0000086312false00000863122025-01-222025-01-22


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

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 22, 2025
 _______________________________________________
The Travelers Companies, Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________
 
Minnesota 001-10898 41-0518860
(State or other jurisdiction of
incorporation)
 (Commission File Number) (I.R.S. Employer
Identification No.)
485 Lexington Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
 
(917) 778-6000
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former name or former address, if changed since last report)
 _________________________________________________

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

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




Item 2.02.  Results of Operations and Financial Condition.
 
On January 22, 2025, The Travelers Companies, Inc. (the “Company”) issued a press release announcing the results of the Company’s operations for the quarter ended December 31, 2024, and the availability of the Company’s fourth quarter financial supplement on the Company’s web site.  The press release and the financial supplement are furnished as Exhibits 99.1 and 99.2 to this Report and are hereby incorporated by reference in this Item 2.02.
 
As provided in General Instruction B.2 of Form 8-K, the information and exhibits contained in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01.  Financial Statements and Exhibits.
 
(d)                                 Exhibits.
 
Exhibit No. Description
99.1 
   
99.2 
101.1Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL.
104.1Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101.1.)





SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, The Travelers Companies, Inc. has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
  THE TRAVELERS COMPANIES, INC.
   
   
Date: January 22, 2025By:/S/   CHRISTINE K. KALLA
  Name: Christine K. Kalla
  Executive Vice President and General Counsel



g34651mo25i001b12a.gif                                            Exhibit 99.1
                                            The Travelers Companies, Inc.
                            485 Lexington Avenue
                                    New York, NY 10017-2630
                                        www.travelers.com
NYSE: TRV
Travelers Reports Exceptional Fourth Quarter and Full Year Results
Fourth Quarter 2024 Net Income per Diluted Share of $8.96, up 28%, and Return on Equity of 30.0%
Fourth Quarter 2024 Core Income per Diluted Share of $9.15, up 31%, and Core Return on Equity of 27.7%
Full Year Net Income and Core Income of $5 Billion
Full Year Return on Equity of 19.2% and Core Return on Equity of 17.2%
Excellent fourth quarter net income of $2.082 billion and core income of $2.126 billion.
Consolidated combined ratio improved 2.6 points from the prior year quarter to an excellent 83.2%.
Underlying underwriting income of $1.700 billion pre-tax, reflecting an underlying combined ratio that improved 1.9 points to an excellent 84.0%; very strong underlying results in all three segments.
Net written premiums of $10.742 billion, up 7%, with growth in all three segments; record full year net written premiums of $43.356 billion, up 8%, with growth in all three segments.
Net investment income increased 23% pre-tax over the prior year quarter.
Book value per share of $122.97, up 13% over year-end 2023; adjusted book value per share of $139.04, up 13% over year-end 2023.
Record full year operating cash flows of $9.074 billion.

New York, January 22, 2025 — The Travelers Companies, Inc. today reported net income of $2.082 billion, or $8.96 per diluted share, for the quarter ended December 31, 2024, compared to $1.626 billion, or $6.99 per diluted share, in the prior year quarter. Core income in the current quarter was $2.126 billion, or $9.15 per diluted share, compared to $1.633 billion, or $7.01 per diluted share, in the prior year quarter. Core income increased primarily due to a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. Net realized investment losses in the current quarter were $55 million pre-tax ($44 million after-tax), compared to $11 million pre-tax ($7 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)Three Months Ended December 31,Twelve Months Ended December 31,
20242023Change20242023Change
Net written premiums$10,742 $9,994 7 %$43,356 $40,201 8 %
Total revenues$12,008 $10,927 10 $46,423 $41,364 12 
Net income$2,082 $1,626 28 $4,999 $2,991 67 
per diluted share$8.96 $6.99 28 $21.47 $12.79 68 
Core income$2,126 $1,633 30 $5,025 $3,072 64 
per diluted share$9.15 $7.01 31 $21.58 $13.13 64 
Diluted weighted average shares outstanding230.7 231.1  231.1 232.2  
Combined ratio83.2 %85.8 %(2.6)pts92.5 %97.0 %(4.5)pts
Underlying combined ratio84.0 %85.9 %(1.9)pts86.2 %89.5 %(3.3)pts
Return on equity30.0 %29.0 %1.0 pts19.2 %13.6 %5.6 pts
Core return on equity27.7 %24.0 %3.7 pts17.2 %11.5 %5.7 pts
As of
December 31, 2024December 31, 2023Change
Book value per share$122.97 $109.19 13 %
Adjusted book value per share139.04 122.90 13 %
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
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“On behalf of all of us at Travelers, I want to acknowledge the tragic wildfires that have devastated communities across Los Angeles,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Our hearts go out to everyone affected – those who have lost their homes, their businesses, and, most tragically, their loved ones. At times like these, words alone of course are not enough. As a company rooted in the communities we serve, we will be there for our customers and neighbors to support them as they recover and rebuild. We also extend our deep gratitude to all of the first responders who have been working tirelessly and to our claim professionals who demonstrate day in and day out to our customers and agents the value of the Travelers promise.
“The strong results and financial position that we are reporting today enable us to be there when our customers need us most, including in the event of devastating tragedy, as our friends and neighbors in Los Angeles are experiencing right now. In that regard, we are very pleased to report record core income for the quarter of $2.1 billion driven by strong growth in earned premiums and excellent profitability. Net earned premiums increased 9% to $10.9 billion, and the combined ratio improved 2.6 points to 83.2%. The improvement in the combined ratio was driven by very strong underlying profitability and higher net favorable prior year reserve development. Earned premiums and underwriting margins were strong in all three segments. Our high-quality investment portfolio performed well, generating after-tax net investment income of $785 million.
“For the full year, core income was up 64% to more than $5 billion, or $21.58 per diluted share, generating core return on equity of 17.2%. Full year results were driven by strong earned premiums, excellent underwriting margins and a higher level of net investment income.
“These results, together with our strong balance sheet, enabled us to grow adjusted book value per share by 13% during the year to $139.04, after making important investments in our business and returning more than $2.1 billion of excess capital to shareholders through dividends and share repurchases.
“Through continued terrific marketplace execution across all three segments, we grew net written premiums during the year by 8% to $43.4 billion and in the quarter by 7% to $10.7 billion. In Business Insurance, we grew net written premiums in the quarter by 8% to $5.4 billion. Renewal premium change in the segment remained strong at 9.6%, including renewal rate change of 6.9%, while retention also remained strong at 85%. In Bond & Specialty Insurance, we grew net written premiums by 7% to $1.1 billion, with excellent retention of 88% in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums by 19%. In Personal Insurance, net written premiums grew 7% to $4.3 billion, driven by continued strong renewal premium change, particularly in our Homeowners business.
“The depth and breadth of our franchise value was on full display in 2024. The compelling value proposition that we offer to our customers and distribution partners drives our top line. Underwriting excellence delivers strong profitability and cash flow. Investing expertise along with a growing portfolio and higher reinvestment rates contributes to meaningful growth in net investment income. All of that contributes to strong returns and meaningful growth in book value per share. With this momentum, we are very confident in the outlook for Travelers in 2025 and beyond.”

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Consolidated Results
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain:$1,787 $1,375 $412 $2,984 $966 $2,018 
Underwriting gain includes:
Net favorable prior year reserve development262 132 130 709 143 566 
Catastrophes, net of reinsurance(175)(125)(50)(3,335)(2,991)(344)
Net investment income955 778 177 3,590 2,922 668 
Other income (expense), including interest expense
(93)(123)30 (364)(412)48 
Core income before income taxes2,649 2,030 619 6,210 3,476 2,734 
Income tax expense523 397 126 1,185 404 781 
Core income2,126 1,633 493 5,025 3,072 1,953 
Net realized investment losses after income taxes(44)(7)(37)(26)(81)55 
Net income$2,082 $1,626 $456 $4,999 $2,991 $2,008 
Combined ratio83.2 %85.8 %(2.6)pts92.5 %97.0 %(4.5)pts
Impact on combined ratio
Net favorable prior year reserve development(2.4)pts(1.3)pts(1.1)pts(1.7)pts(0.4)pts(1.3)pts
Catastrophes, net of reinsurance1.6 pts1.2 pts0.4 pts8.0 pts7.9 pts0.1 pts
Underlying combined ratio84.0 %85.9 %(1.9)pts86.2 %89.5 %(3.3)pts
Net written premiums
Business Insurance$5,426$5,018%$22,078$20,430%
Bond & Specialty Insurance1,0549894,1093,842
Personal Insurance4,2623,98717,16915,929
Total$10,742$9,9947 %$43,356$40,2018 %
Fourth Quarter 2024 Results
(All comparisons vs. fourth quarter 2023, unless noted otherwise)
Net income of $2.082 billion increased $456 million, driven by higher core income, partially offset by higher net realized investment losses. Core income of $2.126 billion increased $493 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 $55 million pre-tax ($44 million after-tax), compared to $11 million pre-tax ($7 million after-tax) in the prior year quarter.
Combined ratio:
The combined ratio of 83.2% improved 2.6 points due to an improvement in the underlying combined ratio (1.9 points) and higher net favorable prior year reserve development (1.1 points), partially offset by higher catastrophe losses (0.4 points).
The underlying combined ratio improved 1.9 points to an excellent 84.0%. See below for further details by segment.
Net favorable prior year reserve development occurred in all segments. See below for further details by segment.
Catastrophe losses primarily resulted from Hurricane Milton, as well as an increase in estimated losses related to Hurricane Helene, a third quarter event.

Net investment income of $955 million pre-tax ($785 million after-tax) increased 23%. Income from the fixed income investment portfolio increased over the prior year quarter due to a higher average yield and growth in fixed maturity
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investments. Income from the non-fixed income investment portfolio increased over the prior year quarter primarily due to higher private equity partnership returns.

Net written premiums of $10.742 billion increased 7%. See below for further details by segment.

Full Year 2024 Results
(All comparisons vs. full year 2023, unless noted otherwise)
 
Net income of $4.999 billion increased $2.008 billion, driven by higher core income and lower net realized investment losses. Core income of $5.025 billion increased $1.953 billion, 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. The underlying underwriting gain in the prior year included a one-time tax benefit of $211 million due to the expiration of the statute of limitations with respect to a tax item. Net realized investment losses were $30 million pre-tax ($26 million after-tax), compared to $105 million pre-tax ($81 million after-tax) in the prior year.

Combined ratio:
 
The combined ratio of 92.5% improved 4.5 points due to an improvement in the underlying combined ratio (3.3 points) and higher net favorable prior year reserve development (1.3 points), partially offset by higher catastrophe losses (0.1 points).

The underlying combined ratio of 86.2% improved 3.3 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 primarily resulted from Hurricane Helene and numerous severe wind and hail storms in multiple states.
Net investment income of $3.590 billion pre-tax ($2.952 billion after-tax) increased 23% driven by the same factors described above for the fourth quarter of 2024.

