TRAVELERS COMPANIES, INC.
For the period ended Dec 31, 2025. Filed Feb 12, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 12, 2026
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-K
Period ended 2024-12-31; filed 2025-02-13.
0000086312-25-000012
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-12.
0000086312-26-000065
Item 7. 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 584 previous paragraphs and 577 current paragraphs.
390 unchanged; 154 reworded; 27 added; 37 removed; 3 previous and 6 current paragraphs rearranged.
Tables are not compared: 36 previous and 35 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 (27)
Current report
On May 27, 2025, the Company entered into an agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. The assets and liabilities of the Canadian personal insurance business and the majority of its Canadian commercial insurance business have been classified as held for sale in the consolidated balance sheet as of December 31, 2025. The Company retained its surety business in Canada. The sale closed on January 2, 2026. See note 1 of the notes to the consolidated financial statements.
Current report
•Catastrophe losses of $3.69 billion ($2.92 billion after-tax)
Current report
•Combined ratio of 89.9%
Current report
•Net investment income of $3.96 billion ($3.25 billion after-tax)
Current report
•Net realized investment losses of $48 million ($37 million after-tax)
Current report
•Operating cash flows of $10.61 billion
Current report
•Total assets of $143.71 billion
Current report
•Shareholders’ equity of $32.89 billion
Current report
•Net unrealized investment losses of $1.86 billion ($1.48 billion after-tax)
Current report
•Holding company liquidity of $2.41 billion
Current report
Interest expense in 2025 and 2024 was $425 million and $392 million, respectively.
Current report
Income tax expense in 2025 was $1.51 billion, $327 million or 28% higher than in 2024, primarily reflecting the impact of the $1.62 billion increase in income before income taxes in 2025.
Current report
Amortization of deferred acquisition costs in 2025 was $3.80 billion, $208 million or 6% higher than in 2024, generally consistent with the increase in earned premiums.
Current report
Income tax expense in 2025 was $891 million, $110 million or 14% higher than in 2024, primarily reflecting the impact of the $499 million increase in segment income before income taxes in 2025.
Current report
The combined ratio of 91.7% in 2025 was 0.8 points lower than the combined ratio of 92.5% in 2024. The loss and loss adjustment expense ratio of 62.2% in 2025 was 0.9 points lower than the loss and loss adjustment expense ratio of 63.1% in 2024. The underwriting expense ratio of 29.5% in 2025 was 0.1 points higher than the underwriting expense ratio of 29.4% in 2024.
Current report
International. Net written premiums of $1.93 billion in 2025 were comparable with 2024.
Current report
Segment income in 2025 was $950 million, $135 million or 17% higher than segment income of $815 million in 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, (iii) lower catastrophe losses and (iv) higher underlying underwriting margins. Net favorable prior year reserve development in 2025 and 2024 was $221 million and $129 million, respectively. Catastrophe losses in 2025 and 2024 were $25 million and $51 million, respectively. The higher underlying underwriting margins primarily reflected (i) higher business volumes, partially offset by (ii) the impact of earned pricing and (iii) higher general and administrative expenses. Income tax expense in 2025 was higher than in 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Current report
Claims and claim adjustment expenses in 2025 were $1.76 billion, $10 million or 1% lower than in 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
Amortization of deferred acquisition costs in 2025 was $778 million, $22 million or 3% higher than in 2024, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in 2025 were $843 million, $11 million or 1% higher than in 2024.
Current report
Income tax expense in 2025 was $244 million, $43 million or 21% higher than in 2024, primarily reflecting the impact of the $178 million increase in segment income before income taxes in 2025.
Current report
Claims and claim adjustment expenses in 2025 were $11.30 billion, $303 million or 3% lower than in 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
Amortization of deferred acquisition costs in 2025 was $2.69 billion, $63 million or 2% higher than in 2024, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in 2025 were $1.75 billion, $106 million or 6% higher than in 2024, primarily reflecting higher contingent commissions.
Current report
Income tax expense in 2025 was $485 million, $191 million or 65% higher than in 2024, primarily reflecting the impact of the $995 million increase in segment income before income taxes.
Current report
Automobile net written premiums of $7.75 billion in 2025 decreased by 2% from 2024. Retention rates remained strong in 2025 and were comparable with 2024. Renewal premium changes in 2025 remained positive but were lower than in 2024. New business premiums in 2025 increased over 2024.
