Market Performance - The three major U.S. stock indices closed mixed, with the Dow Jones rising by 0.04% to 44,938.31 points, while the S&P 500 fell by 0.24% to 6,395.78 points, marking its fourth consecutive decline. The Nasdaq dropped by 0.67% to 21,172.86 points [2][3] - Large technology stocks experienced a broad decline, with the index of the seven major U.S. tech companies falling by 1.07%. Apple decreased by 1.97%, Amazon by 1.84%, and Tesla by 1.64%, leading the decline [5][6] - Chinese concept stocks saw a slight increase, with the Nasdaq Golden Dragon China Index rising by 0.33%. Notable gainers included Zhengye Technology, which surged by 24.87%, and NEXT Technology, which rose by 12.62% [7][8] Federal Reserve Meeting Minutes - The Federal Reserve released the minutes from its July 29-30 meeting, indicating that nearly all decision-makers supported maintaining the current interest rates, with only two dissenting votes [9] - Discussions highlighted that overall inflation remains slightly above the Fed's long-term target of 2%. Participants noted that recent increases in commodity prices reflect the impact of tariffs, while service price inflation continues to slow [11] - The labor market was observed to be close to full employment, with low and stable unemployment rates. However, some participants expressed concerns about potential indicators of weak labor demand [12] - In terms of financial stability, concerns were raised regarding high asset valuation pressures and vulnerabilities in the banking sector, particularly related to rising long-term yields [13] Political Developments - President Trump called for the resignation of Federal Reserve Governor Lisa Cook, citing a report that suggested an investigation into her financial history. Cook stated she has no intention of resigning and is gathering information to address any inquiries [15]

Industry Overview - The Zacks Property and Casualty Insurance (P&C) industry is expected to benefit from improved pricing, prudent underwriting, and exposure growth despite an increase in catastrophic events [1] - The industry includes companies providing commercial and personal property insurance, casualty insurance products, and services, with premiums being the primary revenue source [3] - The industry is currently facing a decline in pricing after several years of increases, with three interest rate cuts last year and potential further cuts this year [2] Trends and Projections - Global commercial insurance rates fell by 4% in Q2, but personal auto insurance is projected to remain strong, supported by better investment returns and reduced claims [4] - Deloitte estimates gross premiums to grow sixfold to $722 billion by 2030, with China and North America accounting for over two-thirds of the total [4] - Swiss Re predicts premium growth of 5% in 2025 and 4% in 2026 [4] Catastrophe Impact - The industry is vulnerable to catastrophe events, which can negatively impact underwriting profits; the 2025 hurricane season is expected to be above normal with 23 named storms [5] - Global insured losses from natural disasters in the first half of 2025 are estimated to be at least $100 billion [5] - The combined ratio is expected to improve from 2023 to 98.5% in 2025 but may deteriorate to 99% in 2026 [5] Mergers and Acquisitions - Consolidation in the P&C industry is anticipated to continue as companies seek to diversify operations and gain market share [6] Technology Adoption - The industry is increasingly adopting technologies such as blockchain, artificial intelligence, and advanced analytics to enhance operations and reduce costs [8] - Insurtechs are emerging, focusing on the P&C insurance sector, with significant investments in technology expected to improve efficiency [8] Industry Performance - The Zacks Property and Casualty Insurance industry ranks 92, placing it in the top 38% of over 250 Zacks industries, indicating positive near-term prospects [9] - The industry has underperformed compared to its sector and the S&P 500, with a year-to-date increase of 4.7% compared to 9.8% for the sector and 6.9% for the S&P 500 [11] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 1.53X, compared to the S&P 500's 8.5X and the sector's 4.27X [13] Company Highlights - Progressive Corporation is a major auto insurer with a Zacks Rank 2, expected to see 23.4% year-over-year earnings growth in 2025 [17][18] - Berkshire Hathaway, with a Zacks Rank 3, continues to benefit from its diverse operations and is expected to see a 5% increase in earnings for 2026 [21][23] - Chubb Limited, also a Zacks Rank 3, is focusing on middle-market businesses and cyber insurance, with an expected 18.9% growth in earnings for 2026 [25][26] - Travelers Companies, carrying a Zacks Rank 3, is well-positioned for growth with a projected 20.5% increase in earnings for 2026 [29][30] - Allstate, the third-largest P&C insurer, is expected to see earnings growth of 0.1% in 2025 and 22% in 2026, supported by rate increases and strategic acquisitions [32][33]

