Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(in millions, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenues
Premiums	$	10,921	$	10,243	$	21,631	$	20,369
Net investment income	942		885		1,872		1,731
Fee income	124		115		243		224
Net realized investment gains (losses)	6		(65)		(55)		(30)
Other revenues	123		105		235		217
Total revenues	12,116		11,283		23,926		22,511
Claims and expenses
Claims and claim adjustment expenses	6,789		7,373		14,795		14,029
Amortization of deferred acquisition costs	1,802		1,678		3,580		3,376
General and administrative expenses	1,545		1,478		3,004		2,884
Interest expense	99		98		198		196
Total claims and expenses	10,235		10,627		21,577		20,485
Income before income taxes	1,881		656		2,349		2,026
Income tax expense	372		122		445		369
Net income	$	1,509	$	534	$	1,904	$	1,657
Net income per share
Basic	$	6.63	$	2.32	$	8.35	$	7.19
Diluted	$	6.53	$	2.29	$	8.23	$	7.09
Weighted average number of common shares outstanding
Basic	225.9		228.6		226.4		228.8
Diluted	229.3		231.5		229.7		231.8

Cash dividends declared per common share	$	1.10	$	1.05	$	2.15	$	2.05

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	1,509	$	534	$	1,904	$	1,657
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	341		(324)		777		(1,076)
Having credit losses recognized in the consolidated statement of income	—		1		1		3
Net changes in benefit plan assets and obligations	—		(2)		—		(3)
Net changes in unrealized foreign currency translation	228		(25)		289		(96)
Other comprehensive income (loss) before income taxes	569		(350)		1,067		(1,172)
Income tax expense (benefit)	86		(71)		185		(233)
Other comprehensive income (loss), net of taxes	483		(279)		882		(939)
Comprehensive income	$	1,992	$	255	$	2,786	$	718

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in millions)


	June 30, 2025		December 31, 2024
	(Unaudited)
Assets
Fixed maturities, available for sale, at fair value (amortized cost $91,406 and $88,277; allowance for expected credit losses of $4 and $2)	$	87,569	$	83,666
Equity securities, at fair value (cost $505 and $544)	651		687
Real estate investments	891		902
Short-term securities	4,748		4,766
Other investments	4,206		4,202
Total investments	98,065		94,223
Cash (including restricted cash of $138 and $131)	659		699
Investment income accrued	785		752
Premiums receivable (net of allowance for expected credit losses of $61 and $58)	12,042		11,110
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $127 and $119)	8,059		8,000
Ceded unearned premiums	1,692		1,202
Deferred acquisition costs	3,667		3,494
Deferred taxes	1,630		1,762
Contractholder receivables (net of allowance for expected credit losses of $17 and $18)	3,095		3,171
Goodwill	4,283		4,233
Other intangible assets	348		360
Other assets	4,548		4,183
Total assets	$	138,873	$	133,189
Liabilities
Claims and claim adjustment expense reserves	$	66,941	$	64,093
Unearned premium reserves	23,288		22,289
Contractholder payables	3,112		3,189
Payables for reinsurance premiums	987		550
Debt	8,034		8,033
Other liabilities	6,993		7,171
Total liabilities	109,355		105,325
Shareholders’ equity
Common stock (1,750.0 shares authorized; 225.1 and 226.6 shares issued and outstanding)	25,728		25,452
Retained earnings	51,041		49,630
Accumulated other comprehensive loss	(4,085)		(4,967)
Treasury stock, at cost (567.8 and 564.3 shares)	(43,166)		(42,251)
Total shareholders’ equity	29,518		27,864
Total liabilities and shareholders’ equity	$	138,873	$	133,189

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Common stock
Balance, beginning of period	$	25,584	$	25,163	$	25,452	$	24,906
Employee share-based compensation	87		21		136		200
Compensation amortization under share-based plans and other changes	57		61		140		139
Balance, end of period	25,728		25,245		25,728		25,245
Retained earnings
Balance, beginning of period	49,784		46,483		49,630		45,591


Net income	1,509		534		1,904		1,657
Dividends	(252)		(245)		(493)		(477)
Other	—		1		—		2
Balance, end of period	51,041		46,773		51,041		46,773
Accumulated other comprehensive income (loss), net of tax
Balance, beginning of period	(4,568)		(5,131)		(4,967)		(4,471)


Other comprehensive income (loss)	483		(279)		882		(939)
Balance, end of period	(4,085)		(5,410)		(4,085)		(5,410)
Treasury stock, at cost
Balance, beginning of period	(42,609)		(41,493)		(42,251)		(41,105)
Treasury stock acquired — share repurchase authorizations	(500)		(250)		(750)		(500)
Net shares acquired related to employee share-based compensation plans	(57)		(3)		(165)		(141)
Balance, end of period	(43,166)		(41,746)		(43,166)		(41,746)
Total shareholders’ equity	$	29,518	$	24,862	$	29,518	$	24,862
Common shares outstanding
Balance, beginning of period	226.6		229.0		226.6		228.2
Treasury stock acquired — share repurchase authorizations	(1.8)		(1.1)		(2.8)		(2.3)
Net shares issued under employee share-based compensation plans	0.3		—		1.3		2.0
Balance, end of period	225.1		227.9		225.1		227.9

