The Travelers Companies, Inc. · NYSE:TRV
The Travelers Companies — Q2 2025 Earnings Presentation
22 slides from The Travelers Companies's earnings presentation, Jul 17, 2025
Slide 1: Second Quarter 2025 Results
SECOND QUARTER 2025 RESULTS July 17, 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: Second Quarter 2025 Overview
SECOND QUARTER 2025 OVERVIEW Travelers Reports Excellent Second Quarter and Year-to-Date Results Second Quarter 2025 Net Income per Diluted Share of $6.53, up 185%, and Return on Equity of 20.9% Second Quarter 2025 Core Income per Diluted Share of $6.51, up 159%, and Core Return on Equity of 18.8% •
Slide 4: Consolidated Performance
CONSOLIDATED PERFORMANCE ($ in millions, except per share amounts, after-tax, except for premiums) SECOND QUARTER YEAR-TO-DATE 2025 2024 Change 2025 2024 Change Core income $ 1,504 $ 585 157 % $ 1,947 $ 1,681 16 % per diluted share $ 6.51 $ 2.51 159 % $ 8.42 $ 7.20 17 % Included the following items:
Slide 5: Very Strong Financial Position
VERY STRONG FINANCIAL POSITION ($ and shares in millions, except per share amounts) June 30, December 31, Capital 2025 2024 • Continued strong capitalization to support the Company’s business operations. Debt $ 8,034 $ 8,033 • Repurchased 2.1 million shares in second quarter 2025 for a total cost of
Slide 6: Net Investment Income
NET INVESTMENT INCOME ($ in millions, after-tax) TOTAL Second Quarter 2025 vs. Prior Year Quarter Commentary $785 $763 $774 $738 $727 $742 $698 • Net investment income (NII) from the long-term fixed $609 income portfolio increased due to growth in average invested assets and a higher average yield •
Slide 7: Leading Core Return on Equity at Industry-Low Volatility
LEADING CORE RETURN ON EQUITY AT INDUSTRY-LOW VOLATILITY 12.8% 11.3% 13.7% 11.3% 11.5% 17.2% 13.6% 17.1% 9.0% 8.9% 8.8% 8.6% 8.6% 1.1% 8.2% 0.8% 8.2% 8.0% 1.0% 0.9% 0.7% 0.6% 0.2% 7.1% 0.7% 6.9% 3.3% 0.8% 0.7% 0.7% 1.2% 0.1% 0.2% 4.9% 5.0% 4.4% 4.2% 4.2% 7.4% 3.5% 7.5% 7.2% 6.9% 6.6% 6.1% 5.5% 5.7%
Slide 8: Business Insurance Performance
BUSINESS INSURANCE PERFORMANCE ($ in millions) SECOND QUARTER YEAR-TO-DATE 2025 2024 Change 2025 2024 Change Segment income $ 813 $ 656 24 % $ 1,496 $ 1,420 5 % Loss and loss adjustment expense ratio 63.7 % 66.2 % 65.3 % 64.9 % Underwriting expense ratio 29.9 29.9 29.6 29.8 Combined ratio1 93.6 % 96
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% 7.2% 6.9% 6.8% 6.4% 6.4% 6% 5.3% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Retention 86% 85% 86% 84% 86% 85% Renew
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% 5.7% 6% 5.3% 3.8% 5.3% 5.6% 5.6% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Retention 84% 83% 82% 79% 80% 80% Renewal prem
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% 7.6% 8% 7.4% 7.0% 6.9% 7.1% 6% 4% 2% —% ($ in millions) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 Retention 87% 88% 89% 88% 89% 89% Renewal premiu
Slide 12: Bond & Specialty Insurance Performance
BOND & SPECIALTY INSURANCE PERFORMANCE ($ in millions) SECOND QUARTER YEAR-TO-DATE 2025 2024 Change 2025 2024 Change Segment income $ 244 $ 170 44 % $ 464 $ 365 27 % Loss and loss adjustment expense ratio 40.5 % 48.0 % 41.8 % 46.2 % Underwriting expense ratio 39.8 39.7 39.6 39.9 Combined ratio1 80.3
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 2Q Management Liability 1 Retention 90% 90% 89% 89% 89% 87% Renewal premium change 2 3.2% 2.7% 1.1% 2.0% 2.5% 3.2% New business $91 $112 $109 $83 $71 $70 1 Domestic only, excludes suret
Slide 14: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE ($ in millions) SECOND QUARTER YEAR-TO-DATE 2025 2024 Change 2025 2024 Change Segment income (loss) $ 534 $ (153) NM $ 160 $ 67 139 % Loss and loss adjustment expense ratio 64.0 % 83.7 % 77.4 % 78.0 % Underwriting expense ratio 24.4 24.8 24.3 24.8 Combined ratio1 88.4
Slide 15: Personal Insurance Performance
PERSONAL INSURANCE PERFORMANCE SECOND QUARTER YEAR-TO-DATE 2025 2024 Change 2025 2024 Change Automobile Loss and loss adjustment expense ratio 63.1 % 75.6 % 62.2 % 74.0 % Underwriting expense ratio 22.2 22.3 22.1 22.3 1 Combined ratio 85.3 % 97.9 % 12.6 pts 84.3 % 96.3 % 12.0 pts Net favorable prior
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 2Q Automobile Retention 1 81% 81% 81% 82% 82% 82% 2 Renewal premium change 17.6% 16.3% 13.2% 10.7% 7.3% 5.0% Policies in force (in thousands) 2,985 2,958 2,939 2,930 2,902 2,880 • Sequential qu
Slide 17: Appendix
APPENDIX 17
Slide 18: 2025 Catastrophe Reinsurance
2025 CATASTROPHE REINSURANCE Catastrophe Bonds – Long Point Re IV Ltd. - $575 million aggregate principal was placed in May 2022 and the attachment point was reset in May 2025 – The reinsurance agreement provides single occurrence coverage to the Company through May 24, 2026 for certain property los
Slide 19: Well-Defined and Consistent Investment Philosophy
Well-Defined and Consistent Investment Philosophy ($ in millions, as of June 30, 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 $ 41,076 42 % Aaa 28.0 % Inc
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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