Third Quarter 2025 Net Income per Diluted Share of $8.24, up 52%, and Return on Equity of 24.7%

Third Quarter 2025 Core Income per Diluted Share of $8.14, up 55%, and Core Return on Equity of 22.6%

Third quarter net income of $1.888 billion, up 50%, and core income of $1.867 billion, up 53%.
Consolidated combined ratio improved 5.9 points from the prior year quarter to an excellent 87.3%.
Underlying combined ratio improved 1.7 points from the prior year quarter to an exceptional 83.9%.
Catastrophe losses were $402 million pre-tax compared to $939 million in the prior year quarter.
Net investment income increased 15% after-tax over the prior year quarter to $850 million.
Total capital returned to shareholders of $878 million, including $628 million of share repurchases.
Strong growth in book value per share, up 16%, and adjusted book value per share, up 15%, compared to the prior year quarter.

The Travelers Companies, Inc. today reported net income of $1.888 billion, or $8.24 per diluted share, for the quarter ended September 30, 2025, compared to $1.260 billion, or $5.42 per diluted share, in the prior year quarter. Core income in the current quarter was $1.867 billion, or $8.14 per diluted share, compared to $1.218 billion, or $5.24 per diluted share, in the prior year quarter. Core income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and higher net investment income, partially offset by lower net favorable prior year reserve development. Net realized investment gains in the current quarter were $27 million pre-tax ($21 million after-tax), compared to $55 million pre-tax ($42 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)	Three Months Ended September 30,									Nine Months Ended September 30,
	2025			2024			Change			2025			2024			Change
Net written premiums	$	11,473		$	11,317		1	%		$	33,531		$	32,614		3	%

Total revenues	$	12,470		$	11,904		5			$	36,396		$	34,415		6
Net income	$	1,888		$	1,260		50			$	3,792		$	2,917		30
per diluted share	$	8.24		$	5.42		52			$	16.45		$	12.51		31
Core income	$	1,867		$	1,218		53			$	3,814		$	2,899		32
per diluted share	$	8.14		$	5.24		55			$	16.54		$	12.43		33
Diluted weighted average shares outstanding		227.5			230.6		(1	)			228.9			231.3		(1	)
Combined ratio		87.3	%		93.2	%	(5.9	)	pts		93.2	%		95.7	%	(2.5	)	pts
Underlying combined ratio		83.9	%		85.6	%	(1.7	)	pts		84.4	%		87.0	%	(2.6	)	pts
Return on equity		24.7	%		19.2	%	5.5		pts		17.3	%		15.3	%	2.0		pts
Core return on equity		22.6	%		16.6	%	6.0		pts		15.8	%		13.4	%	2.4		pts

	As of						Change From
	September 30, 2025		December 31, 2024		September 30, 2024		December 31, 2024		September 30, 2024
Book value per share	$	141.72	$	122.97	$	122.00	15	%	16	%
Adjusted book value per share		150.55		139.04		131.30	8	%	15	%
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

"We are very pleased to report another quarter of excellent results," said Alan Schnitzer, 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 of $1.4 billion pre-tax more than doubled compared to the prior year quarter, benefiting from both a lower level of catastrophe losses and higher underlying underwriting income. The underlying result was 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. Our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $850 million, up 15%. During the quarter, we returned almost $900 million of excess capital to shareholders, including $628 million of share repurchases.

"In the third quarter, we grew net written premiums to $11.5 billion with terrific execution by our field organization. In Business Insurance, we grew net written premiums by 3% to $5.7 billion, led by 4% growth in our domestic business. We grew our leading Middle Market business and our Select Accounts small commercial business by 7% and 4%, respectively. Renewal premium change in the segment of 7.1% and retention of 85% both remained strong. In Bond & Specialty Insurance, we grew net written premiums to $1.1 billion, with higher renewal premium change and continued strong retention of 87% in our high-quality management liability business. Net written premium in our market-leading surety business remained strong. In Personal Insurance, net written premiums were $4.7 billion with strong renewal premium change in our Homeowners business.

"Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance driven by competitive advantages that distinguish us in the marketplace along with the returns from our more than $100 billion investment portfolio. Over this same period, we grew adjusted book value per share by 15%, after returning more than $2.7 billion of excess capital to shareholders and making substantial investments in transformative technology. 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."

