Yahoo Finance

• Core Income: $443 million or $1.91 per diluted share.

• Core Return on Equity: 14.5% over the last four quarters.

• Underlying Underwriting Income: $1.6 billion pre-tax, up over 30% year-over-year.

• Net Earned Premiums: $10.7 billion.

• Consolidated Underlying Combined Ratio: Improved by 2.9 points to 84.8%.

• Catastrophe Losses: $1.7 billion pre-tax from California wildfires.

• Operating Cash Flows: $1.4 billion.

• Net Investment Income: $763 million after tax.

• Shareholder Capital Return: Nearly $600 million, including $358 million in share repurchases.

• Adjusted Book Value Per Share: Increased by 11% year-over-year.

• Net Written Premiums: $10.5 billion.

• Business Insurance Net Written Premiums: $5.7 billion, a 2% increase.

• Bond & Specialty Insurance Net Written Premiums: Grew by 6% to $1 billion.

• Personal Insurance Net Written Premiums: Grew by 5% to $3.8 billion.

• Expense Ratio: 28.3%, improved by 40 basis points year-over-year.

• Net Favorable Prior Year Reserve Development: $378 million pre-tax.

• Adjusted Book Value Per Share: $138.99 at quarter end.

• Quarterly Dividend Increase: 5% to $1.10 per share.

• Warning! GuruFocus has detected 3 Warning Signs with FRA:0TX.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Travelers Companies Inc (NYSE:TRV) reported a substantial profit for the quarter with core income of $443 million, despite significant catastrophe losses from the California wildfires.

• The company achieved a core return on equity of 14.5% over the last four quarters, demonstrating strong underlying fundamentals.

• Net earned premiums reached $10.7 billion, with a consolidated underlying combined ratio improving by 2.9 points to 84.8%.

• The company returned nearly $600 million of excess capital to shareholders, including $358 million in share repurchases.

• The Board of Directors declared a 5% increase in the quarterly cash dividend, marking 21 consecutive years of dividend increases.

Negative Points

• Catastrophe losses from the California wildfires amounted to $1.7 billion pre-tax, significantly impacting the quarter's results.

• The personal insurance segment reported a loss of $374 million, with a combined ratio of 115.2% due to the wildfires.

• The company faces potential impacts from tariffs, which could lead to a mid single-digit increase in personal auto severity.

• Workers' compensation pricing remains under pressure, with continued pricing declines impacting growth.

• The company is managing constraints in property capacity, particularly in high-risk geographies, which affects growth in the personal insurance segment.