TRAVELERS COMPANIES INC
For the period ended Mar 31, 2025. Filed Apr 16, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 16, 2025
TRV$395.20-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-17.
0000086312-24-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-16.
0000086312-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 300 previous paragraphs and 266 current paragraphs.
131 unchanged; 95 reworded; 38 added; 73 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (38)
Current report
2025 First Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $2.27 billion ($1.79 billion after-tax)
Current report
•Net favorable prior year reserve development of $378 million ($297 million after-tax)
Current report
•Combined ratio of 102.5%
Current report
•Net investment income of $930 million ($763 million after-tax)
Current report
•Net realized investment losses of $61 million ($48 million after-tax)
Current report
•Total assets of $135.98 billion
Current report
•Shareholders’ equity of $28.19 billion
Current report
•Net unrealized investment losses of $4.17 billion ($3.30 billion after-tax)
Current report
Factors contributing to net prior year reserve development during the first quarters of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Income tax expense in the first quarter of 2025 was $73 million, $174 million or 70% lower than in the same period of 2024, primarily reflecting the impact of the $902 million decrease in income before income taxes in the first quarter of 2025.
Current report
The combined ratio of 102.5% in the first quarter of 2025 was 8.6 points higher than the combined ratio of 93.9% in the same period of 2024. The loss and loss adjustment expense ratio of 74.2% in the first quarter of 2025 was 9.0 points higher than the loss and loss adjustment expense ratio of 65.2% in the same period of 2024. The underwriting expense ratio of 28.3% in the first quarter of 2025 was 0.4 points lower than the underwriting expense ratio of 28.7% in the same period of 2024.
Current report
Segment income in the first quarter of 2025 was $683 million, $81 million or 11% lower than segment income of $764 million in the same period of 2024. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher catastrophe losses, partially offset by (ii) higher underlying underwriting margins, (iii) net favorable prior year reserve development of $74 million compared with no net prior year reserve development in the same period of 2024 and (iv) higher net investment income. Catastrophe losses in the first quarters of 2025 and 2024 were $509 million and $209 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing and (ii) higher business volumes, partially offset by (iii) higher general and administrative expenses. Income tax expense in the first quarter of 2025 was lower than in the same period of 2024, primarily reflecting the impact of the decrease in segment income before income taxes.
Current report
Claims and claim adjustment expenses in the first quarter of 2025 were $3.71 billion, $374 million or 11% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher catastrophe losses and (ii) loss cost trends, partially offset by (iii) net favorable prior year reserve development compared with no net prior year reserve development in the same period of 2024.
Current report
Factors contributing to net prior year reserve development during the first quarters of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Amortization of deferred acquisition costs in the first quarter of 2025 was $917 million, $53 million or 6% higher than the same period of 2024, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in the first quarter of 2025 were $847 million, $29 million or 4% higher than in the same period of 2024, primarily in support of business growth.
Current report
Income tax expense in the first quarter of 2025 was $159 million, $11 million lower than the same period of 2024, primarily reflecting the impact of the $92 million decrease in income before income taxes.
Current report
The combined ratio of 96.2% in the first quarter of 2025 was 2.9 points higher than the combined ratio of 93.3% in the same period of 2024. The loss and loss adjustment expense ratio of 66.8% in the first quarter of 2025 was 3.2 points higher than the loss and loss adjustment expense ratio of 63.6% in the same period of 2024. The underwriting expense ratio of 29.4% in the first quarter of 2025 was 0.3 points lower than the underwriting expense ratio of 29.7% in the same period of 2024.
Current report
Gross written premiums in the first quarter of 2025 increased by 6% over the same period of 2024. Net written premiums in the first quarter of 2025 increased by 2% over the same period of 2024, as growth in gross written premiums was partially offset by higher ceded written premiums driven by changes in the casualty reinsurance program.
Current report
Middle Market. Net written premiums of $3.17 billion in the first quarter of 2025 decreased by 1% from the same period of 2024. Net written premiums in first quarter of 2025 were reduced by the impact of higher ceded written premiums driven by changes in the casualty reinsurance program. Retention rates remained strong in the first quarter of 2025 and increased over the same period of 2024. Renewal premium changes in the first quarter of 2025 remained positive and were comparable with the same period of 2024. New business premiums in the first quarter of 2025 increased over the same period of 2024.
Current report
International. Net written premiums of $524 million in the first quarter of 2025 increased by 19% over the same period of 2024.
Current report
Claims and claim adjustment expenses in the first quarter of 2025 were $434 million, $6 million or 1% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher business volumes, (ii) higher catastrophe losses and (iii) loss cost trends, partially offset by (iv) higher net favorable prior year reserve development.
Current report
Factors contributing to net favorable prior year reserve development during the first quarters of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Amortization of deferred acquisition costs in the first quarter of 2025 was $187 million, $5 million or 3% higher than in the same period of 2024, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in the first quarter of 2025 were $205 million, comparable with the same period of 2024.
Current report
Income tax expense in the first quarter of 2025 was $57 million, $12 million or 27% higher than in the same period of 2024, primarily reflecting the impact of the $37 million increase in segment income before income taxes.
Current report
The combined ratio of 82.5% in the first quarter of 2025 was 2.0 points lower than the combined ratio of 84.5% in the same period of 2024. The loss and loss adjustment expense ratio of 43.2% in the first quarter of 2025 was 1.2 points lower than the loss and loss adjustment expense ratio of 44.4% in the same period of 2024. The underwriting expense ratio of 39.3% in the first quarter of 2025 was 0.8 points lower than the underwriting expense ratio of 40.1% in the same period of 2024.
Current report
Net favorable prior year reserve development in the first quarters of 2025 and 2024 provided 6.7 points and 2.5 points of benefit, respectively, to the combined ratio. Catastrophe losses in the first quarters of 2025 and 2024 accounted for 1.9 points and 0.5 points, respectively, of the combined ratio. The underlying combined ratio in the first quarter of 2025 was 0.8 points higher than the 2024 ratio on the same basis, primarily reflecting the impact of earned pricing, partially offset by a lower expense ratio.