Consolidated Results
	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	1,378			$	685			$	693			$	2,095			$	1,197			$	898
Underwriting gain includes:
Net favorable prior year reserve development		22				126				(104	)			715				447				268
Catastrophes, net of reinsurance		(402	)			(939	)			537				(3,595	)			(3,160	)			(435	)
Net investment income		1,033				904				129				2,905				2,635				270
Other income (expense), including interest expense		(94	)			(84	)			(10	)			(279	)			(271	)			(8	)
Core income before income taxes		2,317				1,505				812				4,721				3,561				1,160
Income tax expense		450				287				163				907				662				245
Core income		1,867				1,218				649				3,814				2,899				915
Net realized investment gains (losses) after income taxes		21				42				(21	)			(22	)			18				(40	)
Net income	$	1,888			$	1,260			$	628			$	3,792			$	2,917			$	875

Combined ratio		87.3	%			93.2	%			(5.9	)	pts		93.2	%			95.7	%			(2.5	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(0.2	)	pts		(1.2	)	pts		1.0		pts		(2.2	)	pts		(1.5	)	pts		(0.7	)	pts
Catastrophes, net of reinsurance		3.6		pts		8.8		pts		(5.2	)	pts		11.0		pts		10.2		pts		0.8		pts
Underlying combined ratio		83.9	%			85.6	%			(1.7	)	pts		84.4	%			87.0	%			(2.6	)	pts

Net written premiums
Business Insurance	$	5,675			$	5,517				3	%		$	17,165			$	16,652				3	%
Bond & Specialty Insurance		1,080				1,072				1				3,164				3,055				4
Personal Insurance		4,718				4,728				—				13,202				12,907				2
Total	$	11,473			$	11,317				1	%		$	33,531			$	32,614				3	%

Third Quarter 2025 Results

(All comparisons vs. third quarter 2024, unless noted otherwise)

Net income of $1.888 billion increased $628 million, driven by higher core income, partially offset by lower net realized investment gains. Core income of $1.867 billion increased $649 million, primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income, partially offset by lower net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes. Net realized investment gains were $27 million pre-tax ($21 million after-tax), compared to $55 million pre-tax ($42 million after-tax) in the prior year quarter.

Combined ratio:

The combined ratio of 87.3% improved 5.9 points due to lower catastrophe losses (5.2 points) and an improvement in the underlying combined ratio (1.7 points), partially offset by lower net favorable prior year reserve development (1.0 points).

The underlying combined ratio improved 1.7 points to an exceptional 83.9%. See below for further details by segment.

Net favorable prior year reserve development in Personal Insurance and Bond & Specialty Insurance was partially offset by net unfavorable prior year reserve development in Business Insurance driven by the Company's annual in-depth asbestos review. See below for further details by segment.

Catastrophe losses primarily resulted from severe wind and hail storms in multiple states.

Net investment income of $1.033 billion pre-tax ($850 million after-tax) increased 14%, primarily due to growth in average invested assets and a higher average yield in the long-term fixed income investment portfolio.

Net written premiums of $11.473 billion increased 1%. See below for further details by segment.

Year-to-Date 2025 Results

(All comparisons vs. year-to-date 2024, unless noted otherwise)

Net income of $3.792 billion increased $875 million, driven by higher core income, partially offset by net realized investment losses compared to net realized investment gains in the prior year period. Core income of $3.814 billion increased $915 million, primarily due to a higher underlying underwriting gain, higher net investment income and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $28 million pre-tax ($22 million after-tax), compared to net realized investment gains of $25 million pre-tax ($18 million after-tax) in the prior year period.

Combined ratio:

The combined ratio of 93.2% improved 2.5 points due to an improvement in the underlying combined ratio (2.6 points) and higher net favorable prior year reserve development (0.7 points), partially offset by higher catastrophe losses (0.8 points).

The underlying combined ratio of 84.4% improved 2.6 points. See below for further details by segment.

Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

Catastrophe losses included the third quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first six months of 2025.

Net investment income of $2.905 billion pre-tax ($2.387 billion after-tax) increased 10% driven by the same factors described above for the third quarter of 2025.

