $1,072 $1,054 $999 $1,085 $1,080 $1,098 $4,109 $4,262 
Net earned premiums$956 $977 $1,009 $1,016 $995 $1,021 $1,042 $1,049 $3,958 $4,107 
Losses and loss adjustment expenses424 468 438 427 430 414 447 457 1,757 1,748 
Underwriting expenses411 408 421 421 422 434 424 433 1,661 1,713 
Statutory underwriting gain121 101 150 168 143 173 171 159 540 646 
Policyholder dividends4 5 3 4 4 5 3 5 16 17 
Statutory underwriting gain after policyholder dividends$117 $96 $147 $164 $139 $168 $168 $154 $524 $629 
 




























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

14
The Travelers Companies, Inc.
Net Written Premiums - Bond & Specialty Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net written premiums by market
Domestic
Management Liability$543 $586 $617 $563 $553 $589 $613 $571 $2,309 $2,326 
Surety296 325 344 329 333 342 342 337 1,294 1,354 
Total Domestic839 911 961 892 886 931 955 908 3,603 3,680 
International104 129 111 162 113 154 125 190 506 582 
Total$943 $1,040 $1,072 $1,054 $999 $1,085 $1,080 $1,098 $4,109 $4,262 
Net written premiums by product line
Domestic
Fidelity and surety$356 $382 $411 $387 $394 $400 $407 $395 $1,536 $1,596 
General liability434 468 479 452 440 469 475 458 1,833 1,842 
Other49 61 71 53 52 62 73 55 234 242 
Total Domestic839 911 961 892 886 931 955 908 3,603 3,680 
International104 129 111 162 113 154 125 190 506 582 
Total$943 $1,040 $1,072 $1,054 $999 $1,085 $1,080 $1,098 $4,109 $4,262 


















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

15
The Travelers Companies, Inc.
Segment Income (Loss) - Personal Insurance
image2a.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Premiums$4,010 $4,098 $4,221 $4,309 $4,250 $4,355 $4,393 $4,397 $16,638 $17,395 
Net investment income147 159 161 173 172 173 190 197 640 732 
Fee income8 10 12 13 11 13 13 13 43 50 
Other revenues26 22 24 25 24 23 29 26 97 102 
Total revenues4,191 4,289 4,418 4,520 4,457 4,564 4,625 4,633 17,418 18,279 
Claims and expenses
Claims and claim adjustment expenses2,897 3,429 2,857 2,423 3,867 2,787 2,476 2,173 11,606 11,303 
Amortization of deferred acquisition costs652 634 666 677 674 663 679 676 2,629 2,692 
General and administrative expenses375 424 420 421 396 444 458 448 1,640 1,746 
Total claims and expenses3,924 4,487 3,943 3,521 4,937 3,894 3,613 3,297 15,875 15,741 
Segment income (loss) before income taxes267 (198)475 999 (480)670 1,012 1,336 1,543 2,538 
Income tax expense (benefit)47 (45)91 201 (106)136 205 250 294 485 
Segment income (loss)$220 $(153)$384 $798 $(374)$534 $807 $1,086 $1,249 $2,053 
Other statistics
Effective tax rate on net investment income17.7 %%18.0 %%18.0 %%18.1 %%18.1 %%18.0 %%18.0 %%17.7 %%18.0 %%17.9 %%
Net investment income (after-tax)$122 $129 $133 $141 $141 $141 $157 $162 $525 $601 
Catastrophes, net of reinsurance:
Pre-tax$498 $1,080 $595 $79 $1,738 $554 $263 $37 $2,252 $2,592 
After-tax$393 $854 $468 $62 $1,373 $437 $208 $30 $1,777 $2,048 
Prior year reserve development - favorable:
Pre-tax$67 $172 $181 $70 $237 $155 $104 $86 $490 $582 
After-tax$52 $137 $143 $56 $187 $122 $82 $67 $388 $458 












See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
16
The Travelers Companies, Inc.
Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
image2a.gif

