TRAVELERS COMPANIES, INC.
For the period ended Sep 30, 2025. Filed Oct 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.
Sep 30, 2025 · Filed Oct 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 2025-06-30; filed 2025-07-17.
0000086312-25-000047
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-16.
0000086312-25-000069
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 293 previous paragraphs and 290 current paragraphs.
156 unchanged; 90 reworded; 44 added; 45 removed; 2 previous and 0 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 (44)
Current report
2025 Third Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $402 million ($318 million after-tax)
Current report
•Net favorable prior year reserve development of $22 million ($16 million after-tax)
Current report
•Combined ratio of 87.3%
Current report
•Net investment income of $1.03 billion ($850 million after-tax)
Current report
•Net realized investment gains of $27 million ($21 million after-tax)
Current report
•Total assets of $143.68 billion
Current report
•Shareholders’ equity of $31.61 billion
Current report
(1) PCS events 39 and 43, which were $93 million and $75 million, respectively, as of June 30, 2025, both exceeded the Company’s threshold for a significant catastrophe ($100 million) as of September 30, 2025.
Current report
The combined ratio of 87.3% in the third quarter of 2025 was 5.9 points lower than the combined ratio of 93.2% in the same period of 2024. The loss and loss adjustment expense ratio of 58.7% in the third quarter of 2025 was 6.1 points lower than the loss and loss adjustment expense ratio of 64.8% in the same period of 2024. The underwriting expense ratio of 28.6% in the third quarter of 2025 was 0.2 points higher than the underwriting expense ratio of 28.4% in the same period of 2024.
Current report
The combined ratio of 93.2% in the first nine months of 2025 was 2.5 points lower than the combined ratio of 95.7% in the same period of 2024. The loss and loss adjustment expense ratio of 64.7% for the first nine months of 2025 was 2.4 points lower than the loss and loss adjustment expense ratio of 67.1% in the same period of 2024. The underwriting expense ratio of 28.5% for the first nine months of 2025 was 0.1 points lower than the underwriting expense ratio of 28.6% in the same period of 2024.
Current report
Segment income in the third quarter of 2025 was $907 million, $209 million or 30% higher than segment income of $698 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower catastrophe losses and (ii) higher net investment income, partially offset by (iii) higher net unfavorable prior year reserve development. Catastrophe losses in the third quarters of 2025 and 2024 were $139 million and $340 million, respectively. Net unfavorable prior year reserve development in the third quarters of 2025 and 2024 was $125 million and $91 million, respectively. Income tax expense in the third 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 nine months of 2025 was $2.40 billion, $285 million or 13% higher than segment income of $2.12 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 investment income and (iii) net favorable prior year reserve development of $28 million compared to net unfavorable prior year reserve development of $57 million in the same period of 2024, partially offset by (iv) higher catastrophe losses. Catastrophe losses in the first nine months of 2025 and 2024 were $1.02 billion and $938 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 nine 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 third quarter of 2025 were $3.67 billion, $31 million or 1% lower than in the same period of 2024, primarily reflecting the impacts of (i) lower catastrophe losses, partially offset by (ii) higher business volumes, (iii) loss cost trends and (iv) higher net unfavorable prior year reserve development.
Current report
Claims and claim adjustment expenses in the first nine months of 2025 were $10.96 billion, $456 million or 4% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher business volumes, (ii) loss cost trends and (iii) higher catastrophe losses, partially offset by (iv) net favorable prior year reserve development compared to net unfavorable prior year reserve development in the same period of 2024.
Current report
Amortization of deferred acquisition costs in the third quarter of 2025 was $973 million, $43 million or 5% higher than the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $2.83 billion, $179 million or 7% 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 third quarter of 2025 was $211 million, $49 million or 30% higher than the same period of 2024, primarily reflecting the impact of the $258 million increase in income before income taxes. Income tax expense in the first nine months of 2025 was $567 million, $76 million or 15% higher than in the same period of 2024, primarily reflecting the impact of the $361 million increase in income before income taxes.