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(in millions)


	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities
Net income	$	1,904	$	1,657
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment losses	55		30
Depreciation and amortization	352		378
Deferred federal income tax benefit	(52)		(43)
Amortization of deferred acquisition costs	3,580		3,376
Equity in income from other investments	(95)		(157)
Premiums receivable	(897)		(1,221)
Reinsurance recoverables	(19)		(1)
Deferred acquisition costs	(3,739)		(3,583)
Claims and claim adjustment expense reserves	2,543		2,312
Unearned premium reserves	914		1,245
Other	(852)		(858)
Net cash provided by operating activities	3,694		3,135
Cash flows from investing activities
Proceeds from maturities of fixed maturities	5,872		4,173
Proceeds from sales of investments:
Fixed maturities	601		1,250
Equity securities	100		62

Other investments	142		110
Purchases of investments:
Fixed maturities	(9,143)		(8,087)
Equity securities	(60)		(47)
Real estate investments	(13)		(24)
Other investments	(176)		(185)
Net sales of short-term securities	24		784
Securities transactions in the course of settlement	372		358
Acquisition, net of cash acquired	—		(382)
Other	(243)		(192)
Net cash used in investing activities	(2,524)		(2,180)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorizations	(750)		(499)
Treasury stock acquired — net employee share-based compensation	(124)		(111)
Dividends paid to shareholders	(490)		(473)


Issuance of common stock — employee share options	127		212
Net cash used in financing activities	(1,237)		(871)
Effect of exchange rate changes on cash and restricted cash	27		(5)
Net increase (decrease) in cash and restricted cash	(40)		79
Cash and restricted cash at beginning of year	699		650
Cash and restricted cash at end of period	$	659	$	729
Supplemental disclosure of cash flow information
Income taxes paid	$	562	$	855
Interest paid	$	197	$	195

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Basis of Presentation

The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the Company’s 2024 Annual Report).

The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. To the extent that the Company changes its accounting for, or presentation of, items in the financial statements, the presentation of such amounts in prior periods is changed to conform to the current period presentation, if appropriate, and disclosed, if material.

On May 27, 2025, the Company entered into an agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. The Company will retain its surety business in Canada. The sale is subject to regulatory approvals and customary closing conditions, and is expected to close in the first quarter of 2026.

Enactment of the One Big Beautiful Bill Act of 2025

On July 4, 2025, the U.S. enacted a budget reconciliation package known as the One Big Beautiful Bill Act of 2025 (OBBBA) which includes both tax and non-tax provisions. The changes resulting from the tax provisions in OBBBA are not expected to have a material impact on the Company’s results of operations.

2. SEGMENT INFORMATION

Nature of Operations

The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations*”* section of note 1 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

The following tables summarize the components of the Company’s revenues, income (loss) and total assets by reportable business segments:


(for the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2025
Premiums	$	5,545	$	1,021	$	4,355	$	10,921
Net investment income	662		107		173		942
Fee income	111		—		13		124
Other revenues	95		5		23		123
Total segment revenues (1)	6,413		1,133		4,564		12,110
Claims and claim adjustment expenses	3,584		418		2,787		6,789
Amortization of deferred acquisition costs	944		195		663		1,802
General and administrative expenses	875		214		444		1,533
Income tax expense	197		62		136		395
Segment income (1)	$	813	$	244	$	534	$	1,591

2024
Premiums	$	5,168	$	977	$	4,098	$	10,243
Net investment income	632		94		159		885
Fee income	105		—		10		115
Other revenues	77		6		22		105
Total segment revenues (1)	5,982		1,077		4,289		11,348
Claims and claim adjustment expenses	3,471		473		3,429		7,373
Amortization of deferred acquisition costs	861		183		634		1,678
General and administrative expenses	835		207		424		1,466
Income tax expense (benefit)	159		44		(45)		158
Segment income (loss) (1)	$	656	$	170	$	(153)	$	673

(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in “interest expense and other.” Segment income (loss) for reportable business segments excludes the after-tax impact of net realized investment gains (losses) and income (loss) from “interest expense and other.”

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(for the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2025
Premiums	$	11,010	$	2,016	$	8,605	$	21,631
Net investment income	1,318		209		345		1,872
Fee income	219		—		24		243
Other revenues	177		11		47		235
Total segment revenues (1)	12,724		2,236		9,021		23,981
Claims and claim adjustment expenses	7,289		852		6,654		14,795
Amortization of deferred acquisition costs	1,861		382		1,337		3,580
General and administrative expenses	1,722		419		840		2,981
Income tax expense	356		119		30		505
Segment income (1)	$	1,496	$	464	$	160	$	2,120

2024
Premiums	$	10,328	$	1,933	$	8,108	$	20,369
Net investment income	1,241		184		306		1,731
Fee income	206		—		18		224
Other revenues	154		15		48		217
Total segment revenues (1)	11,929		2,132		8,480		22,541
Claims and claim adjustment expenses	6,802		901		6,326		14,029
Amortization of deferred acquisition costs	1,725		365		1,286		3,376
General and administrative expenses	1,653		412		799		2,864
Income tax expense	329		89		2		420
Segment income (1)	$	1,420	$	365	$	67	$	1,852

(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in “interest expense and other.” Segment income for reportable business segments excludes the after-tax impact of net realized investment gains (losses) and income (loss) from “interest expense and other.”