Net written premiums of $43.356 billion increased 8%. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $27.864 billion increased 12% over year-end 2023, primarily due to net income of $4.999 billion, partially offset by common share repurchases, dividends to shareholders and higher net unrealized investment losses. Net unrealized investment losses included in shareholders’ equity were $4.609 billion pre-tax ($3.640 billion after-tax), compared to $3.970 billion pre-tax ($3.129 billion after-tax) at year-end 2023. The increase in net unrealized investment losses was driven primarily by higher interest rates. Book value per share of $122.97 increased 13% over year-end 2023. Adjusted book value per share of $139.04, which excludes net unrealized investment gains (losses), increased 13% over year-end 2023.

The Company repurchased 1.0 million shares during the fourth quarter at an average price of $255.41 per share for a total cost of $252 million. At December 31, 2024, the Company had $5.040 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 $27.715 billion, and the ratio of debt-to-capital was 22.4%. The ratio of debt-to-capital excluding after-tax net unrealized investment gains (losses) included in shareholders’ equity was 20.3%, within the Company’s target range of 15% to 25%.
The Board of Directors declared a regular quarterly dividend of $1.05 per share. The dividend is payable March 31, 2025, to shareholders of record at the close of business on March 10, 2025.

4


Business Insurance Segment Financial Results
 Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain:$808 $669 $139 $1,554 $959 $595 
Underwriting gain includes:
Net favorable (unfavorable) prior year reserve development147 56 91 90 (289)379 
Catastrophes, net of reinsurance
(94)(40)(54)(1,032)(838)(194)
Net investment income677 552 125 2,560 2,085 475 
Other income (expense) (7)(37)30 (27)(93)66 
Segment income before income taxes1,478 1,184 294 4,087 2,951 1,136 
Income tax expense290 227 63 781 368 413 
Segment income$1,188 $957 $231 $3,306 $2,583 $723 
Combined ratio85.2 %86.5 %(1.3)pts92.5 %94.7 %(2.2)pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development(2.7)pts(1.1)pts(1.6)pts(0.4)pts1.5 pts(1.9)pts
Catastrophes, net of reinsurance
1.7 pts0.8 pts0.9 pts4.8 pts4.3 pts0.5 pts
Underlying combined ratio86.2 %86.8 %(0.6)pts88.1 %88.9 %(0.8)pts
Net written premiums by market
Domestic
Select Accounts$893 $862 %$3,727 $3,477 %
Middle Market3,011 2,751 12,023 11,045 
National Accounts356 317 12 1,259 1,135 11 
National Property and Other684 682 — 3,134 3,008 
Total Domestic4,944 4,612 20,143 18,665 
International482 406 19 1,935 1,765 10 
Total$5,426 $5,018 8 %$22,078 $20,430 8 %
 
Fourth Quarter 2024 Results
(All comparisons vs. fourth quarter 2023, unless noted otherwise)
 
Segment income for Business Insurance was $1.188 billion after-tax, an increase of $231 million. Segment income increased primarily due to higher net investment income, a higher underlying underwriting gain and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 85.2% improved 1.3 points due to higher net favorable prior year reserve development (1.6 points) and an improvement in the underlying combined ratio (0.6 points), partially offset by higher catastrophe losses (0.9 points).
The underlying combined ratio improved 0.6 points to an excellent 86.2%.
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 additions to reserves attributable to childhood sexual molestation in the Company’s run-off operations.
Net written premiums of $5.426 billion increased 8%, reflecting strong renewal premium change and retention.

5


Full Year 2024 Results
(All comparisons vs. full year 2023, unless noted otherwise)
 
Segment income for Business Insurance was $3.306 billion after-tax, an increase of $723 million. Segment income increased primarily due to higher net investment income, net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year and a higher underlying underwriting gain, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year included a one-time tax benefit of $171 million due to the expiration of the statute of limitations with respect to a tax item.
 
Combined ratio:

The combined ratio of 92.5% improved 2.2 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year (1.9 points) and an improvement in the underlying combined ratio (0.8 points), partially offset by higher catastrophe losses (0.5 points).

The underlying combined ratio improved 0.8 points to an excellent 88.1%.

Net favorable prior year reserve development was primarily driven by (i) better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by (ii) higher than expected loss experience in the general liability product line (excluding asbestos) for recent accident years, (iii) an addition to asbestos reserves of $242 million and (iv) additions to other reserves related to run-off operations.
Net written premiums of $22.078 billion increased 8%, reflecting the same factors described above for the fourth quarter of 2024.

6


Bond & Specialty Insurance Segment Financial Results
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023 Change
Underwriting gain:$172 $207 $(35)$603 $824 $(221)
Underwriting gain includes:
Net favorable prior year reserve development45 36 129 285 (156)
Catastrophes, net of reinsurance(2)(6)(51)(37)(14)
Net investment income105 91 14 390 328 62 
Other income6 3 3 23 17 6 
Segment income before income taxes283 301 (18)1,016 1,169 (153)
Income tax expense55 61 (6)201 227 (26)
Segment income$228 $240 $(12)$815 $942 $(127)
Combined ratio82.7 %77.3 %5.4 pts84.3 %76.9 %7.4 pts
Impact on combined ratio
Net favorable prior year reserve development(4.3)pts(3.9)pts(0.4)pts(3.3)pts(7.8)pts4.5 pts
Catastrophes, net of reinsurance0.2 pts0.6 pts(0.4)pts1.3 pts1.0 pts0.3 pts
Underlying combined ratio86.8 %80.6 %6.2 pts86.3 %83.7 %2.6 pts
Net written premiums
Domestic
Management Liability$563 $553 %$2,309 $2,156 %
Surety329 276 19 1,294 1,147 13 
Total Domestic892 829 3,603 3,303 
International162 160 506 539 (6)
Total$1,054 $989 7 %$4,109 $3,842 7 %

Fourth Quarter 2024 Results
(All comparisons vs. fourth quarter 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $228 million after-tax, a decrease of $12 million. Segment income decreased primarily due to a lower underlying underwriting gain, partially offset by higher net investment income and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.
Combined ratio:

The combined ratio of 82.7% increased 5.4 points due to a higher underlying combined ratio (6.2 points), partially offset by higher net favorable prior year reserve development (0.4 points) and lower catastrophe losses (0.4 points).

The underlying combined ratio increased 6.2 points to a very strong 86.8%.

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

Net written premiums of $1.054 billion increased 7%, reflecting production growth in both surety and management liability.

7


Full Year 2024 Results
(All comparisons vs. full year 2023, unless noted otherwise)
 
Segment income for Bond & Specialty Insurance was $815 million after-tax, a decrease of $127 million. Segment income decreased primarily due to lower net favorable prior year reserve development and a lower underlying underwriting gain, partially offset by higher net investment income. The underlying underwriting gain benefited from higher business volumes. The underlying underwriting gain in the prior year included a one-time tax benefit of $9 million due to the expiration of the statute of limitations with respect to a tax item.

Combined ratio:

The combined ratio of 84.3% increased 7.4 points due to lower net favorable prior year reserve development (4.5 points), a higher underlying combined ratio (2.6 points) and higher catastrophe losses (0.3 points).

The underlying combined ratio increased 2.6 points to a very strong 86.3%.

Net favorable prior year reserve development was primarily driven by the same factors described above for the fourth quarter of 2024.

Net written premiums of $4.109 billion increased 7%, reflecting the same factors described above for the fourth quarter of 2024.

Personal Insurance Segment Financial Results
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)20242023Change20242023Change
Underwriting gain (loss):$807 $499 $308 $827 $(817)$1,644 
Underwriting gain (loss) includes:
Net favorable prior year reserve development70 40 30 490 147 343 
Catastrophes, net of reinsurance(79)(79)— (2,252)(2,116)(136)
Net investment income173 135 38 640 509 131 
Other income19 18 1 76 77 (1)
Segment income (loss) before income taxes999 652 347 1,543 (231)1,774 
Income tax expense (benefit)201 132 69 294 (103)397 
Segment income (loss)$798 $520 $278 $1,249 $(128)$1,377 
Combined ratio80.7 %86.8 %(6.1)pts94.4 %104.8 %(10.4)pts
Impact on combined ratio
Net favorable prior year reserve development(1.6)pts(1.1)pts(0.5)pts(3.0)pts(1.0)pts(2.0)pts
Catastrophes, net of reinsurance1.8 pts2.0 pts(0.2)pts13.5 pts14.1 pts(0.6)pts
Underlying combined ratio80.5 %85.9 %(5.4)pts83.9 %91.7 %(7.8)pts
Net written premiums
Domestic
Automobile$1,927 $1,831 %$7,925 $7,330 %
Homeowners and Other2,158 1,995 8,550 7,949 
Total Domestic4,085 3,826 16,475 15,279 
International177 161 10 694 650 
Total$4,262 $3,987 7 %$17,169 $15,929 8 %

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Fourth Quarter 2024 Results
(All comparisons vs. fourth quarter 2023, unless noted otherwise)

Segment income for Personal Insurance was $798 million after-tax, an increase of $278 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 80.7% improved 6.1 points due to an improvement in the underlying combined ratio (5.4 points), higher net favorable prior year reserve development (0.5 points) and lower catastrophe losses as a percentage of net earned premiums (0.2 points).

The underlying combined ratio of 80.5% improved 5.4 points, reflecting improvement in both Automobile and Homeowners and Other.

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

Net written premiums of $4.262 billion increased 7%, reflecting strong renewal premium change.

Full Year 2024 Results
(All comparisons vs. full year 2023, unless noted otherwise)
 
Segment income for Personal Insurance was $1.249 billion after-tax, compared with a segment loss of $128 million in 2023. 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. The underlying underwriting gain in the prior year included a one-time tax benefit of $31 million due to the expiration of the statute of limitations with respect to a tax item.

Combined ratio:

The combined ratio of 94.4% improved 10.4 points due to an improvement in the underlying combined ratio (7.8 points), higher net favorable prior year reserve development (2.0 points) and lower catastrophe losses as a percentage of net earned premiums (0.6 points).

The underlying combined ratio of 83.9% improved 7.8 points, reflecting improvement in both Automobile and Homeowners and Other.

Net favorable prior year reserve development was primarily driven by the same factors described above for the fourth quarter of 2024.

Net written premiums of $17.169 billion increased 8%, reflecting the same factors described above for the fourth quarter of 2024.


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 a.m. Eastern (8 a.m. Central) on Wednesday, January 22, 2025. Investors can access the call via webcast at investor.travelers.com or by dialing 1.888.440.6281 within the United States or 1.646.960.0218 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

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

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 (including the recent California wildfires and the 2025 Plan) and modeling;
the impact of investment, economic and underwriting market conditions, including interest rates 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;
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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;
the impact of developments in the geopolitical environment; and
the impact of the Company’s acquisition of Corvus Insurance Holdings, Inc.

