The Travelers Companies, Inc. has reported outstanding financial results for the quarter ended September 30, 2025, driven by significant underwriting improvement and lower catastrophe losses.
In a report to the New York Stock Exchange, Travelers posted third-quarter core income of $1.867 billion, marking a 53% increase from the prior year, translating to $8.14 per diluted share and an impressive core return on equity of 22.6%. Net income similarly rose 50% to $1.888 billion.
Travelers’ consolidated combined ratio—a key measure of profitability—improved by 5.9 points to an excellent 87.3%, it added. Crucially, the underlying combined ratio, which excludes catastrophe losses and prior year reserve development, improved 1.7 points to an exceptional 83.9%.
Catastrophe losses for the quarter were nearly cut in half, falling to $402 million pre-tax compared to US$939 million in the third quarter of 2024, the company said.
“We are very pleased to report another quarter of excellent results,” said Alan Schnitzer, Travelers Chairman and Chief Executive Officer. “We earned core income of $1.9 billion, or $8.14 per diluted share, generating core return on equity of 22.6%. Very strong underwriting results and higher investment income drove the bottom line.”
Underwriting income for the quarter more than doubled to US$1.4 billion pre-tax. This was supported by robust returns from its investment portfolio, which generated after-tax net investment income of $850 million, up 15%.
Schnitzer added that the underlying results were “driven by higher net earned premiums and an underlying combined ratio that improved to an exceptional 83.9%. Underwriting income was higher in all three segments.”
The company grew net written premiums to $11.5 billion. Business insurance premiums rose 3%, led by 7% growth in the middle market business.
Personal insurance saw a dramatic segment income surge of $423 million to $807 million after-tax, benefiting from an 11.2-point improvement in its combined ratio to 81.3%.
Travelers also maintained its focus on capital management, returning $878 million to shareholders, including $628 million in share repurchases. Book value per share increased 16% over the prior year.
Looking at year-to-date results, core income increased by $915 million to $3.814 billion, as Schnitzer expressed confidence in the company’s forward momentum.
“Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance… Looking ahead, this strong momentum, the benefit of scale and the compelling opportunities before us give us great confidence in the outlook for our business,” he said.
