Travelers(TRV) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for Q1 2025 was $395 million, a decrease of 65$1.12 billion in Q1 2024, resulting in diluted earnings per share of $1.70 compared to$4.80 in the prior year[105] - The combined ratio for Q1 2025 was 102.5%, up from 93.9% in Q1 2024, indicating a deterioration in underwriting performance[104] - Claims and claim adjustment expenses increased by $1.35 billion, or 20$8.01 billion in Q1 2025, primarily due to higher catastrophe losses[120] - General and administrative expenses in Q1 2025 were $1.46 billion, a 4$73 million, a 70% decrease from $247 million in Q1 2024[130] - Segment income for Business Insurance in Q1 2025 was$683 million, an 11% decrease from $764 million in Q1 2024[138] - The combined ratio for Business Insurance in Q1 2025 was 96.2$220 million, a 13% increase from $195 million in Q1 2024[161] - The combined ratio for Personal Insurance in Q1 2025 was 115.2$584 million, or 6%, to $10.71 billion in Q1 2025 compared to Q1 2024, with growth across all segments[109] - Gross written premiums in Q1 2025 were$11.89 billion, a 5% increase from $11.31 billion in Q1 2024[135] - Net written premiums in Q1 2025 were$10.52 billion, a 3% increase from $10.18 billion in Q1 2024[135] - Earned premiums in Q1 2025 were$5.47 billion, a 6% increase from $5.16 billion in Q1 2024[139] - Personal Insurance segment earned premiums in Q1 2025 were$4.25 billion, a 6% increase from $4.01 billion in Q1 2024[179] - Homeowners and Other net written premiums reached$1.81 billion in Q1 2025, an 11% increase compared to Q1 2024[194] - Gross and net written premiums in Personal Insurance increased by 4% and 5%, respectively, in Q1 2025 compared to Q1 2024[192] Catastrophe Losses - Catastrophe losses in Q1 2025 were $2.27 billion, significantly higher than$712 million in Q1 2024, impacting overall profitability[105] - Catastrophe losses in Q1 2025 were $1.74 billion, compared to$498 million in Q1 2024[178] Investment Income - Net investment income rose by $84 million, or 10$930 million in Q1 2025, driven by higher long-term average yields[113] - Net investment income in Q1 2025 was $656 million, an 8$609 million in Q1 2024[140] - Net investment income in Q1 2025 was $102 million, a 13$90 million in Q1 2024[163] - The company expects after-tax net investment income to be approximately $725 million in Q2 2025,$755 million in Q3 2025, and $790 million in Q4 2025[241] - The company reported net pre-tax realized investment losses of$61 million in the first three months of 2025[242] - The net unrealized investment loss in the fixed maturity investment portfolio was $4.17 billion as of March 31, 2025, down from$4.61 billion as of December 31, 2024[244] Capital Management - Total capital returned to shareholders was $599 million, consisting of$358 million in share repurchases and $241 million in dividends[102] - The Company believes it has a strong capital position and expects to return capital not needed for business operations to shareholders, with dividends and share repurchases likely not exceeding net income over time[247] - The Company anticipates that growth in premium volumes will increase the capital needed to support its financial strength ratings, resulting in a lower amount of capital returned to shareholders relative to earnings[247] - Future share repurchases will depend on various factors, including the Company's financial position, earnings, share price, catastrophe losses, and market conditions[247] Investment Portfolio - The company's total investments amounted to$95.70 billion, with fixed maturities and short-term securities making up 94% of the total[102] - The carrying value of the fixed maturity portfolio was $85.42 billion as of March 31, 2025, with a weighted average credit quality of "Aa2"[214] - The municipal bond portfolio included$27.29 billion in securities as of March 31, 2025, with a weighted average credit rating of "Aaa/Aa1"[217][218] - The carrying value of the company's other investments was $4.23 billion as of March 31, 2025, compared to$4.20 billion as of December 31, 2024[221] - Gross reinsurance recoverables increased to $8.233 billion as of March 31, 2025, from$8.119 billion as of December 31, 2024[225] Market Conditions and Outlook - Property and casualty insurance market conditions are expected to remain competitive for new business throughout 2025[229] - The Company anticipates strong retention levels for expiring premiums during the remainder of 2025[228] - Many statements in the "Outlook" section are forward-looking and subject to risks and uncertainties that could lead to actual results differing materially from those expressed[249]