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, including the recent California wildfires;
actual claims may exceed the Company’s claims and claim adjustment expense reserves, or the estimated level of claims and claim adjustment expense reserves may increase, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation;
the Company’s potential exposure to asbestos and environmental claims and related litigation;
the Company is exposed to, and may face adverse developments involving, mass tort claims; and
the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks

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

Business and Operational Risks

the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change and changing customer preferences on the insurance industry and the markets in which it operates;
disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;
the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;
the Company's pricing and capital models may provide materially different indications than actual results;
loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products;
the Company is subject to additional risks associated with its business outside the United States; and
future pandemics (including new variants of COVID-19).
Technology and Intellectual Property Risks

as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
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the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.
Regulatory and Compliance Risks

changes in regulation, including changes in tax laws; and
the Company's compliance controls may not be effective.
In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company’s business operations, changes in levels of written premiums, funding of the Company’s qualified pension plan, capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.
Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in our most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 15, 2024, as updated by our periodic filings with the SEC.

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

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

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

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

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

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

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

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Reconciliation of Net Income to Core Income less Preferred Dividends
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, after-tax)2024202320242023
Net income$2,082 $1,626 $4,999 $2,991 
Adjustments:
Net realized investment losses44 26 81 
Core income$2,126 $1,633 $5,025 $3,072 

Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, pre-tax)2024202320242023
Net income$2,594 $2,019 $6,180 $3,371 
Adjustments:
Net realized investment losses55 11 30 105 
Core income$2,649 $2,030 $6,210 $3,476 
 Twelve Months Ended December 31,Average Annual
($ in millions, after-tax)20222021202020192005 - 2019
Net income$2,842 $3,662 $2,697 $2,622 $3,007 
Less: Loss from discontinued operations— — — — (29)
Income from continuing operations2,842 3,662 2,697 2,622 3,036 
Adjustments:
Net realized investment (gains) losses156 (132)(11)(85)(44)
Impact of changes in tax laws and/or tax rates (1) (2)— (8)— — 
Core income2,998 3,522 2,686 2,537 3,001 
Less: Preferred dividends— — — — 
Core income, less preferred dividends$2,998 $3,522 $2,686 $2,537 $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 December 31,Twelve Months Ended December 31,
 2024202320242023
Diluted income per share    
Net income$8.96 $6.99 $21.47 $12.79 
Adjustments:
Net realized investment losses, after-tax0.19 0.02 0.11 0.34 
Core income$9.15 $7.01 $21.58 $13.13 
Reconciliation of Segment Income (Loss) to Total Core Income
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, after-tax)2024202320242023
Business Insurance$1,188 $957 $3,306 $2,583 
Bond & Specialty Insurance228 240 815 942 
Personal Insurance798 520 1,249 (128)
Total segment income2,214 1,717 5,370 3,397 
Interest Expense and Other(88)(84)(345)(325)
Total core income$2,126 $1,633 $5,025 $3,072 
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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 December 31,Average Annual
($ in millions)2024202320222021202020192005 - 2019
Shareholders’ equity$27,864 $24,921 $21,560 $28,887 $29,201 $25,943 $24,744 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,640 3,129 4,898 (2,415)(4,074)(2,246)(1,300)
Net realized investment (gains) losses, net of tax26 81 156 (132)(11)(85)(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 $23,612 $23,406 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

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

Average shareholders’ equity is (a) the sum of total shareholders’ equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.
Calculation of Return on Equity and Core Return on Equity
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, after-tax)2024202320242023
Annualized net income$8,330 $6,506 $4,999 $2,991 
Average shareholders’ equity27,780 22,449 25,993 22,031 
Return on equity30.0 %29.0 %19.2 %13.6 %
Annualized core income$8,505 $6,530 $5,025 $3,072 
Adjusted average shareholders’ equity30,677 27,250 29,295 26,772 
Core return on equity27.7 %24.0 %17.2 %11.5 %

 Twelve Months Ended 
December 31,
Average Annual
($ in millions, after-tax)20222021202020192005 - 2019
Net income, less preferred dividends$2,842 $3,662 $2,697 $2,622 $3,005 
Average shareholders’ equity23,384 28,735 26,892 24,922 24,693 
Return on equity12.2 %12.7 %10.0 %10.5 %12.2 %
Core income, less preferred dividends$2,998 $3,522 $2,686 $2,537 $2,999 
Adjusted average shareholders’ equity26,588 25,718 23,790 23,335 23,397 
Core return on equity11.3 %13.7 %11.3 %10.9 %12.8 %

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RECONCILIATION OF NET INCOME (LOSS) 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 2024 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.

15


Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, after-tax, except as noted)2024202320242023
Net income$2,082 $1,626 $4,999 $2,991 
Net realized investment losses44 26 81 
Core income2,126 1,633 5,025 3,072 
Net investment income(785)(645)(2,952)(2,436)
Other (income) expense, including interest expense79 100 308 337 
Underwriting income1,420 1,088 2,381 973 
Income tax expense (benefit) on underwriting results367 287 603 (7)
Pre-tax underwriting income1,787 1,375 2,984 966 
Pre-tax impact of net favorable prior year reserve development(262)(132)(709)(143)
Pre-tax impact of catastrophes175 125 3,335 2,991 
Pre-tax underlying underwriting income$1,700 $1,368 $5,610 $3,814 
Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
 Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, after-tax)2024202320242023
Net income$2,082 $1,626 $4,999 $2,991 
Net realized investment losses44 26 81 
Core income2,126 1,633 5,025 3,072 
Net investment income(785)(645)(2,952)(2,436)
Other (income) expense, including interest expense79 100 308 337 
Underwriting income1,420 1,088 2,381 973 
Impact of net favorable prior year reserve development(207)(105)(559)(113)
Impact of catastrophes138 99 2,632 2,361 
Underlying underwriting income$1,351 $1,082 $4,454 $3,221 
 Twelve Months Ended December 31,
($ in millions, after-tax)20222021202020192018201720162015201420132012
Net income$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) losses156 (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 income2,998 3,522 2,686 2,537 2,430 2,043 2,967 3,437 3,641 3,567 2,441 
Net investment income(2,170)(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 expense277 235 232 214 248 179 78 193 159 61 171 
Underwriting income1,105 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(512)(424)(276)47 (409)(378)(510)(617)(616)(552)(622)
Impact of catastrophes1,480 1,459 1,274 699 1,355 1,267 576 338 462 387 1,214 
Underlying underwriting income$2,073 $2,251 $2,008 $1,400 $1,522 $1,239 $1,265 $1,446 $1,430 $1,277 $888 
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO
 
Combined ratio: For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this earnings release, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.
16


For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

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

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

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

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

Calculation of the Combined Ratio
Three Months Ended December 31,Twelve Months Ended December 31,
($ in millions, pre-tax)2024202320242023
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses$6,034 $5,880 $27,059 $26,215 
Less:
Policyholder dividends11 13 47 49 
Allocated fee income47 40 172 164 
Loss ratio numerator$5,976 $5,827 $26,840 $26,002 
Underwriting expense ratio
Amortization of deferred acquisition costs$1,807 $1,641 $6,973 $6,226 
General and administrative expenses (G&A)1,475 1,289 5,819 5,176 
Less:
Non-insurance G&A107 103 421 389 
Allocated fee income81 69 301 269 
Billing and policy fees and other28 29 116 113 
Expense ratio numerator$3,066 $2,729 $11,954 $10,631 
Earned premium$10,868 $9,973 $41,941 $37,761 
Combined ratio (1)
Loss and loss adjustment expense ratio55.0 %58.4 %64.0 %68.9 %
Underwriting expense ratio28.2 %27.4 %28.5 %28.1 %
Combined ratio83.2 %85.8 %92.5 %97.0 %
Impact on combined ratio:
Net favorable prior year reserve development(2.4)%(1.3)%(1.7)%(0.4)%
Catastrophes, net of reinsurance1.6 %1.2 %8.0 %7.9 %
Underlying combined ratio84.0 %85.9 %86.2 %89.5 %
(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. 

17


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

Reconciliation of Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Gains (Losses), Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share
 As of
($ in millions, except per share amounts)December 31,
2024
December 31,
2023
December 31,
2006
Shareholders’ equity$27,864 $24,921 $25,135 
Less: Net unrealized investment gains (losses), net of tax, included in shareholders’ equity(3,640)(3,129)445 
Preferred stock  129 
Common shareholders’ equity, excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity31,504 28,050 24,561 
Less:
Goodwill4,233 3,976 n/a
Other intangible assets360 277 n/a
Impact of deferred tax on other intangible assets(85)(69)n/a
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity$26,996 $23,866 n/a
Common shares outstanding226.6 228.2 678.3 
Book value per share$122.97 $109.19 $36.86 
Adjusted book value per share139.04 122.90 36.21 
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity119.14 104.57 n/a

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.
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 As of
($ in millions)December 31,
2024
December 31,
2023
Debt    $8,033 $8,031 
Shareholders’ equity  27,864 24,921 
Total capitalization  
35,897 32,952 
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity(3,640)(3,129)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity$39,537 $36,081 
Debt-to-capital ratio  22.4 %24.4 %
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity20.3 %22.3 %
RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)

  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 15, 2024, and subsequent periodic filings with the SEC.
 
###
 
19


Contacts
Media:
Institutional Investors:
Patrick LinehanAbbe Goldstein
917.778.6267917.778.6825


20
The Travelers Companies, Inc.
Financial Supplement - Fourth Quarter 2024
Exhibit 99.2 image2a.gif
Page Number
Consolidated Results
Financial Highlights1
Reconciliation to Net Income (Loss) and Earnings Per Share2
Statement of Income (Loss)3
Net Income (Loss) 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
image2a.gif
($ and shares in millions, except for per share data)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Net income (loss) per share:
Basic$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $9.11 $12.93 $21.76 
Diluted$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $8.96 $12.79 $21.47 
Core income$970 $15 $454 $1,633 $1,096 $585 $1,218 $2,126 $3,072 $5,025 
Core income per share:
Basic$4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $9.30 $13.28 $21.87 
Diluted$4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $9.15 $13.13 $21.58 
Return on equity17.5 %(0.2)%7.7 %29.0 %18.0 %8.6 %19.2 %30.0 %13.6 %19.2 %
Core return on equity14.5 %0.2 %6.9 %24.0 %15.4 %8.1 %16.6 %27.7 %11.5 %17.2 %
Total assets, at period end$118,352 $120,573 $121,384 $125,978 $127,410 $129,315 $134,588 $133,189 $125,978 $133,189 
Total equity, at period end$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 $27,864 $24,921 $27,864 
Book value per share, at period end$99.80 $95.46 $87.47 $109.19 $109.28 $109.08 $122.00 $122.97 $109.19 $122.97 
Less: Net unrealized investment gains (losses), net of tax(16.75)(19.99)(28.31)(13.71)(16.25)(17.44)(9.30)(16.07)(13.71)(16.07)
Adjusted book value per share, at period end$116.55 $115.45 $115.78 $122.90 $125.53 $126.52 $131.30 $139.04 $122.90 $139.04 
Weighted average number of common shares outstanding (basic)231.7 229.7 228.8 228.4 229.0 228.6 227.4 226.9 229.7 228.0 
Weighted average number of common shares outstanding and common stock equivalents (diluted)234.4 229.7 231.1 231.1 232.0 231.5 230.6 230.7 232.2 231.1 
Common shares outstanding at period end231.0 228.9 228.4 228.2 229.0 227.9 227.0 226.6 228.2 226.6 
Common stock dividends declared$218 $233 $232 $232 $232 $245 $243 $242 $915 $962 
Common stock repurchased:
Under Board of Directors authorization
Shares2.2 2.2 0.6 0.4 1.2 1.1 1.1 1.0 5.4 4.4 
Cost$400 $400 $100 $65 $250 $250 $250 $250 $965 $1,000 
Other
Shares0.3 — — — 0.6 0.1 — — 0.3 0.7 
Cost$62 $— $$$138 $$$$64 $146 