Current report
On July 24, 2025, the Company issued a total of $1.25 billion of debt in two tranches:
Removed paragraphs (37)
Previous report
•Catastrophe losses of $3.34 billion ($2.63 billion after-tax)
Previous report
•Combined ratio of 92.5%
Previous report
•Net investment income of $3.59 billion ($2.95 billion after-tax)
Previous report
•Net realized investment losses of $30 million ($26 million after-tax)
Previous report
•Operating cash flows of $9.07 billion
Previous report
•Total assets of $133.19 billion
Previous report
•Shareholders’ equity of $27.86 billion
Previous report
•Holding company liquidity of $1.80 billion
Previous report
(1) Amounts are reported pre-tax and net of recoveries under all applicable reinsurance treaties, except for the Company’s 2022 Underlying Property Aggregate Catastrophe Excess-of-Loss Treaties. That treaty covered the accumulation of certain property losses arising from one or multiple occurrences (both catastrophe and non-catastrophe events) for the period January 1, 2022 through and including December 31, 2022. As a result, the benefit from that treaty is not included in the table above as the allocation of the treaty’s benefit to each identified catastrophe changes each time there are additional events or changes in estimated losses from any covered event.
Previous report
Interest expense in 2024 and 2023 was $392 million and $376 million, respectively.
Previous report
Income tax expense in 2024 was $1.18 billion, $801 million or 211% higher than in 2023, primarily reflecting the impact of the $2.81 billion increase in income before income taxes in 2024 and the one-time tax benefit of $211 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
The combined ratio of 92.5% in 2024 was 4.5 points lower than the combined ratio of 97.0% in 2023. The loss and loss adjustment expense ratio of 64.0% in 2024 was 4.9 points lower than the loss and loss adjustment expense ratio of 68.9% in 2023. The underwriting expense ratio of 28.5% in 2024 was 0.4 points higher than the underwriting expense ratio of 28.1% in 2023.
Previous report
Claims and claim adjustment expenses in 2024 were $13.68 billion, $983 million or 8% higher than in 2023, primarily reflecting the impacts of (i) higher business volumes, (ii) loss cost trends, (iii) higher other losses and (iv) higher catastrophe losses, partially offset by (v) net favorable prior year reserve development compared to net unfavorable prior year reserve development in 2023.
Previous report
Amortization of deferred acquisition costs in 2024 was $3.59 billion, $415 million or 13% higher than in 2023, generally consistent with the increase in earned premiums.
Previous report
Income tax expense in 2024 was $781 million, $413 million or 112% higher than in 2023, primarily reflecting the impact of the $1.14 billion increase in segment income before income taxes in 2024 and the one-time tax benefit of $171 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Gross and net written premiums in 2024 increased by 9% and 8%, respectively, over 2023.
Previous report
International. Net written premiums of $1.94 billion in 2024 increased by 10% over 2023.
Previous report
Segment income in 2024 was $815 million, $127 million or 13% lower than segment income of $942 million in 2023. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower net favorable prior year reserve development and (ii) lower underlying underwriting margins, partially offset by (iii) higher net investment income. Net favorable prior year reserve development in 2024 and 2023 was $129 million and $285 million, respectively. Catastrophe losses in 2024 and 2023 were $51 million and $37 million, respectively. The lower underlying underwriting margins primarily reflected (i) higher general and administrative expenses and (ii) the impact of earned pricing, partially offset by (iii) higher business volumes and (iv) the comparison to an elevated level of losses in 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector. Income tax expense in 2024 was lower than in 2023, primarily reflecting the impact of the decrease in segment income before income taxes, partially offset by a one-time tax benefit of $9 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Amortization of deferred acquisition costs in 2024 was $756 million, $83 million or 12% higher than in 2023, generally consistent with the increase in earned premiums.
Previous report
General and administrative expenses in 2024 were $832 million, $151 million or 22% higher than in 2023. The increase primarily reflected the acquisition of Corvus in the first quarter of 2024, as well as higher employee and technology related expenses.
Previous report
Income tax expense in 2024 was $201 million, $26 million or 11% lower than in 2023, primarily reflecting the impact of the $153 million decrease in segment income before income taxes in 2024, partially offset by the one-time tax benefit of $9 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Claims and claim adjustment expenses in 2024 were $11.61 billion, $428 million or 4% lower than in 2023, primarily reflecting the impacts of (i) higher net favorable prior year reserve development, (ii) lower physical damage losses in the automobile product line and (iii) lower non-weather and non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iv) higher business volumes and (v) higher catastrophe losses.