Net written premiums of $33.531 billion increased 3%. See below for further details by segment.

Shareholders' Equity

Shareholders' equity of $31.609 billion increased 13% over year-end 2024, primarily due to net income of $3.792 billion and lower net unrealized investment losses, partially offset by common share repurchases and dividends to shareholders. Net unrealized investment losses included in shareholders' equity were $2.484 billion pre-tax ($1.970 billion after-tax), compared to $4.609 billion pre-tax ($3.640 billion after-tax) at year-end 2024. The decrease in net unrealized investment losses was driven by lower interest rates. Book value per share of $141.72 increased 16% over September 30, 2024 and 15% over year-end 2024. Adjusted book value per share of $150.55, which excludes net unrealized investment losses, increased 15% over September 30, 2024 and 8% over year-end 2024.

The Company repurchased 2.3 million shares during the third quarter at an average price of $271.73 per share for a total cost of $628 million. At September 30, 2025, the Company had $3.665 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors. At the end of the quarter, statutory capital and surplus was $29.965 billion, and the ratio of debt-to-capital was 22.7%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders' equity was 21.6%, within the Company's target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $1.10 per share. The dividend is payable December 31, 2025, to shareholders of record at the close of business on December 10, 2025.

Business Insurance Segment Financial Results
	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	392			$	219			$	173			$	933			$	746			$	187
Underwriting gain includes:
Net favorable (unfavorable) prior year reserve development		(125	)			(91	)			(34	)			28				(57	)			85
Catastrophes, net of reinsurance		(139	)			(340	)			201				(1,016	)			(938	)			(78	)
Net investment income		727				642				85				2,045				1,883				162
Other income (expense)		(1	)			(1	)			—				(8	)			(20	)			12
Segment income before income taxes		1,118				860				258				2,970				2,609				361
Income tax expense		211				162				49				567				491				76
Segment income	$	907			$	698			$	209			$	2,403			$	2,118			$	285

Combined ratio		92.9	%			95.8	%			(2.9	)	pts		94.2	%			95.1	%			(0.9	)	pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development		2.2		pts		1.7		pts		0.5		pts		(0.2	)	pts		0.4		pts		(0.6	)	pts
Catastrophes, net of reinsurance		2.4		pts		6.2		pts		(3.8	)	pts		6.1		pts		5.9		pts		0.2		pts
Underlying combined ratio		88.3	%			87.9	%			0.4		pts		88.3	%			88.8	%			(0.5	)	pts

Net written premiums by market
Domestic
Select Accounts	$	920			$	885				4	%		$	2,900			$	2,834				2	%
Middle Market		3,232				3,030				7				9,432				9,012				5
National Accounts		273				264				3				914				903				1
National Property and Other		841				896				(6	)			2,446				2,450				—
Total Domestic		5,266				5,075				4				15,692				15,199				3
International		409				442				(7	)			1,473				1,453				1
Total	$	5,675			$	5,517				3	%		$	17,165			$	16,652				3	%

Third Quarter 2025 Results

(All comparisons vs. third quarter 2024, unless noted otherwise)

Segment income for Business Insurance was $907 million after-tax, an increase of $209 million. Segment income increased primarily due to lower catastrophe losses and higher net investment income, partially offset by higher net unfavorable prior year reserve development.

Combined ratio:

The combined ratio of 92.9% improved 2.9 points due to lower catastrophe losses (3.8 points), partially offset by higher net unfavorable prior year reserve development (0.5 points) and a higher underlying combined ratio (0.4 points).

The underlying combined ratio was an excellent 88.3%.

The annual asbestos review resulted in a charge of $277 million. Excluding the asbestos charge, net favorable prior year reserve development was $152 million, primarily driven by better than expected loss experience in the workers' compensation product line for multiple accident years.

Net written premiums of $5.675 billion increased 3%, led by strong growth of 7% in our core Middle Market business. This was partially offset by a 6% decline in net written premiums in National Property and Other, reflecting disciplined underwriting.

Year-to-Date 2025 Results

(All comparisons vs. year-to-date 2024, unless noted otherwise)

Segment income for Business Insurance was $2.403 billion after-tax, an increase of $285 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net investment income and net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year period, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 94.2% improved 0.9 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in prior year period (0.6 points) and an improvement in the underlying combined ratio (0.5 points), partially offset by higher catastrophe losses (0.2 points).