Current report
Claims and claim adjustment expenses in the first quarter of 2025 were $3.87 billion, $970 million or 33% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher catastrophe losses and (ii) loss cost trends, partially offset by (iii) higher net favorable prior year reserve development, (iv) lower losses in the automobile product line and (v) lower non-weather water and fire losses in the homeowners and other product line.
Current report
Factors contributing to net favorable prior year reserve development during the first quarters of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Amortization of deferred acquisition costs in the first quarter of 2025 was $674 million, $22 million or 3% higher than in the same period of 2024, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in the first quarter of 2025 were $396 million, $21 million or 6% higher than in the same period of 2024, primarily reflecting higher contingent commissions and technology related expenses.
Current report
The income tax benefit in the first quarter of 2025 was $106 million, compared with income tax expense of $47 million in the same period of 2024, primarily reflecting the impact of the segment loss before income taxes of $480 million compared with segment income before income taxes of $267 million in the same period of 2024.
Current report
The combined ratio of 115.2% in the first quarter of 2025 was 18.3 points higher than the combined ratio of 96.9% in the same period of 2024. The loss and loss adjustment expense ratio of 91.0% in the first quarter of 2025 was 18.8 points higher than the loss and loss adjustment expense ratio of 72.2% in the same period of 2024. The underwriting expense ratio of 24.2% in the first quarter of 2025 was 0.5 points lower than the underwriting expense ratio of 24.7% in the same period of 2024.
Current report
Catastrophe losses in the first quarters of 2025 and 2024 accounted for 40.9 points and 12.4 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2025 and 2024 provided 5.6 points and 1.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first quarter of 2025 was 6.2 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing, (ii) lower losses in the automobile product line and (iii) lower non-weather water and fire losses in the homeowners and other product line.
Current report
International net written premiums of $146 million in the first quarter of 2025 decreased by 2% from the same period of 2024, primarily driven by the impact of changes in foreign currency exchange rates.
Current report
UNCERTAINTY REGARDING ADEQUACY OF ASBESTOS RESERVES
Removed paragraphs (73)
Previous report
2024 Third Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $939 million ($739 million after-tax)
Previous report
•Net favorable prior year reserve development of $126 million ($99 million after-tax)
Previous report
•Combined ratio of 93.2%
Previous report
•Net investment income of $904 million ($742 million after-tax)
Previous report
•Net realized investment gains of $55 million ($42 million after-tax)
Previous report
•Total assets of $134.59 billion
Previous report
•Shareholders’ equity of $27.70 billion
Previous report
•Net unrealized investment losses of $2.67 billion ($2.11 billion after-tax)
Previous report
Diluted net income per share of $12.51 in the first nine months of 2024 increased by 115% over diluted net income per share of $5.83 in the same period of 2023. Net income of $2.92 billion in the first nine months of 2024 increased by 114% over net income of $1.37 billion in the same period of 2023. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes primarily reflected the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net investment income, (iii) higher net favorable prior year reserve development and (iv) net realized investment gains compared to net realized investment losses in the same period of 2023, partially offset by (v) higher catastrophe losses. Net favorable prior year reserve development in the first nine months of 2024 and 2023 was $447 million and $11 million, respectively. Catastrophe losses in the first nine months of 2024 and 2023 were $3.16 billion and $2.87 billion, respectively. The higher underlying underwriting margins in the first nine months of 2024 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. The Company recorded income tax expense in the first nine months of 2024 compared with an income tax benefit in the same period of 2023. The change in income taxes primarily reflected the impact of the increase in income before income taxes and a one-time tax benefit of $211 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Claims and claim adjustment expenses in the first nine months of 2024 were $21.03 billion, $690 million or 3% higher than in the same period of 2023, primarily reflecting the impacts of (i) higher business volumes, (ii) higher catastrophe losses, (iii) loss cost trends and higher other losses in Business Insurance and (iv) loss cost trends in Bond & Specialty Insurance, partially offset by (v) higher net favorable prior year reserve development, (vi) lower physical damage losses in the automobile product line, lower non-catastrophe weather-related losses and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance and (vii) the comparison to an elevated level of losses in the same period of 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector in Bond & Specialty Insurance. Catastrophe losses in the first nine months of 2024 included the third quarter events described above, as well as numerous severe wind and hail storms in multiple states in the first six months of 2024. Catastrophe losses in the first nine months of 2023 included the third quarter events described above, as well as numerous severe wind and hail storms in multiple states in the first six months of 2023.
Previous report
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2024 and 2023 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous report
(1) Amounts are reported pre-tax and net of recoveries under all applicable reinsurance treaties, except for the Company’s 2022 Underlying Property Aggregate Catastrophe Excess-of-Loss Treaty, the terms of which are described in “Part I—Item 1—Business” in the Company’s 2022 Annual Report. The treaty covered the accumulation of certain property losses arising from one or multiple occurrences (both catastrophe and non-catastrophe events) for the period January 1, 2022 through and including December 31, 2022. As a result, the benefits from those treaties are not included in the table above as the allocation of the treaty’s benefit to each identified catastrophe changes each time there are additional events or changes in estimated losses from any covered event.
Previous report
Income tax expense in the third quarter of 2024 was $300 million, $232 million or 341% higher than in the same period of 2023, primarily reflecting the impact of the $1.09 billion increase in income before income taxes in the third quarter of 2024. Income tax expense in the first nine months of 2024 was $669 million, compared with an income tax benefit of $13 million in the same period of 2023. The change in income taxes primarily reflected the impact of the $2.23 billion increase in income before income taxes in the first nine months of 2024 and the one-time tax benefit of $211 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
The combined ratio of 93.2% in the third quarter of 2024 was 7.8 points lower than the combined ratio of 101.0% in the same period of 2023. The loss and loss adjustment expense ratio of 64.8% in the third quarter of 2024 was 8.2 points lower than the loss and loss adjustment expense ratio of 73.0% in the same period of 2023. The underwriting expense ratio of 28.4% in the third quarter of 2024 was 0.4 points higher than the underwriting expense ratio of 28.0% in the same period of 2023.