Current report
The combined ratio of 92.9% in the third quarter of 2025 was 2.9 points lower than the combined ratio of 95.8% in the same period of 2024. The loss and loss adjustment expense ratio of 63.3% in the third quarter of 2025 was 3.3 points lower than the loss and loss adjustment expense ratio of 66.6% in the same period of 2024. The underwriting expense ratio of 29.6% in the third quarter of 2025 was 0.4 points higher than the underwriting expense ratio of 29.2% in the same period of 2024.
Current report
Catastrophe losses in the third quarters of 2025 and 2024 accounted for 2.4 points and 6.2 points, respectively, of the combined ratio. Net unfavorable prior year reserve development in the third quarters of 2025 and 2024 accounted for 2.2 points and 1.7 points, respectively, of the combined ratio. The underlying combined ratio in the third quarter of 2025 was 0.4 points higher than the 2024 ratio on the same basis, primarily reflecting a higher expense ratio.
Current report
Catastrophe losses in the first nine months of 2025 and 2024 accounted for 6.1 points and 5.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2025 provided 0.2 points of benefit to the combined ratio. Net unfavorable prior year reserve development in the first nine months of 2024 accounted for 0.4 points of the combined ratio. The underlying combined ratio in the first nine months of 2025 was 0.5 points lower than the 2024 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Current report
International. Net written premiums of $409 million in the third quarter of 2025 decreased by 7% from the same period of 2024. Net written premiums of $1.47 billion in the first nine months of 2025 increased by 1% over the same period of 2024.
Current report
Segment income in the third quarter of 2025 was $250 million, $28 million or 13% higher than segment income of $222 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 investment income, (ii) higher net favorable prior year reserve development, (iii) higher underlying underwriting margins and (iv) lower catastrophe losses. Net favorable prior year reserve development in the third quarters of 2025 and 2024 was $43 million and $36 million, respectively. Catastrophe losses in the third quarters of 2025 and 2024 were $0 million and $4 million, respectively. The higher underlying underwriting margins primarily reflected higher business volumes, partially offset by the impact of earned pricing. Income tax expense in the third 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
Factors contributing to net favorable prior year reserve development during the third quarters and first nine 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 third quarter of 2025 was $197 million, $3 million or 2% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $579 million, $20 million or 4% 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 third quarter of 2025 were $207 million, $4 million or 2% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $626 million, $11 million or 2% higher than in the same period of 2024.
Current report
Income tax expense in the third quarter of 2025 was $61 million, $4 million or 7% higher than in the same period of 2024, primarily reflecting the impact of the $32 million increase in segment income before income taxes. Income tax expense in the first nine months of 2025 was $180 million, $34 million or 23% higher than in the same period of 2024, primarily reflecting the impact of the $161 million increase in segment income before income taxes.
Current report
The combined ratio of 81.6% in the third quarter of 2025 was 0.9 points lower than the combined ratio of 82.5% in the same period of 2024. The loss and loss adjustment expense ratio of 42.9% in the third quarter of 2025 was 0.5 points lower than the loss and loss adjustment expense ratio of 43.4% in the same period of 2024. The underwriting expense ratio of 38.7% in the third quarter of 2025 was 0.4 points lower than the underwriting expense ratio of 39.1% in the same period of 2024.
Current report
Net favorable prior year reserve development in the third quarters of 2025 and 2024 provided 4.2 points and 3.5 points of benefit, respectively, to the combined ratio. Catastrophe losses in the third quarter of 2025 had no impact on the combined ratio. Catastrophe losses in the third quarter of 2024 accounted for 0.4 points of the combined ratio. The underlying combined ratio in the third quarter of 2025 was 0.2 points higher than the 2024 ratio on the same basis.