See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1

The Travelers Companies, Inc.
Reconciliation to Net Income (Loss) and Earnings per Share
image2a.gif

($ and shares in millions, except earnings per share)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net income (loss)
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Adjustments:
Net realized investment (gains) losses, after-tax(5)29 50 (27)51 (42)44 81 26 
Core income $970 $15 $454 $1,633 $1,096 $585 $1,218 $2,126 $3,072 $5,025 
Basic earnings per share
Net income (loss)$4.18 $(0.07)$1.75 $7.07 $4.87 $2.32 $5.50 $9.11 $12.93 $21.76 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.22 0.02 (0.12)0.22 (0.19)0.19 0.35 0.11 
Core income $4.16 $0.06 $1.97 $7.09 $4.75 $2.54 $5.31 $9.30 $13.28 $21.87 
Diluted earnings per share
Net income (loss)$4.13 $(0.07)$1.74 $6.99 $4.80 $2.29 $5.42 $8.96 $12.79 $21.47 
Adjustments:
Net realized investment (gains) losses, after-tax(0.02)0.13 0.21 0.02 (0.11)0.22 (0.18)0.19 0.34 0.11 
Core income $4.11 $0.06 $1.95 $7.01 $4.69 $2.51 $5.24 $9.15 $13.13 $21.58 
Adjustments to net income (loss) and weighted average shares for net income (loss) EPS calculations: (1)
Basic and Diluted1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net income (loss), as reported$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Participating share-based awards - allocated income(7)(1)(3)(12)(8)(5)(10)(15)(22)(38)
Net income (loss) available to common shareholders - basic and diluted$968 $(15)$401 $1,614 $1,115 $529 $1,250 $2,067 $2,969 $4,961 
Common Shares
Basic
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 227.4 226.9 229.7 228.0 
Diluted
Weighted average shares outstanding231.7 229.7 228.8 228.4 229.0 228.6 227.4 226.9 229.7 228.0 
Weighted average effects of dilutive securities - stock options and performance shares2.7 — 2.3 2.7 3.0 2.9 3.2 3.8 2.5 3.1 
Diluted weighted average shares outstanding234.4 229.7 231.1 231.1 232.0 231.5 230.6 230.7 232.2 231.1 
(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations. The net loss EPS calculation for 2Q 2023 excluded the allocation of $2 million of undistributed loss to participating share-based awards, since such allocation would result in anti-dilution of basic and diluted earnings per share. In addition, the net loss EPS calculation for 2Q 2023 excluded the incremental impact of 2.5 million stock options and performance shares, since the impact of these potential shares of common stock and their effects on income was anti-dilutive. The core income EPS calculation for 2Q 2023 included these items.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2

The Travelers Companies, Inc.
Statement of Income (Loss) - Consolidated
image2a.gif



($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $10,868 $37,761 $41,941 
Net investment income663 712 769 778 846 885 904 955 2,922 3,590 
Fee income106 106 112 109 109 115 121 128 433 473 
Net realized investment gains (losses)(35)(65)(11)35 (65)55 (55)(105)(30)
Other revenues75 99 101 78 112 105 120 112 353 449 
Total revenues9,704 10,098 10,635 10,927 11,228 11,283 11,904 12,008 41,364 46,423 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 6,996 6,034 26,215 27,059 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 1,807 6,226 6,973 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 1,460 1,475 5,176 5,819 
Interest expense88 92 98 98 98 98 98 98 376 392 
Total claims and expenses8,776 10,146 10,163 8,908 9,858 10,627 10,344 9,414 37,993 40,243 
Income (loss) before income taxes928 (48)472 2,019 1,370 656 1,560 2,594 3,371 6,180 
Income tax expense (benefit)(47)(34)68 393 247 122 300 512 380 1,181 
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %17.9 %16.6 %17.8 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $742 $785 $2,436 $2,952 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $939 $175 $2,991 $3,335 
After-tax$422 $1,171 $669 $99 $563 $1,192 $739 $138 $2,361 $2,632 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $126 $262 $143 $709 
After-tax$83 $47 $(122)$105 $71 $182 $99 $207 $113 $559 





See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3

The Travelers Companies, Inc.
Net Income (Loss) by Major Component and Combined Ratio - Consolidated
image2a.gif
($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Underwriting gain (loss)$501 $(509)$(107)$1,088 $472 $(58)$547 $1,420 $973 $2,381 
Net investment income557 594 640 645 698 727 742 785 2,436 2,952 
Other income (expense), including interest expense(88)(70)(79)(100)(74)(84)(71)(79)(337)(308)
Core income 970 15 454 1,633 1,096 585 1,218 2,126 3,072 5,025 
Net realized investment gains (losses)(29)(50)(7)27 (51)42 (44)(81)(26)
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio66.7 %77.9 %73.0 %58.4 %65.2 %71.4 %64.8 %55.0 %68.9 %64.0 %
Underwriting expense ratio28.7 %28.6 %28.0 %27.4 %28.7 %28.8 %28.4 %28.2 %28.1 %28.5 %
Combined ratio95.4 %106.5 %101.0 %85.8 %93.9 %100.2 %93.2 %83.2 %97.0 %92.5 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(1.2)%(0.7)%1.6 %(1.3)%(0.9)%(2.2)%(1.2)%(2.4)%(0.4)%(1.7)%
Catastrophes, net of reinsurance6.0 %16.1 %8.8 %1.2 %7.1 %14.7 %8.8 %1.6 %7.9 %8.0 %
Underlying combined ratio90.6 %91.1 %90.6 %85.9 %87.7 %87.7 %85.6 %84.0 %89.5 %86.2 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$28 $28 $28 $29 $30 $30 $28 $28 $113 $116 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $44 $47 $164 $172 
Underwriting expenses64 66 70 69 70 73 77 81 269 301 
Total fee income$106 $106 $112 $109 $109 $115 $121 $128 $433 $473 
Non-insurance general and administrative expenses$95 $92 $99 $103 $102 $106 $106 $107 $389 $421 



See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4

The Travelers Companies, Inc.
Core Income - Consolidated
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Premiums$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $10,868 $37,761 $41,941 
Net investment income663 712 769 778 846 885 904 955 2,922 3,590 
Fee income106 106 112 109 109 115 121 128 433 473 
Other revenues75 99 101 78 112 105 120 112 353 449 
Total revenues
9,698 10,133 10,700 10,938 11,193 11,348 11,849 12,063 41,469 46,453 
Claims and expenses
Claims and claim adjustment expenses5,959 7,227 7,149 5,880 6,656 7,373 6,996 6,034 26,215 27,059 
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 1,807 6,226 6,973 
General and administrative expenses1,267 1,308 1,312 1,289 1,406 1,478 1,460 1,475 5,176 5,819 
Interest expense88 92 98 98 98 98 98 98 376 392 
Total claims and expenses
8,776 10,146 10,163 8,908 9,858 10,627 10,344 9,414 37,993 40,243 
Core income (loss) before income taxes922 (13)537 2,030 1,335 721 1,505 2,649 3,476 6,210 
Income tax expense (benefit)(48)(28)83 397 239 136 287 523 404 1,185 
Core income $970 $15 $454 $1,633 $1,096 $585 $1,218 $2,126 $3,072 $5,025 
Other statistics
Effective tax rate on net investment income16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %17.9 %16.6 %17.8 %
Net investment income (after-tax)$557 $594 $640 $645 $698 $727 $742 $785 $2,436 $2,952 
Catastrophes, net of reinsurance:
Pre-tax$535 $1,481 $850 $125 $712 $1,509 $939 $175 $2,991 $3,335 
After-tax$422 $1,171 $669 $99 $563 $1,192 $739 $138 $2,361 $2,632 
Prior year reserve development - favorable (unfavorable):
Pre-tax$105 $60 $(154)$132 $91 $230 $126 $262 $143 $709 
After-tax$83 $47 $(122)$105 $71 $182 $99 $207 $113 $559 









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
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting
Gross written premiums$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $11,226 $42,972 $46,550 
Net written premiums$9,396 $10,318 $10,493 $9,994 $10,184 $11,115 $11,317 $10,742 $40,201 $43,358 
Net earned premiums$8,854 $9,216 $9,718 $9,973 $10,128 $10,243 $10,704 $10,868 $37,761 $41,943 
Losses and loss adjustment expenses5,906 7,179 7,091 5,826 6,602 7,320 6,940 5,966 26,002 26,828 
Underwriting expenses2,727 2,863 2,860 2,748 3,012 3,111 3,139 3,038 11,198 12,300 
Statutory underwriting gain (loss) 221 (826)(233)1,399 514 (188)625 1,864 561 2,815 
Policyholder dividends12 10 14 13 12 12 12 11 49 47 
Statutory underwriting gain (loss) after policyholder dividends$209 $(836)$(247)$1,386 $502 $(200)$613 $1,853 $512 $2,768 
Other statutory statistics
Reserves for losses and loss adjustment expenses$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $56,326 $53,717 $56,326 
Increase (decrease) in reserves$402 $1,479 $1,049 $25 $861 $1,344 $987 $(583)$2,955 $2,609 
Statutory capital and surplus$23,689 $22,934 $23,267 $25,114 $25,329 $25,210 $26,191 $27,715 $25,114 $27,715 
Net written premiums/surplus (1)1.54:11.65:11.68:11.60:11.62:1 1.66:1 1.63:1 1.56:1 1.60:11.56:1