Previous report
The combined ratio of 95.7% in the first nine months of 2024 was 5.3 points lower than the combined ratio of 101.0% in the same period of 2023. The loss and loss adjustment expense ratio of 67.1% for the first nine months of 2024 was 5.5 points lower than the loss and loss adjustment expense ratio of 72.6% in the same period of 2023. The underwriting expense ratio of 28.6% for the first nine months of 2024 was 0.2 points higher than the underwriting expense ratio of 28.4% in the same period of 2023.
Previous report
Catastrophe losses in the first nine months of 2024 and 2023 accounted for 10.2 points and 10.3 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2024 and 2023 provided 1.5 points and 0.1 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2024 was 3.8 points lower than the 2023 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing, (ii) lower physical damage losses in the automobile product line, lower non-catastrophe weather-related losses and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance and (iii) the comparison to an elevated level of losses in the same period of 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector in Bond & Specialty Insurance, partially offset by (iv) higher other losses in Business Insurance.
Previous report
Segment income in the third quarter of 2024 was $698 million, $230 million or 49% higher than segment income of $468 million in the same period of 2023. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower net unfavorable prior year reserve development, (ii) higher underlying underwriting margins and (iii) higher net investment income, partially offset by (iv) higher catastrophe losses. Net unfavorable prior year reserve development in the third quarters of 2024 and 2023 was $91 million and $263 million, respectively. Catastrophe losses in the third quarters of 2024 and 2023 were $340 million and $203 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) higher business volumes and (ii) the benefit of earned pricing, partially offset by (iii) higher general and administrative expenses. Income tax expense in the third quarter of 2024 was higher than in the same period of 2023, primarily reflecting the impact of the increase in segment income before income taxes.
Previous report
Segment income in the first nine months of 2024 was $2.12 billion, $492 million or 30% higher than segment income of $1.63 billion in the same period of 2023. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net investment income, (ii) higher underlying underwriting margins and (iii) lower net unfavorable prior year reserve development, partially offset by (iv) higher catastrophe losses. Net unfavorable prior year reserve development in the first nine months of 2024 and 2023 was $57 million and $345 million, respectively. Catastrophe losses in the first nine months of 2024 and 2023 were $938 million and $798 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) higher business volumes and (ii) the benefit of earned pricing, partially offset by (iii) higher other losses and (iv) higher general and administrative expenses. Income tax expense in the first nine months of 2024 was higher than in the same period of 2023, primarily reflecting the impact of the increase in income before income taxes and a one-time tax benefit of $171 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Claims and claim adjustment expenses in the third quarter of 2024 were $3.70 billion, $179 million or 5% higher than in the same period of 2023, primarily reflecting the impacts of (i) higher catastrophe losses, (ii) higher business volumes and (iii) loss cost trends, partially offset by (iv) lower net unfavorable prior year reserve development.
Previous report
Claims and claim adjustment expenses in the first nine months of 2024 were $10.50 billion, $778 million or 8% higher than in the same period of 2023, primarily reflecting the impacts of (i) higher business volumes, (ii) loss cost trends, (iii) higher other losses and (iv) higher catastrophe losses, partially offset by (v) lower net unfavorable prior year reserve development.
Previous report
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2024 and 2023 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous report
Amortization of deferred acquisition costs in the third quarter of 2024 was $930 million, $110 million or 13% higher than the same period of 2023. Amortization of deferred acquisition costs in the first nine months of 2024 was $2.66 billion, $320 million or 14% higher than the same period of 2023. The increases in both periods of 2024 were generally consistent with the increases in earned premiums.
Previous report
General and administrative expenses in the third quarter of 2024 were $826 million, $54 million or 7% higher than in the same period of 2023. General and administrative expenses in the first nine months of 2024 were $2.48 billion, $209 million or 9% higher than in the same period of 2023. The increases in both periods of 2024 were primarily in support of business growth.
Previous report
Income Tax Expense
Previous report
Income tax expense in the third quarter of 2024 was $162 million, $61 million higher than the same period of 2023, primarily reflecting the impact of the $291 million increase in income before income taxes. Income tax expense in the first nine months of 2024 was $491 million, $350 million higher than in the same period of 2023, primarily reflecting the impact of the $842 million increase in income before income taxes and the one-time tax benefit of $171 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
The combined ratio of 95.8% in the third quarter of 2024 was 3.3 points lower than the combined ratio of 99.1% in the same period of 2023. The loss and loss adjustment expense ratio of 66.6% in the third quarter of 2024 was 3.4 points lower than the loss and loss adjustment expense ratio of 70.0% in the same period of 2023. The underwriting expense ratio of 29.2% in the third quarter of 2024 was 0.1 points higher than the underwriting expense ratio of 29.1% in the same period of 2023.
Previous report
The combined ratio of 95.1% in the first nine months of 2024 was 2.6 points lower than the combined ratio of 97.7% in the same period of 2023. The loss and loss adjustment expense ratio of 65.5% in the first nine months of 2024 was 2.5 points lower than the loss and loss adjustment expense ratio of 68.0% in the same period of 2023. The underwriting expense ratio of 29.6% for the first nine months of 2024 was 0.1 points lower than the underwriting expense ratio of 29.7% in the same period of 2023.
Previous report
Catastrophe losses in the first nine months of 2024 and 2023 accounted for 5.9 points and 5.7 points, respectively, of the combined ratio. Net unfavorable prior year reserve development in the first nine months of 2024 and 2023 accounted for 0.4 and 2.4 points, respectively, of the combined ratio. The underlying combined ratio in the first nine months of 2024 was 0.8 points lower than the 2023 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing, partially offset by higher other losses.
Previous report
Gross and net written premiums in the third quarter of 2024 both increased by 9% over the same period of 2023. Gross and net written premiums in the first nine months of 2024 increased by 9% and 8%, respectively, over the same period of 2023.
