The Travelers Companies Inc. has reported robust fourth-quarter results, with net income per diluted share rising 23% to US$11.06, driven by strong underwriting performance and higher investment income.
Net income reached US$2.496 billion for the quarter ended December 31, 2025, up 20% from US$2.082bn a year earlier. For the full year, net income totalled US$6.288bn, a 26% increase from 2024.
“We are pleased to report excellent fourth-quarter and full-year results driven by strong performance across both underwriting and investments,” said Alan Schnitzer, chairman and chief executive officer.
The company’s combined ratio, a key measure of underwriting profitability, improved 3.0 percentage points to 80.2% in the fourth quarter. A ratio below 100% indicates an underwriting profit.
The underlying combined ratio, which excludes catastrophe losses and prior-year reserve adjustments, improved 1.8 percentage points to 82.2%.
Net written premiums grew 1% to US$10.856bn, with business insurance contributing US$5.514bn, personal insurance US$4.244bn, and bond & specialty insurance US$1.098bn.
The insurer’s investment portfolio generated after-tax net investment income of US$867m, up 10% from the prior-year quarter, driven by higher average invested assets and improved yields in the long-term fixed income portfolio.
Travelers returned US$1.897bn to shareholders during the quarter, including US$1.653bn in share repurchases, buying back 5.8m shares at an average price of US$285.04 each. The board authorised an additional US$5.0bn in share repurchases and declared a regular quarterly dividend of US$1.10 per share, payable March 31, 2026.
For the full year, the company achieved a return on equity of 21.0% and a core return on equity of 19.4%. Book value per share increased 23% to US$151.21, while adjusted book value per share rose 14% to US$158.01 compared with year-end 2024. Operating cash flows reached a record US$10.606bn for the year.
Catastrophe losses in the fourth quarter primarily resulted from winter storms in multiple states. Full-year losses included the January 2025 California wildfires and severe wind and hail storms throughout the year.