Current report
The combined ratio of 81.5% in the first nine months of 2025 was 3.4 points lower than the combined ratio of 84.9% in the same period of 2024. The loss and loss adjustment expense ratio of 42.2% in the first nine months of 2025 was 3.0 points lower than the loss and loss adjustment expense ratio of 45.2% in the same period of 2024. The underwriting expense ratio of 39.3% in the first nine months of 2025 was 0.4 points lower than the underwriting expense ratio of 39.7% in the same period of 2024.
Current report
Gross written premiums in the third quarter of 2025 were comparable with the same period of 2024. Net written premiums in the third quarter of 2025 increased by 1% over the same period of 2024. Gross and net written premiums in the first nine months of 2025 increased by 3% and 4%, respectively, over the same period of 2024.
Current report
Claims and claim adjustment expenses in the first nine months of 2025 were $9.13 billion, $53 million or 1% lower than in the same period of 2024, primarily reflecting the impacts of (i) lower losses in the automobile product line, (ii) lower non-catastrophe weather-related and non-weather losses in the homeowners and other product line and (iii) higher net favorable prior year reserve development, partially offset by (iv) higher catastrophe losses and (v) loss cost trends.
Current report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine 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 third quarter of 2025 was $679 million, $13 million or 2% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $2.02 billion, $64 million or 3% 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
Income tax expense in the third quarter of 2025 was $205 million, $114 million or 125% higher than in the same period of 2024, primarily reflecting the impact of the $537 million increase in segment income before income taxes. Income tax expense in the first nine months of 2025 was $235 million, $142 million or 153% higher than in the same period of 2024, primarily reflecting the impact of the $658 million increase in segment income before income taxes.
Current report
The combined ratio of 81.3% in the third quarter of 2025 was 11.2 points lower than the combined ratio of 92.5% in the same period of 2024. The loss and loss adjustment expense ratio of 56.4% in the third quarter of 2025 was 11.3 points lower than the loss and loss adjustment expense ratio of 67.7% in the same period of 2024. The underwriting expense ratio of 24.9% in the third quarter of 2025 was 0.1 points higher than the underwriting expense ratio of 24.8% in the same period of 2024.
Current report
Catastrophe losses in the third quarters of 2025 and 2024 accounted for 6.0 points and 14.1 points, respectively, of the combined ratio. Net favorable prior year reserve development in the third quarters of 2025 and 2024 provided 2.4 points and 4.3 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the third quarter of 2025 was 5.0 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) lower losses in the automobile product line, (ii) the benefit of earned pricing in the homeowners and other product line and (iii) lower non-catastrophe weather-related losses in the homeowners and other product line.
Current report
The combined ratio of 94.8% in the first nine months of 2025 was 4.4 points lower than the combined ratio of 99.2% in the same period of 2024. The loss and loss adjustment expense ratio of 70.3% in the first nine months of 2025 was 4.2 points lower than the loss and loss adjustment expense ratio of 74.5% in the same period of 2024. The underwriting expense ratio of 24.5% in the first nine months of 2025 was 0.2 points lower than the underwriting expense ratio of 24.7% in same period of 2024.
Current report
Catastrophe losses in the first nine months of 2025 and 2024 accounted for 19.7 points and 17.6 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2025 and 2024 provided 3.8 points and 3.4 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2025 was 6.1 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-catastrophe weather-related and non-weather losses in the homeowners and other product line.
Current report
Gross premiums in the third quarter of 2025 increased by 1% over the same period of 2024. Net written premiums in the third quarter of 2025 were comparable with the same period of 2024. Gross and net written premiums in the first nine months of 2025 increased by 3% and 2%, respectively, over the same period of 2024.
