TRAVELERS COMPANIES, INC.
For the period ended Jun 30, 2025. Filed Jul 17, 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.
Jun 30, 2025 · Filed Jul 17, 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 2025-03-31; filed 2025-04-16.
0000086312-25-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-17.
0000086312-25-000047
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 266 previous paragraphs and 293 current paragraphs.
148 unchanged; 82 reworded; 62 added; 34 removed; 2 previous and 1 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 (62)
Current report
2025 Second Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $927 million ($732 million after-tax)
Current report
•Net favorable prior year reserve development of $315 million ($249 million after-tax)
Current report
•Combined ratio of 90.3%
Current report
•Net investment income of $942 million ($774 million after-tax)
Current report
•Net realized investment gains of $6 million ($5 million after-tax)
Current report
•Total assets of $138.87 billion
Current report
•Shareholders’ equity of $29.52 billion
Current report
•Net unrealized investment losses of $3.83 billion ($3.03 billion after-tax)
Current report
Diluted net income per share of $8.23 in the first six months of 2025 increased by 16% over diluted net income per share of $7.09 in the same period of 2024. Net income of $1.90 billion in the first six months of 2025 increased by 15% over net income of $1.66 billion in the same period of 2024. 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 favorable prior year reserve development and (iii) higher net investment income, partially offset by (iv) higher catastrophe losses and (v) higher net realized investment losses. Catastrophe losses in the first six months of 2025 and 2024 were $3.19 billion and $2.22 billion, respectively. Net favorable prior year reserve development in the first six months of 2025 and 2024 was $693 million and $321 million, respectively. The higher underlying underwriting margins in the first six months of 2025 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the first six months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in income before income taxes.
Current report
Claims and claim adjustment expenses in the first six months of 2025 were $14.80 billion, $766 million or 5% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher catastrophe losses in Personal Insurance and Business Insurance, partially offset by lower catastrophe losses in Bond & Specialty Insurance, (ii) loss cost trends in all three segments and (iii) higher business volumes in Business Insurance and Bond & Specialty Insurance, partially offset by (iv) higher net favorable prior year reserve development in all three segments and (v) lower losses in the automobile product line and lower non-weather and non-catastrophe weather-related losses in the homeowners and other product line in Personal Insurance. Catastrophe losses in the first six months of 2025 included the second quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first three months of 2025. Catastrophe losses in the first six months of 2024 included the second quarter events described above, as well as severe wind and hail storms in the central and eastern regions of the United States in the first three months of 2024.
Current report
Factors contributing to net prior year reserve development during the second quarters and first six months 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 second quarter of 2025 was $372 million, $250 million or 205% higher than in the same period of 2024, primarily reflecting the impact of the $1.23 billion increase in income before income taxes in the second quarter of 2025. Income tax expense in the first six months of 2025 was $445 million, $76 million or 21% higher than in the same period of 2024, primarily reflecting the impact of the $323 million increase in income before income taxes in the first six months of 2025.
Current report
The combined ratio of 90.3% in the second quarter of 2025 was 9.9 points lower than the combined ratio of 100.2% in the same period of 2024. The loss and loss adjustment expense ratio of 61.7% in the second quarter of 2025 was 9.7 points lower than the loss and loss adjustment expense ratio of 71.4% in the same period of 2024. The underwriting expense ratio of 28.6% in the second quarter of 2025 was 0.2 points lower than the underwriting expense ratio of 28.8% in the same period of 2024.
Current report
The combined ratio of 96.3% in the first six months of 2025 was 0.8 points lower than the combined ratio of 97.1% in the same period of 2024. The loss and loss adjustment expense ratio of 67.9% for the first six months of 2025 was 0.5 points lower than the loss and loss adjustment expense ratio of 68.4% in the same period of 2024. The underwriting expense ratio of 28.4% for the first six months of 2025 was 0.3 points lower than the underwriting expense ratio of 28.7% in the same period of 2024.