(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
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Written premiums
Gross$10,347 $10,907 $11,263 $10,455 $11,310 $11,865 $12,149 $11,226 $42,972 $46,550 
Ceded(951)(589)(770)(461)(1,128)(750)(832)(484)(2,771)(3,194)
Net$9,396 $10,318 $10,493 $9,994 $10,182 $11,115 $11,317 $10,742 $40,201 $43,356 
Earned premiums
Gross$9,469 $9,866 $10,397 $10,678 $10,867 $11,083 $11,484 $11,644 $40,410 $45,078 
Ceded(615)(650)(679)(705)(741)(840)(780)(776)(2,649)(3,137)
Net$8,854 $9,216 $9,718 $9,973 $10,126 $10,243 $10,704 $10,868 $37,761 $41,941 






























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
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Premiums$4,477 $4,644 $4,956 $5,067 $5,160 $5,168 $5,474 $5,543 $19,144 $21,345 
Net investment income473 509 551 552 609 632 642 677 2,085 2,560 
Fee income99 98 102 101 101 105 109 115 400 430 
Other revenues47 67 71 47 77 77 89 79 232 322 
Total revenues
5,096 5,318 5,680 5,767 5,947 5,982 6,314 6,414 21,861 24,657 
Claims and expenses
Claims and claim adjustment expenses2,907 3,296 3,519 2,974 3,331 3,471 3,698 3,179 12,696 13,679 
Amortization of deferred acquisition costs742 773 820 838 864 861 930 933 3,173 3,588 
General and administrative expenses734 764 772 771 818 835 826 824 3,041 3,303 
Total claims and expenses
4,383 4,833 5,111 4,583 5,013 5,167 5,454 4,936 18,910 20,570 
Segment income before income taxes713 485 569 1,184 934 815 860 1,478 2,951 4,087 
Income tax expense (benefit)(43)83 101 227 170 159 162 290 368 781 
Segment income $756 $402 $468 $957 $764 $656 $698 $1,188 $2,583 $3,306 
Other statistics
Effective tax rate on net investment income15.8 %16.4 %16.8 %16.8 %17.4 %17.7 %17.7 %17.8 %16.5 %17.7 %
Net investment income (after-tax)$398 $426 $458 $459 $502 $521 $528 $557 $1,741 $2,108 
Catastrophes, net of reinsurance:
Pre-tax$199 $396 $203 $40 $209 $389 $340 $94 $838 $1,032 
After-tax$157 $313 $160 $32 $166 $307 $268 $74 $662 $815 
Prior year reserve development - favorable (unfavorable):
Pre-tax$19 $(101)$(263)$56 $— $34 $(91)$147 $(289)$90 
After-tax$15 $(80)$(207)$44 $— $26 $(72)$116 $(228)$70 












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
image2a.gif


($ in millions, net of tax)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Underwriting gain (loss)$388 $(12)$22 $531 $274 $148 $176 $642 $929 $1,240 
Net investment income398 426 458 459 502 521 528 557 1,741 2,108 
Other income (expense)(30)(12)(12)(33)(12)(13)(6)(11)(87)(42)
Segment income$756 $402 $468 $957 $764 $656 $698 $1,188 $2,583 $3,306 
Combined ratio (1) (2)
Loss and loss adjustment expense ratio63.8 %70.0 %70.0 %57.7 %63.6 %66.2 %66.6 %56.4 %65.3 %63.1 %
Underwriting expense ratio29.8 %30.1 %29.1 %28.8 %29.7 %29.9 %29.2 %28.8 %29.4 %29.4 %
Combined ratio93.6 %100.1 %99.1 %86.5 %93.3 %96.1 %95.8 %85.2 %94.7 %92.5 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development(0.4)%2.2 %5.3 %(1.1)%— %(0.6)%1.7 %(2.7)%1.5 %(0.4)%
Catastrophes, net of reinsurance4.4 %8.5 %4.1 %0.8 %4.1 %7.5 %6.2 %1.7 %4.3 %4.8 %
Underlying combined ratio89.6 %89.4 %89.7 %86.8 %89.2 %89.2 %87.9 %86.2 %88.9 %88.1 %
(1)  Before policyholder dividends.
(2)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses.  In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses.  These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.  See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$$$$$$$$$16 $16 
Fee income:
Loss and loss adjustment expenses$42 $40 $42 $40 $39 $42 $44 $47 $164 $172 
Underwriting expenses57 58 60 61 62 63 65 68 236 258 
Total fee income$99 $98 $102 $101 $101 $105 $109 $115 $400 $430 
Non-insurance general and administrative expenses$80 $77 $84 $84 $86 $87 $90 $86 $325 $349 
 
 
 


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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting
Gross written premiums$5,828 $5,662 $5,685 $5,394 $6,383 $6,169 $6,173 $5,790 $22,569 $24,515 
Net written premiums$5,157 $5,175 $5,080 $5,018 $5,598 $5,539 $5,517 $5,426 $20,430 $22,080 
Net earned premiums$4,477 $4,644 $4,956 $5,067 $5,162 $5,168 $5,474 $5,543 $19,144 $21,347 
Losses and loss adjustment expenses2,858 3,251 3,467 2,924 3,282 3,422 3,645 3,116 12,500 13,465 
Underwriting expenses1,492 1,507 1,459 1,464 1,630 1,620 1,583 1,566 5,922 6,399 
Statutory underwriting gain (loss)127 (114)30 679 250 126 246 861 722 1,483 
Policyholder dividends31 31 
Statutory underwriting gain (loss) after policyholder dividends$119 $(121)$22 $671 $242 $119 $237 $854 $691 $1,452 





























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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net written premiums by market          
Domestic          
Select Accounts$908 $883 $824 $862 $974 $975 $885 $893 $3,477 $3,727 
Middle Market2,926 2,618 2,750 2,751 3,213 2,769 3,030 3,011 11,045 12,023 
National Accounts294 277 247 317 327 312 264 356 1,135 1,259 
National Property and Other590 862 874 682 642 912 896 684 3,008 3,134 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 5,075 4,944 18,665 20,143 
International439 535 385 406 440 571 442 482 1,765 1,935 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $5,517 $5,426 $20,430 $22,078 
Net written premiums by product line          
Domestic          
Workers’ compensation$1,051 $852 $777 $812 $1,019 $847 $795 $808 $3,492 $3,469 
Commercial automobile851 830 835 830 964 923 937 954 3,346 3,778 
Commercial property693 988 968 845 763 1,054 1,022 859 3,494 3,698 
General liability866 744 829 825 965 809 914 903 3,264 3,591 
Commercial multi-peril1,241 1,227 1,240 1,292 1,416 1,345 1,367 1,409 5,000 5,537 
Other16 (1)46 29 (10)40 11 69 70 
Total Domestic4,718 4,640 4,695 4,612 5,156 4,968 5,075 4,944 18,665 20,143 
International439 535 385 406 440 571 442 482 1,765 1,935 
Total$5,157 $5,175 $5,080 $5,018 $5,596 $5,539 $5,517 $5,426 $20,430 $22,078 










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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Premiums$875 $911 $935 $934 $956 $977 $1,009 $1,016 $3,655 $3,958 
Net investment income73 78 86 91 90 94 101 105 328 390 
Other revenues25 30 
Total revenues953 996 1,027 1,032 1,055 1,077 1,117 1,129 4,008 4,378 
Claims and expenses
Claims and claim adjustment expenses380 366 351 388 428 473 441 432 1,485 1,774 
Amortization of deferred acquisition costs160 168 173 172 182 183 194 197 673 756 
General and administrative expenses165 173 172 171 205 207 203 217 681 832 
Total claims and expenses705 707 696 731 815 863 838 846 2,839 3,362 
Segment income before income taxes248 289 331 301 240 214 279 283 1,169 1,016 
Income tax expense41 59 66 61 45 44 57 55 227 201 
Segment income$207 $230 $265 $240 $195 $170 $222 $228 $942 $815 
Other statistics
Effective tax rate on net investment income16.5 %17.0 %16.6 %17.9 %18.0 %18.2 %18.8 %18.5 %17.0 %18.4 %
Net investment income (after-tax)$61 $65 $71 $75 $74 $77 $81 $87 $272 $319 
Catastrophes, net of reinsurance:
Pre-tax$$21 $$$$40 $$$37 $51 
After-tax$$17 $$$$31 $$$29 $40 
Prior year reserve development - favorable:
Pre-tax$58 $119 $72 $36 $24 $24 $36 $45 $285 $129 
After-tax$46 $93 $57 $29 $19 $19 $28 $35 $225 $101 












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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Underwriting gain$143 $160 $190 $163 $116 $90 $135 $137 $656 $478 
Net investment income61 65 71 75 74 77 81 87 272 319 
Other income14 18 
Segment income$207 $230 $265 $240 $195 $170 $222 $228 $942 $815 
Combined ratio (1)
Loss and loss adjustment expense ratio43.0 %39.8 %36.9 %41.1 %44.4 %48.0 %43.4 %42.1 %40.1 %44.4 %
Underwriting expense ratio37.0 %37.3 %36.7 %36.2 %40.1 %39.7 %39.1 %40.6 %36.8 %39.9 %
Combined ratio80.0 %77.1 %73.6 %77.3 %84.5 %87.7 %82.5 %82.7 %76.9 %84.3 %
Impact on combined ratio:
Net favorable prior year reserve development(6.7)%(13.0)%(7.7)%(3.9)%(2.5)%(2.5)%(3.5)%(4.3)%(7.8)%(3.3)%
Catastrophes, net of reinsurance0.6 %2.3 %0.6 %0.6 %0.5 %4.1 %0.4 %0.2 %1.0 %1.3 %
Underlying combined ratio86.1 %87.8 %80.7 %80.6 %86.5 %86.1 %85.6 %86.8 %83.7 %86.3 %
(1)  Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$— $— $— $— $— $$$— $— $
Non-insurance general and administrative expenses$$$$$$$$$$















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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting          
Gross written premiums$1,010 $1,035 $1,082 $1,060 $1,076 $1,127 $1,165 $1,151 $4,187 $4,519 
Net written premiums$886 $964 $1,003 $989 $943 $1,040 $1,072 $1,054 $3,842 $4,109 
Net earned premiums$875 $911 $935 $934 $956 $977 $1,009 $1,016 $3,655 $3,958 
Losses and loss adjustment expenses376 363 345 384 424 468 438 427 1,468 1,757 
Underwriting expenses346 352 359 333 411 408 421 421 1,390 1,661 
Statutory underwriting gain153 196 231 217 121 101 150 168 797 540 
Policyholder dividends18 16 
Statutory underwriting gain after policyholder dividends$149 $193 $225 $212 $117 $96 $147 $164 $779 $524 
 




























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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net written premiums by market
Domestic
Management Liability$511 $541 $551 $553 $543 $586 $617 $563 $2,156 $2,309 
Surety257 293 321 276 296 325 344 329 1,147 1,294 
Total Domestic768 834 872 829 839 911 961 892 3,303 3,603 
International118 130 131 160 104 129 111 162 539 506 
Total$886 $964 $1,003 $989 $943 $1,040 $1,072 $1,054 $3,842 $4,109 
Net written premiums by product line
Domestic
Fidelity & surety$318 $350 $385 $334 $356 $382 $411 $387 $1,387 $1,536 
General liability399 425 419 443 434 468 479 452 1,686 1,833 
Other51 59 68 52 49 61 71 53 230 234 
Total Domestic768 834 872 829 839 911 961 892 3,303 3,603 
International118 130 131 160 104 129 111 162 539 506 
Total$886 $964 $1,003 $989 $943 $1,040 $1,072 $1,054 $3,842 $4,109 


