Previous report
Amortization of deferred acquisition costs in 2024 was $2.63 billion, $249 million or 10% higher than in 2023, generally consistent with the increase in earned premiums.
Previous report
General and administrative expenses in 2024 were $1.64 billion, $223 million or 16% higher than in 2023. The increase primarily reflected higher contingent commissions, as well as higher employee and technology related expenses.
Previous report
Income Tax Expense (Benefit)
Previous report
Income tax expense in 2024 was $294 million, compared with an income tax benefit of $103 million in 2023, primarily reflecting the impact of the $1.77 billion increase in segment income before income taxes and the one-time tax benefit of $31 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Previous report
Automobile net written premiums of $7.93 billion in 2024 increased by 8% over 2023. Retention rates remained strong in 2024 and were comparable with 2023. Renewal premium changes in 2024 remained positive but were lower than in 2023. New business premiums in 2024 decreased from 2023.
Previous report
International net written premiums of $694 million in 2024 increased by 7% over 2023, driven by increases in the automobile and homeowners and other product lines, partially offset by the impact of changes in foreign currency exchange rates.
Previous report
ENVIRONMENTAL CLAIMS AND LITIGATION
Previous report
The Company has received and continues to receive claims from policyholders who allege that they are liable for injury or damage arising out of the alleged storage, emissions or disposal of toxic substances, frequently under policies issued prior to the mid-1980s. These claims are mainly brought pursuant to various state or federal statutes that require a liable party to undertake or pay for environmental remediation. For example, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) enables private parties as well as federal and state governments to take action with respect to releases and threatened releases of hazardous substances. This federal statute permits the recovery of response costs from some liable parties and may require liable parties to undertake their own remedial action. Liability under these statutes may be joint and several with other responsible parties. The Company has also been, and continues to be, involved in litigation involving insurance coverage issues pertaining to environmental claims. The Company believes that some court decisions pertaining to environmental claims have interpreted the insurance coverage to be broader than the original intent of the insurers and policyholders. For more information regarding environmental claims and litigation, see note 8 of the notes to the consolidated financial statements.
Previous report
In 2024, 2023 and 2022, the Company increased its net environmental reserves by $78 million, $93 million and $132 million, respectively. Net environmental paid loss and loss adjustment expenses in 2024, 2023 and 2022 were $80 million, $82 million and $82 million, respectively. Net environmental reserves were $380 million, $382 million and $371 million at December 31, 2024, 2023 and 2022, respectively.
Previous report
•the continued application of more stringent cleanup standards on existing and emerging contaminants;
Previous report
The following table shows the Company’s Eurozone exposure at December 31, 2024 to all debt securities issued by foreign governments, financial companies, sovereign corporations (including sovereign banks) whose securities are backed by the respective country’s government and all other corporate securities (comprised of industrial corporations and utility companies) which could be affected if economic conditions deteriorated due to a prolonged recession:
Previous report
(1)Rated using external rating agencies or by the Company when a public rating does not exist. The table includes $631 million of short-term securities which have the highest ratings issued by external rating agencies for short-term issuances. For purposes of this table, the short-term securities, which are rated “A-1+” and/or “P-1,” are included as “Aaa” rated securities.
Previous report
In addition to fixed maturities noted in the foregoing table, the Company has exposure totaling $279 million to private equity limited partnerships and real estate partnerships (both of which are included in other investments in the Company’s consolidated balance sheet) whose primary investing focus is across Europe. The Company has unfunded commitments totaling $168 million to these partnerships.
Previous report
Beginning in early January 2025, there were a series of severe wildfires that impacted the Pacific Palisades neighborhood and Eaton Canyon area in Southern California. The Company’s preliminary pre-tax estimate of catastrophe losses from these wildfires, including assessments from the California FAIR Plan, and net of estimated recoveries from reinsurance, is $1.7 billion. The catastrophe losses from these wildfires will be reflected in the Company’s first quarter 2025 earnings.
Previous report
•the impact of the Company’s acquisition of Corvus Insurance Holdings, Inc.