The underlying combined ratio improved 0.5 points to an excellent 88.3%.

Net favorable prior year reserve development was primarily driven by better than expected loss experience in the workers' compensation product line for multiple accident years, partially offset by an addition to reserves related to run-off operations, including an addition to asbestos reserves of $277 million.

Net written premiums of $17.165 billion increased 3%, after the ceded premium impact of the enhanced casualty reinsurance program that took effect January 1, 2025. This change in reinsurance reduced the segment's net written premium growth by 1 point, as the full year's worth of ceded premium was recorded in the first quarter of 2025. Premium growth also reflected strong renewal premium change and retention.

Bond & Specialty Insurance Segment Financial Results
	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	188			$	172			$	16			$	554			$	431			$	123
Underwriting gain includes:
Net favorable prior year reserve development		43				36				7				191				84				107
Catastrophes, net of reinsurance		—				(4	)			4				(24	)			(49	)			25
Net investment income		116				101				15				325				285				40
Other income		7				6				1				15				17				(2	)
Segment income before income taxes		311				279				32				894				733				161
Income tax expense		61				57				4				180				146				34
Segment income	$	250			$	222			$	28			$	714			$	587			$	127

Combined ratio		81.6	%			82.5	%			(0.9	)	pts		81.5	%			84.9	%			(3.4	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(4.2	)	pts		(3.5	)	pts		(0.7	)	pts		(6.2	)	pts		(2.9	)	pts		(3.3	)	pts
Catastrophes, net of reinsurance		—		pts		0.4		pts		(0.4	)	pts		0.8		pts		1.7		pts		(0.9	)	pts
Underlying combined ratio		85.8	%			85.6	%			0.2		pts		86.9	%			86.1	%			0.8		pts

Net written premiums
Domestic
Management Liability	$	613			$	617				(1	)%		$	1,755			$	1,746				1	%
Surety		342				344				(1	)			1,017				965				5
Total Domestic		955				961				(1	)			2,772				2,711				2
International		125				111				13				392				344				14
Total	$	1,080			$	1,072				1	%		$	3,164			$	3,055				4	%

Third Quarter 2025 Results

(All comparisons vs. third quarter 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $250 million after-tax, an increase of $28 million. Segment income increased primarily due to higher net investment income, a higher underlying underwriting gain, higher net favorable prior year reserve development and lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 81.6% improved 0.9 points due to higher net favorable prior year reserve development (0.7 points) and lower catastrophe losses (0.4 points), partially offset by a higher underlying combined ratio (0.2 points).

The underlying combined ratio was very strong at 85.8%.

Net favorable prior year reserve development was primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years.

Net written premiums of $1.080 billion increased 1%.

Year-to-Date 2025 Results

(All comparisons vs. year-to-date 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $714 million after-tax, an increase of $127 million. Segment income increased primarily due to higher net favorable prior year reserve development, higher net investment income and lower catastrophe losses, partially offset by a lower underlying underwriting gain. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 81.5% improved 3.4 points due to higher net favorable prior year reserve development (3.3 points) and lower catastrophe losses (0.9 points), partially offset by a higher underlying combined ratio (0.8 points).

The underlying combined ratio was very strong at 86.9%.

Net favorable prior year reserve development was primarily driven by the same factors described above for the third quarter of 2025.

Net written premiums of $3.164 billion increased 4%, reflecting production growth in both surety and management liability.

Personal Insurance Segment Financial Results
	Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	798			$	294			$	504			$	608			$	20			$	588
Underwriting gain includes:
Net favorable prior year reserve development		104				181				(77	)			496				420				76
Catastrophes, net of reinsurance		(263	)			(595	)			332				(2,555	)			(2,173	)			(382	)
Net investment income		190				161				29				535				467				68
Other income		24				20				4				59				57				2
Segment income before income taxes		1,012				475				537				1,202				544				658
Income tax expense		205				91				114				235				93				142
Segment income	$	807			$	384			$	423			$	967			$	451			$	516