Market Performance - The US stock market saw significant gains on July 23, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, closing at 45010.29 points. The Nasdaq Composite increased by 127.33 points, or 0.61%, closing at 21020.02 points, marking its first close above the 21000-point threshold. The S&P 500 index rose by 49.29 points, or 0.78%, closing at 6358.91 points [1][3][4]. Trade Agreements - President Trump announced a trade agreement between the US and Japan, which has heightened market expectations for further trade agreements before the August 1 tariff deadline. The agreement includes a reduction of the reciprocal tariff rate from 25% to 15% and Japan's commitment to invest $550 billion in the US [2][6][7]. Sector Performance - In the S&P 500, nine out of eleven sectors experienced gains, with the healthcare and industrial sectors leading with increases of 2.03% and 1.75%, respectively. The utilities and consumer staples sectors saw declines of 0.79% and 0.07% [8]. - Major technology stocks mostly rose, with AMD increasing over 3%, and other companies like NVIDIA, Boeing, and TSMC rising over 2%. Financial stocks also saw gains, with Mizuho Financial up over 6% and UBS Group up over 3% [8]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.75%, with notable increases in stocks such as iQIYI, which rose over 4%, and Tiger Brokers, which increased over 3%. However, some stocks like NIO and Li Auto saw declines of over 1% [9].

Core Insights - The Travelers Companies reported a core income of $1.5 billion ($6.51 per share) for Q2 2025, with a core return on equity of 18.8% [1] - The company achieved $11.5 billion in net written premiums and returned $809 million in capital to shareholders [1] - A divestiture of its Canadian business for $2.4 billion was announced, reflecting a strategic move to optimize capital allocation [1][4] Underwriting Profitability - Underlying underwriting income increased by 35% to $1.6 billion pretax, driven by a 7% growth in net earned premiums to $10.9 billion [2][3] - All business segments reported underlying combined ratios below or near 90%, with personal insurance at an impressive 79.3% [2] - The overall underlying combined ratio improved by 3 points to 84.7%, indicating enhanced risk selection and disciplined pricing [3] Capital Management - Adjusted book value per share rose to $144.57, a 14% increase year-over-year, with operating cash flows of $2.3 billion [4] - The board authorized $4.3 billion for share repurchases, indicating a commitment to returning value to shareholders [4] - The divestiture of Canadian operations was executed at 1.8 times book value, showcasing aggressive internal capital reallocation [4][5] Investment Income - The investment portfolio's assets exceeded $100 billion, generating $774 million in after-tax net investment income, a 6% increase from the previous year [6] - New money rates were over 100 basis points above the embedded portfolio yield, enhancing earnings visibility for the remainder of 2025 and into 2026 [6][7] Future Outlook - Management projects a full-year expense ratio of 28% to 28.5% for 2025 and anticipates $700 million in additional share repurchases in 2026 from the Canadian divestiture [8] - Expected fixed income net investment income after tax is approximately $770 million for Q3 and $805 million for Q4 [8] - The company plans to relax personal insurance rate and capacity restrictions by the end of 2025, supporting continued premium growth and strong underwriting margins [9]

Core Insights - The Travelers Companies (TRV) reported a second-quarter 2025 core income of $6.51 per share, exceeding the Zacks Consensus Estimate by 83.8% and more than doubling from the previous year [1][9] - Total revenues increased by 6.7% year over year to $12.1 billion, driven by higher premiums and improved net investment income, although it slightly missed the Zacks Consensus Estimate by 0.7% [2][9] - Net written premiums reached a record $11.5 billion, up 4% year over year, surpassing the estimate of $10.9 billion [2] Financial Performance - Net investment income rose by 6% year over year to $942 million, primarily due to growth in average invested assets and higher average yield, although it was below the estimate of $992.8 million [3] - Catastrophe losses were reported at $927 million, significantly lower than the $1.5 billion loss from the same quarter last