Travelers(TRV) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $395 million, a decrease of 64$1,123 million in Q1 2024[3] - Core income for Q1 2025 was $443 million, down from$1,096 million in Q1 2024, reflecting a 60% decline[3] - Total revenues for Q1 2025 were $11,810 million, compared to$11,228 million in Q1 2024, representing a 5.2% increase[8] - Net income for 1Q2024 was $1,123 million, with a significant increase to$2,082 million in 4Q2024, but a decrease to $395 million in 1Q2025[10] - Total revenues for 4Q2024 were$12,063 million, up from $11,849 million in 3Q2024, but decreased to$11,871 million in 1Q2025[12] - Cash flows from operating activities for Q1 2025 were $1,360 million, down from$2,064 million in Q4 2024[91] Underwriting Performance - The combined ratio for Q1 2025 was 103.5%, indicating a deterioration from the previous year's performance[3] - The combined ratio improved from 100.2% in 2Q2024 to 83.2% in 4Q2024, but is projected to rise to 102.5% in 1Q2025[10] - Business Insurance segment income for 1Q2025 is $683 million, down from$1,188 million in 4Q2024[24] - The combined ratio for Business Insurance in 1Q2025 is 96.2%, compared to 85.2% in 4Q2024[24] - The combined ratio for Personal Insurance improved to 96.9% in 1Q2024, with a target of 80.7% by 4Q2024[47] - The combined ratio for Personal Insurance - Homeowners and Other was 145.5% in 1Q2025, indicating a significant increase from 99.1% in 1Q2024[59] Investment Income - Net investment income for Q1 2025 was $930 million, down from$846 million in Q1 2024[8] - The effective tax rate on net investment income remained stable at 17.9% for Q1 2025[8] - Net investment income after tax for Q1 2025 was $763 million, a decrease from$785 million in Q4 2024, reflecting a decline of 2.8%[71] - The effective tax rate on net investment income remained stable around 17.9% in 4Q2024 and 1Q2025[12] Premiums and Reserves - Premiums written in Q1 2025 were $10,710 million, slightly lower than$10,868 million in Q4 2024[8] - Gross written premiums increased from $11,310 million in 1Q2024 to$12,149 million in 3Q2024, before declining to $11,890 million in 1Q2025[15] - Total statutory reserves for losses and loss adjustment expenses increased from$56,326 million in Q4 2024 to $58,091 million in Q1 2025, reflecting a growth of 3.13$7,947 million in total losses and loss adjustment expenses in Q1 2025, up from $5,966 million in Q4 2024, indicating a 33.2$241 million in Q1 2025, a slight decrease from $242 million in Q4 2024[3] - The company paid$229 million in dividends to shareholders in Q1 2024, indicating a commitment to returning value to investors[92] Debt and Capital Structure - The total debt to capital ratio remained stable at 20.3% as of March 31, 2025, consistent with the previous quarter[85] - The company reported a total long-term debt of $8,004 million as of March 31, 2025, unchanged from December 31, 2024[85] - The total capital, excluding net unrealized investment gains, was reported at$39,523 million as of March 31, 2025, slightly down from $39,537 million at the end of 2024[85] Miscellaneous - The company reported a favorable prior year reserve development of$378 million after tax in 1Q2025, compared to $262 million in 4Q2024[12] - The average yield on invested assets remained stable at 3.7% pre-tax for Q1 2025, consistent with the previous quarter[71] - The number of automobile policies in force was 3,212 thousand in 1Q2024, with a slight decrease to 3,118 thousand expected by 1Q2025[50]