Combined ratio		81.3	%			92.5	%			(11.2	)	pts		94.8	%			99.2	%			(4.4	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(2.4	)	pts		(4.3	)	pts		1.9		pts		(3.8	)	pts		(3.4	)	pts		(0.4	)	pts
Catastrophes, net of reinsurance		6.0		pts		14.1		pts		(8.1	)	pts		19.7		pts		17.6		pts		2.1		pts
Underlying combined ratio		77.7	%			82.7	%			(5.0	)	pts		78.9	%			85.0	%			(6.1	)	pts

Net written premiums
Domestic
Automobile	$	2,062			$	2,138				(4	)%		$	5,889			$	5,998				(2	)%
Homeowners and Other		2,489				2,410				3				6,822				6,392				7
Total Domestic		4,551				4,548				—				12,711				12,390				3
International		167				180				(7	)			491				517				(5	)
Total	$	4,718			$	4,728				—	%		$	13,202			$	12,907				2	%

Third Quarter 2025 Results

(All comparisons vs. third quarter 2024, unless noted otherwise)

Segment income for Personal Insurance was $807 million after-tax, an increase of $423 million. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income, partially offset by lower net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 81.3% improved 11.2 points due to lower catastrophe losses (8.1 points) and an improvement in the underlying combined ratio (5.0 points), partially offset by lower net favorable prior year reserve development (1.9 points).

The underlying combined ratio of 77.7% improved 5.0 points, reflecting improvement in both Homeowners and Other and Automobile.

Net favorable prior year reserve development was primarily driven by better than expected loss experience in the Automobile product line for recent accident years.

Net written premiums of $4.718 billion were comparable to the prior year quarter.

Year-to-Date 2025 Results

(All comparisons vs. year-to-date 2024, unless noted otherwise)

Segment income for Personal Insurance was $967 million after-tax, an increase of $516 million. Segment income increased primarily due to a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 94.8% improved 4.4 points due to an improvement in the underlying combined ratio (6.1 points) and higher net favorable prior year reserve development (0.4 points), partially offset by higher catastrophe losses (2.1 points).

The underlying combined ratio of 78.9% improved 6.1 points, reflecting improvement in both Homeowners and Other and Automobile.

Net favorable prior year reserve development was primarily driven by better than expected loss experience in both the Automobile and Homeowners and Other product lines for recent accident years.

Net written premiums of $13.202 billion increased 2%, reflecting strong renewal premium change in Homeowners and Other.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the financial supplement that is available on our website at Travelers.com. Travelers management will discuss the contents of this release and other relevant topics via webcast at 9:00 a.m. Eastern (8:00 a.m. Central) on Thursday, October 16, 2025. Investors can access the call via webcast at investor.travelers.com and by dialing 1.888.440.6281 within the United States or 1.646.960.0218 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company's website.

Following the live event, replays will be available via webcast for one year at investor.travelers.com and by telephone for seven days by dialing 1.800.770.2030 within the United States or 1.647.362.9199 outside the United States. All callers should use conference ID 5449478.

About Travelers

The Travelers Companies, Inc. (NYSE:TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of more than $46 billion in 2024. For more information, visit Travelers.com.

Travelers may use its website and/or social media outlets, such as Facebook and X, as distribution channels of material Company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at investor.travelers.com, our Facebook page at facebook.com/travelers and our X account (@Travelers) at x.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at investor.travelers.com.

Travelers is organized into the following reportable business segments:

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd's.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom and the Republic of Ireland, as well as Brazil through a joint venture, in each case utilizing various degrees of financially-based underwriting approaches.

Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals' personal risks, primarily in the United States, as well as in Canada. Personal Insurance's primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