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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $4,221 $4,309 $14,962 $16,638 
Net investment income117 125 132 135 147 159 161 173 509 640 
Fee income10 10 12 13 33 43 
Other revenues23 25 24 24 26 22 24 25 96 97 
Total revenues3,649 3,819 3,993 4,139 4,191 4,289 4,418 4,520 15,600 17,418 
Claims and expenses
Claims and claim adjustment expenses2,672 3,565 3,279 2,518 2,897 3,429 2,857 2,423 12,034 11,606 
Amortization of deferred acquisition costs560 578 611 631 652 634 666 677 2,380 2,629 
General and administrative expenses359 361 359 338 375 424 420 421 1,417 1,640 
Total claims and expenses3,591 4,504 4,249 3,487 3,924 4,487 3,943 3,521 15,831 15,875 
Segment income (loss) before income taxes58 (685)(256)652 267 (198)475 999 (231)1,543 
Income tax expense (benefit)(25)(147)(63)132 47 (45)91 201 (103)294 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$384 $798 $(128)$1,249 
Other statistics
Effective tax rate on net investment income16.3 %16.9 %17.2 %17.3 %17.7 %18.0 %18.0 %18.1 %17.0 %18.0 %
Net investment income (after-tax)$98 $103 $111 $111 $122 $129 $133 $141 $423 $525 
Catastrophes, net of reinsurance:
Pre-tax$331 $1,064 $642 $79 $498 $1,080 $595 $79 $2,116 $2,252 
After-tax$261 $841 $505 $63 $393 $854 $468 $62 $1,670 $1,777 
Prior year reserve development - favorable:
Pre-tax$28 $42 $37 $40 $67 $172 $181 $70 $147 $490 
After-tax$22 $34 $28 $32 $52 $137 $143 $56 $116 $388 












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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Underwriting gain (loss)$(30)$(657)$(319)$394 $82 $(296)$236 $641 $(612)$663 
Net investment income98 103 111 111 122 129 133 141 423 525 
Other income15 16 15 15 16 14 15 16 61 61 
Segment income (loss)$83 $(538)$(193)$520 $220 $(153)$384 $798 $(128)$1,249 
Combined ratio (1)
Loss and loss adjustment expense ratio76.3 %97.4 %85.7 %63.4 %72.2 %83.7 %67.7 %56.2 %80.4 %69.7 %
Underwriting expense ratio25.2 %24.6 %24.3 %23.4 %24.7 %24.8 %24.8 %24.5 %24.4 %24.7 %
Combined ratio101.5 %122.0 %110.0 %86.8 %96.9 %108.5 %92.5 %80.7 %104.8 %94.4 %
Impact on combined ratio:
Net favorable prior year reserve development(0.8)%(1.2)%(1.0)%(1.1)%(1.6)%(4.2)%(4.3)%(1.6)%(1.0)%(3.0)%
Catastrophes, net of reinsurance9.4 %29.1 %16.8 %2.0 %12.4 %26.4 %14.1 %1.8 %14.1 %13.5 %
Underlying combined ratio92.9 %94.1 %94.2 %85.9 %86.1 %86.3 %82.7 %80.5 %91.7 %83.9 %
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$24 $24 $24 $25 $26 $25 $23 $24 $97 $98 
Fee income$$$10 $$$10 $12 $13 $33 $43 
Non-insurance general and administrative expenses$$$$$$$$$19 $21 


 







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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting
Gross written premiums$3,509 $4,210 $4,496 $4,001 $3,851 $4,569 $4,811 $4,285 $16,216 $17,516 
Net written premiums$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $4,728 $4,262 $15,929 $17,169 
Net earned premiums$3,502 $3,661 $3,827 $3,972 $4,010 $4,098 $4,221 $4,309 $14,962 $16,638 
Losses and loss adjustment expenses2,672 3,565 3,279 2,518 2,896 3,430 2,857 2,423 12,034 11,606 
Underwriting expenses889 1,004 1,042 951 971 1,083 1,135 1,051 3,886 4,240 
Statutory underwriting gain (loss)$(59)$(908)$(494)$503 $143 $(415)$229 $835 $(958)$792 
Policies in force (in thousands)
Automobile3,248 3,225 3,223 3,223 3,212 3,180 3,158 3,150 3,223 3,150 
Homeowners and Other6,355 6,361 6,348 6,290 6,235 6,167 6,106 6,060 6,290 6,060 




























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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net written premiums by product line
Domestic
Automobile$1,654 $1,823 $2,022 $1,831 $1,859 $2,001 $2,138 $1,927 $7,330 $7,925 
Homeowners and Other1,565 2,173 2,216 1,995 1,635 2,347 2,410 2,158 7,949 8,550 
Total Domestic3,219 3,996 4,238 3,826 3,494 4,348 4,548 4,085 15,279 16,475 
International134 183 172 161 149 188 180 177 650 694 
Total$3,353 $4,179 $4,410 $3,987 $3,643 $4,536 $4,728 $4,262 $15,929 $17,169 































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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting
Gross written premiums$1,751 $1,946 $2,142 $1,947 $1,970 $2,129 $2,264 $2,056 $7,786 $8,419 
Net written premiums$1,741 $1,939 $2,132 $1,937 $1,959 $2,120 $2,253 $2,043 $7,749 $8,375 
Net earned premiums$1,723 $1,789 $1,874 $1,944 $1,980 $2,026 $2,080 $2,110 $7,330 $8,196 
Losses and loss adjustment expenses1,406 1,540 1,525 1,602 1,430 1,532 1,477 1,518 6,073 5,957 
Underwriting expenses409 432 458 424 454 468 495 471 1,723 1,888 
Statutory underwriting gain (loss)$(92)$(183)$(109)$(82)$96 $26 $108 $121 $(466)$351 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio81.7 %86.0 %81.4 %82.4 %72.2 %75.6 %71.0 %71.9 %82.8 %72.6 %
Underwriting expense ratio23.0 %22.4 %22.1 %21.2 %22.4 %22.3 %22.4 %22.3 %22.2 %22.4 %
Combined ratio104.7 %108.4 %103.5 %103.6 %94.6 %97.9 %93.4 %94.2 %105.0 %95.0 %
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development0.4 %0.2 %0.3 %0.4 %(2.3)%(1.5)%(2.7)%(1.5)%0.3 %(2.0)%
Catastrophes, net of reinsurance0.9 %4.7 %2.6 %0.5 %2.0 %4.2 %4.9 %(0.6)%2.2 %2.6 %
Underlying combined ratio103.4 %103.5 %100.6 %102.7 %94.9 %95.2 %91.2 %96.3 %102.5 %94.4 %
Catastrophes, net of reinsurance:
Pre-tax$15 $85 $49 $10 $39 $85 $103 $(13)$159 $214 
After-tax$11 $68 $38 $$31 $67 $81 $(10)$125 $169 
Prior year reserve development - favorable (unfavorable):
Pre-tax$(7)$(4)$(5)$(8)$45 $30 $56 $31 $(24)$162 
After-tax$(6)$(2)$(4)$(6)$34 $26 $45 $25 $(18)$130 
Policies in force (in thousands)3,248 3,225 3,223 3,223 3,212 3,180 3,158 3,150 
Change from prior year quarter1.1 %(0.6)%(1.8)%(1.7)%(1.1)%(1.4)%(2.0)%(2.3)%
Change from prior quarter(0.9)%(0.7)%(0.1)%— %(0.3)%(1.0)%(0.7)%(0.3)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$14 $14 $14 $15 $15 $15 $14 $15 $57 $59 
Fee income$$$$$$$$$17 $23 


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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory underwriting
Gross written premiums$1,758 $2,264 $2,354 $2,054 $1,881 $2,440 $2,547 $2,229 $8,430 $9,097 
Net written premiums$1,612 $2,240 $2,278 $2,050 $1,684 $2,416 $2,475 $2,219 $8,180 $8,794 
Net earned premiums$1,779 $1,872 $1,953 $2,028 $2,030 $2,072 $2,141 $2,199 $7,632 $8,442 
Losses and loss adjustment expenses1,266 2,025 1,754 916 1,466 1,898 1,380 905 5,961 5,649 
Underwriting expenses480 572 584 527 517 615 640 580 2,163 2,352 
Statutory underwriting gain (loss)$33 $(725)$(385)$585 $47 $(441)$121 $714 $(492)$441 
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio71.2 %108.2 %89.7 %45.2 %72.2 %91.6 %64.5 %41.2 %78.1 %66.9 %
Underwriting expense ratio27.3 %26.9 %26.5 %25.6 %26.9 %27.2 %27.0 %26.6 %26.5 %27.0 %
Combined ratio98.5 %135.1 %116.2 %70.8 %99.1 %118.8 %91.5 %67.8 %104.6 %93.9 %
Impact on combined ratio:
Net favorable prior year reserve development(2.0)%(2.4)%(2.1)%(2.4)%(1.1)%(6.8)%(5.9)%(1.8)%(2.2)%(3.9)%
Catastrophes, net of reinsurance17.8 %52.3 %30.3 %3.5 %22.6 %48.0 %23.0 %4.2 %25.6 %24.2 %
Underlying combined ratio82.7 %85.2 %88.0 %69.7 %77.6 %77.6 %74.4 %65.4 %81.2 %73.6 %
Catastrophes, net of reinsurance:
Pre-tax$316 $979 $593 $69 $459 $995 $492 $92 $1,957 $2,038 
After-tax$250 $773 $467 $55 $362 $787 $387 $72 $1,545 $1,608 
Prior year reserve development - favorable:
Pre-tax$35 $46 $42 $48 $22 $142 $125 $39 $171 $328 
After-tax$28 $36 $32 $38 $18 $111 $98 $31 $134 $258 
Policies in force (in thousands)6,355 6,361 6,348 6,290 6,235 6,167 6,106 6,060 
Change from prior year quarter1.1 %0.4 %(0.3)%(1.3)%(1.9)%(3.0)%(3.8)%(3.7)%
Change from prior quarter(0.3)%0.1 %(0.2)%(0.9)%(0.9)%(1.1)%(1.0)%(0.8)%
(1)  Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Billing and policy fees and other$10 $10 $10 $10 $11 $10 $$$40 $39 
Fee income$$$$$$$$$16 $20 


