Travelers(US:TRV)2026-01-21 11:58Financial Performance - Net income for Q4 2025 was $2,496 million, an increase from $1,888 million in Q4 2024, representing a growth of 32.3%[3] - Core income for Q4 2025 reached $2,511 million, up from $1,867 million in Q4 2024, reflecting a year-over-year increase of 34.4%[3] - The diluted earnings per share for Q4 2025 was $11.06, compared to $8.24 in Q4 2024, marking a 34.5% increase[3] - Net income for Q4 2024 was $2,082 million, with a year-to-date total of $6,288 million, representing a significant increase from $4,999 million in the previous year[4] - Core income for Q4 2024 reached $2,126 million, leading to a year-to-date total of $6,325 million, up from $5,025 million in the prior year[4] - Net income for YTD 4Q2025 reached $6,288 million, compared to $4,999 million for YTD 4Q2024, reflecting a growth of approximately 25.7%[102] Assets and Equity - Total assets at the end of Q4 2025 were $143,678 million, up from $133,189 million at the end of Q4 2024, indicating a growth of 7.9%[3] - Total equity at the end of Q4 2025 was $32,894 million, an increase from $27,864 million in Q4 2024, representing a growth of 17.9%[3] - Statutory capital and surplus increased from $25,329 million in Q1 2024 to $31,064 million by Q4 2025[17] - Common equity (excluding net unrealized investment gains) rose from $31,504 million in December 2024 to $34,372 million in December 2025, an increase of 9.0%[94] - GAAP shareholders' equity rose to $32,894 million in 2025, up from $27,864 million in 2024, indicating an increase of about 18.0%[98] Investment Performance - Net investment income for Q4 2024 was $102 million, with an expected increase to $120 million in Q4 2025, reflecting a positive trend in investment performance[37] - Net investment income after tax for YTD 4Q2025 was $3,254 million, an increase from $2,952 million in YTD 4Q2024, reflecting a growth of 10.2%[79] - The yield on taxable fixed maturities rose to 4.11% in December 2025, compared to 3.87% in December 2024[72] - The average yield after tax for the investment portfolio was 3.1% in 4Q2025, compared to 3.0% in 4Q2024[79] - The net unrealized investment losses decreased to $(1,478) million in December 2025 from $(3,640) million in December 2024, showing an improvement in investment performance[72] Premiums and Revenues - Total revenues for Q4 2024 reached $1,103 million, with a year-to-date total of $4,378 million, compared to $1,177 million and $4,579 million for Q4 2025 respectively[37] - Total revenues for 1Q2025 reached $11,871 million, an increase from $11,193 million in 1Q2024, representing a growth of 6.1%[13] - Premiums collected in Q4 2024 amounted to $10,868 million, with a year-to-date total of $41,941 million, reflecting an increase from $10,704 million in Q3 2024[6] - Gross written premiums for Q1 2024 were $11,310 million, with a year-to-date total of $46,550 million, increasing to $47,703 million by Q4 2025[17] - Total revenues for Travelers Companies grew from $17,418 million in YTD 4Q2024 to $18,279 million in YTD 4Q2025, marking an increase of 4.9%[50] Claims and Expenses - Claims and claim adjustment expenses for Q4 2024 totaled $6,034 million, a decrease from $10,344 million in Q3 2024, indicating improved claims management[6] - Claims and claim adjustment expenses for 1Q2025 totaled $8,006 million, an increase from $6,656 million in 1Q2024, representing a rise of 20.3%[13] - Losses and loss adjustment expenses for Q1 2024 were $6,602 million, totaling $26,828 million year-to-date by Q4 2024[17] - Losses and loss adjustment expenses in Q4 2024 were $2,423 million, decreasing to $2,173 million in Q4 2025, contributing to a year-to-date total of $11,606 million in 2024[57] - The combined ratio improved to 91.7% in Q4 2025, compared to 96.1% in Q2 2024[27] Shareholder Returns - The company declared common stock dividends of $250 million in Q4 2025, slightly down from $252 million in Q4 2024[3] - Dividends paid to shareholders amounted to $979 million for YTD 4Q2025, up from $951 million in YTD 4Q2024, reflecting a growth of approximately 2.9%[104] - The company repurchased 5.8 million shares at a cost of $1,650 million during the year, compared to 4.4 million shares for $1,000 million in the previous year[3] Reinsurance and Risk Management - Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses increased to $4,352 million in 2025 from $3,962 million in 2024, reflecting a growth of 9.8%[83] - The total gross reinsurance recoverables reached $8,306 million in 2025, up from $8,119 million in 2024, indicating a 2.3% increase[83] - The allowance for estimated uncollectible reinsurance rose to $135 million in 2025 from $119 million in 2024, representing a 13.4% increase[83] - The top five reinsurer groups accounted for a significant portion of gross reinsurance recoverables, with Swiss Re Group at $737 million and Berkshire Hathaway at $435 million[83] Operational Efficiency - The combined ratio improved to 93.0% for YTD 4Q2025, down from 99.1% in 1Q2024, indicating better underwriting performance[65] - The underwriting expense ratio remained stable at 26.6% for YTD 4Q2025, consistent with the previous year[65] - The effective tax rate on net investment income remained stable at approximately 18.0% across the reporting periods[50] Segment Performance - Segment income for Personal Insurance improved from $1,249 million in YTD 4Q2024 to $2,053 million in YTD 4Q2025, a significant increase of 64.3%[50] - The combined ratio for Personal Insurance improved from 94.4% in 4Q2024 to 89.5% in 4Q2025, indicating better underwriting performance[54] - The company operates in multiple segments, including Business Insurance, Bond & Specialty Insurance, and Personal Insurance, each offering a range of products[122][123][125]