* * * * *

Forward-Looking Statements

This press release contains, and management may make, certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as "may," "will," "should," "likely," "probably," "anticipates," "expects," "intends," "plans," "projects," "believes," "views," "ensures," "estimates" and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company's statements about:

the Company's outlook, the impact of trends on its business and its future results of operations and financial condition;
the impact of legislative or regulatory actions or court decisions;
share repurchase plans;
future pension plan contributions;
the sufficiency of the Company's reserves, including asbestos;
the impact of emerging claims issues as well as other insurance and non-insurance litigation;
the cost and availability of reinsurance coverage;
catastrophe losses and modeling;
the impact of investment, economic and underwriting market conditions, including interest rates, the impact of tariffs and inflation;
the Company's approach to managing its investment portfolio;
the impact of changing climate conditions;
strategic and operational initiatives to improve growth, profitability and competitiveness;
the Company's competitive advantages and innovation agenda, including executing on that agenda with respect to artificial intelligence;
the Company's cybersecurity policies and practices;
new product offerings;
the impact of developments in the tort environment;
the impact of developments in the geopolitical environment;
the impact of a continued shutdown of the U.S. government; and
the sale of our Canadian personal insurance business and the majority of our Canadian commercial insurance business, including with respect to the expected closing of the transaction, use of proceeds, including share repurchases, and financial impact of the sale.

The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company's control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

Insurance-Related Risks

high levels of catastrophe losses;
actual claims may exceed the Company's claims and claim adjustment expense reserves, the estimated level of claims and claim adjustment expense reserves may increase, or increases in loss costs may not be offset with sufficient price increases, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation and the impact of tariffs;
the Company's continued exposure to asbestos and environmental claims and related litigation;
the Company is exposed to, and may face adverse developments involving, mass tort claims; and
the effects of emerging claim and coverage issues on the Company's business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks

a period of financial market disruption or an economic downturn;
the Company's investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;
the Company is exposed to credit risk related to reinsurance and structured settlements, and reinsurance coverage may not be available to the Company;
the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;
a downgrade in the Company's claims-paying and financial strength ratings; and
the Company's insurance subsidiaries may be unable to pay dividends to the Company's holding company in sufficient amounts.

Business and Operational Risks

the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change, including with respect to artificial intelligence, and changing customer preferences on the insurance industry and the markets in which it operates;
disruptions to the Company's relationships with its independent agents and brokers or the Company's inability to manage effectively a changing distribution landscape;
the Company's efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or make acquisitions may not be successful and may create enhanced risks;
the Company's pricing and capital models may provide materially different indications than actual results;
loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company's products;
the Company is subject to additional risks associated with its business outside the United States;
future pandemics (including new variants of COVID-19); and
the sale of our Canadian insurance business (excluding surety) to Definity Financial Corporation is subject to closing conditions, including obtaining required regulatory approvals and the satisfaction of other customary closing conditions, and may not occur.

Technology and Intellectual Property Risks

as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
the Company's dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.

Regulatory and Compliance Risks

changes in regulation, including changes in tax laws; and
the Company's compliance controls may not be effective.

In addition, the Company's share repurchase plans depend on a variety of factors, including the Company's financial position, earnings, share price, catastrophe losses, maintaining capital levels appropriate for the Company's business operations, changes in levels of written premiums, funding of the Company's qualified pension plan, capital requirements of the Company's operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Forward Looking Statements" in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on October 16, 2025, and in our most recent annual report on Form 10-K filed with the SEC on February 13, 2025, in each case as updated by our periodic filings with the SEC.

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

The following measures are used by the Company's management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. Reconciliations of these measures to the most comparable GAAP measures also follow.

In the opinion of the Company's management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company's periodic results of operations and how management evaluates the Company's financial performance.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders' equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company's management.

RECONCILIATION OF NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Reconciliation of Net Income to Core Income less Preferred Dividends
	Three Months Ended September 30,						Nine Months Ended September 30,					Twelve Months Ended September 30,
($ in millions, after-tax)	2025			2024			2025		2024			2025		2024
Net income	$	1,888		$	1,260		$	3,792	$	2,917		$	5,874	$	4,543
Adjustments:
Net realized investment (gains) losses		(21	)		(42	)		22		(18	)		66		(11	)
Core income	$	1,867		$	1,218		$	3,814	$	2,899		$	5,940	$	4,532

	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, pre-tax)	2025			2024			2025		2024
Net income	$	2,344		$	1,560		$	4,693	$	3,586
Adjustments:
Net realized investment (gains) losses		(27	)		(55	)		28		(25	)
Core income	$	2,317		$	1,505		$	4,721	$	3,561