($ in millions, net of tax)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Underwriting gain (loss)$82 $(296)$236 $641 $(529)$380 $631 $907 $663 $1,389 
Net investment income122 129 133 141 141 141 157 162 525 601 
Other income16 14 15 16 14 13 19 17 61 63 
Segment income (loss)$220 $(153)$384 $798 $(374)$534 $807 $1,086 $1,249 $2,053 
Combined ratio (1)
Loss and loss adjustment expense ratio72.2 %%83.7 %%67.7 %%56.2 %%91.0 %%64.0 %%56.4 %%49.4 %%69.7 %%65.0 %%
Underwriting expense ratio24.7 %%24.8 %%24.8 %%24.5 %%24.2 %%24.4 %%24.9 %%24.6 %%24.7 %%24.5 %%
Combined ratio96.9 %%108.5 %%92.5 %%80.7 %%115.2 %%88.4 %%81.3 %%74.0 %%94.4 %%89.5 %%
Impact on combined ratio:
Net favorable prior year reserve development(1.6)%%(4.2)%%(4.3)%%(1.6)%%(5.6)%%(3.6)%%(2.4)%%(1.9)%%(3.0)%%(3.4)%%
Catastrophes, net of reinsurance12.4 %%26.4 %%14.1 %%1.8 %%40.9 %%12.7 %%6.0 %%0.8 %%13.5 %%14.9 %%
Underlying combined ratio86.1 %%86.3 %%82.7 %%80.5 %%79.9 %%79.3 %%77.7 %%75.1 %%83.9 %%78.0 %%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$26 $25 $23 $24 $24 $24 $23 $24 $98 $95 
Fee income$8 $10 $12 $13 $11 $13 $13 $13 $43 $50 
Non-insurance general and administrative expenses$5 $6 $4 $6 $6 $6 $5 $6 $21 $23 


 







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

17
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
image2a.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting
Gross written premiums$3,851 $4,569 $4,811 $4,285 $4,021 $4,700 $4,848 $4,264 $17,516 $17,833 
Net written premiums$3,643 $4,536 $4,728 $4,262 $3,818 $4,666 $4,718 $4,244 $17,169 $17,446 
Net earned premiums$4,010 $4,098 $4,221 $4,309 $4,250 $4,355 $4,393 $4,397 $16,638 $17,395 
Losses and loss adjustment expenses2,896 3,430 2,857 2,423 3,867 2,787 2,476 2,173 11,606 11,303 
Underwriting expenses971 1,083 1,135 1,051 976 1,122 1,161 1,066 4,240 4,325 
Statutory underwriting gain (loss)$143 $(415)$229 $835 $(593)$446 $756 $1,158 $792 $1,767 
Policies in force (in thousands)
Automobile3,212 3,180 3,158 3,150 3,118 3,083 3,050 3,025 3,150 3,025 
Homeowners and Other6,235 6,167 6,106 6,060 5,980 5,882 5,768 5,679 6,060 5,679 




























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

18
The Travelers Companies, Inc.
Net Written Premiums - Personal Insurance
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net written premiums by product line
Domestic
Automobile$1,859 $2,001 $2,138 $1,927 $1,859 $1,968 $2,062 $1,856 $7,925 $7,745 
Homeowners and Other1,635 2,347 2,410 2,158 1,813 2,520 2,489 2,229 8,550 9,051 
Total Domestic3,494 4,348 4,548 4,085 3,672 4,488 4,551 4,085 16,475 16,796 
International149 188 180 177 146 178 167 159 694 650 
Total$3,643 $4,536 $4,728 $4,262 $3,818 $4,666 $4,718 $4,244 $17,169 $17,446 