Prior year reserve development and catastrophe losses by reportable business segments were as follows:


(for the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2025
Net favorable prior year reserve development	$	79	$	81	$	155	$	315
Catastrophe losses	$	368	$	5	$	554	$	927
2024
Net favorable prior year reserve development	$	34	$	24	$	172	$	230
Catastrophe losses	$	389	$	40	$	1,080	$	1,509

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(for the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2025
Net favorable prior year reserve development	$	153	$	148	$	392	$	693
Catastrophe losses	$	877	$	24	$	2,292	$	3,193
2024
Net favorable prior year reserve development	$	34	$	48	$	239	$	321
Catastrophe losses	$	598	$	45	$	1,578	$	2,221

The following tables present the Company’s amortization and depreciation expense by reportable business segment (excluding the amortization of deferred acquisition costs which is disclosed separately in the table above with segment income (loss) by reportable business segment):


(for the three months ended June 30, in millions)	2025		2024
Business Insurance	$	100	$	111
Bond & Specialty Insurance	18		21
Personal Insurance	45		48
Total	$	163	$	180


(for the six months ended June 30, in millions)	2025		2024
Business Insurance	$	213	$	228
Bond & Specialty Insurance	41		45
Personal Insurance	95		101
Total	$	349	$	374

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

Business Segment Reconciliations


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	841	$	864	$	1,664	$	1,744
Commercial automobile	968		874		1,910		1,734
Commercial property	960		894		1,897		1,767
General liability	862		845		1,723		1,692
Commercial multi-peril	1,435		1,246		2,835		2,516
Other	17		13		36		30
Total Domestic	5,083		4,736		10,065		9,483
International	462		432		945		845
Total Business Insurance	5,545		5,168		11,010		10,328
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	367		350		725		690
General liability	459		437		911		863
Other	59		58		117		114
Total Domestic	885		845		1,753		1,667
International	136		132		263		266
Total Bond & Specialty Insurance	1,021		977		2,016		1,933
Personal Insurance:
Domestic:
Automobile	1,980		1,919		3,944		3,793
Homeowners and Other	2,203		2,014		4,324		3,986
Total Domestic	4,183		3,933		8,268		7,779
International	172		165		337		329
Total Personal Insurance	4,355		4,098		8,605		8,108
Total earned premiums	10,921		10,243		21,631		20,369
Net investment income	942		885		1,872		1,731
Fee income	124		115		243		224
Other revenues	123		105		235		217
Total segment revenues	12,110		11,348		23,981		22,541

Net realized investment gains (losses)	6		(65)		(55)		(30)
Total revenues	$	12,116	$	11,283	$	23,926	$	22,511
Income reconciliation, net of tax
Total segment income	$	1,591	$	673	$	2,120	$	1,852
Interest Expense and Other (1)	(87)		(88)		(173)		(171)
Core income	1,504		585		1,947		1,681
Net realized investment gains (losses)	5		(51)		(43)		(24)

Net income	$	1,509	$	534	$	1,904	$	1,657

(1)The primary component of Interest Expense and Other was after-tax interest expense of $78 million for both the three months ended June 30, 2025 and 2024, and $156 million and $155 million for the six months ended June 30, 2025 and 2024, respectively

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(in millions)	June 30, 2025		December 31, 2024
Asset reconciliation
Business Insurance	$	102,618	$	98,311
Bond & Specialty Insurance	13,390		12,628
Personal Insurance	21,755		21,138
Total assets by reportable segment	137,763		132,077
Other assets (1)	1,110		1,112
Total consolidated assets	$	138,873	$	133,189

(1)The primary components of other assets as of both June 30, 2025 and December 31, 2024 were the over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets.

3. INVESTMENTS

Fixed Maturities

The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows:


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(as of June 30, 2025, in millions)			Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,938	$	—	$	4	$	99	$	3,843
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	20,225		—		22		1,835		18,412
Revenue	9,476		—		14		847		8,643
State general obligation	1,005		—		2		77		930
Pre-refunded	575		—		2		2		575
Total obligations of U.S. states, municipalities and political subdivisions	31,281		—		40		2,761		28,560
Debt securities issued by foreign governments	978		—		8		8		978
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,182		—		137		207		13,112
Corporate and all other bonds	42,027		4		331		1,278		41,076
Total	$	91,406	$	4	$	520	$	4,353	$	87,569

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(as of December 31, 2024, in millions)			Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,735	$	—	$	4	$	169	$	5,570
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	18,604		—		23		1,604		17,023
Revenue	9,268		—		16		704		8,580
State general obligation	1,081		—		2		73		1,010
Pre-refunded	573		—		2		3		572
Total obligations of U.S. states, municipalities and political subdivisions	29,526		—		43		2,384		27,185
Debt securities issued by foreign governments	917		—		5		13		909
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,888		—		53		336		12,605
Corporate and all other bonds	39,211		2		118		1,930		37,397
Total	$	88,277	$	2	$	223	$	4,832	$	83,666

Pre-refunded bonds of $575 million and $572 million as of June 30, 2025 and December 31, 2024, respectively, were bonds for which U.S. states or municipalities have established irrevocable trusts that are almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds.