Reworded paragraphs (154)
Previous wording
•Net income of $5.00 billion, or $21.76 per share basic and $21.47 per share diluted
Current wording
•Net income of $6.29 billion, or $27.83 per share basic and $27.43 per share diluted
Previous wording
•Net earned premiums of $41.94 billion
Current wording
•Net earned premiums of $43.91 billion
Previous wording
•Net favorable prior year reserve development of $709 million ($559 million after-tax)
Current wording
•Net favorable prior year reserve development of $1.04 billion ($815 million after-tax)
Previous wording
•Total investments of $94.22 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $101.18 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 22.4% (20.3% excluding net unrealized investment losses, net of tax, included in shareholders’ equity)
Current wording
•Total debt of $9.27 billion, resulting in a debt-to-total capital ratio of 22.0% (21.2% excluding net unrealized investment losses, net of tax, included in shareholders’ equity)
Previous wording
•Total capital returned to shareholders of $2.11 billion, comprising $1.15 billion of share repurchases and $962 million of dividends
Current wording
•Total capital returned to shareholders of $4.18 billion, comprising $3.20 billion of share repurchases and $987 million of dividends
Previous wording
•Book value per common share of $122.97
Current wording
•Book value per common share of $151.21
Previous wording
Diluted net income per share of $21.47 in 2024 increased by 68% over diluted net income per share of $12.79 in 2023. Net income of $5.00 billion in 2024 increased by 67% over net income of $2.99 billion in 2023. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes primarily reflected the pre-tax impacts of (i) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”), (ii) higher net investment income, (iii) higher net favorable prior year reserve development and (iv) lower net realized investment losses, partially offset by (v) higher catastrophe losses. Net favorable prior year reserve development in 2024 and 2023 was $709 million and $143 million, respectively. Catastrophe losses in 2024 and 2023 were $3.34 billion and $2.99 billion, respectively. The higher underlying underwriting margins in 2024 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in 2024 was higher than in 2023, primarily reflecting the impact of the increase in income before income taxes, partially offset by a one-time tax benefit of $211 million in the first quarter of 2023 due to the expiration of the statute of limitations with respect to a tax item.
Current wording
Diluted net income per share of $27.43 in 2025 increased by 28% over diluted net income per share of $21.47 in 2024. Net income of $6.29 billion in 2025 increased by 26% over net income of $5.00 billion in 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 underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”), (ii) higher net investment income and (iii) higher net favorable prior year reserve development, partially offset by (iv) higher catastrophe losses. Net favorable prior year reserve development in 2025 and 2024 was $1.04 billion and $709 million, respectively. Catastrophe losses in 2025 and 2024 were $3.69 billion and $3.34 billion, respectively. The higher underlying underwriting margins in 2025 were driven by all three segments. Income tax expense in 2025 was higher than in 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 years ended December 31, 2024 and 2023, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income (loss) for the periods reported.
Current wording
The Company has insurance operations in the United Kingdom, the Republic of Ireland, Canada 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 years ended December 31, 2025 and 2024, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income (loss) for the periods reported.
Previous wording
Earned premiums in 2024 were $41.94 billion, $4.18 billion or 11% higher than in 2023. In Business Insurance, earned premiums in 2024 increased by 11% over 2023. In Bond & Specialty Insurance, earned premiums in 2024 increased by 8% over 2023. In Personal Insurance, earned premiums in 2024 increased by 11% over 2023. Factors contributing to the change in earned premiums in each segment in 2024 as compared with 2023 are discussed in more detail in the segment discussions that follow.
Current wording
Earned premiums in 2025 were $43.91 billion, $1.97 billion or 5% higher than in 2024. In Business Insurance, earned premiums in 2025 increased by 5% over 2024. In Bond & Specialty Insurance, earned premiums in 2025 increased by 4% over 2024. In Personal Insurance, earned premiums in 2025 increased by 5% over 2024. Factors contributing to the change in earned premiums in each segment in 2025 as compared with 2024 are discussed in more detail in the segment discussions that follow.
Previous wording
Net investment income in 2024 was $3.59 billion, $668 million or 23% higher than in 2023. Net investment income from fixed maturity investments in 2024 was $2.95 billion, $476 million higher than in 2023. The increase primarily resulted from higher long-term average yields and a higher average level of fixed maturity investments. Net investment income from short-term securities in 2024 was $280 million, $39 million higher than in 2023. The increase primarily resulted from a higher level of short-term investments and higher short-term average yields. The Company’s remaining investment portfolios had net investment income of $409 million in 2024, $156 million higher than in 2023, primarily reflecting higher private equity partnership returns. Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.