See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
19
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Automobile
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting
Gross written premiums$1,970 $2,129 $2,264 $2,056 $1,967 $2,083 $2,177 $1,967 $8,419 $8,194 
Net written premiums$1,959 $2,120 $2,253 $2,043 $1,955 $2,074 $2,165 $1,956 $8,375 $8,150 
Net earned premiums$1,980 $2,026 $2,080 $2,110 $2,071 $2,091 $2,091 $2,075 $8,196 $8,328 
Losses and loss adjustment expenses1,430 1,532 1,477 1,518 1,270 1,320 1,300 1,393 5,957 5,283 
Underwriting expenses454 468 495 471 444 477 495 458 1,888 1,874 
Statutory underwriting gain$96 $26 $108 $121 $357 $294 $296 $224 $351 $1,171 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio72.2 %%75.6 %%71.0 %%71.9 %%61.3 %%63.1 %%62.1 %%67.1 %%72.6 %%63.4 %%
Underwriting expense ratio22.4 %%22.3 %%22.4 %%22.3 %%22.1 %%22.2 %%22.8 %%22.3 %%22.4 %%22.3 %%
Combined ratio94.6 %%97.9 %%93.4 %%94.2 %%83.4 %%85.3 %%84.9 %%89.4 %%95.0 %%85.7 %%
Impact on combined ratio:
Net favorable prior year reserve development(2.3)%%(1.5)%%(2.7)%%(1.5)%%(6.0)%%(5.0)%%(4.3)%%(3.0)%%(2.0)%%(4.6)%%
Catastrophes, net of reinsurance2.0 %%4.2 %%4.9 %%(0.6)%%1.9 %%1.3 %%0.9 %%0.2 %%2.6 %%1.1 %%
Underlying combined ratio94.9 %%95.2 %%91.2 %%96.3 %%87.5 %%89.0 %%88.3 %%92.2 %%94.4 %%89.2 %%
Catastrophes, net of reinsurance:
Pre-tax$39 $85 $103 $(13)$39 $27 $19 $4 $214 $89 
After-tax$31 $67 $81 $(10)$30 $22 $15 $3 $169 $70 
Prior year reserve development - favorable:
Pre-tax$45 $30 $56 $31 $125 $104 $89 $61 $162 $379 
After-tax$34 $26 $45 $25 $98 $83 $70 $47 $130 $298 
Policies in force (in thousands)3,212 3,180 3,158 3,150 3,118 3,083 3,050 3,025 
Change from prior year quarter(1.1)%%(1.4)%%(2.0)%%(2.3)%%(2.9)%%(3.1)%%(3.4)%%(4.0)%%
Change from prior quarter(0.3)%%(1.0)%%(0.7)%%(0.3)%%(1.0)%%(1.1)%%(1.1)%%(0.8)%%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$15 $15 $14 $15 $14 $15 $14 $14 $59 $57 
Fee income$4 $5 $7 $7 $6 $6 $7 $7 $23 $26 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
20
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Homeowners and Other
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory underwriting
Gross written premiums$1,881 $2,440 $2,547 $2,229 $2,054 $2,617 $2,671 $2,297 $9,097 $9,639 
Net written premiums$1,684 $2,416 $2,475 $2,219 $1,863 $2,592 $2,553 $2,288 $8,794 $9,296 
Net earned premiums$2,030 $2,072 $2,141 $2,199 $2,179 $2,264 $2,302 $2,322 $8,442 $9,067 
Losses and loss adjustment expenses1,466 1,898 1,380 905 2,597 1,467 1,176 780 5,649 6,020 
Underwriting expenses517 615 640 580 532 645 666 608 2,352 2,451 
Statutory underwriting gain (loss)$47 $(441)$121 $714 $(950)$152 $460 $934 $441 $596 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio72.2 %%91.6 %%64.5 %%41.2 %%119.2 %%64.8 %%51.1 %%33.6 %%66.9 %%66.4 %%
Underwriting expense ratio26.9 %%27.2 %%27.0 %%26.6 %%26.3 %%26.5 %%26.9 %%26.7 %%27.0 %%26.6 %%
Combined ratio99.1 %%118.8 %%91.5 %%67.8 %%145.5 %%91.3 %%78.0 %%60.3 %%93.9 %%93.0 %%
Impact on combined ratio:
Net favorable prior year reserve development(1.1)%%(6.8)%%(5.9)%%(1.8)%%(5.1)%%(2.2)%%(0.7)%%(1.1)%%(3.9)%%(2.2)%%
Catastrophes, net of reinsurance22.6 %%48.0 %%23.0 %%4.2 %%78.0 %%23.2 %%10.7 %%1.5 %%24.2 %%27.6 %%
Underlying combined ratio77.6 %%77.6 %%74.4 %%65.4 %%72.6 %%70.3 %%68.0 %%59.9 %%73.6 %%67.6 %%
Catastrophes, net of reinsurance:
Pre-tax$459 $995 $492 $92 $1,699 $527 $244 $33 $2,038 $2,503 
After-tax$362 $787 $387 $72 $1,343 $415 $193 $27 $1,608 $1,978 
Prior year reserve development - favorable:
Pre-tax$22 $142 $125 $39 $112 $51 $15 $25 $328 $203 
After-tax$18 $111 $98 $31 $89 $39 $12 $20 $258 $160 
Policies in force (in thousands)6,235 6,167 6,106 6,060 5,980 5,882 5,768 5,679 
Change from prior year quarter(1.9)%%(3.0)%%(3.8)%%(3.7)%%(4.1)%%(4.6)%%(5.5)%%(6.3)%%
Change from prior quarter(0.9)%%(1.1)%%(1.0)%%(0.8)%%(1.3)%%(1.6)%%(1.9)%%(1.5)%%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Billing and policy fees and other$11 $10 $9 $9 $10 $9 $9 $10 $39 $38 
Fee income$4 $5 $5 $6 $5 $7 $6 $6 $20 $24 