Previous report
Middle Market. Net written premiums of $3.03 billion and $9.01 billion in the third quarter and first nine months of 2024, respectively, increased by 10% and 9%, respectively, over the same periods of 2023. Retention rates remained strong in the third quarter of 2024 and were comparable with the same period of 2023. Retention rates remained strong in the first nine months of 2024 but decreased slightly from the same period of 2023. Renewal premium changes in the third quarter of 2024 remained positive and were slightly higher than the same period of 2023. Renewal premium changes in the first nine months of 2024 remained positive and were higher than the same period of 2023. New business premiums in the third quarter and first nine months of 2024 increased slightly over the same periods of 2023.
Previous report
International. Net written premiums of $442 million and $1.45 billion in the third quarter and first nine months of 2024, respectively, increased by 15% and 7%, respectively, over the same periods of 2023.
Previous report
Segment income in the third quarter of 2024 was $222 million, $43 million or 16% lower than segment income of $265 million in the same period of 2023. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i)
Previous report
Segment income in the first nine months of 2024 was $587 million, $115 million or 16% lower than segment income of $702 million in the same period of 2023. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower net favorable prior year reserve development and (ii) higher catastrophe losses, partially offset by (iii) higher net investment income. Net favorable prior year reserve development in the first nine months of 2024 and 2023 was $84 million and $249 million, respectively. Catastrophe losses in the first nine months of 2024 and 2023 were $49 million and $31 million, respectively. The lower underlying underwriting margins primarily reflected (i) higher general and administrative expenses and (ii) the impact of earned pricing, partially offset by (iii) higher business volumes and (iv) the comparison to an elevated level of losses in the same period of 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector. Income tax expense in the first nine months of 2024 was lower than in the same period of 2023, primarily reflecting the impact of the decrease in segment income before income taxes and a one-time tax benefit of $9 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Claims and claim adjustment expenses in the third quarter of 2024 were $441 million, $90 million or 26% higher than in the same period of 2023, primarily reflecting the impacts of (i) lower net favorable prior year reserve development, (ii) higher business volumes and (iii) loss cost trends.
Previous report
Claims and claim adjustment expenses in the first nine months of 2024 were $1.34 billion, $245 million or 22% higher than in the same period of 2023, primarily reflecting the impacts of (i) lower net favorable prior year reserve development, (ii) higher business volumes, (iii) loss cost trends and (iv) higher catastrophe losses, partially offset by (v) the comparison to an elevated level of losses in the same period of 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector.
Previous report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine months of 2024 and 2023 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous report
Amortization of deferred acquisition costs in the third quarter of 2024 was $194 million, $21 million or 12% higher than in the same period of 2023. Amortization of deferred acquisition costs in the first nine months of 2024 was $559 million, $58 million or 12% higher than in the same period of 2023. The increases in both periods of 2024 were generally consistent with the increases in earned premiums.
Previous report
General and administrative expenses in the third quarter of 2024 were $203 million, $31 million or 18% higher than in the same period of 2023. General and administrative expenses in the first nine months of 2024 were $615 million, $105 million or 21% higher than in the same period of 2023. The increases in both periods of 2024 primarily reflected the acquisition of Corvus in the first quarter of 2024, as well as higher employee and technology related expenses.
Previous report
Income Tax Expense
Showing the first 40 of 73 passages. Open the source sections for the rest.
Reworded paragraphs (95)
Previous wording
•Net income of $1.26 billion, or $5.50 per share basic and $5.42 per share diluted
Current wording
•Net income of $395 million, or $1.73 per share basic and $1.70 per share diluted
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•Net earned premiums of $10.70 billion
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•Net earned premiums of $10.71 billion
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•Operating cash flows of $3.88 billion
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•Operating cash flows of $1.36 billion
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2024 Third Quarter Consolidated Financial Condition
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2025 First Quarter Consolidated Financial Condition
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•Total investments of $95.45 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $95.70 billion; fixed maturities and short-term securities comprised 94% of total investments
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•Total debt of $8.03 billion, resulting in a debt-to-total capital ratio of 22.5% (21.2% excluding net unrealized investment losses, net of tax)
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•Total debt of $8.03 billion, resulting in a debt-to-total capital ratio of 22.2% (20.3% excluding net unrealized investment losses, net of tax)
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•Total capital returned to shareholders of $496 million, comprising $253 million of share repurchases and $243 million of dividends
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•Total capital returned to shareholders of $599 million, comprising $358 million of share repurchases and $241 million of dividends
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•Book value per common share of $122.00
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•Book value per common share of $124.43
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•Holding company liquidity of $1.82 billion
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•Holding company liquidity of $1.63 billion
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Diluted net income per share of $5.42 in the third quarter of 2024 increased by 211% over diluted net income per share of $1.74 in the same period of 2023. Net income of $1.26 billion in the third quarter of 2024 increased by 212% over net income of $404 million in the same period of 2023. The increase in income before income taxes in the third quarter of 2024 primarily reflected the pre-tax impacts of (i) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”), (ii) net favorable prior year reserve development compared to net unfavorable prior year reserve development in the same period of 2023, (iii) higher net investment income and (iv) net realized investment gains compared to net realized investment losses in the same period of 2023, partially offset by (v) higher catastrophe losses. Net favorable prior year reserve development in the third quarter of 2024 was $126 million. Net unfavorable prior year reserve development in the third quarter of 2023 was $154 million. Catastrophe losses in the third quarters of 2024 and 2023 were $939 million and $850 million, respectively. The higher underlying underwriting margins in the third quarter of 2024 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the third quarter of 2024 was higher than in the same period of 2023, primarily reflecting the impact of the increase in income before income taxes.