Current wording
Net investment income in 2025 was $3.96 billion, $369 million or 10% higher than in 2024. Net investment income from fixed maturity investments in 2025 was $3.43 billion, $485 million higher than in 2024. The increase 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 2025 was $253 million, $27 million lower than in 2024. The decrease primarily resulted from lower short-term average yields, partially offset by a higher level of short-term investments. The Company’s remaining investment portfolios had net investment income of $326 million in 2025, $83 million lower than in 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 2024 was $473 million, $40 million higher than in 2023. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.
Current wording
Fee income in 2025 was $495 million, $22 million higher than in 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 $89 million in 2024 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 $16 million in 2023 were driven by the impact of changes in fair value attributable to favorable equity markets, partially offset by a net unfavorable change in fair value on an individual security held in the Company’s portfolio.
Current wording
Net realized investment gains on equity securities still held of $50 million and $89 million in 2025 and 2024, respectively, were driven by the impact of changes in fair value attributable to favorable equity markets.
Previous wording
Other net realized investment losses in 2024 included $126 million of net realized investment losses related to fixed maturity investments and $10 million of net realized investment losses related to other investments, partially offset by $17 million of net realized investment gains related to real estate sales and $10 million of net realized investment gains related to equity securities sold. Other net realized investment losses in 2023 included $93 million of net realized investment losses related to fixed maturity investments, $7 million of net realized investment losses related to equity securities sold and $9 million of net realized investment losses related to other investments.
Current wording
Other net realized investment losses in 2025 included $67 million of net realized investment losses related to fixed maturity investments, $24 million of net realized investment losses related to other investments and $5 million of net realized investment losses related to equity securities sold. Other net realized investment losses in 2024 included $126 million of net realized investment losses related to fixed maturity investments and $10 million of net realized investment losses related to other investments, partially offset by $17 million of net realized investment gains related to real estate sales and $10 million of net realized investment gains related to equity securities sold.
Previous wording
Other revenues in 2024 were $449 million, $96 million higher than 2023. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Current wording
Other revenues in 2025 were $508 million, $59 million higher than 2024. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Previous wording
Claims and claim adjustment expenses in 2024 were $27.06 billion, $844 million or 3% higher than 2023, primarily reflecting the impacts of (i) higher business volumes in all three segments, (ii) loss cost trends in Business Insurance and Bond & Specialty Insurance, (iii) higher catastrophe losses in all three segments and (iv) higher other losses in Business Insurance, partially offset by (v) lower physical damage 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, (vi) higher net favorable prior year reserve development, including net favorable prior year development compared to net unfavorable development in 2023 in Business Insurance and higher net favorable prior year reserve development in Personal Insurance, partially offset by lower net favorable prior year reserve development in Bond & Specialty Insurance and (vii) the comparison to an elevated level of losses in 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector in Bond & Specialty Insurance. Catastrophes in 2024 primarily resulted from Hurricane Helene and numerous severe wind and hail storms in multiple states. Catastrophes in 2023 primarily resulted from numerous severe wind and hail storms in multiple states.
Current wording
Claims and claim adjustment expenses in 2025 were $27.22 billion, $162 million or 1% higher than 2024, driven by Business Insurance, partially offset by Personal Insurance and Bond & Specialty Insurance. Catastrophes in 2025 primarily resulted from the January 2025 California wildfires and severe wind and hail storms in multiple states. Catastrophes in 2024 primarily resulted from Hurricane Helene and numerous severe wind and hail storms in multiple states. Factors contributing to the changes in claims and claim adjustment expenses in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Amortization of deferred acquisition costs in 2024 was $6.97 billion, $747 million or 12% higher than in 2023. The increase in 2024 was 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 2025 was $7.27 billion, $293 million or 4% higher than in 2024. The increase in 2025 was generally consistent with the increase in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Previous wording
General and administrative expenses in 2024 were $5.82 billion, $643 million or 12% higher than in 2023, 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 2025 were $6.12 billion, $301 million or 5% higher than in 2024, primarily reflecting the impact of costs associated with higher business volumes. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Previous wording
The Company’s effective tax rate was 19% and 11% in 2024 and 2023, respectively. The effective tax rate in 2023 was reduced by the impact of the one-time tax benefit discussed above. The effective tax rates in both years 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 2025 and 2024. The effective tax rates in both years reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.
Previous wording
The combined ratio of 92.5% in 2024 was 2.2 points lower than the combined ratio of 94.7% in 2023. The loss and loss adjustment expense ratio of 63.1% in 2024 was 2.2 points lower than the loss and loss adjustment expense ratio of 65.3% in 2023. The underwriting expense ratio of 29.4% in 2024 was comparable with the underwriting expense ratio in 2023.