See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
21
The Travelers Companies, Inc.
Interest Expense and Other
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Revenues
Other revenues$— $— $— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense98 98 98 98 99 99 111 116 392 425 
General and administrative expenses8 12 11 13 11 12 13 13 44 49 
Total claims and expenses106 110 109 111 110 111 124 129 436 474 
Loss before income tax benefit(106)(110)(109)(111)(110)(111)(124)(129)(436)(474)
Income tax benefit(23)(22)(23)(23)(24)(24)(27)(26)(91)(101)
Loss$(83)$(88)$(86)$(88)$(86)$(87)$(97)$(103)$(345)$(373)




























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

22
The Travelers Companies, Inc.
Consolidated Balance Sheet
image2a.gif
($ and shares in millions)December 31,
2025 (1)		December 31,
2024
Assets
Fixed maturities, available for sale, at fair value (amortized cost $91,717 and $88,277; allowance for expected credit losses of $3 and $2)
$89,833 $83,666 
Equity securities, at fair value (cost $457 and $544)
618 687 
Real estate investments900 902 
Short-term securities5,716 4,766 
Other investments4,115 4,202 
Total investments101,182 94,223 
Cash (including restricted cash of $132 and $131)
842 699 
Investment income accrued877 752 
Premiums receivable (net of allowance for expected credit losses of $58 and $58)
10,992 11,110 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $129 and $119)
7,886 8,000 
Ceded unearned premiums1,283 1,202 
Deferred acquisition costs3,518 3,494 
Deferred taxes887 1,762 
Contractholder receivables (net of allowance for expected credit losses of $16 and $18)
3,010 3,171 
Goodwill4,066 4,233 
Other intangible assets336 360 
Other assets4,279 4,183 
Assets held for sale (2)4,550 — 
Total assets$143,708 $133,189 
Liabilities
Claims and claim adjustment expense reserves$65,737 $64,093 
Unearned premium reserves22,431 22,289 
Contractholder payables3,026 3,189 
Payables for reinsurance premiums529 550 
Debt9,267 8,033 
Other liabilities7,282 7,171 
Liabilities held for sale (2)2,542 — 
Total liabilities110,814 105,325 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 217.5 and 226.6 shares issued and outstanding)
25,910 25,452 
Retained earnings54,931 49,630 
Accumulated other comprehensive loss(2,500)(4,967)
Treasury stock, at cost (575.9 and 564.3 shares)
(45,447)(42,251)
Total shareholders’ equity32,894 27,864 
Total liabilities and shareholders’ equity$143,708 $133,189 
(1) Preliminary
(2) Amounts relate to the previously announced sale of the Company’s Canadian business.
23
The Travelers Companies, Inc.
Investment Portfolio
image2a.gif
(at carrying value, $ in millions)December 31, 2025 (1)Pre-tax Book
Yield (2)		December 31,
2024		Pre-tax Book
Yield (2)
Investment portfolio
Taxable fixed maturities$63,051 4.11 %%$61,012 3.87 %%
Tax-exempt fixed maturities26,782 3.29 %%22,654 3.00 %%
Total fixed maturities89,833 3.86 %%83,666 3.63 %%
Non-redeemable preferred stocks35 1.64 %%48 2.20 %%
Common stocks583 639 
Total equity securities618 687 
Real estate investments900 902 
Short-term securities5,716 3.86 %%4,766 4.54 %%
Private equities2,749 2,815 
Hedge funds212 219 
Real estate partnerships832 858 
Other investments322 310 
Total other investments4,115 4,202 
Total investments$101,182 $94,223 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(1,478)$(3,640)

(1)  Excludes $3,347 million of total investments classified as held for sale.

