• Travelers Reports 20% Rise in Q4 Net Income, Authorizes $5 Billion Share Repurchase
NEW YORK, United States – The Travelers Companies, Inc. on January 21 reported a 20% increase in fourth-quarter net income to $2.496 billion and announced its board has authorized an additional $5.0 billion for share repurchases.
What is new?
The Travelers Companies, Inc. announced its financial results for the fourth quarter and full year ending December 31, 2025.
For the fourth quarter, the company reported net income of $2.496 billion, a 20% increase from the prior year quarter. Core income for the same period rose 18% to $2.511 billion. In a concurrent announcement, the company’s Board of Directors authorized an additional $5.0 billion for its share repurchase program.
Key Financial Details
For the fourth quarter of 2025, net income per diluted share was $11.06, up 23% from $8.96 in the same period of 2024. The company’s consolidated combined ratio improved by 3.0 points to 80.2%, and its underlying combined ratio improved 1.8 points to 82.2%. After-tax net investment income increased 10% to $867 million. For the full year, Travelers reported net income of $6.288 billion and record operating cash flows of $10.606 billion. The company returned $1.897 billion to shareholders in the fourth quarter, including $1.653 billion in share repurchases.
Book value per share increased by 23% to $151.21 compared to year-end 2024, and adjusted book value per share rose 14% to $158.01. The growth in core income was attributed primarily to a higher underlying underwriting gain, increased net investment income, lower catastrophe losses, and net favorable prior year reserve development.
Segment Performance and Outlook
Alan Schnitzer, Chairman and Chief Executive Officer, stated that the results were driven by strong performance in both underwriting and investments. Net written premiums in the fourth quarter grew to $10.9 billion. The Business Insurance segment grew net written premiums to $5.5 billion with a retention rate of 85%. The Bond & Specialty Insurance segment increased net written premiums to $1.1 billion, maintaining a retention rate of 87%. In Personal Insurance, net written premiums reached $4.2 billion, reflecting strong renewal premium changes in Homeowners and higher new business in Auto.
Schnitzer expressed confidence in the company’s outlook for 2026, citing the durability of its business performance, underwriting excellence, and meaningful growth in net investment income.
About this company
The Travelers Companies, Inc. is a New York-based insurance provider. The company operates through three primary segments: Business Insurance, Personal Insurance, and Bond & Specialty Insurance. Its operations include a significant surety business. The company manages a high-quality investment portfolio to support its underwriting activities.
Update: Travelers Donates $250,000 For Hurricane Helene, Milton Relief