Current wording
The combined ratio of 89.9% in 2025 was 2.6 points lower than the combined ratio of 92.5% in 2024. The loss and loss adjustment expense ratio of 61.4% in 2025 was 2.6 points lower than the loss and loss adjustment expense ratio of 64.0% in 2024. The underwriting expense ratio of 28.5% in 2025 was comparable with the underwriting expense ratio in 2024.
Previous wording
Catastrophe losses in 2024 and 2023 accounted for 8.0 points and 7.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in 2024 and 2023 provided 1.7 points and 0.4 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in 2024 was 3.3 points lower than the 2023 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, (ii) lower physical damage 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 and (iii) the comparison to an elevated level of losses in 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector in Bond & Specialty Insurance, partially offset by (iv) higher other losses in Business Insurance.
Current wording
Catastrophe losses in 2025 and 2024 accounted for 8.4 points and 8.0 points, respectively, of the combined ratio. Net favorable prior year reserve development in 2025 and 2024 provided 2.4 points and 1.7 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in 2025 was 2.3 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 2024 both increased by 8% over 2023. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.
Current wording
Gross and net written premiums in 2025 increased by 3% and 2%, respectively, over 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
Segment income in 2024 was $3.31 billion, $723 million or 28% higher than segment income of $2.58 billion in 2023. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net investment income, (ii) higher underlying underwriting margins and (iii) net favorable prior year reserve development compared to net unfavorable prior year reserve development in 2023, partially offset by (iv) higher catastrophe losses. Net favorable prior year reserve development in 2024 was $90 million. Net unfavorable prior year reserve development in 2023 was $289 million. Catastrophe losses in 2024 and 2023 were $1.03 billion and $838 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) higher business volumes and (ii) the benefit of earned pricing, partially offset by (iii) higher other losses and (iv) higher general and administrative expenses. Income tax expense in 2024 was higher than in 2023, primarily reflecting the impact of the increase in segment income before income taxes and a one-time tax benefit of $171 million in the first quarter of 2023.
Current wording
Segment income in 2025 was $3.70 billion, $389 million or 12% higher than segment income of $3.31 billion in 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net investment income, (ii) higher underlying underwriting margins and (iii) higher net favorable prior year reserve development, partially offset by (iv) higher catastrophe losses. Net favorable prior year reserve development in 2025 and 2024 was $233 million and $90 million, respectively. Catastrophe losses in 2025 and 2024 were $1.07 billion and $1.03 billion, 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 2025 was higher than in 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous wording
Earned premiums in 2024 were $21.35 billion, $2.20 billion or 11% higher than in 2023, primarily reflecting the increase in net written premiums over the preceding twelve months.
Current wording
Earned premiums in 2025 were $22.41 billion, $1.07 billion or 5% higher than in 2024, primarily reflecting the increase in net written premiums over the preceding twelve months.
Previous wording
Net investment income in 2024 was $2.56 billion, $475 million or 23% higher than in 2023. Refer to the “Net Investment Income” section of the “Consolidated Results of Operations” discussion for a description of the factors contributing to the increase in the Company’s consolidated net investment income in 2024 compared with 2023. In addition, refer to note 2 of the notes to the consolidated financial statements for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in 2025 was $2.78 billion, $222 million or 9% higher than in 2024. Refer to the “Net Investment Income” section of the “Consolidated Results of Operations” discussion for a description of the factors contributing to the increase in the Company’s consolidated net investment income in 2025 compared with 2024. In addition, refer to note 2 of the notes to the consolidated financial statements 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 2024 was $430 million, $30 million or 8% higher than in 2023, primarily reflecting higher claim volume under administration associated with large deductible policies and the service business.
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 2025 was $445 million, $15 million or 3% higher than in 2024, primarily reflecting higher claim volume under administration associated with large deductible policies and the service business.
Previous wording
Other revenues in 2024 were $322 million, $90 million or 39% higher than in 2023, driven by growth in Simply Business. Other revenues also include installment premium charges and other policyholder service charges.
Current wording
Other revenues in 2025 were $379 million, $57 million or 18% higher than in 2024, driven by growth in Simply Business. Other revenues also include premium installment charges and other policyholder service charges.
