Travelers Q3 Earnings Surpass Estimates on Solid Underwriting

Core Insights - The Travelers Companies (TRV) reported a third-quarter 2025 core income of $8.14 per share, exceeding the Zacks Consensus Estimate by 35.4% and reflecting a 55% year-over-year increase [1][8] - Total revenues rose 5% year over year to $12.44 billion, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 0.7% [2][3] - The underwriting gain doubled year over year to $1.4 billion, with a consolidated underlying combined ratio of 83.9, improving by 170 basis points [4][5] Financial Performance - Pre-tax net investment income increased 14% year over year to $1.03 billion, attributed to growth in average invested assets and higher yields [3][8] - Catastrophe losses were reported at $402 million, significantly lower than the $939 million loss in the same quarter last year [3] - Core return on equity expanded by 600 basis points to 22.6%, with adjusted book value per share rising 15% year over year to $150.55 [5] Segment Analysis - Business Insurance segment saw net written premiums increase by 3% year over year to approximately $5.67 billion, with strong growth in the core Middle Market business [6][10] - Bond & Specialty Insurance net written premiums grew by 1% year over year to $1 billion, supported by strength in Business Insurance [8][9] - Personal Insurance net written premiums remained stable at $4.71 billion, with a significant improvement in the combined ratio to 81.3, driven by lower catastrophe losses [11][12] Shareholder Returns - The company returned $878 million to shareholders in Q3 2025, including $628 million used for share repurchases [13] - A quarterly dividend of $1.10 per share was announced, payable on December 31, 2025, to shareholders of record by December 10, 2025 [13]