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





24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
image2a.gif
(at carrying value, $ in millions)December 31, 2025 (1)December 31,
2024
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$3,857 $5,570 
Obligations of U.S. states and political subdivisions:
Pre-refunded416 572 
All other30,962 26,613 
Total31,378 27,185 
Debt securities issued by foreign governments312 909 
Mortgage-backed securities - principally obligations of U.S. Government agencies13,232 12,605 
Corporate and all other bonds41,054 37,397 
Total fixed maturities$89,833 $83,666 
Fixed Maturities
Quality Characteristics (2)
December 31, 2025 (1)December 31, 2024
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$24,898 27.7 %%$40,411 48.3 %%
Aa33,027 36.7 15,278 18.3 
A19,660 21.9 16,181 19.3 
Baa11,198 12.5 10,816 12.9 
Total investment grade88,783 98.8 82,686 98.8 
Ba812 1.0 686 0.8 
B205 0.2 247 0.3 
Caa and lower33 — 47 0.1 
Total below investment grade1,050 1.2 980 1.2 
Total fixed maturities$89,833 100.0 %%$83,666 100.0 %%
Average weighted quality Aa2, AAAa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases4.7 4.3 

 
(1)  Excludes $3,243 million of fixed maturities classified as held for sale.

(2) Rated using external rating agencies or by Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.
25
The Travelers Companies, Inc.
Investment Income
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Gross investment income
Fixed maturities$692 $709 $749 $798 $812 $833 $874 $914 $2,948 $3,433 
Short-term securities70 70 77 63 57 55 73 68 280 253 
Other98 118 90 103 76 67 101 82 409 326 
860 897 916 964 945 955 1,048 1,064 3,637 4,012 
Investment expenses14 12 12 9 15 13 15 10 47 53 
Net investment income, pre-tax846 885 904 955 930 942 1,033 1,054 3,590 3,959 
Income taxes148 158 162 170 167 168 183 187 638 705 
Net investment income, after-tax$698 $727 $742 $785 $763 $774 $850 $867 $2,952 $3,254 
Effective tax rate17.6 %%17.8 %%17.9 %%17.9 %%17.9 %%17.9 %%17.8 %%17.7 %%17.8 %%17.8 %%
Average invested assets (1) (2)$94,677$95,402$97,736$100,046$101,000$102,173$105,655$107,932$97,012$104,239
Average yield pre-tax (1)3.6 %%3.7 %%3.7 %%3.8 %%3.7 %%3.7 %%3.9 %%3.9 %%3.7 %%3.8 %%
Average yield after-tax2.9 %%3.0 %%3.0 %%3.1 %%3.0 %%3.0 %%3.2 %%3.2 %%3.0 %%3.1 %%

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

(2) Includes $3,347 million of invested assets classified as held for sale as of December 31, 2025.

26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
image2a.gif

($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Net realized investment gains (losses)
Fixed maturities$(40)$(35)$(17)$(39)$(31)$(17)$(2)$(19)$(131)$(69)
Equity securities 79 (28)53 (5)(22)20 39 8 99 45 
Other (4)(2)19 (11)(8)3 (10)(9)2 (24)
Realized investment gains (losses) before tax35 (65)55 (55)(61)6 27 (20)(30)(48)
Related taxes8 (14)13 (11)(13)1 6 (5)(4)(11)
Net realized investment gains (losses)$27 $(51)$42 $(44)$(48)$5 $21 $(15)$(26)$(37)
Gross investment gains$85 $7 $85 $10 $4 $41 $45 $13 $187 $103 
Gross investment losses before impairments(47)(72)(25)(63)(63)(35)(18)(33)(207)(149)
Net investment gains (losses) before impairments38 (65)60 (53)(59)6 27 (20)(20)(46)
Net impairment (charges) recoveries(3)— (5)(2)(2)— — — (10)(2)
Net realized investment gains (losses) before tax35 (65)55 (55)(61)6 27 (20)(30)(48)
Related taxes8 (14)13 (11)(13)1 6 (5)(4)(11)
Net realized investment gains (losses)$27 $(51)$42 $(44)$(48)$5 $21 $(15)$(26)$(37)
($ in millions)March 31,
2024		June 30,
2024		September 30,
2024		December 31,
2024		March 31,
2025		June 30,
2025		September 30,
2025		December 31,
2025
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities$(4,718)$(5,042)$(2,672)$(4,609)$(4,171)$(3,833)$(2,481)$(1,859)
Other (2)(1)— — (1)2 (3)(3)
Unrealized investment gains (losses) before tax(4,720)(5,043)(2,672)(4,609)(4,172)(3,831)(2,484)(1,862)
Related taxes (999)(1,067)(561)(969)(873)(800)(514)(384)
Balance, end of period$(3,721)$(3,976)$(2,111)$(3,640)$(3,299)$(3,031)$(1,970)$(1,478)