Current report
During the third quarter of 2025, the Company completed its annual in-depth asbestos claim review, including a review of policyholders with open claims and litigation cases for potential product and “non-product” liability. While the latest available government data continue to reflect a declining trend in deaths caused by mesothelioma, the number of policyholders with open asbestos claims was relatively flat compared to 2024. Net asbestos payments were down compared to 2024, as described below. Payments on behalf of these policyholders continue to be influenced by the factors described above, including an increase in severity for certain policyholders and a high level of litigation activity in a limited number of jurisdictions where individuals alleging serious asbestos-related injury, primarily mesothelioma, continue to target defendants who were not traditionally sued and/or primary targets of asbestos litigation. The completion of the analyses described above and the annual review in the third quarters of 2025 and 2024 resulted in $277 million and $242 million increases, respectively, to the Company’s net asbestos reserves. In both 2025 and 2024, the reserve increases were primarily driven by increases in the Company’s estimate of projected settlement and defense costs related to a broad number of policyholders. The increase in the estimate of projected settlement and defense costs primarily resulted from payment trends that continue to be higher than previously anticipated due to the continued high level of mesothelioma claim filings and the impact of the current litigation environment surrounding those claims discussed above.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Removed paragraphs (45)
Previous report
2025 Second Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $927 million ($732 million after-tax)
Previous report
•Net favorable prior year reserve development of $315 million ($249 million after-tax)
Previous report
•Combined ratio of 90.3%
Previous report
•Net investment income of $942 million ($774 million after-tax)
Previous report
•Net realized investment gains of $6 million ($5 million after-tax)
Previous report
•Total assets of $138.87 billion
Previous report
•Shareholders’ equity of $29.52 billion
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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 report
Claims and claim adjustment expenses in the first six months of 2025 were $6.65 billion, $328 million or 5% 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 and non-catastrophe weather-related losses in the homeowners and other product line.
Previous 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.
Previous report
Amortization of deferred acquisition costs in the second quarter of 2025 was $663 million, $29 million or 5% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first six months of 2025 was $1.34 billion, $51 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 were generally consistent with the increases in earned premiums.
Previous report
Income Tax Expense (Benefit)
Previous report
Income tax expense in the second quarter of 2025 was $136 million, compared with an income tax benefit of $45 million in the same period of 2024, primarily reflecting the impact of the $868 million increase in segment income before income taxes. Income tax expense in the first six months of 2025 was $30 million, $28 million higher than in the same period of 2024, primarily reflecting the impact of the $121 million increase in segment income before income taxes.
Previous report
The combined ratio of 88.4% in the second quarter of 2025 was 20.1 points lower than the combined ratio of 108.5% in the same period of 2024. The loss and loss adjustment expense ratio of 64.0% in the second quarter of 2025 was 19.7 points lower than the loss and loss adjustment expense ratio of 83.7% in the same period of 2024. The underwriting expense ratio of 24.4% in the second quarter of 2025 was 0.4 points lower than the underwriting expense ratio of 24.8% in the same period of 2024.
Previous report
Catastrophe losses in the second quarters of 2025 and 2024 accounted for 12.7 points and 26.4 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2025 and 2024 provided 3.6 points and 4.2 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the second quarter of 2025 was 7.0 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-catastrophe weather-related losses in the homeowners and other product line.
Previous report
The combined ratio of 101.7% in the first six months of 2025 was 1.1 points lower than the combined ratio of 102.8% in the same period of 2024. The loss and loss adjustment expense ratio of 77.4% in the first six months of 2025 was 0.6 points lower than the loss and loss adjustment expense ratio of 78.0% in the same period of 2024. The underwriting expense ratio of 24.3% in the first six months of 2025 was 0.5 points lower than the underwriting expense ratio of 24.8% in same period of 2024.
Previous report
Gross and net written premiums in the second quarter of 2025 both increased by 3% 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.
Previous report
International net written premiums of $178 million and $324 million in the second quarter and first six months of 2025, respectively, decreased by 5% and 4%, respectively, from the same periods of 2024, driven by decreases in the automobile product line.
Previous report
The Company’s catastrophe reinsurance coverage is discussed in the “Reinsurance—Catastrophe Reinsurance” section of “Part I—Item 1—Business” in the Company’s 2024 Annual Report. Except as discussed below, there have been no material changes to the Company’s catastrophe reinsurance coverage from that reported in the Company’s 2024 Annual Report.