year [3] - The underwriting profit was $1 billion, a substantial improvement from a loss of $65 million in the prior year, with the consolidated underlying combined ratio improving by 300 basis points to 84.7 [4] Segment Analysis - Business Insurance segment saw net written premiums increase by 5% year over year to approximately $5.8 billion, beating the estimate of $5.4 billion [6] - The combined ratio for Business Insurance improved by 250 basis points to 93.6, benefiting from lower catastrophe losses and higher net favorable prior year reserve development [7] - Bond & Specialty Insurance segment reported net written premiums of $1.1 billion, reflecting a 4% year-over-year increase, with a combined ratio improvement of 740 basis points to 80.3 [10] Shareholder Returns - The company returned $809 million to shareholders in Q2 2025, including $557 million used for share repurchases of 2.1 million shares [14] - A quarterly dividend of $1.10 per share was announced, payable on September 30, 2025, to shareholders of record by September 10, 2025 [14]

Core Insights - Travelers (TRV) reported $12.11 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 6.7% and an EPS of $6.51 compared to $2.51 a year ago, indicating strong earnings growth [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $12.2 billion, resulting in a revenue surprise of -0.78%, while the EPS exceeded expectations with a surprise of +83.9% against a consensus estimate of $3.54 [1] Financial Performance Metrics - The combined ratio was reported at 90.3%, significantly better than the estimated 99.1% by analysts [4] - The loss and loss adjustment expense ratio was 61.7%, outperforming the average estimate of 70.1% [4] - The underwriting expense ratio was 28.6%, slightly better than the estimated 29.1% [4] - Net investment income totaled $942 million, exceeding the estimate of $936.44 million, reflecting a year-over-year increase of 6.4% [4] - Fee income reached $124 million, surpassing the average estimate of $119.98 million, with a year-over-year change of +7.8% [4] - Premium revenues amounted to $10.92 billion, slightly below the estimate of $11.04 billion, but still showing a year-over-year increase of 6.6% [4] - Other revenues were reported at $123 million, exceeding the estimate of $109.38 million, representing a year-over-year increase of 17.1% [4] Segment Performance - Premium revenues from Business Insurance were $5.55 billion, slightly below the estimate of $5.57 billion, with a year-over-year change of +7.3% [4] - Premium revenues from Personal Insurance totaled $4.36 billion, slightly below the estimate of $4.4 billion, reflecting a year-over-year increase of 6.3% [4] - Premium revenues from Bond & Specialty Insurance were reported at $1.02 billion, below the estimate of $1.06 billion, with a year-over-year change of +4.5% [4] - Other revenues from Personal Insurance were $23 million, slightly below the estimate of $24.27 million, with a year-over-year increase of 4.6% [4] Stock Performance - Shares of Travelers have returned -4.8% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Financial Data and Key Metrics Changes - The company reported core income of $1,500,000,000 or $6.51 per diluted share, with a core return on equity of 18.8% for the quarter, and 17.1% for the trailing twelve months [5][14] - Underwriting income improved with a combined ratio of 90.3%, a nearly 10-point improvement, driven by lower catastrophe losses and favorable prior year reserve development [6][14] - Adjusted book value per share increased by over 14% compared to the previous year, reaching $144.57 [20] Business Line Data and Key Metrics Changes - Business Insurance segment income rose to $813,000,000, up nearly 25% from the prior year, with net written premiums increasing by 5% to $5,800,000,000 [25][30] - Bond and Specialty Insurance generated segment income of $244,000,000 with a combined ratio of 80.3% [31] - Personal Insurance delivered segment income of $534,000,000, with an underlying combined ratio of 79.3%, reflecting significant improvements in underwriting [35][36] Market Data and Key Metrics Changes - Net written premiums grew to $11,500,000,000 in the quarter, with growth across all three segments [9] - Renewal premium change in Business Insurance was strong at 7.7%, with retention rates at 85% [9][27] - In Personal Insurance, renewal premium change was 19.3%, indicating strong pricing actions [39] Company Strategy and Development Direction - The company is committed to disciplined capital allocation and value creation, as evidenced by the sale of its Canadian business for $2,400,000,000 [11][12] - The focus remains on optimizing capital deployment to generate attractive returns