Current report
Catastrophe losses in the first six months of 2025 and 2024 accounted for 14.8 points and 10.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2025 and 2024 provided 3.2 points and 1.5 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2025 was 3.0 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 and non-catastrophe weather-related losses in the homeowners and other product line in Personal Insurance.
Current report
Segment income in the second quarter of 2025 was $813 million, $157 million or 24% higher than segment income of $656 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net favorable prior year reserve development, (iii) higher net investment income and (iv) lower catastrophe losses. Net favorable prior year reserve development in the second quarters of 2025 and 2024 was $79 million and $34 million, respectively. Catastrophe losses in the second quarters of 2025 and 2024 were $368 million and $389 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 second 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.
Current report
Segment income in the first six months of 2025 was $1.50 billion, $76 million or 5% higher than segment income of $1.42 billion in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net favorable prior year reserve development and (iii) higher net investment income, partially offset by (iv) higher catastrophe losses. Net favorable prior year reserve development in the first six months of 2025 and 2024 was $153 million and $34 million, respectively. Catastrophe losses in the first six months of 2025 and 2024 were $877 million and $598 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 six months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Current report
Claims and claim adjustment expenses in the second quarter of 2025 were $3.58 billion, $113 million or 3% higher than in the same period of 2024, primarily reflecting the impacts of (i) loss cost trends and (ii) higher business volumes, partially offset by (iii) higher net favorable prior year reserve development and (iv) lower catastrophe losses.
Current report
Factors contributing to net prior year reserve development during the second quarters and first six months 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 second quarter of 2025 was $944 million, $83 million or 10% higher than the same period of 2024. Amortization of deferred acquisition costs in the first six months of 2025 was $1.86 billion, $136 million or 8% higher than the same period of 2024. The increases in both periods of 2025 were generally consistent with the increases in earned premiums.
Current report
Income tax expense in the second quarter of 2025 was $197 million, $38 million or 24% higher than the same period of 2024, primarily reflecting the impact of the $195 million increase in income before income taxes. Income tax expense in the first six months of 2025 was $356 million, $27 million or 8% higher than in the same period of 2024, primarily reflecting the impact of the $103 million increase in income before income taxes.
Current report
The combined ratio of 93.6% in the second quarter of 2025 was 2.5 points lower than the combined ratio of 96.1% in the same period of 2024. The loss and loss adjustment expense ratio of 63.7% in the second quarter of 2025 was 2.5 points lower than the loss and loss adjustment expense ratio of 66.2% in the same period of 2024. The underwriting expense ratio of 29.9% in the second quarter of 2025 was comparable with the underwriting expense ratio in the same period of 2024.
Current report
Catastrophe losses in the second quarters of 2025 and 2024 accounted for 6.7 points and 7.5 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2025 and 2024 provided 1.4 points and 0.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the second quarter of 2025 was 0.9 points lower than the 2024 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Current report
The combined ratio of 94.9% in the first six months of 2025 was 0.2 points higher than the combined ratio of 94.7% in the same period of 2024. The loss and loss adjustment expense ratio of 65.3% in the first six months of 2025 was 0.4 points higher than the loss and loss adjustment expense ratio of 64.9% in the same period of 2024. The underwriting expense ratio of 29.6% for the first six months of 2025 was 0.2 points lower than the underwriting expense ratio of 29.8% in the same period of 2024.
Current report
Catastrophe losses in the first six months of 2025 and 2024 accounted for 8.0 points and 5.8 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2025 and 2024 provided 1.4 points and 0.3 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2025 was 0.9 points lower than the 2024 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Current report
Select Accounts. Net written premiums of $1.00 billion and $1.98 billion in the second quarter and first six months of 2025, respectively, increased by 3% and 2%, respectively, over the same periods of 2024. Retention rates remained strong in the second quarter and first six months of 2025 but decreased from the same periods of 2024. Renewal premium changes in the second quarter of 2025 remained positive but were lower than the same period of 2024. Renewal premium changes in the first six months of 2025 remained positive and were comparable with the same period of 2024. New business premiums in the second quarter and first six months of 2025 increased over the same periods of 2024.