Proceeds from the sales of fixed maturities classified as available for sale were $601 million and $1.25 billion during the six months ended June 30, 2025 and 2024, respectively. Gross gains of $3 million and $2 million and gross losses of $26 million and $41 million were realized on those sales during the six months ended June 30, 2025 and 2024, respectively. Included in net realized investment gains (losses) for the six months ended June 30, 2025 and 2024 were $23 million and $33 million, respectively, of losses resulting from the early redemption of fixed maturities by the issuer prior to the bonds’ maturity date.

Equity Securities

The cost and fair value of investments in equity securities were as follows:



(as of June 30, 2025, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	460	$	154	$	7	$	607
Non-redeemable preferred stock	45		5		6		44
Total	$	505	$	159	$	13	$	651


(as of December 31, 2024, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	500	$	150	$	11	$	639
Non-redeemable preferred stock	44		4		—		48
Total	$	544	$	154	$	11	$	687

For the six months ended June 30, 2025 and 2024, the Company recognized $1 million and $51 million of net gains on equity securities still held as of June 30, 2025 and 2024, respectively.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

Unrealized Investment Losses

The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position as of June 30, 2025 and December 31, 2024, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report to determine whether a credit loss impairment exists.


	Less than 12 months				12 months or longer				Total
(as of June 30, 2025, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	566	$	—	$	2,248	$	99	$	2,814	$	99
Obligations of U.S. states, municipalities and political subdivisions	9,403		411		15,223		2,350		24,626		2,761
Debt securities issued by foreign governments	93		—		333		8		426		8
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3,825		55		1,354		152		5,179		207
Corporate and all other bonds	2,841		30		20,217		1,248		23,058		1,278
Total	$	16,728	$	496	$	39,375	$	3,857	$	56,103	$	4,353


	Less than 12 months				12 months or longer				Total
(as of December 31, 2024, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	557	$	1	$	2,830	$	168	$	3,387	$	169
Obligations of U.S. states, municipalities and political subdivisions	8,584		160		15,007		2,224		23,591		2,384
Debt securities issued by foreign governments	113		1		454		12		567		13
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	7,359		148		1,419		188		8,778		336
Corporate and all other bonds	7,341		144		21,999		1,786		29,340		1,930
Total	$	23,954	$	454	$	41,709	$	4,378	$	65,663	$	4,832

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

The following tables summarize, for all fixed maturities reported at fair value for which fair value was less than 80% of amortized cost as of June 30, 2025 and December 31, 2024, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost:


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(as of June 30, 2025, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	56		248		149		732		1,185
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3		2		—		—		5
Corporate and all other bonds	4		4		—		1		9
Total	$	63	$	254	$	149	$	733	$	1,199


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(as of December 31, 2024, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	366		—		43		635		1,044
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	58		—		—		—		58
Corporate and all other bonds	13		—		—		3		16
Total	$	437	$	—	$	43	$	638	$	1,118

Increases in the applicable interest rates resulted in the gross unrealized investment losses disclosed in the tables above; however, the net unrealized loss is considered temporary in nature as the decrease in value is not due to credit impairments and there is no impact on expected contractual cash flows from fixed maturities.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

Impairment Charges

The following tables present changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of Corporate and All Other Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses):


	Fixed Maturities
	Corporate and All Other Bonds
	As of and For the Three Months Ended
(in millions)	June 30, 2025		June 30, 2024

Balance, beginning of period	$	4	$	3
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—		—
Reductions due to sales/defaults of credit-impaired securities	—		(2)
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—
Balance, end of period	$	4	$	1


	Fixed Maturities
	Corporate and All Other Bonds
	As of and For the Six Months Ended
(in millions)	June 30, 2025		June 30, 2024

Balance, beginning of period	$	2		$	5
Additions for expected credit losses on securities where no credit losses were previously recognized	2			3
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—			—
Reductions due to sales/defaults of credit-impaired securities	—			(7)
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—			—
Balance, end of period	$	4		$	1

Total net impairment charges, including credit impairments, reported in net realized investment gains (losses) in the consolidated statement of income were $0 million for both the three months ended June 30, 2025 and 2024, and $2 million and $3 million for the six months ended June 30, 2025 and 2024, respectively. Credit losses related to the fixed maturity portfolio for both the three and six months ended June 30, 2025 and 2024 represented less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis.

Other Investments

Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access.
Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data.
Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use.

Valuation of Investments Reported at Fair Value in Financial Statements

The Company utilized a pricing service to estimate fair value measurements for approximately 99% of its fixed maturities as of both June 30, 2025 and December 31, 2024.