Current wording
Diluted net income per share of $1.70 in the first quarter of 2025 decreased by 65% from diluted net income per share of $4.80 in the same period of 2024. Net income of $395 million in the first quarter of 2025 decreased by 65% from net income of $1.12 billion in the same period of 2024. The decrease in income before income taxes in the first quarter of 2025 primarily reflected the pre-tax impacts of (i) higher catastrophe losses and (ii) net realized investment losses compared to net realized investment gains in the same period of 2024, partially offset by (iii) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”), (iv) higher net favorable prior year reserve development and (v) higher net investment income. Catastrophe losses in the first quarters of 2025 and 2024 were $2.27 billion and $712 million, respectively. Net favorable prior year reserve development in the first quarters of 2025 and 2024 was $378 million and $91 million, respectively. The higher underlying underwriting margins in the first quarter of 2025 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the first quarter of 2025 was lower than in the same period of 2024, primarily reflecting the impact of the decrease in income before income taxes.
Previous wording
The Company has insurance operations in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil and Colombia through joint ventures. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months and nine months ended September 30, 2024 and 2023, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income (loss) for the periods reported.
Current wording
The Company has insurance operations in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil through a joint venture. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months ended March 31, 2025 and 2024, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income (loss) for the periods reported.
Previous wording
Earned premiums in the third quarter of 2024 were $10.70 billion, $986 million or 10% higher than in the same period of 2023. Earned premiums in the first nine months of 2024 were $31.07 billion, $3.29 billion or 12% higher than in the same period of 2023. In Business Insurance, earned premiums in the third quarter and first nine months of 2024 increased by 10% and 12%, respectively, over the same periods of 2023. In Bond & Specialty Insurance, earned premiums in both the third quarter and first nine months of 2024 increased 8% over the same periods of 2023. In Personal Insurance, earned premiums in the third quarter and first nine months of 2024 increased by 10% and 12%, respectively, over the same periods of 2023. Factors contributing to the changes in earned premiums in each segment are discussed in more detail in the segment discussions that follow.
Current wording
Earned premiums in the first quarter of 2025 were $10.71 billion, $584 million or 6% higher than in the same period of 2024. In Business Insurance, earned premiums in the first quarter of 2025 increased by 6% over the same period of 2024. In Bond & Specialty Insurance, earned premiums in the first quarter of 2025 increased 4% over the same period of 2024. In Personal Insurance, earned premiums in the first quarter of 2025 increased by 6% over the same period of 2024. Factors contributing to the changes in earned premiums in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Net investment income in the third quarter of 2024 was $904 million, $135 million or 18% higher than in the same period of 2023. Net investment income in the first nine months of 2024 was $2.64 billion, $491 million or 23% higher than in the same period of 2023. Net investment income from fixed maturity investments in the third quarter and first nine months of 2024 was $749 million and $2.15 billion, respectively, $118 million and $353 million higher, respectively, than in the same periods of 2023. The increases in both periods of 2024 primarily resulted from higher long-term average yields and a higher average level of fixed maturity investments. Net investment income from short-term securities in the third quarter and first nine months of 2024 was $77 million and $217 million, respectively, $10 million and $48 million higher, respectively, than in the same periods of 2023. The increase in the third quarter of 2024 primarily resulted from a higher level of short-term investments. The increase in the first nine months of 2024 primarily resulted from a higher level of short-term investments and higher short-term average yields. The Company’s remaining investment portfolios had net investment income of $90 million and $306 million, respectively, in the third quarter and first nine months of 2024, $8 million and $93 million higher, respectively, than in the same periods of 2023. The increases in both periods of 2024 primarily reflected higher private equity partnership returns. Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.
Current wording
Net investment income in the first quarter of 2025 was $930 million, $84 million or 10% higher than in the same period of 2024. Net investment income from fixed maturity investments in the first quarter of 2025 was $812 million, $120 million higher than in the same period of 2024. The increase in the first quarter of 2025 primarily resulted from higher long-term average yields and a slightly higher average level of fixed maturity investments. Net investment income from short-term securities in the first quarter of 2025 was $57 million, $13 million lower than in the same period of 2024. The decrease in the first quarter of 2025 primarily resulted from lower short-term average yields. The Company’s remaining investment portfolios had net investment income of $76 million in the first quarter of 2025, $22 million lower than in the same period of 2024. The decrease in the first quarter of 2025 primarily reflected lower private equity partnership returns, partially offset by higher real estate partnership returns. Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.
Previous wording
Fee income in the third quarter of 2024 was $121 million, $9 million higher than in the same period of 2023. Fee income in the first nine months of 2024 was $345 million, $21 million higher than in the same period of 2023. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.
Current wording
Fee income in the first quarter of 2025 was $119 million, $10 million higher than in the same period of 2024. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.
Previous wording
Net realized investment gains on equity securities still held of $51 million and $102 million, respectively, in the third quarter and first nine months of 2024 were driven by the impact of changes in fair value attributable to favorable equity markets. Net realized investment losses on equity securities still held of $14 million in the third quarter of 2023 were driven by the impact of changes in fair value attributable to unfavorable equity markets. Net realized investment losses on equity securities still held of $11 million in the first nine months of 2023 were driven by a net unfavorable change in fair value on the individual securities held in the Company’s portfolio.
Current wording
Net realized investment losses on equity securities still held of $22 million in the first quarter of 2025 were driven by the impact of changes in fair value attributable to unfavorable equity markets. Net realized investment gains on equity securities still held of $79 million in the first quarter of 2024 were driven by the impact of changes in fair value attributable to favorable equity markets.
Previous wording
Other revenues in the third quarter of 2024 were $89 million, $18 million higher than in the same period of 2023. Other revenues in the first nine months of 2024 were $243 million, $58 million higher than in the same period of 2023. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Current wording
Other revenues in the first quarter of 2025 were $112 million, comparable with the same period of 2024. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Previous wording
Claims and claim adjustment expenses in the third quarter of 2024 were $7.00 billion, $153 million or 2% lower than in the same period of 2023, primarily reflecting the impacts of (i) net favorable prior year reserve development compared to net unfavorable prior year reserve development in the same period of 2023 and (ii) lower non-catastrophe weather-related losses, lower physical damage losses in the automobile product line and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance, partially offset by (iii) higher business volumes, (iv) higher catastrophe losses and (v) loss cost trends in Business Insurance and Bond & Specialty Insurance. Catastrophe losses in the third quarter of 2024 primarily resulted from Hurricane Helene and severe wind and hail storms in multiple states. Catastrophe losses in the third quarter of 2023 primarily resulted from numerous severe wind and hail storms in multiple states.