and profitable growth [12][14] - The company plans to relax property restrictions by the end of 2025, aiming to balance its portfolio between auto and property [40][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for continued premium growth and attractive underwriting margins, supported by a strong balance sheet [14][20] - The company noted that the overall market conditions remain orderly, with a positive trajectory for investment income [14][20] - Management acknowledged the challenges posed by tort inflation but indicated that pricing strategies are in place to address these issues [58] Other Important Information - The company returned over $800,000,000 of capital to shareholders during the quarter, including $557,000,000 in share repurchases [8][21] - Operating cash flows for the quarter were strong at $2,300,000,000, marking the twenty-first consecutive quarter with cash flows exceeding $1,000,000,000 [21] Q&A Session Summary Question: Insights on Business Insurance pricing and competition - Management noted that while there are some pressures in the national property market, overall pricing remains strong in other lines, with retention indicating market stability [44][48] Question: Future expectations for Personal Lines and premium production - Management indicated that relaxing property restrictions could positively impact both property and auto opportunities, aiming for a balanced portfolio [49][106] Question: Concerns about property market durability - Management expressed confidence in the overall positive landscape and indicated that property outside of national accounts has historically performed differently [52][53] Question: Impact of tariffs on pricing and margins - Management stated that there has been no significant impact from tariffs on their businesses, but they are monitoring the situation [73] Question: Cyber insurance market dynamics - Management highlighted that the cyber insurance market remains competitive, with pricing not fully reflecting the loss environment [108]

Financial Performance - Second quarter 2025 net income per diluted share increased by 185% to $6.53[5] - Second quarter 2025 core income per diluted share increased by 159% to $6.51[5] - Second quarter net income reached $1.509 billion, a 183% increase[5] - Second quarter core income was $1.504 billion, up by 157%[5] - The consolidated combined ratio improved by 9.9 points to 90.3%[5] - Net written premiums increased by 4% to a record $11.543 billion[5] - Book value per share grew by 20%, and adjusted book value per share increased by 14%[5] Investment and Capital - Total capital returned to shareholders was $809 million, including $557 million in share repurchases[5] - The company's debt-to-capital ratio is 19.8%, within the target range of 15%-25%[9, 11] - Total investments reached $98.1 billion, with 94% in fixed income and 6% in non-fixed income[60] Segment Performance - Business Insurance segment income increased by 24% to $813 million[27] - Bond & Specialty Insurance segment income increased by 44% to $244 million[39] - Personal Insurance segment income was $534 million, compared to a loss of $153 million in the prior year quarter[45]

Core Viewpoint - Travelers Insurance reported a second-quarter revenue of $12.12 billion, representing a year-over-year growth of 7.4% and a core earnings per share of $6.51, significantly exceeding the forecast of $3.60 [1] Financial Performance - The second-quarter revenue reached $12.12 billion, marking a 7.4% increase compared to the previous year [1] - Core earnings per share were reported at $6.51, which is substantially higher than the expected $3.60 [1]

[Part I — Financial Information](index=3&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, highlighting a significant increase in Q2 2025 net income to $1.51 billion and total assets reaching $138.87 billion [Consolidated Statement of Income](index=3&type=section&id=Consolidated%20Statement%20of%20Income) Net income for Q2 2025 surged to $1.51 billion, driven by a 7.4% revenue increase and a 3.7% decrease in claims and expenses Consolidated Statement of Income Highlights (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $12,116 | $11,283 | +7.4% | $23,926 | $22,511 | +6.3% | | Premiums | $10,921 | $10,243 | +6.6% | $21,631 | $20,369 | +6.2% | | Net Investment Income | $942 | $885 | +6.4% | $1,872 | $1,731 | +8.1% | | **Total Claims and Expenses** | $10,235 | $10,627 | -3.7% | $21,577 | $20,485 | +5.3% | | Claims and claim adjustment expenses | $6,789 | $7,373 | -7.9% | $14,795 | $14,029 | +5.5% | | **Net Income** | $1,509 | $534 | +182.6% | $1,904 | $1,657 | +14.9% | | **Diluted EPS** | $6.53 | $2.29 | +185.2% | $8.23 | $7.09 | +16.1% | | **Cash