While the vast majority of the Company’s fixed maturities are included in Level 2, the Company holds a number of corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using either another internal pricing matrix, a present value income approach or a broker quote (collectively, the other methodologies). The other methodologies include some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information available in the estimation of fair value, the Company includes the fair value estimates for bonds that are valued using the other methodologies in Level 3.

For certain investments in non-public common and preferred equity securities, the fair value estimate is determined either internally or by an external fund manager based on the impact of recent observable transactions on the investment, recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company included the fair value estimate of $31 million and $37 million for these investments as of June 30, 2025 and December 31, 2024, respectively, in the amounts disclosed in Level 3.

For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report.

Fair Value Hierarchy

The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS, Continued


(as of June 30, 2025, in millions)	Total		Level 1		Level 2		Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,843	$	3,843	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	28,560		—		28,560		—
Debt securities issued by foreign governments	978		—		978		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,112		—		13,109		3
Corporate and all other bonds	41,076		4		40,833		239
Total fixed maturities	87,569		3,847		83,480		242
Equity securities
Common stock	608		601		—		7
Non-redeemable preferred stock	43		16		3		24
Total equity securities	651		617		3		31
Other investments	21		21		—		—
Total	$	88,241	$	4,485	$	83,483	$	273


(as of December 31, 2024, in millions)	Total		Level 1		Level 2		Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	5,570	$	5,570	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	27,185		—		27,185		—
Debt securities issued by foreign governments	909		—		909		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,605		—		12,602		3
Corporate and all other bonds	37,397		—		37,151		246
Total fixed maturities	83,666		5,570		77,847		249
Equity securities
Common stock	639		631		—		8
Non-redeemable preferred stock	48		16		3		29
Total equity securities	687		647		3		37
Other investments	20		20		—		—
Total	$	84,373	$	6,237	$	77,850	$	286

There was no significant activity in Level 3 of the hierarchy during the six months ended June 30, 2025.

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS, Continued


(as of June 30, 2025, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	4,748	$	4,748	$	847	$	3,855	$	46
Financial liabilities
Debt	$	7,934	$	7,189	$	—	$	7,189	$	—
Commercial paper	100		100		—		100		—


(as of December 31, 2024, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	4,766	$	4,766	$	1,933	$	2,788	$	45
Financial liabilities
Debt	$	7,933	$	7,095	$	—	$	7,095	$	—
Commercial paper	100		100		—		100		—

The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the six months ended June 30, 2025 or the year ended December 31, 2024.

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES

Premiums Receivable

The following tables present the balances of premiums receivable, net of the allowance for expected credit losses, as of June 30, 2025 and 2024, and the changes in the allowance for expected credit losses for the three and six months ended June 30, 2025 and 2024.


	As of and For the Three Months Ended June 30, 2025				As of and For the Three Months Ended June 30, 2024
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	11,575	$	58	$	10,829	$	68

Current period change for expected credit losses			19				13
Write-offs of uncollectible premiums receivable			16				12
Balance, end of period	$	12,042	$	61	$	11,491	$	69

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES, Continued


	As of and For the Six Months Ended June 30, 2025				As of and For the Six Months Ended June 30, 2024
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	11,110	$	58	$	10,282	$	69

Current period change for expected credit losses			35				25
Write-offs of uncollectible premiums receivable			32				25
Balance, end of period	$	12,042	$	61	$	11,491	$	69

Reinsurance Recoverables

The following tables present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, as of June 30, 2025 and 2024, and the changes in the allowance for estimated uncollectible reinsurance for the three and six months ended June 30, 2025 and 2024.


	As of and For the Three Months Ended June 30, 2025				As of and For the Three Months Ended June 30, 2024
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance

Balance, beginning of period	$	8,105	$	128	$	8,100	$	117


Current period change for estimated uncollectible reinsurance			(1)				—
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,059	$	127	$	8,132	$	117


	As of and For the Six Months Ended June 30, 2025				As of and For the Six Months Ended June 30, 2024
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance

Balance, beginning of period	$	8,000	$	119	$	8,143	$	118


Current period change for estimated uncollectible reinsurance			8				(1)
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,059	$	127	$	8,132	$	117

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES, Continued

Of the total reinsurance recoverables as of June 30, 2025, $5.92 billion, or 88%, were rated by A.M. Best Company, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 12% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 6% were balances from other companies not rated by A.M. Best Company. Certain of the Company’s reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

Contractholder Receivables

The following tables present the balances of contractholder receivables, net of the allowance for expected credit losses, as of June 30, 2025 and 2024, and the changes in the allowance for expected credit losses for the three and six months ended June 30, 2025 and 2024.