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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Revenues
Other revenues$— $— $— $— $— $— $— $— $— $— 
Claims and expenses
Interest expense88 92 98 98 98 98 98 98 376 392 
General and administrative expenses10 12 11 13 37 44 
Total claims and expenses97 102 107 107 106 110 109 111 413 436 
Loss before income tax benefit(97)(102)(107)(107)(106)(110)(109)(111)(413)(436)
Income tax benefit(21)(23)(21)(23)(23)(22)(23)(23)(88)(91)
Loss$(76)$(79)$(86)$(84)$(83)$(88)$(86)$(88)$(325)$(345)




























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,
2024 (1)
December 31,
2023
Assets
Fixed maturities, available for sale, at fair value (amortized cost $88,277 and $81,781; allowance for expected credit losses of $2 and $5)
$83,666 $77,807 
Equity securities, at fair value (cost $544 and $553)
687 608 
Real estate investments902 959 
Short-term securities4,766 5,137 
Other investments4,202 4,299 
Total investments94,223 88,810 
Cash (including restricted cash of $131 and $150)699 650 
Investment income accrued752 688 
Premiums receivable (net of allowance for expected credit losses of $58 and $69)
11,110 10,282 
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $119 and $118)
8,000 8,143 
Ceded unearned premiums1,202 1,150 
Deferred acquisition costs3,494 3,306 
Deferred taxes1,762 1,504 
Contractholder receivables (net of allowance for expected credit losses of $18 and $20)
3,171 3,249 
Goodwill4,233 3,976 
Other intangible assets360 277 
Other assets4,183 3,943 
Total assets$133,189 $125,978 
Liabilities
Claims and claim adjustment expense reserves$64,093 $61,627 
Unearned premium reserves22,289 20,872 
Contractholder payables3,189 3,269 
Payables for reinsurance premiums550 518 
Debt8,033 8,031 
Other liabilities7,171 6,740 
Total liabilities105,325 101,057 
Shareholders’ equity
Common stock (1,750.0 shares authorized; 226.6 and 228.2 shares issued and outstanding)
25,452 24,906 
Retained earnings49,630 45,591 
Accumulated other comprehensive loss(4,967)(4,471)
Treasury stock, at cost (564.3 and 559.2 shares)
(42,251)(41,105)
Total shareholders’ equity27,864 24,921 
Total liabilities and shareholders’ equity$133,189 $125,978 
(1) Preliminary

23

The Travelers Companies, Inc.
Investment Portfolio
image2a.gif
(at carrying value, $ in millions)December 31,
2024
Pre-tax Book
Yield (1)
December 31,
2023
Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities$61,012 3.87 %$53,626 3.51 %
Tax-exempt fixed maturities22,654 3.00 %24,181 2.92 %
Total fixed maturities83,666 3.63 %77,807 3.33 %
Non-redeemable preferred stocks48 2.20 %48 2.18 %
Common stocks639 560 
Total equity securities687 608 
Real estate investments902 959 
Short-term securities4,766 4.54 %5,137 5.49 %
Private equities2,815 2,783 
Hedge funds219 219 
Real estate partnerships858 855 
Other investments310 442 
Total other investments4,202 4,299 
Total investments$94,223 $88,810 
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity$(3,640)$(3,129)

(1)  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,
2024
December 31,
2023
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies$5,570 $6,368 
Obligations of U.S. states and political subdivisions:
Pre-refunded572 966 
All other26,613 27,540 
Total27,185 28,506 
Debt securities issued by foreign governments909 1,006 
Mortgage-backed securities - principally obligations of U.S. Government agencies12,605 7,818 
Corporate and all other bonds37,397 34,109 
Total fixed maturities$83,666 $77,807 
Fixed Maturities
Quality Characteristics (1)
December 31, 2024December 31, 2023
Amount% of TotalAmount% of Total
Quality Ratings
Aaa$40,411 48.3 %$36,612 47.0 %
Aa15,278 18.3 15,797 20.3 
A16,181 19.3 14,715 18.9 
Baa10,816 12.9 9,701 12.5 
Total investment grade82,686 98.8 76,825 98.7 
Ba686 0.8 581 0.8 
B247 0.3 335 0.4 
Caa and lower47 0.1 66 0.1 
Total below investment grade980 1.2 982 1.3 
Total fixed maturities$83,666 100.0 %$77,807 100.0 %
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 purchases4.3 4.1 

 

(1)  Rated using external rating agencies or by Travelers when a public rating does not exist.  Below investment grade assets refer to securities rated “Ba” or below.
25

The Travelers Companies, Inc.
Investment Income
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Gross investment income
Fixed maturities$575 $591 $631 $675 $692 $709 $749 $798 $2,472 $2,948 
Short-term securities47 55 67 72 70 70 77 63 241 280 
Other53 78 82 40 98 118 90 103 253 409 
675 724 780 787 860 897 916 964 2,966 3,637 
Investment expenses12 12 11 14 12 12 44 47 
Net investment income, pre-tax663 712 769 778 846 885 904 955 2,922 3,590 
Income taxes106 118 129 133 148 158 162 170 486 638 
Net investment income, after-tax$557 $594 $640 $645 $698 $727 $742 $785 $2,436 $2,952 
Effective tax rate16.0 %16.5 %16.8 %17.0 %17.6 %17.8 %17.9 %17.9 %16.6 %17.8 %
Average invested assets (1)$88,740$89,536$91,591$93,603$94,677$95,402$97,736$100,046$90,941$97,012
Average yield pre-tax (1)3.0 %3.2 %3.4 %3.3 %3.6 %3.7 %3.7 %3.8 %3.2 %3.7 %
Average yield after-tax2.5 %2.7 %2.8 %2.8 %2.9 %3.0 %3.0 %3.1 %2.7 %3.0 %

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

26

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

($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Net realized investment gains (losses)
Fixed maturities$(11)$(22)$(36)$(27)$(40)$(35)$(17)$(39)$(96)$(131)
Equity securities 18 (19)(16)28 79 (28)53 (5)11 99 
Other (1)(13)(12)(4)(2)19 (11)(20)
Realized investment gains (losses) before tax(35)(65)(11)35 (65)55 (55)(105)(30)
Related taxes(6)(15)(4)(14)13 (11)(24)(4)
Net realized investment gains (losses)$$(29)$(50)$(7)$27 $(51)$42 $(44)$(81)$(26)
Gross investment gains$46 $17 $$33 $85 $$85 $10 $105 $187 
Gross investment losses before impairments(39)(52)(73)(34)(47)(72)(25)(63)(198)(207)
Net investment gains (losses) before impairments(35)(64)(1)38 (65)60 (53)(93)(20)
Net impairment (charges) recoveries(1)— (1)(10)(3)— (5)(2)(12)(10)
Net realized investment gains (losses) before tax(35)(65)(11)35 (65)55 (55)(105)(30)
Related taxes(6)(15)(4)(14)13 (11)(24)(4)
Net realized investment gains (losses)$$(29)$(50)$(7)$27 $(51)$42 $(44)$(81)$(26)
($ in millions)March 31,
2023
June 30,
2023
September 30,
2023
December 31,
2023
March 31,
2024
June 30,
2024
September 30,
2024
December 31,
2024
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities$(4,909)$(5,811)$(8,204)$(3,969)$(4,718)$(5,042)$(2,672)$(4,609)
Other (3)(4)(2)(1)(2)(1)— — 
Unrealized investment gains (losses) before tax(4,912)(5,815)(8,206)(3,970)(4,720)(5,043)(2,672)(4,609)
Related taxes (1,044)(1,239)(1,740)(841)(999)(1,067)(561)(969)
Balance, end of period$(3,868)$(4,576)$(6,466)$(3,129)$(3,721)$(3,976)$(2,111)$(3,640)




27

The Travelers Companies, Inc.
Reinsurance Recoverables
image2a.gif
($ in millions)December 31, 2024December 31, 2023
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)$3,962 $3,895 
Gross structured settlements (2)2,626 2,707 
Mandatory pools and associations (3) 1,531 1,659 
Gross reinsurance recoverables (4)8,119 8,261 
Allowance for estimated uncollectible reinsurance (5)(119)(118)
Net reinsurance recoverables$8,000 $8,143 
(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, 2024
Swiss Re GroupA+ second highest of 16 ratings$685 
Berkshire HathawayA++ highest of 16 ratings458 
Munich Re GroupA+ second highest of 16 ratings332 
Axa GroupA+ second highest of 16 ratings173 
Fairfax Financial GroupA+ second highest of 16 ratings137 
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, 2024
Fidelity & Guaranty Life Group  A third highest of 16 ratings$663 
Genworth Financial Group B- eighth highest of 16 ratings320 
John Hancock Group A+ second highest of 16 ratings218 
Symetra Financial CorporationA third highest of 16 ratings200 
Brighthouse Financial, Inc.A third highest of 16 ratings175 

(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, 2024, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.79 billion, or 88%, were rated by A.M. Best Company.  The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better.  The remaining 12% of reinsurance recoverables comprised the following:  6% related to captive insurance companies and 6% were balances from other companies not rated by A.M. Best Company.  Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors.  For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers. 
28