	Twelve Months Ended December 31,												Average Annual
($ in millions, after-tax)	2024		2023		2022		2021			2020			2005 - 2019
Net income	$	4,999	$	2,991	$	2,842	$	3,662		$	2,697		$	3,007
Less: Loss from discontinued operations		—		—		—		—			—			(29	)
Income from continuing operations		4,999		2,991		2,842		3,662			2,697			3,036
Adjustments:
Net realized investment (gains) losses		26		81		156		(132	)		(11	)		(44	)
Impact of changes in tax laws and/or tax rates (1) (2)		—		—		—		(8	)		—			9
Core income		5,025		3,072		2,998		3,522			2,686			3,001
Less: Preferred dividends		—		—		—		—			—			2
Core income, less preferred dividends	$	5,025	$	3,072	$	2,998	$	3,522		$	2,686		$	2,999
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis
	Three Months Ended September 30,						Nine Months Ended September 30,
	2025			2024			2025		2024
Diluted income per share
Net income	$	8.24		$	5.42		$	16.45	$	12.51
Adjustments:
Net realized investment (gains) losses, after-tax		(0.10	)		(0.18	)		0.09		(0.08	)
Core income	$	8.14		$	5.24		$	16.54	$	12.43

Reconciliation of Segment Income to Total Core Income
	Three Months Ended September 30,						Nine Months Ended September 30,
($ in millions, after-tax)	2025			2024			2025			2024
Business Insurance	$	907		$	698		$	2,403		$	2,118
Bond & Specialty Insurance		250			222			714			587
Personal Insurance		807			384			967			451
Total segment income		1,964			1,304			4,084			3,156
Interest Expense and Other		(97	)		(86	)		(270	)		(257	)
Total core income	$	1,867		$	1,218		$	3,814		$	2,899

RECONCILIATION OF SHAREHOLDERS' EQUITY TO ADJUSTED SHAREHOLDERS' EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders' equity is shareholders' equity excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders' Equity to Adjusted Shareholders' Equity
	As of September 30,
($ in millions)	2025		2024
Shareholders' equity	$	31,609	$	27,696
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders' equity		1,970		2,111
Net realized investment (gains) losses, net of tax		22		(18	)
Adjusted shareholders' equity	$	33,601	$	29,789

	As of December 31,												Average Annual
($ in millions)	2024		2023		2022		2021			2020			2005 - 2019
Shareholders' equity	$	27,864	$	24,921	$	21,560	$	28,887		$	29,201		$	24,744
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders' equity		3,640		3,129		4,898		(2,415	)		(4,074	)		(1,300	)
Net realized investment (gains) losses, net of tax		26		81		156		(132	)		(11	)		(44	)
Impact of changes in tax laws and/or tax rates (1) (2)		—		—		—		(8	)		—			19
Preferred stock		—		—		—		—			—			(42	)
Loss from discontinued operations		—		—		—		—			—			29
Adjusted shareholders' equity	$	31,530	$	28,131	$	26,614	$	26,332		$	25,116		$	23,406
(1) Impact is recognized in the accounting period in which the change is enacted
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders' equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) less preferred dividends to adjusted average shareholders' equity for the periods presented. In the opinion of the Company's management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Average shareholders' equity is (a) the sum of total shareholders' equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted average shareholders' equity is (a) the sum of total adjusted shareholders' equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.

Calculation of Return on Equity and Core Return on Equity
	Three Months Ended September 30,						Nine Months Ended September 30,						Twelve Months Ended September 30,
($ in millions, after-tax)	2025			2024			2025			2024			2025			2024
Annualized net income	$	7,554		$	5,041		$	5,057		$	3,889		$	5,874		$	4,543
Average shareholders' equity		30,563			26,279			29,148			25,398			28,806			24,661
Return on equity		24.7	%		19.2	%		17.3	%		15.3	%		20.4	%		18.4	%
Annualized core income	$	7,467		$	4,870		$	5,085		$	3,865		$	5,940		$	4,532
Adjusted average shareholders' equity		33,053			29,301			32,197			28,834			31,817			28,438
Core return on equity		22.6	%		16.6	%		15.8	%		13.4	%		18.7	%		15.9	%

Twelve Months Ended

December 31,

Average

Annual

($ in millions, after-tax)

2024

2023

Travelers Reports Excellent Third Quarter and Year-to-Date Results