Travelers(US:TRV)2025-10-16 11:00Financial Performance - Net income for Q3 2025 was $1.89 billion, a 50% increase from $1.26 billion in Q3 2024, with diluted earnings per share rising to $8.24, up 52% from $5.42 [125] - Earned premiums in Q3 2025 reached $11.14 billion, a 4% increase from $10.70 billion in Q3 2024, while total revenues for the quarter were $12.47 billion, up 5% from $11.90 billion [129] - Net investment income for Q3 2025 was $1.03 billion, a 14% increase from $904 million in Q3 2024, driven by higher average fixed maturity investments [133] - Total capital returned to shareholders in Q3 2025 was $878 million, including $628 million in share repurchases and $250 million in dividends [122] - Shareholders' equity increased to $31.61 billion in Q3 2025, reflecting strong financial performance and capital management [122] Underwriting Performance - The combined ratio improved to 87.3% in Q3 2025 from 93.2% in Q3 2024, reflecting better underwriting performance [124] - The combined ratio for the third quarter of 2025 was 87.3%, 5.9 points lower than the 93.2% in the same period of 2024 [157] - The combined ratio improved to 92.9% in Q3 2025 from 95.8% in Q3 2024; for the first nine months, it was 94.2%, down from 95.1% [179][181] - The loss and loss adjustment expense ratio for the first nine months of 2025 was 64.7%, 2.4 points lower than the 67.1% in the same period of 2024 [159] - The loss and loss adjustment expense ratio for Q3 2025 was 63.3%, down from 66.6% in Q3 2024; for the first nine months, it was 64.6%, down from 65.5% [179][181] Claims and Expenses - Catastrophe losses decreased to $402 million in Q3 2025 from $939 million in Q3 2024, contributing to improved profitability [125] - Claims and claim adjustment expenses in the first nine months of 2025 were $21.39 billion, a 2% increase from the same period in 2024 [142] - Total claims and expenses in Q3 2025 were $3.61 billion, down $330 million or 8% from Q3 2024; for the first nine months, total claims were $12.44 billion, a slight increase of $90 million or 1% [219][220] - Catastrophe losses in Q3 2025 were $139 million, significantly lower than $340 million in Q3 2024; for the first nine months, losses were $1.02 billion compared to $938 million [166][167] Investment Performance - The gross fixed maturity portfolio was valued at $91.11 billion as of September 30, 2025, with a weighted average credit quality of "Aa2" [254] - The municipal bond portfolio included $30.30 billion in securities as of September 30, 2025, up from $27.19 billion in 2024, representing an 7.8% increase [255] - The company’s investment portfolio totaled $103.68 billion as of September 30, 2025, with 94% allocated to fixed maturity and short-term investments [253] - The weighted average effective duration of fixed maturities and short-term securities was 4.6 as of September 30, 2025, compared to 4.3 at the end of 2024 [254] Shareholder Returns - Common share repurchases in the first nine months of 2025 totaled $1.49 billion, compared to $859 million in the same period of 2024 [306] - Dividends paid to shareholders were $737 million in the first nine months of 2025, up from $711 million in 2024 [307] - The Company expects to repurchase approximately $2.9 billion of common shares over Q4 2025 and Q1 2026, including $700 million from the sale of its Canadian insurance business [290] Reserves and Liabilities - The total gross claims and claim adjustment expense reserves amounted to $67.705 billion, an increase from $64.093 billion as of December 31, 2024, reflecting a growth of approximately 4.1% [318] - The asbestos claims and related litigation reserves total $1.80 billion, which are included in the overall claims reserves and may lead to material future liabilities due to ongoing uncertainties [317] - The General liability reserves increased to $18.619 billion from $17.194 billion, representing a rise of approximately 8.3% [318] - The Workers' compensation reserves slightly decreased to $18.593 billion from $18.729 billion, indicating a decline of about 0.7% [318] Business Segments - Segment income for Q3 2025 was $907 million, a 30% increase from $698 million in Q3 2024 [166] - Bond & Specialty Insurance segment income increased by 13% to $250 million in Q3 2025, and by 22% to $714 million for the first nine months [192][194] - Net written premiums for National Accounts were $273 million in Q3 2025, a 3% increase from Q3 2024, and $914 million for the first nine months, a 1% increase [188] - Domestic automobile net written premiums decreased by 4% to $2.06 billion in Q3 2025, while homeowners and other net written premiums increased by 3% to $2.49 billion [232][233]