Current report
International. Net written premiums of $540 million in the second quarter of 2025 decreased by 5% from the same period of 2024. Net written premiums of $1.06 billion in the first six months of 2025 increased by 5% over the same period of 2024.
Current report
Segment income in the first six months of 2025 was $464 million, $99 million or 27% higher than segment income of $365 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, (ii) higher net investment income and (iii) lower catastrophe losses, partially offset by (iv) lower underlying underwriting margins. Net favorable prior year reserve development in the first six months of 2025 and 2024 was $148 million and $48 million, respectively. Catastrophe losses in the first six months of 2025 and 2024 were $24 million and $45 million, respectively. The lower underlying underwriting margins primarily reflected (i) the impact of earned pricing and (ii) higher general and administrative expenses, partially offset by (iii) higher business volumes. Income tax expense in the first six months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Current report
Claims and Claim Adjustment Expense
Current report
Claims and claim adjustment expenses in the second quarter of 2025 were $418 million, $55 million or 12% lower than in the same period of 2024, primarily reflecting the impacts of (i) higher net favorable prior year reserve development and (ii) lower catastrophe losses, partially offset by (iii) higher business volumes and (iv) loss cost trends.
Current report
Claims and claim adjustment expenses in the first six months of 2025 were $852 million, $49 million or 5% lower than in the same period of 2024, primarily reflecting the impacts of (i) higher net favorable prior year reserve development and (ii) lower catastrophe losses, partially offset by (iii) higher business volumes and (iv) loss cost trends.
Current report
Factors contributing to net favorable prior year reserve development during the second quarters and first six months 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 second quarter of 2025 was $195 million, $12 million or 7% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first six months of 2025 was $382 million, $17 million or 5% higher than in the same period of 2024. The increases in both periods of 2025 were generally consistent with the increases in earned premiums.
Current report
General and administrative expenses in the second quarter of 2025 were $214 million, $7 million or 3% higher than in the same period of 2024. General and administrative expenses in the first six months of 2025 were $419 million, $7 million or 2% higher than in the same period of 2024.
Current report
Income tax expense in the second quarter of 2025 was $62 million, $18 million or 41% higher than in the same period of 2024, primarily reflecting the impact of the $92 million increase in segment income before income taxes. Income tax expense in the first six months of 2025 was $119 million, $30 million or 34% higher than in the same period of 2024, primarily reflecting the impact of the $129 million increase in segment income before income taxes.
Current report
The combined ratio of 80.3% in the second quarter of 2025 was 7.4 points lower than the combined ratio of 87.7% in the same period of 2024. The loss and loss adjustment expense ratio of 40.5% in the second quarter of 2025 was 7.5 points lower than the loss and loss adjustment expense ratio of 48.0% in the same period of 2024. The underwriting expense ratio of 39.8% in the second quarter of 2025 was 0.1 points higher than the underwriting expense ratio of 39.7% in the same period of 2024.
Current report
The combined ratio of 81.4% in the first six months of 2025 was 4.7 points lower than the combined ratio of 86.1% in the same period of 2024. The loss and loss adjustment expense ratio of 41.8% in the first six months of 2025 was 4.4 points lower than the loss and loss adjustment expense ratio of 46.2% in the same period of 2024. The underwriting expense ratio of 39.6% in the first six months of 2025 was 0.3 points lower than the underwriting expense ratio of 39.9% in the same period of 2024.