	As of and For the Three Months Ended June 30, 2025				As of and For the Three Months Ended June 30, 2024
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	3,193	$	17	$	3,266	$	19

Current period change for expected credit losses			—				(1)
Write-offs of uncollectible contractholder receivables			—				—

Balance, end of period	$	3,095	$	17	$	3,274	$	18


	As of and For the Six Months Ended June 30, 2025				As of and For the Six Months Ended June 30, 2024
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	3,171	$	18	$	3,249	$	20

Current period change for expected credit losses			(1)				(2)
Write-offs of uncollectible contractholder receivables			—				—

Balance, end of period	$	3,095	$	17	$	3,274	$	18

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table presents the carrying amount of the Company’s goodwill by segment. Each reportable segment includes goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates.


(in millions)	June 30, 2025		December 31, 2024
Business Insurance	$	2,609	$	2,572
Bond & Specialty Insurance	838		834
Personal Insurance	810		801
Other	26		26
Total	$	4,283	$	4,233

Other Intangible Assets

The following tables present a summary of the Company’s other intangible assets by major asset class.


(as of June 30, 2025, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	187	$	86	$	101
Contract-based	204		197		7
Marketing-related	18		5		13
Total subject to amortization	409		288		121
Not subject to amortization	227		—		227
Total	$	636	$	288	$	348


(as of December 31, 2024, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	185	$	74	$	111
Contract-based	204		196		8
Marketing-related	18		3		15
Total subject to amortization	407		273		134
Not subject to amortization	226		—		226
Total	$	633	$	273	$	360

7. INSURANCE CLAIM RESERVES

Claims and claim adjustment expense reserves were as follows:


(in millions)	June 30, 2025		December 31, 2024
Property-casualty	$	66,937	$	64,088
Accident and health	4		5
Total	$	66,941	$	64,093

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

7. INSURANCE CLAIM RESERVES, Continued

The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses:


	Six Months Ended June 30,
(in millions)	2025		2024
Claims and claim adjustment expense reserves at beginning of year	$	64,088	$	61,621
Less reinsurance recoverables on unpaid losses	7,669		7,817

Net reserves at beginning of year	56,419		53,804
Estimated claims and claim adjustment expenses for claims arising in the current year	15,392		14,213
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years	(650)		(232)
Total increases	14,742		13,981
Claims and claim adjustment expense payments for claims arising in:
Current year	4,504		3,953
Prior years	7,763		7,750
Total payments	12,267		11,703
Unrealized foreign exchange (gain) loss	272		(75)
Net reserves at end of period	59,166		56,007
Plus reinsurance recoverables on unpaid losses	7,771		7,845
Claims and claim adjustment expense reserves at end of period	$	66,937	$	63,852

Gross claims and claim adjustment expense reserves as of June 30, 2025 increased by $2.85 billion from December 31, 2024, primarily reflecting the impacts of (i) catastrophe losses in the first six months of 2025, (ii) higher volumes of insured exposures and (iii) loss cost trends for the current accident year, partially offset by (iv) claim payments made during the first six months of 2025 and (v) net favorable prior year reserve development.

Prior Year Reserve Development

The following disclosures regarding reserve development are on a “net of reinsurance” basis.

For the six months ended June 30, 2025 and 2024, estimated claims and claim adjustment expenses incurred included $650 million and $232 million, respectively, of net favorable development for claims arising in prior years, including $693 million and $321 million, respectively, of net favorable prior year reserve development, and $22 million of accretion of discount in each period.

Business Insurance. Net favorable prior year reserve development in the second quarter of 2025 totaled $79 million, 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. Net favorable prior year reserve development in the second quarter of 2024 totaled $34 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by higher than expected loss experience in the general liability product line for recent accident years, driven by excess coverages, as well as an addition to reserves related to run-off operations.

Net favorable prior year reserve development in the first six months of 2025 totaled $153 million, 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. Net favorable prior year reserve development in the first six months of 2024 totaled $34 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by higher than expected loss experience in the general liability product line for recent accident years, as well as an addition to reserves related to run-off operations.

Bond & Specialty Insurance. Net favorable prior year reserve development in the second quarter and first six months of 2025 totaled $81 million and $148 million, respectively, primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years. Net favorable prior year reserve development in the second quarter and first six months of 2024 totaled $24 million and $48 million, respectively, primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

7. INSURANCE CLAIM RESERVES, Continued

Personal Insurance. Net favorable prior year reserve development in the second quarter and first six months of 2025 totaled $155 million and $392 million, respectively, primarily driven by better than expected loss experience in both the automobile and homeowners and other product lines for recent accident years. Net favorable prior year reserve development in the second quarter and first six months of 2024 totaled $172 million and $239 million, respectively, primarily driven by better than expected loss experience in both the homeowners and other and automobile product lines for recent accident years.

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three and six months ended June 30, 2025.


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit Losses Recognized in the Consolidated Statement of Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)
Balance, March 31, 2025	$	(3,484)	$	185	$	(224)	$	(1,045)	$	(4,568)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	255		—		—		215		470
Amounts reclassified from AOCI, net of tax	13		—		—		—		13
Net OCI, current period	268		—		—		215		483
Balance, June 30, 2025	$	(3,216)	$	185	$	(224)	$	(830)	$	(4,085)


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit Losses Recognized in the Consolidated Statement of Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)

Balance, December 31, 2024	$	(3,824)	$	184	$	(224)	$	(1,103)	$	(4,967)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	570		1		—		273		844
Amounts reclassified from AOCI, net of tax	38		—		—		—		38
Net OCI, current period	608		1		—		273		882
Balance, June 30, 2025	$	(3,216)	$	185	$	(224)	$	(830)	$	(4,085)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Continued

The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit).