27
The Travelers Companies, Inc.
Reinsurance Recoverables
image2a.gif
($ in millions)December 31, 2025December 31, 2024
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$4,352 $3,962 
Gross structured settlements (2)2,469 2,626 
Mandatory pools and associations (3) 1,485 1,531 
Gross reinsurance recoverables (4)8,306 8,119 
Allowance for estimated uncollectible reinsurance (5)(135)(119)
Less amounts classified as held for sale285 — 
Net reinsurance recoverables$7,886 $8,000 
(1)  The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
ReinsurerA.M. Best Rating of Group's Predominant ReinsurerDecember 31, 2025
Swiss Re GroupA+ second highest of 16 ratings$737 
Berkshire HathawayA++ highest of 16 ratings435 
Munich Re GroupA+ second highest of 16 ratings381 
Fairfax Financial GroupA+ second highest of 16 ratings200 
AXA Insurance GroupA+ second highest of 16 ratings183 
The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims.  The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves.  Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.


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

The Company’s top five groups included in gross structured settlements is as follows:
GroupA.M. Best Rating of Group's Predominant InsurerDecember 31, 2025
Fidelity & Guaranty Life Group  A third highest of 16 ratings$634 
Genworth Financial Group B- eighth highest of 16 ratings311 
John Hancock GroupA+ second highest of 16 ratings214 
Symetra Financial CorporationA third highest of 16 ratings189 
Brighthouse Financial, Inc.A third highest of 16 ratings161 

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

(4) Of the total reinsurance recoverables at December 31, 2025, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $6.09 billion, or 89%, were rated by A.M. Best Company.  The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 95% were rated A- or better.  The remaining 11% of reinsurance recoverables comprised the following:  6% related to captive insurance companies, 1% related to voluntary pools and 4% were balances from other companies not rated by A.M. Best Company.  Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors.  For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. 
28
The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period$40,833 $41,391 $42,050 $42,960 $42,909 $43,742 $44,477 $45,148 $40,833 $42,909 
Incurred3,282 3,422 3,645 3,116 3,650 3,530 3,614 3,138 13,465 13,932 
Paid(2,697)(2,758)(2,786)(3,066)(2,847)(2,890)(2,915)(2,912)(11,307)(11,564)
Foreign exchange and other(27)(5)51 (101)30 95 (28)9 (82)106 
End of period$41,391 $42,050 $42,960 $42,909 $43,742 $44,477 $45,148 $45,383 $42,909 $45,383 
Bond & Specialty Insurance
Beginning of period$4,521 $4,626 $4,773 $4,931 $4,938 $5,072 $5,249 $5,304 $4,521 $4,938 
Incurred424 468 438 427 430 414 447 457 1,757 1,748 
Paid(306)(320)(332)(344)(325)(307)(372)(396)(1,302)(1,400)
Foreign exchange and other(13)(1)52 (76)29 70 (20)2 (38)81 
End of period$4,626 $4,773 $4,931 $4,938 $5,072 $5,249 $5,304 $5,367 $4,938 $5,367 
Personal Insurance
Beginning of period$8,363 $8,561 $9,099 $9,018 $8,479 $9,277 $9,346 $9,168 $8,363 $8,479 
Incurred2,896 3,430 2,857 2,423 3,867 2,787 2,476 2,173 11,606 11,303 
Paid(2,678)(2,885)(2,948)(2,908)(3,069)(2,767)(2,635)(2,357)(11,419)(10,828)
Foreign exchange and other(20)(7)10 (54)— 49 (19)13 (71)43 
End of period$8,561 $9,099 $9,018 $8,479 $9,277 $9,346 $9,168 $8,997 $8,479 $8,997 
Total
Beginning of period$53,717 $54,578 $55,922 $56,909 $56,326 $58,091 $59,072 $59,620 $53,717 $56,326 
Incurred6,602 7,320 6,940 5,966 7,947 6,731 6,537 5,768 26,828 26,983 
Paid(5,681)(5,963)(6,066)(6,318)(6,241)(5,964)(5,922)(5,665)(24,028)(23,792)
Foreign exchange and other(60)(13)113 (231)59 214 (67)24 (191)230 
End of period$54,578 $55,922 $56,909 $56,326 $58,091 $59,072 $59,620 $59,747 $56,326 $59,747 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $242 $— $— $— $277 $— $242 $277 
All other— (34)(151)(147)(74)(79)(152)(205)(332)(510)
Total Business Insurance (1)— (34)91 (147)(74)(79)125 (205)(90)(233)
Bond & Specialty Insurance(24)(24)(36)(45)(67)(81)(43)(30)(129)(221)
Personal Insurance(67)(172)(181)(70)(237)(155)(104)(86)(490)(582)
Total$(91)$(230)$(126)$(262)$(378)$(315)$(22)$(321)$(709)$(1,036)
(1)  Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
29
The Travelers Companies, Inc.
Asbestos Reserves
image2a.gif
($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Asbestos reserves
Beginning reserves:
Gross$1,768 $1,686 $1,612 $1,815 $1,708 $1,636 $1,555 $1,798 $1,768 $1,708 
Ceded(390)(382)(368)(395)(370)(357)(318)(352)(390)(370)
Net1,378 1,304 1,244 1,420 1,338 1,279 1,237 1,446 1,378 1,338 
Incurred losses and loss expenses:
Gross— — 279 — — — 327 — 279 327 
Ceded— — (37)— — — (50)— (37)(50)
Paid loss and loss expenses:
Gross82 74 77 106 72 83 84 98 339 337 
Ceded(8)(13)(11)(25)(13)(39)(16)(8)(57)(76)
Foreign exchange and other:
Gross— — 1 (1)— 2 — — — 2 
Ceded— 1 (1)— — — — (1)— (1)
Ending reserves:
Gross1,686 1,612 1,815 1,708 1,636 1,555 1,798 1,700 1,708 1,700 
Ceded(382)(368)(395)(370)(357)(318)(352)(345)(370)(345)
Net$1,304 $1,244 $1,420 $1,338 $1,279 $1,237 $1,446 $1,355 $1,338 $1,355 





