Current report
Segment income in the first six months of 2025 was $160 million, $93 million or 139% higher than segment income of $67 million in the same period of 2024. 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 and (iii) higher net investment income, partially offset by (iv) higher catastrophe losses. Catastrophe losses in the first six months of 2025 and 2024 were $2.29 billion and $1.58 billion, respectively. Net favorable prior year reserve development in the first six months of 2025 and 2024 was $392 million and $239 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing, (ii) higher business volumes, (iii) lower losses in the automobile product line and (iv) lower non-weather and non-catastrophe weather-related losses in the homeowners and other product line. Income tax expense in the first six months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Current report
Claims and claim adjustment expenses in the second quarter of 2025 were $2.79 billion, $642 million or 19% lower than in the same period of 2024, primarily reflecting the impacts of (i) lower catastrophe losses, (ii) lower losses in the automobile product line and (iii) lower non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iv) loss cost trends.
Showing the first 40 of 62 passages. Open the source sections for the rest.
Removed paragraphs (34)
Previous report
2025 First Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $2.27 billion ($1.79 billion after-tax)
Previous report
•Net favorable prior year reserve development of $378 million ($297 million after-tax)
Previous report
•Combined ratio of 102.5%
Previous report
•Net investment income of $930 million ($763 million after-tax)
Previous report
•Net realized investment losses of $61 million ($48 million after-tax)
Previous report
•Total assets of $135.98 billion
Previous report
•Shareholders’ equity of $28.19 billion
Previous report
•Net unrealized investment losses of $4.17 billion ($3.30 billion after-tax)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
International. Net written premiums of $524 million in the first quarter of 2025 increased by 19% over the same period of 2024.
Previous 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.
Previous 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.
Previous report
General and administrative expenses in the first quarter of 2025 were $205 million, comparable with the same period of 2024.
Previous 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.
Previous 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.
Previous report
Gross and net written premiums in the first quarter of 2025 increased by 5% and 6%, respectively, over the same period of 2024.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Automobile net written premiums of $1.86 billion in the first quarter of 2025 were comparable with the same period of 2024. Retention rates remained strong in the first quarter of 2025 and increased slightly over 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 increased over the same period of 2024.
Previous 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.
Previous report
See “—Uncertainty Regarding Adequacy of Asbestos Reserves.”
Reworded paragraphs (82)
Previous wording
•Net income of $395 million, or $1.73 per share basic and $1.70 per share diluted
Current wording
•Net income of $1.51 billion, or $6.63 per share basic and $6.53 per share diluted
Previous wording
•Net earned premiums of $10.71 billion
Current wording
•Net earned premiums of $10.92 billion
Previous wording
•Operating cash flows of $1.36 billion
Current wording
•Operating cash flows of $2.33 billion
Previous wording
2025 First Quarter Consolidated Financial Condition
Current wording
2025 Second Quarter Consolidated Financial Condition
Previous wording
•Total investments of $95.70 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $98.07 billion; fixed maturities and short-term securities comprised 94% of total investments
Previous wording
•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)
Current wording
•Total debt of $8.03 billion, resulting in a debt-to-total capital ratio of 21.4% (19.8% excluding net unrealized investment losses, net of tax)
Previous wording
•Total capital returned to shareholders of $599 million, comprising $358 million of share repurchases and $241 million of dividends
Current wording
•Total capital returned to shareholders of $809 million, comprising $557 million of share repurchases and $252 million of dividends
Previous wording
•Book value per common share of $124.43
Current wording
•Book value per common share of $131.11
Previous wording
•Holding company liquidity of $1.63 billion
Current wording
•Holding company liquidity of $1.97 billion
Previous 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.
Current wording
Diluted net income per share of $6.53 in the second quarter of 2025 increased by 185% over diluted net income per share of $2.29 in the same period of 2024. Net income of $1.51 billion in the second quarter of 2025 increased by 183% over net income of $534 million in the same period of 2024. 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 in the second quarter of 2025 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”), (iii) higher net favorable prior year reserve development, (iv) net realized investment gains compared to net realized investment losses in the same period of 2024 and (v) higher net investment income. Catastrophe losses in the second quarters of 2025 and 2024 were $927 million and $1.51 billion, respectively. Net favorable prior year reserve development in the second quarters of 2025 and 2024 was $315 million and $230 million, respectively. The higher underlying underwriting margins in the second quarter of 2025 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the second quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase 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 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.