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	341	$	(324)	$	777	$	(1,076)
Income tax expense (benefit)	73		(69)		169		(227)
Net of taxes	268		(255)		608		(849)
Having credit losses recognized in the consolidated statement of income	—		1		1		3
Income tax expense	—		1		—		1
Net of taxes	—		—		1		2
Net changes in benefit plan assets and obligations	—		(2)		—		(3)
Income tax benefit	—		(1)		—		(1)
Net of taxes	—		(1)		—		(2)
Net changes in unrealized foreign currency translation	228		(25)		289		(96)
Income tax expense (benefit)	13		(2)		16		(6)
Net of taxes	215		(23)		273		(90)
Total other comprehensive income (loss)	569		(350)		1,067		(1,172)
Total income tax expense (benefit)	86		(71)		185		(233)
Total other comprehensive income (loss), net of taxes	$	483	$	(279)	$	882	$	(939)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Continued

The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income.


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2025		2024		2025		2024
Reclassification adjustments related to unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income (1)	$	17	$	35	$	48	$	75
Income tax benefit (2)	4		8		10		16
Net of taxes	13		27		38		59
Having credit losses recognized in the consolidated statement of income (1)	—		—		—		—
Income tax benefit (2)	—		—		—		—
Net of taxes	—		—		—		—
Reclassification adjustment related to benefit plan assets and obligations:
Claims and claim adjustment expenses (benefit) (3)	—		(1)		—		(1)
General and administrative expenses (benefit) (3)	—		(1)		—		(2)
Total	—		(2)		—		(3)
Income tax (expense) benefit (2)	—		—		—		—
Net of taxes	—		(2)		—		(3)
Reclassification adjustment related to foreign currency translation (1)	—		—		—		—
Income tax benefit (2)	—		—		—		—
Net of taxes	—		—		—		—
Total reclassifications	17		33		48		72
Total income tax benefit	4		8		10		16
Total reclassifications, net of taxes	$	13	$	25	$	38	$	56

(1)(Increases) decreases net realized investment gains (losses) on the consolidated statement of income.

(2)(Increases) decreases income tax expense on the consolidated statement of income.

(3)Increases (decreases) expenses on the consolidated statement of income.

9. COMMON SHARE REPURCHASES

During the three and six months ended June 30, 2025, the Company repurchased 1.8 million and 2.8 million common shares, respectively, under its share repurchase authorizations for total cost of $500 million and $750 million, respectively. The average cost per share repurchased was $269.90 and $265.45, respectively. In addition, the Company acquired 0.3 million shares and 0.7 million common shares for a total cost of $57 million and $165 million during the three and six months ended June 30, 2025, respectively, that were not part of its publicly announced share repurchase authorizations. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and shares used by employees to cover the exercise price, as well as the related payroll withholding taxes, with respect to certain stock options that were exercised. Included in the cost of treasury stock acquired pursuant to common share repurchases is the 1% excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022. As of June 30, 2025, the Company had $4.29 billion of capacity remaining under its share repurchase authorizations.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

10. EARNINGS PER SHARE

The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	2025		2024		2025		2024
Basic and Diluted
Net income, as reported	$	1,509	$	534	$	1,904	$	1,657
Participating share-based awards — allocated income	(11)		(5)		(14)		(13)
Net income available to common shareholders — basic and diluted	$	1,498	$	529	$	1,890	$	1,644
Common Shares
Basic
Weighted average shares outstanding	225.9		228.6		226.4		228.8
Diluted
Weighted average shares outstanding	225.9		228.6		226.4		228.8
Weighted average effects of dilutive securities — stock options and performance shares	3.4		2.9		3.3		3.0
Total	229.3		231.5		229.7		231.8
Net Income per Common Share
Basic	$	6.63	$	2.32	$	8.35	$	7.19
Diluted	$	6.53	$	2.29	$	8.23	$	7.09

11. SHARE-BASED INCENTIVE COMPENSATION

The following information relates to fully vested stock option awards as of June 30, 2025:


Stock Options	Number	Weighted Average Exercise Price		Weighted Average Contractual Life Remaining	Aggregate Intrinsic Value ($ in millions)
Vested at end of period (1)	5,964,494	$	159.22	5.6 years	$	646
Exercisable at end of period	4,556,830	$	142.69	4.7 years	$	569

(1)Represents awards for which the requisite service has been rendered, including those that are retirement eligible.

The total compensation cost for all share-based incentive compensation awards recognized in earnings was $57 million and $60 million for the three months ended June 30, 2025 and 2024, respectively, and $140 million and $139 million for the six months ended June 30, 2025 and 2024, respectively. The related tax benefits recognized in the consolidated statement of income were $9 million and $10 million for the three months ended June 30, 2025 and 2024, respectively, and $22 million for both the six months ended June 30, 2025 and 2024.