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
image2a.gif
($ in millions)December 31,
2025		December 31,
2024
Debt
Short-term debt
Commercial paper$100 $100 
7.75% Senior notes due April 15, 2026200 — 
Total short-term debt300 100 
Long-term debt
7.75% Senior notes due April 15, 2026— 200 
7.625% Junior subordinated debentures due December 15, 2027125 125 
6.375% Senior notes due March 15, 2033 (1)500 500 
5.05% Senior notes due July 24, 2035 (1)500 — 
6.75% Senior notes due June 20, 2036 (1)400 400 
6.25% Senior notes due June 15, 2037 (1)800 800 
5.35% Senior notes due November 1, 2040 (1)750 750 
4.60% Senior notes due August 1, 2043 (1)500 500 
4.30% Senior notes due August 25, 2045 (1)400 400 
8.50% Junior subordinated debentures due December 15, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 73 
4.00% Senior notes due May 30, 2047 (1)700 700 
4.05% Senior notes due March 7, 2048 (1)500 500 
4.10% Senior notes due March 4, 2049 (1)500 500 
2.55% Senior notes due April 27, 2050 (1)500 500 
3.05% Senior notes due June 8, 2051 (1)750 750 
5.45% Senior notes due May 25, 2053 (1)750 750 
5.70% Senior notes due July 24, 2055 (1)750 — 
Total long-term debt9,054 8,004 
Unamortized fair value adjustment31 34 
Unamortized debt issuance costs(118)(105)
8,967 7,933 
Total debt9,267 8,033 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)34,372 31,504 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$43,639 $39,537 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)21.2 %%20.3 %%
(1)  Redeemable anytime with “make-whole” premium. 
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
31
The Travelers Companies, Inc.
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation
image2a.gif
($ in millions)December 31,
2025 (1)		December 31,
2024
Statutory capital and surplus$31,064 $27,715 
GAAP adjustments
Goodwill and intangible assets3,640 3,635 
Investments(1,238)(3,982)
Noninsurance companies(4,876)(4,350)
Deferred acquisition costs3,478 3,371 
Deferred federal income tax(446)218 
Current federal income tax(6)(5)
Reinsurance recoverables41 44 
Furniture, equipment & software948 960 
Agents balances182 230 
Other107 28 
Total GAAP adjustments1,830 149 
GAAP shareholders’ equity$32,894 $27,864 