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 and six months ended June 30, 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 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.
Current wording
Earned premiums in the second quarter of 2025 were $10.92 billion, $678 million or 7% higher than in the same period of 2024. Earned premiums in the first six months of 2025 were $21.63 billion, $1.26 billion or 6% higher than in the same period of 2024. In Business Insurance, earned premiums in the second quarter and first six months of 2025 both increased by 7% over the same periods of 2024. In Bond & Specialty Insurance, earned premiums in the second quarter and first six months of 2025 increased by 5% and 4%, respectively, over the same periods of 2024. In Personal Insurance, earned premiums in the second quarter and first six months of 2025 both increased by 6% over the same periods 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 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.
Current wording
Net investment income in the second quarter of 2025 was $942 million, $57 million or 6% higher than in the same period of 2024. Net investment income in the first six months of 2025 was $1.87 billion, $141 million or 8% higher than in the same period of 2024. Net investment income from fixed maturity investments in the second quarter and first six months of 2025 was $833 million and $1.65 billion, respectively, $124 million and $244 million higher, respectively, than in the same periods of 2024. The increases in both periods of 2025 primarily resulted from a higher average level of fixed maturity investments and higher long-term average yields. Net investment income from short-term securities in the second quarter and first six months of 2025 was $55 million and $112 million, respectively, $15 million and $28 million lower, respectively, than in the same periods of 2024. The decreases in both periods of 2025 primarily resulted from lower short-term average yields. The Company’s remaining investment portfolios had net investment income of $67 million and $143 million, respectively, in the second quarter and first six months of 2025, $51 million and $73 million lower, respectively, than in the same periods of 2024. The decreases in both periods of 2025 primarily reflected lower 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.
Previous 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.
Current wording
Fee income in the second quarter of 2025 was $124 million, $9 million higher than in the same period of 2024. Fee income in the first six months of 2025 was $243 million, $19 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 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.
Current wording
Net realized investment gains on equity securities still held of $23 million in the second quarter of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets. Net realized investment gains on equity securities still held of $1 million in the first six months of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets, largely offset by a net unfavorable change in fair value on an individual security held in the Company’s portfolio. Net realized investment losses on equity securities still held of $28 million in the second quarter of 2024 were driven by a net unfavorable change in fair value on an individual security held in the Company’s portfolio, partially offset by the impact of changes in fair value attributable to favorable equity markets. Net realized investment gains on equity securities still held of $51 million in the first six months of 2024 were driven by the impact of changes in fair value attributable to favorable equity markets.
Previous 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.
Current wording
Other revenues in the second quarter of 2025 were $123 million, $18 million higher than in the same period of 2024. Other revenues in the first six months of 2025 were $235 million, $18 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
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.
Current wording
Claims and claim adjustment expenses in the second quarter of 2025 were $6.79 billion, $584 million or 8% lower than in the same period of 2024, primarily reflecting the impacts of (i) lower catastrophe losses in all three segments, (ii) higher net favorable prior year reserve development in Bond & Specialty Insurance and Business Insurance and (iii) lower losses in the automobile product line and lower non-catastrophe weather-related losses in the homeowners and other product line in Personal Insurance, partially offset by (iv) loss cost trends in all three segments and (v) higher business volumes in Business Insurance and Bond & Specialty Insurance. Catastrophe losses in the second quarter of 2025 primarily resulted from severe wind and hail storms in multiple states. Catastrophe losses in the second quarter of 2024 primarily resulted from numerous severe wind and hail storms in multiple states.
Previous 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.