Current wording
Claims and claim adjustment expenses in the first quarter of 2025 were $8.01 billion, $1.35 billion or 20% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher catastrophe losses in all three segments and (ii) loss cost trends in all three segments, partially offset by (iii) higher net favorable prior year reserve development in all three segments and (iv) lower losses in the automobile product line and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance. Catastrophe losses in the first quarter of 2025 primarily resulted from the January 2025 California wildfires and severe wind and hail storms in multiple states. Catastrophe losses in the first quarter of 2024 primarily resulted from severe wind and hail storms in the central and eastern regions of the United States.
Previous wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months and nine months ended September 30, 2024 and 2023, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and nine months ended September 30, 2024 and 2023 for significant catastrophes that occurred in 2023 and 2022, and the estimate of ultimate losses for those catastrophes at September 30, 2024 and December 31, 2023. For purposes of the table, a significant catastrophe is an event for which the Company estimates its ultimate losses will be $100 million or more after reinsurance and before taxes. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level and for 2024 ranged from $20 million to $30 million of losses before reinsurance and taxes. For the Company’s definition of a catastrophe, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations— Consolidated Overview” in the Company’s 2023 Annual Report.
Current wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months ended March 31, 2025 and 2024, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months ended March 31, 2025 and 2024 for significant catastrophes that occurred in 2024 and 2023, and the estimate of ultimate losses for those catastrophes at March 31, 2025 and December 31, 2024. For purposes of the table, a significant catastrophe is an event for which the Company estimates its ultimate losses will be $100 million or more after reinsurance and before taxes. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level and for 2025 ranged from $20 million to $30 million of losses before reinsurance and taxes. For the Company’s definition of a catastrophe, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations— Consolidated Overview” in the Company’s 2024 Annual Report.
Previous wording
Amortization of deferred acquisition costs in the third quarter of 2024 was $1.79 billion, $186 million or 12% higher than in the same period of 2023. Amortization of deferred acquisition costs in the first nine months of 2024 was $5.17 billion, $581 million or 13% higher than in the same period of 2023. The increases in both periods were generally consistent with the increases in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Current wording
Amortization of deferred acquisition costs in the first quarter of 2025 was $1.78 billion, $80 million or 5% higher than in the same period of 2024, generally consistent with the increase in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Previous wording
General and administrative expenses in the third quarter of 2024 were $1.46 billion, $148 million or 11% higher than in the same period of 2023. General and administrative expenses in the first nine months of 2024 were $4.34 billion, $457 million or 12% higher than in the same period of 2023. The increases in both periods of 2024 primarily reflected the impact of costs associated with higher business volumes. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Current wording
General and administrative expenses in the first quarter of 2025 were $1.46 billion, $53 million or 4% higher than in the same period of 2024, primarily reflecting the impact of costs associated with higher business volumes. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Previous wording
Interest expense in the third quarter and first nine months of 2024 was $98 million and $294 million, respectively, compared with $98 million and $278 million, respectively, in the same periods of 2023.
Current wording
Interest expense in the first quarter of 2025 was $99 million, compared with $98 million in the same period of 2024.
Previous wording
The Company’s effective tax rate was 19% and 14% in the third quarters of 2024 and 2023, respectively. The Company’s effective tax rate was 19% and (1)% in the first nine months of 2024 and 2023, respectively. The effective tax rate in the first nine months of 2023 was reduced by the impact of the one-time tax benefit discussed above. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.
Current wording
The Company’s effective tax rate was 16% and 18% in the first quarters of 2025 and 2024, respectively. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.
Previous wording
Catastrophe losses in the third quarters of both 2024 and 2023 accounted for 8.8 points of the combined ratio. Net favorable prior year reserve development in the third quarter of 2024 provided 1.2 points of benefit to the combined ratio. Net unfavorable prior year reserve development in the third quarter of 2023 accounted for 1.6 points of the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the third quarter of 2024 was 5.0 points lower than the 2023 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing and (ii) lower non-catastrophe weather-related losses, lower physical damage losses in the automobile product line and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance.
Current wording
Catastrophe losses in the first quarters of 2025 and 2024 accounted for 21.2 points and 7.1 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2025 and 2024 provided 3.5 points and 0.9 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the first quarter of 2025 was 2.9 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing in Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance and (ii) lower losses in the automobile product line and lower non-weather water and fire losses in the homeowners and other product line in Personal Insurance.
Previous wording
Gross and net written premiums in the third quarter of 2024 both increased by 8% over the same period of 2023. Gross and net written premiums in the first nine months of 2024 increased by 9% and 8%, respectively, over the same period of 2023. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.
Current wording
Gross and net written premiums in the first quarter of 2025 increased by 5% and 3%, respectively, over the same period of 2024. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Earned premiums in the third quarter of 2024 were $5.47 billion, $518 million or 10% higher than in the same period of 2023. Earned premiums in the first nine months of 2024 were $15.80 billion, $1.73 billion or 12% higher than in the same period of 2023. The increases in both periods of 2024 primarily reflected the increase in net written premiums over the preceding twelve months.
Current wording
Earned premiums in the first quarter of 2025 were $5.47 billion, $305 million or 6% higher than in the same period of 2024, primarily reflecting the increase in net written premiums over the preceding twelve months.
