The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Q1 2025 Earnings Presentation
22 slides from The Travelers Companies's earnings presentation, Apr 16, 2025
Slide 1: First Quarter 2025 Results
FIRST QUARTER 2025 RESULTS April 16, 2025
Slide 2: Long-Term Financial Strategy
LONG-TERM FINANCIAL STRATEGY Generation of Balanced Meaningful top-tier earnings approach to and sustainable and capital rightsizing capital competitive substantially and growing book advantages in excess of value per share growth needs over time CREATE SHAREHOLDER VALUE Objective: Mid–Teens Core RO
Slide 3: First Quarter 2025 Overview
FIRST QUARTER 2025 OVERVIEW Travelers Reports First Quarter Net Income of $395 Million and Core Income of $443 Million First Quarter 2025 Net Income per Diluted Share of $1.70 and Core Income per Diluted Share of $1.91 Board of Directors Declares 5% Increase in Regular Quarterly Cash Dividend to $1.
Slide 4: Consolidated Performance
CONSOLIDATED PERFORMANCE ($ in millions, except per share amounts, after-tax, except for premiums) FIRST QUARTER 2025 2024 Change Core income $ 443 $ 1,096 (60) % per diluted share $ 1.91 $ 4.69 (59) % Included the following items: Net favorable prior year reserve development $ 297 $ 71 Catastrophes
Slide 5: Very Strong Financial Position
VERY STRONG FINANCIAL POSITION ($ and shares in millions, except per share amounts) March 31, December 31, 2025 2024 Capital Debt $ 8,033 $ 8,033 Common equity 1 31,490 31,504 • Continued strong capitalization to support the Company’s business operations. Total capital 1 $ 39,523 $ 39,537 • Repurcha
Slide 6: Net Investment Income
NET INVESTMENT INCOME ($ in millions, after-tax) TOTAL First Quarter 2025 vs. Prior Year Quarter Commentary $785 $763 $738 $698 $727 $742 • Net investment income (NII) from the long-term fixed $609 income portfolio increased due to a higher long-term average yield and growth in average invested asse
Slide 7: Leading Core Return on Equity at Industry-Low Volatility
LEADING CORE RETURN ON EQUITY AT INDUSTRY-LOW VOLATILITY 12.8% 11.3% 13.7% 11.3% 11.5% 17.2% 11.8% 14.5% 9.0% 9.0% 8.8% 8.6% 8.5% 1.1% 8.2% 1.0% 8.0% 1.0% 0.9% 0.2% 0.7% 0.7% 0.7% 7.1% 6.9% 3.3% 0.8% 0.7% 0.7% 1.2% 0.1% 0.2% 5.5% 4.9% 4.4% 4.2% 4.2% 7.4% 3.5% 7.2% 3.3% 7.3% 6.6% 6.8% 6.1% 5.5% 5.7%
Slide 8: Business Insurance Performance
BUSINESS INSURANCE PERFORMANCE ($ in millions) FIRST QUARTER 2025 2024 Change Segment income $ 683 $ 764 (11) % Loss and loss adjustment expense ratio 66.8 % 63.6 % Underwriting expense ratio 29.4 29.7 Combined ratio1 96.2 % 93.3 % (2.9) pts Net favorable prior year reserve development 1.3 0.0 Catas
Slide 9: Domestic Business Insurance (ex. National Accounts)
DOMESTIC BUSINESS INSURANCE (EX. NATIONAL ACCOUNTS) IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8% 7.3% 6.9% 6.8% 6.4% 6.4% 6% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Retention 86% 85% 86% 84% 86% Renewal premium chan
Slide 10: Domestic Business Insurance: Select Accounts
DOMESTIC BUSINESS INSURANCE: SELECT ACCOUNTS IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 8% 5.8% 6% 3.9% 5.4% 5.7% 5.7% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Retention 84% 83% 82% 80% 80% Renewal premium change1 10.
Slide 11: Domestic Business Insurance: Middle Market
DOMESTIC BUSINESS INSURANCE: MIDDLE MARKET IL L U STRATIV E BU SINESS STATISTICS Renewal Premium Change1 % Renewal Rate Change2 % Exposure/Other % 12% 10% 7.9% 7.7% 8% 7.5% 7.0% 6.9% 6% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 Retention 87% 88% 89% 88% 89% Renewal premium change1 9.7%
Slide 12: Bond & Specialty Insurance Performance
BOND & SPECIALTY INSURANCE PERFORMANCE ($ in millions) FIRST QUARTER 2025 2024 Change Segment income $ 220 $ 195 13 % Loss and loss adjustment expense ratio 43.2 % 44.4 % Underwriting expense ratio 39.3 40.1 Combined ratio1 82.5 % 84.5 % 2.0 pts Net favorable prior year reserve development 6.7 2.5 C
Slide 13: Domestic Bond & Specialty Insurance
DOMESTIC BOND & SPECIALTY INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2024 2025 1Q 2Q 3Q 4Q 1Q Management Liability 1 Retention 90% 90% 89% 89% 89% Renewal premium change 2 3.2% 2.4% 1.1% 2.3% 2.4% New business $91 $111 $109 $83 $71 1 Domestic only, excludes surety and other prod
Slide 14: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE ($ in millions) FIRST QUARTER 2025 2024 Change Segment income (loss) $ (374) $ 220 NM Loss and loss adjustment expense ratio 91.0 % 72.2 % Underwriting expense ratio 24.2 24.7 Combined ratio1 115.2 % 96.9 % (18.3) pts Net favorable prior year reserve development 5.6 1.
Slide 15: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE FIRST QUARTER 2025 2024 Change Automobile Loss and loss adjustment expense ratio 61.3 % 72.2 % Underwriting expense ratio 22.1 22.4 1 Combined ratio 83.4 % 94.6 % 11.2 pts Net favorable prior year reserve development 6.0 2.3 Catastrophes, net of reinsurance (1.9) (2.0)
Slide 16: Domestic Personal Insurance
DOMESTIC PERSONAL INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2024 2025 1Q 2Q 3Q 4Q 1Q Automobile Retention 1 81% 82% 82% 83% 82% Renewal premium change 2 17.6% 16.4% 13.1% 10.1% 7.0% Policies in force (in thousands) 2,985 2,958 2,939 2,930 2,902 • Sequential quarter growth —% (1
Slide 17: Total International Insurance
TOTAL INTERNATIONAL INSURANCE ($ in millions) IL L U STRATIV E BU SINESS STATISTICS 2024 2025 1Q 2Q 3Q 4Q 1Q International 1 Retention 84% 81% 81% 80% 84% Renewal premium change 2 3.3% 4.9% 5.6% 3.2% 1.8% New business $187 $96 $85 $110 $131 1 Excludes 2025 and 2024 quota share arrangements with Fide
Slide 18: Appendix
APPENDIX 18
Slide 19: Well-Defined and Consistent Investment Philosophy
Well-Defined and Consistent Investment Philosophy ($ in millions, as of March 31, 2025, unless otherwise noted) Investment Income reliable contributor to results Total Investments Fixed Income Portfolio Rating % % Fixed Maturities by Rating2 Fixed Non-Fixed Corporates1 A2 $ 39,315 41 % Aaa 47.2 % In
Slide 20: Explanatory Note
EXPLANATORY NOTE This presentation contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “w
Slide 21: Disclosure
DISCLOSURE In this presentation, we may refer to some non-GAAP financial measures. For a reconciliation of these measures to the most comparable GAAP measures and a glossary of financial measures, we refer you to the press release and financial supplement that we have made available in connection wi
Slide 22: investor.travelers.com
investor.travelers.com 22
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