The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards as of June 30, 2025 was $359 million, which is expected to be recognized over a weighted-average period of 2.0 years.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS

The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2025 and 2024.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended June 30, in millions)	2025		2024		2025		2024
Net Periodic Benefit Cost (Benefit):
Service cost	$	29	$	29	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	44		43		—		1
Expected return on plan assets	(70)		(74)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		—		(1)
Net actuarial (gain) loss	3		1		(3)		(2)
Total non-service cost (benefit)	(23)		(30)		(3)		(2)
Net periodic benefit cost (benefit)	$	6	$	(1)	$	(3)	$	(2)

The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended June 30, 2025 and 2024.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended June 30, in millions)	2025		2024		2025		2024
Service Cost:
Claims and claim adjustment expenses	$	11	$	12	$	—	$	—
General and administrative expenses	18		17		—		—
Total service cost	29		29		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(9)		(11)		(1)		(1)
General and administrative expenses	(14)		(19)		(2)		(1)
Total non-service cost (benefit)	(23)		(30)		(3)		(2)
Net periodic benefit cost (benefit)	$	6	$	(1)	$	(3)	$	(2)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

12. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS, Continued


	Pension Plans				Postretirement Benefit Plans
(for the six months ended June 30, in millions)	2025		2024		2025		2024
Net Periodic Benefit Cost (Benefit):
Service cost	$	57	$	58	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	88		86		1		2
Expected return on plan assets	(140)		(149)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		(1)		(2)
Net actuarial (gain) loss	7		3		(6)		(4)
Total non-service cost (benefit)	(45)		(60)		(6)		(4)
Net periodic benefit cost (benefit)	$	12	$	(2)	$	(6)	$	(4)

The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the six months ended June 30, 2025 and 2024.


	Pension Plans				Postretirement Benefit Plans
(for the six months ended June 30, in millions)	2025		2024		2025		2024
Service Cost:
Claims and claim adjustment expenses	$	22	$	23	$	—	$	—
General and administrative expenses	35		35		—		—
Total service cost	57		58		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(17)		(23)		(2)		(2)
General and administrative expenses	(28)		(37)		(4)		(2)
Total non-service cost (benefit)	(45)		(60)		(6)		(4)
Net periodic benefit cost (benefit)	$	12	$	(2)	$	(6)	$	(4)

13. LEASES

The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease, and a right-of-use asset and lease liability is recognized as part of other assets and other liabilities, respectively, in the consolidated balance sheet.

Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease, if that rate is readily determinable, or the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

13. LEASES, Continued

Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Company’s real estate operating leases is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2025			2024				2025			2024
Lease cost
Operating leases	$	16		$	19			$	32		$	38
Short-term leases (1)	—			—				1			1

Lease expense	16			19				33			39
Less: sublease income (2)	—			—				—			—
Net lease cost	$	16		$	19			$	33		$	39

Other information on operating leases

Cash payments to settle a lease liability reported in cash flows	$	18		$	20			$	36		$	42
Right-of-use assets obtained in exchange for new lease liabilities	$	9		$	4			$	16		$	14
Weighted average discount rate	3.94		%	3.08		%		3.94		%	3.08		%
Weighted average remaining lease term	5.5 years			4.1 years				5.5 years			4.1 years

(1)Leases with a term of twelve months or less are not recorded on the consolidated balance sheet.

(2)Sublease income consists of rent from third parties of office space and is recognized as part of other revenues in the consolidated statement of income.

14. CONTINGENCIES, COMMITMENTS AND GUARANTEES

Contingencies

The major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company’s properties is subject are described below.

Asbestos Claims and Litigation

In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos-related exposures that are the subject of related coverage litigation. The Company is defending asbestos-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and comprehensive resolution strategies to manage asbestos loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on future loss development for claims and litigation relating to asbestos claims. Any such development could be affected by future court decisions and interpretations, as well as future changes, if any, in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or changes in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s results of operations in future periods.

Other Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements

The Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company’s results of operations or would have a material adverse effect on the Company’s financial position or liquidity.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

14. CONTINGENCIES, COMMITMENTS AND GUARANTEES, Continued

Other Commitments and Guarantees

Commitments

Investment Commitments — The Company has unfunded commitments to private equity limited partnerships, real estate partnerships and other investments. These commitments totaled $1.43 billion and $1.49 billion as of June 30, 2025 and December 31, 2024, respectively.

Guarantees

The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $351 million as of June 30, 2025.

The maximum amount of the Company’s obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million as of June 30, 2025, all of which is indemnified by a third party. For more information regarding the Company’s guarantees, see note 17 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report.

15. NONCASH INVESTING AND FINANCING ACTIVITIES

The Company issued common stock during the six months ended June 30, 2025 and 2024 in connection with its stock compensation plan which resulted in noncash financing transactions totaling $41 million and $30 million, respectively, from the net share settlement of employee stock options. There were no other material noncash investing or financing activities during the six months ended June 30, 2025 and 2024.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

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