The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
image2a.gif
($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period$39,027 $39,279 $39,908 $40,690 $40,833 $41,391 $42,050 $42,960 $39,027 $40,833 
Incurred2,858 3,251 3,467 2,924 3,282 3,422 3,645 3,116 12,500 13,465 
Paid(2,620)(2,657)(2,637)(2,832)(2,697)(2,758)(2,786)(3,066)(10,746)(11,307)
Foreign exchange and other14 35 (48)51 (27)(5)51 (101)52 (82)
End of period$39,279 $39,908 $40,690 $40,833 $41,391 $42,050 $42,960 $42,909 $40,833 $42,909 
Bond & Specialty Insurance
Beginning of period$4,167 $4,318 $4,448 $4,423 $4,521 $4,626 $4,773 $4,931 $4,167 $4,521 
Incurred376 363 345 384 424 468 438 427 1,468 1,757 
Paid(238)(256)(335)(325)(306)(320)(332)(344)(1,154)(1,302)
Foreign exchange and other13 23 (35)39 (13)(1)52 (76)40 (38)
End of period$4,318 $4,448 $4,423 $4,521 $4,626 $4,773 $4,931 $4,938 $4,521 $4,938 
Personal Insurance
Beginning of period$7,568 $7,567 $8,287 $8,579 $8,363 $8,561 $9,099 $9,018 $7,568 $8,363 
Incurred2,672 3,565 3,279 2,518 2,896 3,430 2,857 2,423 12,034 11,606 
Paid(2,674)(2,863)(2,967)(2,755)(2,678)(2,885)(2,948)(2,908)(11,259)(11,419)
Foreign exchange and other18 (20)21 (20)(7)10 (54)20 (71)
End of period$7,567 $8,287 $8,579 $8,363 $8,561 $9,099 $9,018 $8,479 $8,363 $8,479 
Total
Beginning of period$50,762 $51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $50,762 $53,717 
Incurred5,906 7,179 7,091 5,826 6,602 7,320 6,940 5,966 26,002 26,828 
Paid(5,532)(5,776)(5,939)(5,912)(5,681)(5,963)(6,066)(6,318)(23,159)(24,028)
Foreign exchange and other28 76 (103)111 (60)(13)113 (231)112 (191)
End of period$51,164 $52,643 $53,692 $53,717 $54,578 $55,922 $56,909 $56,326 $53,717 $56,326 
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos$— $— $284 $— $— $— $242 $— $284 $242 
All other(19)101 (21)(56)— (34)(151)(147)(332)
Total Business Insurance (1)(19)101 263 (56)— (34)91 (147)289 (90)
Bond & Specialty Insurance(58)(119)(72)(36)(24)(24)(36)(45)(285)(129)
Personal Insurance(28)(42)(37)(40)(67)(172)(181)(70)(147)(490)
Total$(105)$(60)$154 $(132)$(91)$(230)$(126)$(262)$(143)$(709)
(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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Asbestos reserves
Beginning reserves:
Gross$1,674 $1,620 $1,552 $1,848 $1,768 $1,686 $1,612 $1,815 $1,674 $1,768 
Ceded(369)(348)(334)(415)(390)(382)(368)(395)(369)(390)
Net1,305 1,272 1,218 1,433 1,378 1,304 1,244 1,420 1,305 1,378 
Incurred losses and loss expenses:
Gross— — 374 — — — 279 — 374 279 
Ceded— — (90)— — — (37)— (90)(37)
Paid loss and loss expenses:
Gross54 69 77 81 82 74 77 106 281 339 
Ceded(21)(13)(10)(25)(8)(13)(11)(25)(69)(57)
Foreign exchange and other:
Gross— (1)— — (1)— 
Ceded— (1)— — (1)— — — 
Ending reserves:
Gross1,620 1,552 1,848 1,768 1,686 1,612 1,815 1,708 1,768 1,708 
Ceded(348)(334)(415)(390)(382)(368)(395)(370)(390)(370)
Net$1,272 $1,218 $1,433 $1,378 $1,304 $1,244 $1,420 $1,338 $1,378 $1,338 





















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,
2024
December 31,
2023
Debt
Short-term debt
Commercial paper$100 $100 
Total short-term debt100 100 
Long-term debt
7.75% Senior notes due April 15, 2026200 200 
7.625% Junior subordinated debentures due December 15, 2027125 125 
6.375% Senior notes due March 15, 2033 (1)500 500 
6.75% Senior notes due June 20, 2036 (1)400 400 
6.25% Senior notes due June 15, 2037 (1)800 800 
5.35% Senior notes due November 1, 2040 (1)750 750 
4.60% Senior notes due August 1, 2043 (1)500 500 
4.30% Senior notes due August 25, 2045 (1)400 400 
8.50% Junior subordinated debentures due December 15, 204556 56 
3.75% Senior notes due May 15, 2046 (1)500 500 
8.312% Junior subordinated debentures due July 1, 204673 73 
4.00% Senior notes due May 30, 2047 (1)700 700 
4.05% Senior notes due March 7, 2048 (1)500 500 
4.10% Senior notes due March 4, 2049 (1)500 500 
2.55% Senior notes due April 27, 2050 (1)500 500 
3.05% Senior notes due June 8, 2051 (1)750 750 
5.45% Senior notes due May 25, 2053 (1)750 750 
Total long-term debt8,004 8,004 
Unamortized fair value adjustment34 35 
Unamortized debt issuance costs(105)(108)
7,933 7,931 
Total debt8,033 8,031 
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)31,504 28,050 
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)$39,537 $36,081 
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)20.3 %22.3 %
(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,
2024 (1)
December 31,
2023
Statutory capital and surplus$27,715 $25,114 
GAAP adjustments
Goodwill and intangible assets3,635 3,657 
Investments(3,982)(3,455)
Noninsurance companies(4,350)(5,183)
Deferred acquisition costs3,371 3,161 
Deferred federal income tax218 84 
Current federal income tax(5)(6)
Reinsurance recoverables44 55 
Furniture, equipment & software960 982 
Agents balances230 189 
Other28 323 
Total GAAP adjustments149 (193)
GAAP shareholders’ equity$27,864 $24,921 

(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)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Cash flows from operating activities
Net income (loss)$975 $(14)$404 $1,626 $1,123 $534 $1,260 $2,082 $2,991 $4,999 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses(6)35 65 11 (35)65 (55)55 105 30 
Depreciation and amortization204 179 169 170 196 182 174 163 722 715 
Deferred federal income tax expense (benefit)32 (96)(43)(56)42 (85)(59)(50)(163)(152)
Amortization of deferred acquisition costs1,462 1,519 1,604 1,641 1,698 1,678 1,790 1,807 6,226 6,973 
Equity in income from other investments(30)(55)(59)(13)(68)(89)(63)(74)(157)(294)
Premiums receivable(557)(832)(33)81 (557)(664)234 128 (1,341)(859)
Reinsurance recoverables(24)(17)(163)141 33 (34)74 38 (63)111 
Deferred acquisition costs(1,629)(1,722)(1,728)(1,610)(1,776)(1,807)(1,856)(1,734)(6,689)(7,173)
Claims and claim adjustment expense reserves381 1,413 1,259 (210)928 1,384 755 (387)2,843 2,680 
Unearned premium reserves893 1,042 882 (227)457 788 659 (416)2,590 1,488 
Other(689)97 689 550 (583)(275)962 452 647 556 
Net cash provided by operating activities1,012 1,549 3,046 2,104 1,458 1,677 3,875 2,064 7,711 9,074 
Cash flows from investing activities
Proceeds from maturities of fixed maturities1,538 1,493 1,878 1,462 1,709 2,464 1,817 2,547 6,371 8,537 
Proceeds from sales of investments:
Fixed maturities2,364 751 1,504 362 942 308 225 159 4,981 1,634 
Equity securities28 62 27 21 21 41 31 50 138 143 
Real estate investments— — — — — — 64 — — 64 
Other investments64 36 66 89 55 55 101 211 255 422 
Purchases of investments:
Fixed maturities(4,335)(3,328)(5,391)(2,636)(3,738)(4,349)(4,273)(4,772)(15,690)(17,132)
Equity securities(34)(16)(30)(25)(26)(21)(33)(44)(105)(124)
Real estate investments(14)(12)(20)(21)(13)(11)(10)(14)(67)(48)
Other investments(139)(116)(120)(120)(90)(95)(98)(113)(495)(396)
Net sales (purchases) of short-term securities228 (646)(600)(646)454 330 (1,126)712 (1,664)370 
Securities transactions in the course of settlement(35)50 45 (143)111 247 24 (326)(83)56 
Acquisition, net of cash acquired— — — — (381)(1)— — — (382)
Other(120)(131)(84)(127)(81)(111)(113)(103)(462)(408)
Net cash used in investing activities(455)(1,857)(2,725)(1,784)(1,037)(1,143)(3,391)(1,693)(6,821)(7,264)

33

The Travelers Companies, Inc.
Statement of Cash Flows - Preliminary (Continued)
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($ in millions)1Q20232Q20233Q20234Q20231Q20242Q20243Q20244Q2024YTD 4Q2023YTD 4Q2024
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations(398)(396)(100)(64)(250)(249)(248)(256)(958)(1,003)
Treasury stock acquired - net employee share-based compensation(62)— (1)(1)(110)(1)(1)(2)(64)(114)
Dividends paid to shareholders(215)(232)(229)(232)(229)(244)(238)(240)(908)(951)
Issuance of debt— 738 — — — — — — 738 — 
Issuance of common stock - employee share options82 28 24 190 22 33 76 141 321 
Net cash provided by (used in) financing activities(593)138 (323)(273)(399)(472)(454)(422)(1,051)(1,747)
Effect of exchange rate changes on cash and restricted cash(10)10 (5)— 13 (22)12 (14)
Net increase (decrease) in cash and restricted cash(32)(162)(12)57 17 62 43 (73)(149)49 
Cash and restricted cash at beginning of period799 767 605 593 650 667 729 772 799 650 
Cash and restricted cash at end of period$767 $605 $593 $650 $667 $729 $772 $699 $650 $699 
Supplemental disclosure of cash flow information
Income taxes paid (received)$(16)$155 $13 $49 $24 $831 $92 $363 $201 $1,310 
Interest paid$60 $115 $59 $136 $60 $135 $60 $135 $370 $390 

34

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, 2023June 30, 2023September 30, 2023December 31, 2023March 31, 2024June 30, 2024September 30, 2024December 31, 2024
Shareholders’ equity$23,052 $21,855 $19,978 $24,921 $25,022 $24,862 $27,696 $27,864 
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity3,868 4,576 6,466 3,129 3,721 3,976 2,111 3,640 
Net realized investment (gains) losses, net of tax(5)24 74 81 (27)24 (18)26 
Adjusted shareholders’ equity$26,915 $26,455 $26,518 $28,131 $28,716 $28,862 $29,789 $31,530 
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 2024 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.
 
35

The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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Combined ratio  For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators.  The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums.  For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio.  For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums.  Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.
 
The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.
 
Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.
 
Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract.  Net written premiums reflect gross written premiums less premiums ceded to reinsurers.
 
Book value per share is total common shareholders’ equity divided by the number of common shares outstanding.  Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.
 
Total capital is the sum of total shareholders’ equity and debt.  Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity.  In the opinion of the Company’s management, the debt to capital ratio is useful in an analysis of the Company’s financial leverage.
 
Statutory capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.
 
Travelers has organized its businesses into the following reportable business segments:
 
Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.  Business Insurance is organized as follows:  Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited.  Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements.
 
Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches.  The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.
 
Bond & Specialty Insurance’s surety business in Brazil and Colombia is conducted through Junto Holding Brasil S.A. (Junto) and Junto Holding Latam S.A. in Brazil. The Company owns 49.5% of both Junto, a market leader in surety coverages in Brazil, and Junto Holding Latam S.A., which owns a majority interest in JMalucelli Travelers Seguros S.A., a Colombian surety provider. These joint venture investments are accounted for using the equity method and are included in “other investments” on the consolidated balance sheet.
 
Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

36
v3.24.4
Cover Page
Jan. 22, 2025
Cover [Abstract]  
Document type 8-K
Document period end date Jan. 22, 2025
Registrant name Travelers Companies, Inc.
Entity incorporation, state MN
Entity file number 001-10898
Entity tax identification number 41-0518860
Entity address, address line one 485 Lexington Avenue
Entity address, city New York
Entity address, state NY
Entity address, postal zip code 10017
City area code 917
Local phone number 778-6000
Written communications false
Soliciting material false
Pre-commencement communications pursuant to Rule 14d-2(b) false
Pre-commencement communications pursuant to Rule 13e-4(c) false
Title of 12(b) security Common stock, without par value
Trading symbol TRV
Security exchange name NYSE
Entity emerging growth company false
Central index key 0000086312
Amendment flag false

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