Previous report
Catastrophe Bonds. Consistent with the Company’s indemnity reinsurance agreement with Long Point Re IV Ltd., the attachment point and maximum limit were reset during the second quarter of 2025 to adjust the expected loss of the layer within a predetermined range. For the period from May 25, 2025 through and including May 24, 2026, this treaty provides up to $575 million of coverage, subject to a $2.89 billion retention.
Showing the first 40 of 45 passages. Open the source sections for the rest.
Reworded paragraphs (90)
Previous wording
•Net income of $1.51 billion, or $6.63 per share basic and $6.53 per share diluted
Current wording
•Net income of $1.89 billion, or $8.37 per share basic and $8.24 per share diluted
Previous wording
•Net earned premiums of $10.92 billion
Current wording
•Net earned premiums of $11.14 billion
Previous wording
•Operating cash flows of $2.33 billion
Current wording
•Operating cash flows of $4.23 billion
Previous wording
2025 Second Quarter Consolidated Financial Condition
Current wording
2025 Third Quarter Consolidated Financial Condition
Previous wording
•Total investments of $98.07 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $103.68 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 21.4% (19.8% excluding net unrealized investment losses, net of tax)
Current wording
•Total debt of $9.27 billion, resulting in a debt-to-total capital ratio of 22.7% (21.6% excluding net unrealized investment losses, net of tax)
Previous wording
•Total capital returned to shareholders of $809 million, comprising $557 million of share repurchases and $252 million of dividends
Current wording
•Total capital returned to shareholders of $878 million, comprising $628 million of share repurchases and $250 million of dividends
Previous wording
•Net unrealized investment losses of $3.83 billion ($3.03 billion after-tax)
Current wording
•Net unrealized investment losses of $2.48 billion ($1.97 billion after-tax)
Previous wording
•Book value per common share of $131.11
Current wording
•Book value per common share of $141.72
Previous wording
•Holding company liquidity of $1.97 billion
Current wording
•Holding company liquidity of $2.84 billion
Previous wording
The following discussions of the Company’s net income and segment income (loss) are presented on an after-tax basis. Discussions of the components of net income and segment income (loss) are presented on a pre-tax basis, unless otherwise noted. Discussions of net income per common share are presented on a diluted basis.
Current wording
The following discussions of the Company’s net income and segment income are presented on an after-tax basis. Discussions of the components of net income and segment income are presented on a pre-tax basis, unless otherwise noted. Discussions of net income per common share are presented on a diluted basis.
Previous 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.
Current wording
Diluted net income per share of $8.24 in the third quarter of 2025 increased by 52% over diluted net income per share of $5.42 in the same period of 2024. Net income of $1.89 billion in the third quarter of 2025 increased by 50% over net income of $1.26 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 in the third 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”) and (iii) higher net investment income, partially offset by (iv) lower net favorable prior year reserve development and (v) lower net realized investment gains. Catastrophe losses in the third quarters of 2025 and 2024 were $402 million and $939 million, respectively. Net favorable prior year reserve development in the third quarters of 2025 and 2024 was $22 million and $126 million, respectively. Underlying underwriting margins in the third quarter of 2025 were higher in all three segments. Income tax expense in the third 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
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 wording
Diluted net income per share of $16.45 in the first nine months of 2025 increased by 31% over diluted net income per share of $12.51 in the same period of 2024. Net income of $3.79 billion in the first nine months of 2025 increased by 30% over net income of $2.92 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 investment income and (iii) higher net favorable prior year reserve development, partially offset by (iv) higher catastrophe losses and (v) net realized investment losses compared to net realized investment gains in the same period of 2024. Catastrophe losses in the first nine months of 2025 and 2024 were $3.60 billion and $3.16 billion, respectively. Net favorable prior year reserve development in the first nine months of 2025 and 2024 was $715 million and $447 million, respectively. The higher underlying underwriting margins in the first nine months of 2025 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the first nine months 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 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.