Current wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months and six months ended June 30, 2025 and 2024, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and six months ended June 30, 2025 and 2024 for significant catastrophes that occurred in 2024 and 2023, and the estimate of ultimate losses for those catastrophes at June 30, 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 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.
Current wording
Amortization of deferred acquisition costs in the second quarter of 2025 was $1.80 billion, $124 million or 7% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first six months of 2025 was $3.58 billion, $204 million or 6% higher than in the same period of 2024. 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.
Previous 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.
Current wording
General and administrative expenses in the second quarter of 2025 were $1.55 billion, $67 million or 5% higher than in the same period of 2024. General and administrative expenses in the first six months of 2025 were $3.00 billion, $120 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 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.
Previous wording
Interest expense in the first quarter of 2025 was $99 million, compared with $98 million in the same period of 2024.
Current wording
Interest expense in the second quarter and first six months of 2025 was $99 million and $198 million, respectively, compared with $98 million and $196 million, respectively, in the same periods of 2024.
Previous 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.
Current wording
The Company’s effective tax rate was 20% and 19% in the second quarters of 2025 and 2024, respectively. The Company’s effective tax rate was 19% and 18% in the first six months 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 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.
Current wording
Catastrophe losses in the second quarters of 2025 and 2024 accounted for 8.5 points and 14.7 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2025 and 2024 provided 2.9 points and 2.2 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the second quarter of 2025 was 3.0 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-catastrophe weather-related losses in Personal Insurance.
Previous 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.
Current wording
Gross and net written premiums in the second quarter of 2025 increased by 3% and 4%, respectively, over the same period of 2024. Gross and net written premiums in the first six months of 2025 both increased by 4% 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 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.
Current wording
Earned premiums in the second quarter of 2025 were $5.55 billion, $377 million or 7% higher than in the same period of 2024. Earned premiums in the first six months of 2025 were $11.01 billion, $682 million or 7% higher than in the same period of 2024. The increases in both periods of 2025 primarily reflected the increase in net written premiums over the preceding twelve months.
Previous 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.
Current wording
Net investment income in the second quarter of 2025 was $662 million, $30 million or 5% higher than in the same period of 2024. Net investment income in the first six months of 2025 was $1.32 billion, $77 million or 6% 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 increases in the Company’s consolidated net investment income in the second quarter and first six months of 2025 compared with the same periods 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 first quarter of 2025 was $108 million, $7 million or 7% higher than in the same period of 2024.
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 second quarter of 2025 was $111 million, $6 million or 6% higher than in the same period of 2024. Fee income in the first six months of 2025 was $219 million, $13 million or 6% higher than in the same period of 2024.
Previous 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.
Current wording
Other revenues in the second quarter of 2025 were $95 million, $18 million higher than in the same period of 2024. Other revenues in the first six months of 2025 were $177 million, $23 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
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 wording
Claims and claim adjustment expenses in the first six months of 2025 were $7.29 billion, $487 million or 7% higher than in the same period of 2024, primarily reflecting the impacts of (i) loss cost trends, (ii) higher catastrophe losses and (iii) higher business volumes, partially offset by (iv) higher net favorable prior year reserve development.
Previous wording
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 wording
General and administrative expenses in the second quarter of 2025 were $875 million, $40 million or 5% higher than in the same period of 2024. General and administrative expenses in the first six months of 2025 were $1.72 billion, $69 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 were primarily in support of business growth.
Previous wording
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 wording
Gross written premiums in the second quarter and first six months of 2025 increased by 4% and 5%, respectively, over the same periods of 2024. Net written premiums in the second quarter of 2025 increased by 5% over the same period of 2024. Net written premiums in the first six months of 2025 increased by 3% 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.
Previous wording
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 wording
Middle Market. Net written premiums of $3.03 billion and $6.20 billion in the second quarter and first six months of 2025, respectively, increased by 10% and 4%, respectively, over the same periods of 2024. Net written premiums in the first six months 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 second quarter and first six months of 2025 and increased slightly over the same periods of 2024. Renewal premium changes in the second quarter and first six months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the second quarter and first six months of 2025 increased over the same periods of 2024.
