Travelers Soars: Q2 2025 Results Exceed Expectations
In a stunning display of financial prowess, Travelers announced exceptional second quarter results for 2025. The company's Chairman and CEO, Alan Schnitzer, proudly highlighted the outstanding performance in the recent conference call transcript.
With core income reaching $1.5 billion or $6.51 per diluted share, Travelers' core return on equity (ROE) stood at an impressive 18.8% for the quarter. This achievement brought the company's core ROE for the trailing 12 months to a remarkable 17.1%. The underwriting income, driven by strong net earned premiums and a reported combined ratio that improved almost 10 points to 90.3%, played a significant role in this success.
Underlying underwriting income of $1.6 billion pretax marked a notable 35% increase over the prior year quarter, propelled by 7% growth in net earned premiums to $10.9 billion and an underlying combined ratio that improved 3 points to an excellent 84.7%. All three segments – Business Insurance, Bond & Specialty Insurance, and Personal Insurance – contributed significantly to these outstanding results.
Travelers' high-quality investment portfolio continued to perform well, generating after-tax net investment income of $774 million for the quarter. This reliable return from its growing fixed-income portfolio complemented the underwriting success, further bolstering the company's financial standing.
During the quarter, Travelers returned more than $800 million of capital to shareholders through share repurchases and dividends. Adjusted book value per share increased by over 14% as compared to a year ago, underscoring the company's strong balance sheet.
In addition to its underwriting achievements, Travelers demonstrated impressive skill in executing growth initiatives. The company grew net written premiums to $11.5 billion in the quarter, with growth in all three segments. Business Insurance saw a 5% increase in net written premiums to $5.8 billion, fueled by strong renewal premium change of 7.7%, while Bond & Specialty Insurance experienced 4% growth.
Notably, Travelers reported a record $744 million in new business for the quarter, reflecting the company's dedication to delivering value products, services, and experiences to its customers and distribution partners. This achievement demonstrates the strength of Travelers' relationships with its clients and stakeholders.
The conference call transcript provides a comprehensive view of Travelers' financial performance and strategic initiatives. As Alan Schnitzer emphasized during the call, these exceptional results are a testament to the company's commitment to excellence in underwriting and investment management.