Previous wording
Claims and claim adjustment expenses in 2024 were $1.77 billion, $289 million or 19% higher than in 2023, primarily reflecting the impacts of (i) lower net favorable prior year reserve development, (ii) higher business volumes, (iii) loss cost trends and (iv) higher catastrophe losses, partially offset by (v) the comparison to an elevated level of losses in 2023 from both a small number of surety accounts and loss activity related to the disruption in the banking sector.
Current wording
Claims and claim adjustment expenses in 2025 were $14.15 billion, $475 million or 3% higher than in 2024, primarily reflecting the impacts of (i) loss cost trends and (ii) higher catastrophe losses, partially offset by (iii) higher net favorable prior year reserve development.
Previous wording
General and administrative expenses in 2024 were $3.30 billion, $262 million or 9% higher than in 2023. The increase in 2024 was primarily in support of business growth.
Current wording
General and administrative expenses in 2025 were $3.48 billion, $179 million or 5% higher than in 2024. The increase in 2025 was primarily in support of business growth.
Previous wording
Catastrophe losses in 2024 and 2023 accounted for 4.8 points and 4.3 points, respectively, of the combined ratio. Net favorable prior year reserve development in 2024 provided 0.4 points of benefit to the combined ratio. Net unfavorable prior year reserve development in 2023 accounted for 1.5 points of the combined ratio. The underlying combined ratio in 2024 was 0.8 points lower than the 2023 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing, partially offset by higher other losses.
Current wording
Catastrophe losses in both 2025 and 2024 accounted for 4.8 points of the combined ratio. Net favorable prior year reserve development in 2025 and 2024 provided 1.1 points and 0.4 points of benefit, respectively, to the combined ratio. The underlying combined ratio in 2025 was 0.1 points lower than the 2024 ratio on the same basis.
Previous wording
Gross and net written premiums in 2024 both increased by 8% over 2023.
Current wording
Gross and net written premiums in 2025 both increased by 3% over 2024.
Previous wording
Select Accounts. Net written premiums of $3.73 billion in 2024 increased by 7% over 2023. Retention rates remained strong in 2024 but decreased from 2023. Renewal premium changes in 2024 remained positive and were higher than in 2023. New business premiums in 2024 increased over 2023.
Current wording
Select Accounts. Net written premiums of $3.83 billion in 2025 increased by 3% over 2024. Retention rates remained strong in 2025 but decreased from 2024. Renewal premium changes in 2025 remained positive but were slightly lower than in 2024. New business premiums in 2025 increased over 2024.
Previous wording
Middle Market. Net written premiums of $12.02 billion in 2024 increased by 9% over 2023. Retention rates remained strong in 2024 but decreased slightly from 2023. Renewal premium changes in 2024 remained positive and were higher than in 2023. New business premiums in 2024 were comparable with 2023.
Current wording
Middle Market. Net written premiums of $12.54 billion in 2025 increased by 4% over 2024. Retention rates remained strong in 2025 and were comparable with 2024. Renewal premium changes in 2025 remained positive but were lower than in 2024. New business premiums in 2025 increased over 2024.
Previous wording
National Accounts. Net written premiums of $1.26 billion in 2024 increased by 11% over 2023. Retention rates remained strong in 2024 and were comparable with 2023. Renewal premium changes in 2024 remained positive and were comparable with 2023. New business premiums in 2024 increased over 2023.
Current wording
National Accounts. Net written premiums of $1.26 billion in 2025 increased slightly over 2024. Retention rates remained strong in 2025 and were comparable with 2024. Renewal premium changes in 2025 remained positive but were lower than in 2024. New business premiums in 2025 decreased from 2024.
Previous wording
National Property and Other. Net written premiums of $3.13 billion in 2024 increased by 4% over 2023. Retention rates remained strong in 2024 but decreased from 2023. Renewal premium changes in 2024 remained positive but were lower than in 2023. New business premiums in 2024 increased over 2023.
Current wording
National Property and Other. Net written premiums of $3.11 billion in 2025 decreased by 1% from 2024. Retention rates remained strong in 2025 and increased over 2024. Renewal premium changes in 2025 remained positive but were lower than in 2024. New business premiums in 2025 decreased from 2024.
Previous wording
Earned premiums in 2024 were $3.96 billion, $303 million or 8% higher than in 2023, primarily reflecting an increase in net written premiums, including the impact of longer duration surety bonds and multi-year management liability policies.