(1) Estimated and Preliminary
 




















See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
32
The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Cash flows from operating activities
Net income$1,123 $534 $1,260 $2,082 $395 $1,509 $1,888 $2,496 $4,999 $6,288 
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses(35)65 (55)55 61 (6)(27)20 30 48 
Depreciation and amortization196 182 174 163 188 164 166 162 715 680 
Deferred federal income tax expense (benefit)42 (85)(59)(50)31 (83)320 (58)(152)210 
Amortization of deferred acquisition costs1,698 1,678 1,790 1,807 1,778 1,802 1,849 1,837 6,973 7,266 
Equity in income from other investments(68)(89)(63)(74)(53)(42)(74)(57)(294)(226)
Premiums receivable(557)(664)234 128 (459)(438)412 370 (859)(115)
Reinsurance recoverables33 (34)74 38 (97)78 (250)132 111 (137)
Deferred acquisition costs(1,776)(1,807)(1,856)(1,734)(1,822)(1,917)(1,877)(1,757)(7,173)(7,373)
Claims and claim adjustment expense reserves928 1,384 755 (387)1,818 725 845 (88)2,680 3,300 
Unearned premium reserves457 788 659 (416)419 495 331 (661)1,488 584 
Other(583)(275)962 452 (899)47 644 289 556 81 
Net cash provided by operating activities1,458 1,677 3,875 2,064 1,360 2,334 4,227 2,685 9,074 10,606 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,709 2,464 1,817 2,547 2,801 3,071 2,886 2,902 8,537 11,660 
Proceeds from sales of investments:
Fixed maturities942 308 225 159 253 348 178 53 1,634 832 
Equity securities21 41 31 50 68 32 31 29 143 160 
Real estate investments— — 64 — — — — — 64 — 
Other investments55 55 101 211 63 79 68 111 422 321 
Purchases of investments:
Fixed maturities(3,738)(4,349)(4,273)(4,772)(4,296)(4,847)(5,376)(4,252)(17,132)(18,771)
Equity securities(26)(21)(33)(44)(25)(35)(34)(32)(124)(126)
Real estate investments(13)(11)(10)(14)(7)(6)(10)(25)(48)(48)
Other investments(90)(95)(98)(113)(96)(80)(86)(84)(396)(346)
Net sales (purchases) of short-term securities454 330 (1,126)712 239 (215)(2,051)1,082 370 (945)
Securities transactions in the course of settlement111 247 24 (326)308 64 (4)(224)56 144 
Acquisition, net of cash acquired(381)(1)— — — — — — (382)— 
Other(81)(111)(113)(103)(116)(127)(155)(135)(408)(533)
Net cash used in investing activities(1,037)(1,143)(3,391)(1,693)(808)(1,716)(4,553)(575)(7,264)(7,652)

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The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary (Continued)
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($ in millions)1Q20242Q20243Q20244Q20241Q20252Q20253Q20254Q2025YTD 4Q2024YTD 4Q2025
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(250)(249)(248)(256)(250)(500)(619)(1,635)(1,003)(3,004)
Treasury stock acquired - net employee share-based compensation(110)(1)(1)(2)(102)(22)(1)(2)(114)(127)
Dividends paid to shareholders(229)(244)(238)(240)(240)(250)(247)(242)(951)(979)
Issuance of debt— — — — — — 1,233 — — 1,233 
Issuance of common stock - employee share options190 22 33 76 57 70 36 51 321 214 
Net cash provided by (used in) financing activities(399)(472)(454)(422)(535)(702)402 (1,828)(1,747)(2,663)
Effect of exchange rate changes on cash and restricted cash(5)— 13 (22)8 19 (6)2 (14)23 
Net increase (decrease) in cash and restricted cash17 62 43 (73)25 (65)70 284 49 314 
Cash and restricted cash at beginning of period650 667 729 772 699 724 659 729 650 699 
Less amounts classified as held for sale at end of period— — — — — — — 171 — 171 
Cash and restricted cash at end of period$667 $729 $772 $699 $724 $659 $729 $842 $699 $842 
Supplemental disclosure of cash flow information
Income taxes paid$24 $831 $92 $363 $24 $538 $194 $518 $1,310 $1,274 
Interest paid$60 $135 $60 $135 $61 $136 $60 $136 $390 $393 

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

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of
($ in millions)March 31, 2024June 30, 2024September 30, 2024December 31, 2024March 31, 2025June 30, 2025September 30, 2025December 31, 2025
Shareholders’ equity$25,022 $24,862 $27,696 $27,864 $28,191 $29,518 $31,609 $32,894 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,721 3,976 2,111 3,640 3,299 3,031 1,970 1,478 
Net realized investment (gains) losses, net of tax(27)24 (18)26 48 43 22 37 
Adjusted shareholders’ equity$28,716 $28,862 $29,789 $31,530 $31,538 $32,592 $33,601 $34,409 
Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented.  Core return on equity is the ratio of annualized core income (loss) to adjusted average shareholders’ equity for the periods presented.  In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management. 

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

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