Previous wording
Net investment income in the third quarter of 2024 was $161 million, $29 million or 22% higher than in the same period of 2023. Net investment income in the first nine months of 2024 was $467 million, $93 million or 25% higher than in the same period of 2023. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increases in the Company’s consolidated net investment income in the third quarter and first nine months of 2024 compared with the same periods of 2023. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2023 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in the first quarter of 2025 was $656 million, $47 million or 8% higher than in the same period of 2024. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increase in the Company’s consolidated net investment income in the first quarter of 2025 compared with the same period of 2024. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Previous wording
National Accounts is the primary source of fee income due to revenue from its large deductible policies and service businesses, which include risk management, claims administration, loss control and risk management information services provided to third parties, as well as policy issuance and claims management services to workers’ compensation residual market pools. Fee income in the third quarter of 2024 was $109 million, $7 million or 7% higher than in the same period of 2023. Fee income in the first nine months of 2024 was $315 million, $16 million or 5% higher than in the same period of 2023.
Current wording
National Accounts is the primary source of fee income due to revenue from its large deductible policies and service businesses, which include risk management, claims administration, loss control and risk management information services provided to third parties, as well as policy issuance and claims management services to workers’ compensation residual market pools. Fee income in the first quarter of 2025 was $108 million, $7 million or 7% higher than in the same period of 2024.
Previous wording
Other revenues in the third quarter of 2024 were $120 million, $19 million higher than in the same period of 2023. Other revenues in the first nine months of 2024 were $337 million, $62 million higher than in the same period of 2023. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Current wording
Other revenues in the first quarter of 2025 were $82 million, $5 million higher than in the same period of 2024. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Previous wording
Catastrophe losses in the third quarters of 2024 and 2023 accounted for 6.2 points and 4.1 points, respectively, of the combined ratio. Net unfavorable prior year reserve development in the third quarters of 2024 and 2023 accounted for 1.7 and 5.3 points, respectively, of the combined ratio. The underlying combined ratio in the third quarter of 2024 was 1.8 points lower than the 2023 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Current wording
Catastrophe losses in the first quarters of 2025 and 2024 accounted for 9.3 points and 4.1 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarter of 2025 provided 1.3 points of benefit to the combined ratio. There was no net prior year reserve development in the first quarter of 2024. The underlying combined ratio in the first quarter of 2025 was 1.0 points lower than the 2024 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Previous wording
Select Accounts. Net written premiums of $885 million and $2.83 billion in the third quarter and first nine months of 2024, respectively, increased by 7% and 8%, respectively, over the same periods of 2023. Retention rates remained strong in the third quarter and first nine months of 2024 but decreased from the same periods of 2023. Renewal premium changes in the third quarter and first nine months of 2024 remained positive and were higher than the same periods of 2023. New business premiums in the third quarter of 2024 decreased from the same period of 2023. New business premiums in the first nine months of 2024 increased over the same period of 2023.
Current wording
Select Accounts. Net written premiums of $976 million in the first quarter of 2025 increased slightly over the same period of 2024. Retention rates remained strong in the first quarter of 2025 but decreased from the same period of 2024. Renewal premium changes in the first quarter of 2025 remained positive and were higher than the same period of 2024. New business premiums in the first quarter of 2025 increased over the same period of 2024.
Previous wording
National Accounts. Net written premiums of $264 million and $903 million in the third quarter and first nine months of 2024, respectively, increased by 7% and 10%, respectively, over the same periods of 2023. Retention rates remained strong in the third quarter and first nine months of 2024 but decreased from the same periods of 2023. Renewal premium changes in the third quarter and first nine months of 2024 remained positive but were lower than the same periods of 2023. New business premiums in the third quarter and first nine months of 2024 increased over the same periods of 2023.
Current wording
National Accounts. Net written premiums of $312 million in the first quarter of 2025 decreased by 5% from the same period of 2024. Retention rates remained strong in the first quarter of 2025 but decreased from the same period of 2024. Renewal premium changes in the first quarter of 2025 remained positive and were higher than the same period of 2024. New business premiums in the first quarter of 2025 decreased from the same period of 2024.
Previous wording
National Property and Other. Net written premiums of $896 million and $2.45 billion in the third quarter and first nine months of 2024, respectively, increased by 3% and 5%, respectively, over the same periods of 2023. Retention rates remained strong in the third quarter and first nine months of 2024 but decreased from the same periods of 2023. Renewal premium changes in the third quarter and first nine months of 2024 remained positive but were lower than the same periods of 2023. New business premiums in the third quarter of 2024 decreased from the same period of 2023. New business premiums in the first nine months of 2024 increased over the same period of 2023.
Current wording
National Property and Other. Net written premiums of $720 million in the first quarter of 2025 increased by 12% over the same period of 2024. Retention rates remained strong in the first quarter of 2025 and increased over the same period of 2024. Renewal premium changes in the first quarter of 2025 remained positive but were lower than the same period of 2024. New business premiums in the first quarter of 2025 decreased from the same period of 2024.
Previous wording
lower net favorable prior year reserve development and (ii) lower underlying underwriting margins, partially offset by (iii) higher net investment income. Net favorable prior year reserve development in the third quarters of 2024 and 2023 was $36 million and $72 million, respectively. Catastrophe losses in the third quarters of 2024 and 2023 were $4 million and $5 million, respectively. The lower underlying underwriting margins primarily reflected (i) higher general and administrative expenses and (ii) the impact of earned pricing, partially offset by (iii) higher business volumes. Income tax expense in the third quarter of 2024 was lower than in the same period of 2023, primarily reflecting the impact of the decrease in segment income before income taxes.
Current wording
Segment income in the first quarter of 2025 was $220 million, $25 million or 13% higher than segment income of $195 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development and (ii) higher net investment income, partially offset by (iii) higher catastrophe losses and (iv) slightly lower underlying underwriting margins. Net favorable prior year reserve development in the first quarters of 2025 and 2024 was $67 million and $24 million, respectively. Catastrophe losses in the first quarters of 2025 and 2024 were $19 million and $5 million, respectively. The slightly lower underlying underwriting margins primarily reflected (i) the impact of earned pricing, partially offset by (ii) higher business volumes. Income tax expense in the first quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous wording
Earned premiums in the third quarter of 2024 were $1.01 billion, $74 million or 8% higher than in the same period of 2023. Earned premiums in the first nine months of 2024 were $2.94 billion, $221 million or 8% higher than in the same period of 2023. The increases in both periods of 2024 primarily reflected increases in net written premiums in prior quarters, including the impact of longer duration surety bonds and multi-year management liability policies.
