Travelers beats estimates with excellent second quarter results

Published 17/07/2025, 12:32
 Travelers beats estimates with excellent second quarter results

NEW YORK - On Thursday, Travelers Companies, Inc. (NYSE:TRV) reported second quarter 2025 core income of $1.5 billion, or $6.51 per diluted share, significantly exceeding analyst expectations of $3.60 per share. Revenue reached $12.12 billion, surpassing the consensus estimate of $11.62 billion.

The company’s shares dipped slightly by 0.23% in pre-market trading following the announcement.

The insurance giant delivered a strong performance with a consolidated combined ratio of 90.3%, improving 9.9 points from the prior year quarter. The underlying combined ratio, which excludes catastrophe losses and prior year reserve development, improved 3.0 points to 84.7%.

Travelers achieved record net written premiums of $11.54 billion, up 4% from the same period last year, with growth across all three business segments. Net investment income increased 6% after-tax compared to the prior year quarter.

"We are pleased to report excellent results for the quarter, with both underwriting and investment income contributing meaningfully to our performance," said Alan Schnitzer, Chairman and Chief Executive Officer. "We earned core income of $1.5 billion, or $6.51 per diluted share, driven by excellent underlying results, strong net favorable prior year reserve development and higher investment income."

Catastrophe losses for the quarter were $927 million pre-tax, significantly lower than the $1.51 billion reported in the same quarter last year. The company also benefited from $315 million in net favorable prior year reserve development across all segments.

Business Insurance, the company’s largest segment, saw net written premiums increase 5% to $5.79 billion. Bond & Specialty Insurance premiums grew 4% to $1.09 billion, while Personal Insurance premiums rose 3% to $4.67 billion.

During the quarter, Travelers returned $809 million to shareholders, including $557 million in share repurchases. Book value per share increased 20% YoY to $131.11, while adjusted book value per share grew 14% to $144.57.

The Board of Directors declared a regular quarterly dividend of $1.10 per share, payable September 30, 2025, to shareholders of record as of September 10, 2025.

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