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 nine months ended September 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 for the periods reported.
Previous 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.
Current wording
Earned premiums in the third quarter of 2025 were $11.14 billion, $431 million or 4% higher than in the same period of 2024. Earned premiums in the first nine months of 2025 were $32.77 billion, $1.69 billion or 5% higher than in the same period of 2024. In Business Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 4% and 6%, respectively, over the same periods of 2024. In Bond & Specialty Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 3% and 4%, respectively, over the same periods of 2024. In Personal Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 4% and 5%, respectively, 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 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.
Current wording
Net investment income in the third quarter of 2025 was $1.03 billion, $129 million or 14% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $2.91 billion, $270 million or 10% higher than in the same period of 2024. Net investment income from fixed maturity investments in the third quarter and first nine months of 2025 was $874 million and $2.52 billion, respectively, $125 million and $369 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 third quarter and first nine months of 2025 was $73 million and $185 million, respectively, $4 million and $32 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, partially offset by a higher average level of short-term securities. The Company’s remaining investment portfolios had net investment income of $101 million in the third quarter of 2025, $11 million higher than in the same period of 2024, primarily reflecting higher private equity partnership returns. The Company’s remaining investment portfolios had net investment income of $244 million in the first nine months of 2025, $62 million lower than in the same period of 2024, primarily reflecting 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 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.
Current wording
Fee income in the third quarter of 2025 was $127 million, $6 million higher than in the same period of 2024. Fee income in the first nine months of 2025 was $370 million, $25 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 $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.
Current wording
Net realized investment gains on equity securities still held of $40 million and $41 million, respectively, in the third quarter and first nine months 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 $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.
Previous 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.
Current wording
Other revenues in the third quarter of 2025 were $148 million, $28 million higher than in the same period of 2024. Other revenues in the first nine months of 2025 were $383 million, $46 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 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.
Current wording
Claims and claim adjustment expenses in the third quarter of 2025 were $6.59 billion, $402 million or 6% lower than in the same period of 2024, driven by (i) lower catastrophe losses in all three segments and (ii) lower losses in Personal Insurance, partially offset by (iii) loss cost trends in all three segments, (iv) lower net favorable prior year reserve development and (v) higher business volumes in Business Insurance and Bond & Specialty Insurance. Catastrophe losses in the third quarter of 2025 primarily resulted from severe wind and hail storms in multiple states. Catastrophe losses in the third quarter of 2024 primarily resulted from Hurricane Helene and severe wind and hail storms in multiple states.
Previous wording
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 wording
Claims and claim adjustment expenses in the first nine months of 2025 were $21.39 billion, $364 million or 2% higher than in the same period of 2024, driven by (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 Personal Insurance. Catastrophe losses in the first nine months of 2025 included the third quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first six months of 2025. 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.
Previous wording
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 wording
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous 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.
Current 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, 2025 and 2024, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and nine months ended September 30, 2025 and 2024 for significant catastrophes that occurred in 2024 and 2023, and the estimate of ultimate losses for those catastrophes at September 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 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.
Current wording
Amortization of deferred acquisition costs in the third quarter of 2025 was $1.85 billion, $59 million or 3% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $5.43 billion, $263 million or 5% 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 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.
Current wording
General and administrative expenses in the third quarter of 2025 were $1.57 billion, $112 million or 8% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $4.58 billion, $232 million or 5% 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 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.
Current wording
Interest expense in the third quarter and first nine months of 2025 was $111 million and $309 million, respectively, compared with $98 million and $294 million, respectively, in the same periods of 2024.
Previous wording
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 wording
Income tax expense in the third quarter of 2025 was $456 million, $156 million or 52% higher than in the same period of 2024, primarily reflecting the impact of the $784 million increase in income before income taxes in the third quarter of 2025. Income tax expense in the first nine months of 2025 was $901 million, $232 million or 35% higher than in the same period of 2024, primarily reflecting the impact of the $1.11 billion increase in income before income taxes in the first nine months of 2025.
