Travelers Companies, Inc. Reports Strong Q4 2025 Performance

By Chris Stiles • Wednesday, January 21 10:51 • Permanent Link

The Travelers Companies, Inc. has reported a strong performance in the fourth quarter of 2025, with net income per diluted share reaching $11.06, marking a 23% increase from the prior year quarter. Core income per diluted share also saw a significant increase of 22%, reaching $11.13.

For the full year 2025, net income amounted to $6.288 billion, while core income reached $6.325 billion. The company's return on equity for the fourth quarter was 31.0%, with a core return on equity of 29.6%. For the full year, return on equity was reported at 21.0%, with a core return on equity of 19.4%.

In terms of capital return to shareholders, the company authorized an additional $5.0 billion for share repurchases. In the fourth quarter of 2025, total capital returned to shareholders amounted to $1.897 billion, including $1.653 billion in share repurchases.

The consolidated combined ratio improved by 3.0 points to 80.2% in the fourth quarter, while the underlying combined ratio improved by 1.8 points to 82.2%. Net investment income also increased by 10% after-tax to $867 million.

Furthermore, the company saw strong growth in book value per share, which was up by 23%, and adjusted book value per share, which increased by 14% compared to year-end 2024.

The company's strong performance was attributed to a higher underlying underwriting gain, increased net investment income, lower catastrophe losses, and higher net favorable prior year reserve development.

In terms of net written premiums, there was a 1% increase in the fourth quarter, reaching $10.856 billion, and a 2% increase for the full year, reaching $44.387 billion.

The company repurchased 5.8 million shares during the fourth quarter at an average price of $285.04 per share for a total cost of $1.653 billion. As of December 31, 2025, the company had $2.015 billion of capacity remaining under its share repurchase authorizations approved by the board of directors.

Following these announcements, the company's shares moved -0.71%, and are now trading at a price of $269.42. For more information, read the company's full 8-K submission here.

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