Current wording
Earned premiums in 2025 were $4.11 billion, $149 million or 4% higher than in 2024, primarily reflecting an increase in net written premiums, including the impact of longer duration surety bonds and multi-year management liability policies.
Previous wording
Net investment income in 2024 was $390 million, $62 million or 19% higher than in 2023. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Net Investment Income” section of the “Consolidated Results of Operations” discussion for a description of the factors contributing to the increase in the Company’s consolidated net investment income in 2024 as compared with 2023. In addition, refer to note 2 of the notes to the consolidated financial statements for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in 2025 was $445 million, $55 million or 14% higher than in 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 “Net Investment Income” section of the “Consolidated Results of Operations” discussion for a description of the factors contributing to the increase in the Company’s consolidated net investment income in 2025 as compared with 2024. In addition, refer to note 2 of the notes to the consolidated financial statements for a discussion of the Company’s net investment income allocation methodology.
Previous wording
The combined ratio of 84.3% in 2024 was 7.4 points higher than the combined ratio of 76.9% in 2023. The loss and loss adjustment expense ratio of 44.4% in 2024 was 4.3 points higher than the loss and loss adjustment expense ratio of 40.1% in 2023. The underwriting expense ratio of 39.9% in 2024 was 3.1 points higher than the underwriting expense ratio of 36.8% in 2023.
Current wording
The combined ratio of 81.9% in 2025 was 2.4 points lower than the combined ratio of 84.3% in 2024. The loss and loss adjustment expense ratio of 42.6% in 2025 was 1.8 points lower than the loss and loss adjustment expense ratio of 44.4% in 2024. The underwriting expense ratio of 39.3% in 2025 was 0.6 points lower than the underwriting expense ratio of 39.9% in 2024.
Previous wording
Net favorable prior year reserve development in 2024 and 2023 provided 3.3 points and 7.8 points of benefit, respectively, to the combined ratio. Catastrophe losses in 2024 and 2023 accounted for 1.3 points and 1.0 points, respectively, of the combined ratio. The underlying combined ratio in 2024 was 2.6 points higher than the 2023 ratio on the same basis, primarily reflecting (i) a higher expense ratio and (ii) the impact of earned pricing, partially offset by (iii) the comparison to an elevated level of losses in 2023 from both small number of surety accounts and loss activity related to the disruption in the banking sector.
Current wording
Net favorable prior year reserve development in 2025 and 2024 provided 5.4 points and 3.3 points of benefit, respectively, to the combined ratio. Catastrophe losses in 2025 and 2024 accounted for 0.7 points and 1.3 points, respectively, of the combined ratio. The underlying combined ratio in 2025 was 0.3 points higher than the 2024 ratio on the same basis, primarily reflecting the impact of earned pricing.
Previous wording
Gross written premiums and net written premiums in 2024 increased by 8% and 7%, respectively, over 2023.
Current wording
Gross written premiums and net written premiums in 2025 increased by 3% and 4%, respectively, over 2024.
Showing the first 40 of 154 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Gross and net written premiums in 2025 both increased by 2% over 2024.
Current report — wording carried from elsewhere
International net written premiums of $650 million in 2025 decreased by 6% from 2024, driven by decreases in the automobile product line.
Current report — wording carried from elsewhere
•$500 million aggregate principal amount of 5.05% senior notes that will mature on July 24, 2035 (the “2035 notes”), and
Current report — wording carried from elsewhere
•$750 million aggregate principal amount of 5.70% senior notes that will mature on July 24, 2055 (the “2055 notes” and together with the 2035 notes, the “senior notes”).
Current report — wording carried from elsewhere
The net proceeds of the issuance, after deducting the underwriting discount and expenses payable by the Company, totaled approximately $1.23 billion. Interest on the senior notes is payable semi-annually in arrears on January 24 and July 24.
Current report — wording carried from elsewhere
The 2055 notes may be redeemed prior to January 24, 2055, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any 2055 notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding January 24, 2055 on any 2055 notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the 2055 notes), plus 15 basis points. On or after January 24, 2055, the 2055 notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any 2055 notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
•Net unrealized investment losses of $4.61 billion ($3.64 billion after-tax)
Previous report — wording carried elsewhere
Company to maintain a minimum consolidated net worth as described in note 9 of the notes to the consolidated financial statements.
Previous report — wording carried elsewhere
The exact boundary points of these ranges are more qualitative than quantitative in nature, as no clear line of demarcation exists to determine when the set of underlying assumptions for an estimation method switches from being reasonable to unreasonable.