Dividends per Share** | $1.10 | $1.05 | +4.8% | $2.15 | $2.05 | +4.9% | [Consolidated Statement of Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q2 2025 significantly increased to $1.99 billion, driven by higher net income and a positive swing in OCI Consolidated Comprehensive Income (in millions) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $1,509 | $534 | $1,904 | $1,657 | | Other Comprehensive Income (Loss), net of taxes | $483 | $(279) | $882 | $(939) | | **Comprehensive Income** | **$1,992** | **$255** | **$2,786** | **$718** | [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) Total assets grew to $138.87 billion as of June 30, 2025, with shareholders' equity increasing to $29.52 billion Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 (Unaudited) | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Investments** | $98,065 | $94,223 | | **Total Assets** | **$138,873** | **$133,189** | | Claims and claim adjustment expense reserves | $66,941 | $64,093 | | **Total Liabilities** | **$109,355** | **$105,325** | | **Total Shareholders' Equity** | **$29,518** | **$27,864** | [Consolidated Statement of Cash Flows](index=8&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) Operating cash flow increased to $3.69 billion for H1 2025, while investing and financing activities used $2.52 billion and $1.24 billion respectively Cash Flow Summary - Six Months Ended June 30 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $3,694 | $3,135 | | Net Cash Used in Investing Activities | $(2,524) | $(2,180) | | Net Cash Used in Financing Activities | $(1,237) | $(871) | | **Net (Decrease) Increase in Cash** | **$(40)** | **$79** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, and contingencies, including a $2.4 billion Canadian business sale and asbestos claims - 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 sale is expected to close in the first quarter of 2026[26](index=26&type=chunk) Segment Income - Six Months Ended June 30 (in millions) | Segment | 2025 | 2024 | | :--- | :--- | :--- | | Business Insurance | $1,496 | $1,420 | | Bond & Specialty Insurance | $464 | $365 | | Personal Insurance | $160 | $67 | | **Total Segment Income** | **$2,120** | **$1,852** | - Gross claims and claim adjustment expense reserves increased by **$2.85 billion** since year-end 2024, primarily due to catastrophe losses, higher insured exposures, and loss cost trends, partially offset by claim payments and favorable prior year reserve development[71](index=71&type=chunk) - The company repurchased **2.8 million** common shares for **$750 million** in the first six months of 2025. As of June 30, 2025, **$4.29 billion** remained under its share repurchase authorizations[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting a 183% increase in Q2 net income to $1.51 billion and an improved combined ratio of 90.3% Q2 2025 Consolidated Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $1.51 billion | $0.53 billion | | Diluted EPS | $6.53 | $2.29 | | Combined Ratio | 90.3% | 100.2% | | Catastrophe Losses | $927 million | $1.51 billion | | Net Favorable Prior Year Reserve Development | $315 million | $230 million | | Net Investment Income | $942 million | $885 million | - The company expects after-tax net investment income from its fixed income portfolio to be approximately **$770 million** in Q3 2025 and **$805 million** in Q4 2025, driven by higher reinvestment yields and investment levels[275](index=275&type=chunk) - The company plans to continue returning capital to shareholders through dividends and share repurchases, expecting that over time, this will not exceed net income. The debt-to-total capital ratio (excluding unrealized investment losses) was **19.8%** as of June 30, 2025, within the target range of **15% to 25%**[281](index=281&type=chunk)[303](index=303&type=chunk) [Results of Operations by Segment](index=41&type=section&id=Results%20of%20Operations%20by%20Segment) All three segments contributed to strong performance, with Business Insurance income up 24%, Bond & Specialty up 44%, and Personal Insurance swinging to a $534 million income Segment Income (Loss) - Q2 2025 vs Q2 2024 (in millions) | Segment | Q2 2025 Income | Q2 2024 Income (Loss) | Change (%) | | :--- | :--- | :--- | :--- | | Business Insurance | $813 | $656 | +24% | | Bond & Specialty Insurance | $244 | $170 | +44% | | Personal Insurance | $534 | $(153) | N/A | Combined Ratio by Segment - Q2 2025 vs Q2 2024 | Segment | Q2 2025 Combined Ratio | Q2 2024 Combined Ratio | | :--- | :--- | :--- | | Business Insurance | 93.6% | 96.1% | | Bond & Specialty Insurance | 80.3% | 87.7% | | Personal Insurance | 88.4% | 108.5% | [Asbestos Claims and