Travelers Q2 Profit Reaches $1.5 Billion, Raises Share Buyback Authorization to $4.3 Billion

Travelers Companies reported Q2 2025 results with $1.5 billion in core income ($6.51 per share) and a core return on equity of 18.8%. The quarter included $11.5 billion in net written premiums, $809 million in capital returned to shareholders, and the divestiture of its Canadian business for $2.4 billion. Underwriting profitability improved across all segments, and the company's adjusted book value per share rose 14% from a year prior.

Travelers Companies, Inc. (NYSE: TRV) reported robust financial results for the second quarter of 2025, showcasing significant growth across multiple metrics. The company's net income for the quarter reached $1.509 billion, or $6.53 per diluted share, marking a substantial 185% increase compared to the same period last year [1].

Core income, a key indicator of underwriting profitability, surged to $1.504 billion, or $6.51 per diluted share, reflecting a 159% year-over-year increase [1]. This performance was driven by lower catastrophe losses, a higher underlying underwriting gain, and increased net favorable prior year reserve development and net investment income.

The company's combined ratio improved by 9.9 points to an excellent 90.3%, primarily due to a 3.0-point improvement in the underlying combined ratio to 84.7% [1]. This indicates a strong performance in underwriting and claims management.

Travelers Companies also reported a record net written premiums of $11.543 billion, up 4% from the prior year quarter. This growth was driven by strong performance across all segments, including Business Insurance, Bond & Specialty Insurance, and Personal Insurance [1].

The company's net investment income increased by 6% after-tax, totaling $942 million pre-tax ($774 million after-tax). This was primarily due to growth in average invested assets and a higher average yield in the long-term fixed income investment portfolio [1].

Travelers Companies returned a significant amount of capital to shareholders, totaling $809 million, including $557 million in share repurchases. The company's adjusted book value per share increased by 14% from the prior year quarter, reflecting strong financial health [1].

The company's Chairman and CEO, Alan Schnitzer, commented on the results, stating, "We are pleased to report excellent results for the quarter, with both underwriting and investment income contributing meaningfully to our performance" [1].

References:
[1] https://finance.yahoo.com/news/travelers-reports-excellent-second-quarter-105700049.html