Travelers Q2 2025 Net Income Jumps 185% Amid Lower Catastrophes and Strong Premium Growth
The Travelers Companies, Inc. reported strong financial results for the second quarter of 2025, with net income soaring to $1.509 billion, or $6.53 per diluted share, marking a 185% increase over the prior year quarter. Core income rose by 159% to $1.504 billion, driven by lower catastrophe losses, improved underlying underwriting gains, favorable prior year reserve developments, and higher net investment income. The combined ratio significantly improved to 90.3%, down 9.9 points year-over-year, with the underlying combined ratio at 84.7%. Net written premiums increased 4% to $11.543 billion, supported by growth across Business Insurance, Bond & Specialty, and Personal Insurance segments.
The company achieved a return on equity (ROE) of 20.9%, reflecting strong profitability and capital management. Book value per share climbed 20% from the previous year to $131.11, with adjusted book value per share at $144.57, both bolstered by reduced net unrealized investment losses and share repurchases totaling $557 million in Q2 2025. The statutory capital and surplus was $28.364 billion at quarter-end, with debt-to-capital ratio at 21.4%, consistent with the company's target range.
Segment-wise, Business Insurance reported net written premiums growth of 5% to $5.792 billion, with an improved combined ratio of 93.6%. The segment’s underwriting gain increased due to higher premiums and favorable prior reserve development despite catastrophe losses. Bond & Specialty Insurance saw net written premiums increase by 4% to $1.085 billion and improved underwriting results with a combined ratio of 80.3%. Personal Insurance experienced a 3% growth in net written premiums to $4.666 billion and a combined ratio improvement to 88.4%, benefiting from lower catastrophe losses and improved underwriting margins.
Investment income rose 6% to $942 million pre-tax for the quarter, supported by growth in average invested assets and higher yields, with net realized investment gains reversing losses from the prior year’s quarter. The company returned over $800 million in capital to shareholders during the quarter through dividends and share repurchases.
Travelers attributed its strong operational performance to disciplined underwriting, effective catastrophe loss management, and a robust fixed income investment portfolio. The stability of retention rates across segments and strong renewal premium changes contributed to premium growth.
Looking forward, Travelers emphasized continued execution of its strategic priorities, maintaining capital strength, and generating consistent underwriting and investment earnings. The company's diversified business model and geographic presence provide resilience amid market volatility.
Travelers’ management remains confident in sustaining favorable core returns on equity above 18% and expanding adjusted book value per share while managing catastrophe exposures and reserving accuracy. The company also maintains ample capital flexibility under its share repurchase program.
Conference call and webcast details for further investor discussion were announced, reinforcing the company's commitment to transparency and shareholder engagement.
Overall, Travelers demonstrates solid earnings momentum, balanced growth, and effective capital deployment, positioning it well within the competitive U.S. property casualty insurance industry.