Litigation](index=52&type=section&id=Asbestos%20Claims%20and%20Litigation) Asbestos claims pose significant uncertainty, with net reserves at $1.24 billion and H1 2025 payments of $103 million - Net asbestos reserves were **$1.24 billion** as of June 30, 2025, and June 30, 2024[237](index=237&type=chunk) Net Asbestos Paid Loss and Loss Adjustment Expenses (in millions) | Period | Amount | | :--- | :--- | | Six Months Ended June 30, 2025 | $103 | | Six Months Ended June 30, 2024 | $135 | - Management highlights significant uncertainties that could impact future asbestos costs, including changes in the legal environment, the number of claims, and the resolution of complex coverage disputes[240](index=240&type=chunk)[244](index=244&type=chunk) [Investment Portfolio](index=54&type=section&id=Investment%20Portfolio) Total invested assets reached $98.07 billion, primarily in high-quality fixed maturity and short-term investments with an 'Aa2' average credit quality - Total invested assets were **$98.07 billion**, with **94%** in fixed maturity and short-term investments[242](index=242&type=chunk) - The fixed maturity portfolio's weighted average credit quality was **'Aa2'**, and below-investment-grade securities represented only **1.2%** of the portfolio[243](index=243&type=chunk) - The municipal bond portfolio, a significant component, totaled **$28.56 billion** and had a high weighted average credit rating of **'Aaa/Aa1'**[246](index=246&type=chunk)[247](index=247&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $3.69 billion in H1 2025 operating cash flow and a debt-to-total capital ratio of 19.8% (excl. unrealized losses) - Holding company liquidity was **$1.97 billion** as of June 30, 2025, exceeding the target of approximately **$1.36 billion**[288](index=288&type=chunk) Capital Returned to Shareholders - H1 2025 (in millions) | Activity | Amount | | :--- | :--- | | Common Share Repurchases | $874 | | Dividends Paid | $490 | Capitalization Summary (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Debt | $8,034 | $8,033 | | Total Shareholders' Equity | $29,518 | $27,864 | | **Total Capitalization** | **$37,552** | **$35,897** | | Debt-to-total capital ratio | 21.4% | 22.4% | | Debt-to-total capital ratio (excl. unrealized losses) | 19.8% | 20.3% | [Quantitative and Qualitative Disclosures About Market Risk](index=65&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures were reported compared to the 2024 Annual Report - There have been no material changes to the Company's disclosures about market risk as presented in the 2024 Annual Report[326](index=326&type=chunk) [Controls and Procedures](index=65&type=section&id=Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[327](index=327&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[328](index=328&type=chunk) [Part II — Other Information](index=66&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Legal Proceedings](index=67&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, primarily asbestos claims and other litigation, is incorporated by reference from Note 14 - Information regarding legal proceedings is detailed in Note 14 of the notes to the unaudited consolidated financial statements[331](index=331&type=chunk) [Risk Factors](index=67&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K were reported - There have been no material changes to the risk factors disclosed in the Company's 2024 Annual Report[332](index=332&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 1.85 million shares for $500 million in Q2 2025, with $4.29 billion remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Value Remaining (in millions) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 252,153 | $260.34 | 248,200 | $4,725 | | May 2025 | 1,074,323 | $272.48 | 873,200 | $4,487 | | June 2025 | 734,327 | $270.45 | 731,280 | $4,290 | | **Total** | **2,060,803** | **$270.27** | **1,852,680** | **$4,290** | - The Board of Directors approved a **$5.0 billion** increase to the share repurchase authorization on April 19, 2023. The authorizations do not have a stated expiration date[336](index=336&type=chunk) [Other Information](index=68&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - During the three months ended June 30, 2025, no company directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[340](index=340&type=chunk) [Exhibits](index=68&type=section&id=Item%206.%20Exhibits) Exhibits filed include the Amended and Restated 2023 Stock Incentive Plan, Director Compensation Program, and CEO/CFO certifications - Exhibits filed include the Amended and Restated 2023 Stock Incentive Plan, the Current Director Compensation Program, and CEO/CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[341](index=341&type=chunk)