Current wording
Earned premiums in the first quarter of 2025 were $1.00 billion, $39 million or 4% higher than in the same period of 2024, primarily reflecting increases in net written premiums in prior quarters, including the impact of longer duration surety bonds and multi-year management liability policies.
Previous wording
Net investment income in the third quarter of 2024 was $101 million, $15 million or 17% higher than in the same period of 2023. Net investment income in the first nine months of 2024 was $285 million, $48 million or 20% higher than in the same period of 2023. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Revenues—Net Investment Income” section of “Consolidated Results of Operations” herein for a discussion of the factors contributing to the increases in the Company’s consolidated net investment income in the third quarter and first nine months of 2024 compared with the same periods of 2023. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2023 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in the first quarter of 2025 was $102 million, $12 million or 13% higher than in the same period of 2024. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Revenues—Net Investment Income” section of “Consolidated Results of Operations” herein for a discussion of the factors contributing to the increase in the Company’s consolidated net investment income in the first quarter of 2025 compared with the same period of 2024. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Previous wording
International net written premiums of $180 million and $517 million in the third quarter and first nine months of 2024, respectively, increased by 5% and 6%, respectively, over the same periods of 2023, driven by increases in the automobile and homeowners and other product lines.
Current wording
Gross and net written premiums in the first quarter of 2025 increased by 5% and 6%, respectively, over the same period of 2024.
Previous wording
Domestic. Net written premiums of $961 million and $2.71 billion in the third quarter and first nine months of 2024, respectively, both increased by 10% over the same periods of 2023. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the third quarter of 2024 but decreased slightly from the same period of 2023. Retention rates remained strong in the first nine months of 2024 and were comparable with the same period of 2023. Renewal premium changes in the third quarter and first nine months of 2024 remained positive but were lower than in the same periods of 2023. New business premiums in the third quarter and first nine months of 2024 increased over the same periods of 2023.
Current wording
Domestic. Net written premiums of $886 million in the first quarter of 2025 increased by 6% over the same period of 2024. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the first quarter of 2025 but decreased slightly from the same period of 2024. Renewal premium changes in the first quarter of 2025 remained positive but were lower than in the same period of 2024. New business premiums in the first quarter of 2025 decreased from the same period of 2024.
Previous wording
International. Net written premiums of $111 million and $344 million in the third quarter and first nine months of 2024, respectively, decreased by 15% and 9%, respectively, from the same periods of 2023. The decreases in both periods of 2024 were primarily driven by decreases in the United Kingdom and broader Europe, partially offset by increases in Canada.
Current wording
International. Net written premiums of $113 million in the first quarter of 2025 increased by 9% over the same period of 2024, primarily driven by increases in the United Kingdom and broader Europe, partially offset by decreases in Canada and the impact of changes in foreign currency exchange rates.
Previous wording
Segment income in the third quarter of 2024 was $384 million, compared with a segment loss of $193 million in the same period of 2023. The increase in segment income before income taxes was driven by the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net favorable prior year reserve development, (iii) lower catastrophe losses and (iv) higher net investment income. Catastrophe losses in the third quarters of 2024 and 2023 were $595 million and $642 million, respectively. Net favorable prior year reserve development in the third quarters of 2024 and 2023 was $181 million and $37 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing, (ii) lower non-catastrophe weather-related losses, (iii) lower physical damage losses in the automobile product line, (iv) higher business volumes and (v) lower non-weather water and fire losses in the homeowners and other product line. The segment recorded income tax expense in the third quarter of 2024 compared with an income tax benefit in the same period of 2023. The change in income taxes primarily reflected the impact of the increase in segment income before income taxes.
Current wording
Segment loss in the first quarter of 2025 was $374 million, compared with segment income of $220 million in the same period of 2024. The segment loss before income taxes was driven by the pre-tax impacts of (i) higher catastrophe losses, partially offset by (ii) higher underlying underwriting margins, (iii) higher net favorable prior year reserve development and (iv) higher net investment income. Catastrophe losses in the first quarters of 2025 and 2024 were $1.74 billion and $498 million, respectively. Net favorable prior year reserve development in the first quarters of 2025 and 2024 was $237 million and $67 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing, (ii) lower losses in the automobile product line, (iii) higher business volumes and (iv) lower non-weather water and fire losses in the homeowners and other product line. The segment recorded an income tax benefit in the first quarter of 2025 compared with income tax expense in the same period of 2024. The change in income taxes primarily reflected the impact of the decrease in segment income before income taxes.
Previous wording
Earned premiums in the third quarter of 2024 were $4.22 billion, $394 million or 10% higher than in the same period of 2023. Earned premiums in the first nine months of 2024 were $12.33 billion, $1.34 billion or 12% higher than in the same period of 2023. The increases in both periods of 2024 primarily reflected the increase in net written premiums over the preceding twelve months.
Current wording
Earned premiums in the first quarter of 2025 were $4.25 billion, $240 million or 6% higher than in the same period of 2024, primarily reflecting the increase in net written premiums over the preceding twelve months.
Showing the first 40 of 95 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Gross and net written premiums in the first quarter of 2025 increased by 4% and 5%, respectively, over the same period of 2024.
Current report — wording carried from elsewhere
Item 7—Forward-Looking Statements.” For a discussion of potential risks and uncertainties that could impact the Company’s results of operations or financial position, see “Part I—Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” herein and “Part I—Item 1A—Risk Factors” and “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 2024 Annual Report, in each case as updated by the Company’s periodic filings with the SEC.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
$1.82 billion at September 30, 2024 exceeded this target, and it is the opinion of the Company’s management that these assets are sufficient to meet TRV’s current liquidity requirements.