Previous 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.
Current wording
National Accounts. Net written premiums of $329 million in the second quarter of 2025 increased by 5% over the same period of 2024. Net written premiums of $641 million in the first six months of 2025 increased slightly over the same period of 2024. Retention rates remained strong in the second quarter and first six months of 2025 but decreased from the same periods of 2024. Renewal premium changes in the second quarter and first six months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the second quarter and first six months of 2025 increased over the same periods of 2024.
Previous 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.
Current wording
National Property and Other. Net written premiums of $885 million in the second quarter of 2025 decreased by 3% from the same period of 2024. Net written premiums of $1.61 billion in the first six months of 2025 increased by 3% over the same period of 2024. Retention rates remained strong in the second quarter and first six months of 2025 and increased slightly over the same periods of 2024. Renewal premium changes in the second quarter and first six months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the second quarter and first six months of 2025 decreased from the same periods of 2024.
Previous 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.
Current wording
Segment income in the second quarter of 2025 was $244 million, $74 million or 44% higher than segment income of $170 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, (ii) lower catastrophe losses and (iii) higher net investment income, partially offset by (iv) lower underlying underwriting margins. Net favorable prior year reserve development in the second quarters of 2025 and 2024 was $81 million and $24 million, respectively. Catastrophe losses in the second quarters of 2025 and 2024 were $5 million and $40 million, respectively. The lower underlying underwriting margins primarily reflected (i) the impact of earned pricing and (ii) higher general and administrative expenses, partially offset by (iii) higher business volumes. Income tax expense in the second 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 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.
Current wording
Earned premiums in the second quarter of 2025 were $1.02 billion, $44 million or 5% higher than in the same period of 2024. Earned premiums in the first six months of 2025 were $2.02 billion, $83 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 primarily reflected 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 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.
Current wording
Net investment income in the second quarter of 2025 was $107 million, $13 million or 14% higher than in the same period of 2024. Net investment income in the first six months of 2025 was $209 million, $25 million or 14% 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 increases in the Company’s consolidated net investment income in the second quarter and first six months of 2025 compared with the same periods 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
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.
Current wording
Net favorable prior year reserve development in the second quarters of 2025 and 2024 provided 8.0 points and 2.5 points of benefit, respectively, to the combined ratio. Catastrophe losses in the second quarters of 2025 and 2024 accounted for 0.5 points and 4.1 points, respectively, of the combined ratio. The underlying combined ratio in the second quarter of 2025 was 1.7 points higher than the 2024 ratio on the same basis, primarily reflecting the impact of earned pricing.
Previous wording
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 wording
Net favorable prior year reserve development in the first six months of 2025 and 2024 provided 7.3 points and 2.5 points of benefit, respectively, to the combined ratio. Catastrophe losses in the first six months of 2025 and 2024 accounted for 1.2 points and 2.3 points, respectively, of the combined ratio. The underlying combined ratio in the first six months of 2025 was 1.2 points higher than the 2024 ratio on the same basis, primarily reflecting the impact of earned pricing, partially offset by a lower expense ratio.
Previous wording
Gross and net written premiums in the first quarter of 2025 increased by 4% and 5%, respectively, over the same period of 2024.
Current wording
Gross and net written premiums in the second quarter of 2025 increased by 3% and 4%, respectively, over the same period of 2024. Gross and net written premiums in the first six months of 2025 increased by 4% and 5%, respectively, over the same period of 2024.
Showing the first 40 of 82 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
number of claims and have a material adverse impact on the Company’s results of operations and/or the Company’s financial position.
Rearranged previous paragraphs (2)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
acquisitions and related financings), market conditions, changes in tax laws (including the Inflation Reduction Act of 2022) and other factors.