Previous 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.
Current wording
The Company’s effective tax rate was 19% in both the third quarters of 2025 and 2024. The Company’s effective tax rate was 19% in both the first nine months of 2025 and 2024. 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 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.
Current wording
Catastrophe losses in the third quarters of 2025 and 2024 accounted for 3.6 points and 8.8 points, respectively, of the combined ratio. Net favorable prior year reserve development in the third quarters of 2025 and 2024 provided 0.2 points and 1.2 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the third quarter of 2025 was 1.7 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing and (ii) lower losses in Personal Insurance.
Previous wording
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 wording
Catastrophe losses in the first nine months of 2025 and 2024 accounted for 11.0 points and 10.2 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2025 and 2024 provided 2.2 points and 1.5 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2025 was 2.6 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing and (ii) lower losses in Personal Insurance.
Previous 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.
Current wording
Gross and net written premiums in the third quarter of 2025 both increased by 1% over the same period of 2024. Gross and net written premiums in the first nine months of 2025 both increased by 3% 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 second quarter of 2025 were $4.36 billion, $257 million or 6% higher than in the same period of 2024. Earned premiums in the first six months of 2025 were $8.61 billion, $497 million or 6% 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.
Current wording
Earned premiums in the third quarter of 2025 were $5.70 billion, $226 million or 4% higher than in the same period of 2024. Earned premiums in the first nine months of 2025 were $16.71 billion, $908 million or 6% 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 second quarter of 2025 was $173 million, $14 million or 9% higher than in the same period of 2024. Net investment income in the first six months of 2025 was $345 million, $39 million or 13% 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.
Current wording
Net investment income in the third quarter of 2025 was $727 million, $85 million or 13% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $2.05 billion, $162 million or 9% 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 third quarter and first nine 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 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.
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 third quarter of 2025 was $114 million, $5 million or 5% higher than in the same period of 2024. Fee income in the first nine months of 2025 was $333 million, $18 million or 6% higher than in the same period of 2024.
Previous 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.
Current wording
Other revenues in the third quarter of 2025 were $111 million, $22 million higher than in the same period of 2024. Other revenues in the first nine months of 2025 were $288 million, $45 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
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 wording
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous 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.
Current wording
General and administrative expenses in the third quarter of 2025 were $894 million, $68 million or 8% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $2.62 billion, $137 million or 6% higher than in the same period of 2024. The increases in both periods of 2025 were primarily in support of business growth.
Previous wording
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 wording
The combined ratio of 94.2% in the first nine months of 2025 was 0.9 points lower than the combined ratio of 95.1% in the same period of 2024. The loss and loss adjustment expense ratio of 64.6% in the first nine months of 2025 was 0.9 points lower than the loss and loss adjustment expense ratio of 65.5% in the same period of 2024. The underwriting expense ratio of 29.6% for the first nine months of 2025 was comparable with the underwriting expense ratio in the same period of 2024.
Previous 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.
Current wording
Gross written premiums in the third quarter and first nine months of 2025 increased by 2% and 4%, respectively, over the same periods of 2024. Net written premiums in the third quarter of 2025 increased by 3% over the same period of 2024. Net written premiums in the first nine 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
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 wording
Select Accounts. Net written premiums of $920 million and $2.90 billion in the third quarter and first nine months of 2025, respectively, increased by 4% and 2%, respectively, over the same periods of 2024. Retention rates remained strong in the third quarter of 2025 but decreased slightly from the same period of 2024. Retention rates remained strong in the first nine months of 2025 but decreased from the same period of 2024. Renewal premium changes in the third quarter of 2025 remained positive but were lower than the same period of 2024. Renewal premium changes in the first nine months of 2025 remained positive but were slightly lower than the same period of 2024. New business premiums in the third quarter and first nine months of 2025 increased over the same periods of 2024.
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Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
number of claims and have a material adverse impact on the Company’s results of operations and/or the Company’s financial position.