Fourth Quarter 2025 Net Income per Diluted Share of $11.06, up 23%, and Core Income per Diluted Share of $11.13, up 22%

Full Year Net Income of $6.288 Billion and Core Income of $6.325 Billion

Fourth Quarter 2025 Return on Equity of 31.0% and Core Return on Equity of 29.6%

Full Year Return on Equity of 21.0% and Core Return on Equity of 19.4%

Board of Directors Authorizes an Additional $5.0 Billion of Share Repurchases

Fourth quarter net income of $2.496 billion, up 20%, and core income of $2.511 billion, up 18%.
Consolidated combined ratio improved 3.0 points to 80.2%.
Underlying combined ratio improved 1.8 points to 82.2%.
Net investment income increased 10% after-tax to $867 million.
Record full year operating cash flows of $10.606 billion.
Total capital returned to shareholders of $1.897 billion, including $1.653 billion of share repurchases.
Strong growth in book value per share, up 23%, and adjusted book value per share, up 14%, compared to year-end 2024.

The Travelers Companies, Inc. today reported net income of $2.496 billion, or $11.06 per diluted share, for the quarter ended December 31, 2025, compared to $2.082 billion, or $8.96 per diluted share, in the prior year quarter. Core income in the current quarter was $2.511 billion, or $11.13 per diluted share, compared to $2.126 billion, or $9.15 per diluted share, in the prior year quarter. Core income increased primarily due to a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net investment income, lower catastrophe losses and higher net favorable prior year reserve development. Net realized investment losses in the current quarter were $20 million pre-tax ($15 million after-tax), compared to $55 million pre-tax ($44 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 December 31,									Twelve Months Ended December 31,
	2025			2024			Change			2025			2024			Change
Net written premiums	$	10,856		$	10,742		1	%		$	44,387		$	43,356		2	%

Total revenues	$	12,432		$	12,008		4			$	48,828		$	46,423		5
Net income	$	2,496		$	2,082		20			$	6,288		$	4,999		26
per diluted share	$	11.06		$	8.96		23			$	27.43		$	21.47		28
Core income	$	2,511		$	2,126		18			$	6,325		$	5,025		26
per diluted share	$	11.13		$	9.15		22			$	27.59		$	21.58		28
Diluted weighted average shares outstanding		224.0			230.7		(3	)			227.6			231.1		(2	)
Combined ratio		80.2	%		83.2	%	(3.0	)	pts		89.9	%		92.5	%	(2.6	)	pts
Underlying combined ratio		82.2	%		84.0	%	(1.8	)	pts		83.9	%		86.2	%	(2.3	)	pts
Return on equity		31.0	%		30.0	%	1.0		pts		21.0	%		19.2	%	1.8		pts
Core return on equity		29.6	%		27.7	%	1.9		pts		19.4	%		17.2	%	2.2		pts

	As of
	December 31, 2025		December 31, 2024		Change
Book value per share	$	151.21	$	122.97	23	%
Adjusted book value per share		158.01		139.04	14	%
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

"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. "Our results this year and over time reflect the power of our earnings engine fueled by the disciplined execution of our strategy across every dimension of our business.

"Core income for the quarter was $2.5 billion, or $11.13 per diluted share, generating core return on equity of 29.6%. Core income benefited from a 3% increase in net earned premiums to $11.1 billion and a combined ratio that improved 3 points to a terrific 80.2%. The business performed exceptionally well across the board, as strong underlying profitability, net favorable prior year reserve development and a lower level of catastrophe losses drove the improvement. All three segments delivered excellent underwriting results on both an underlying and an as-reported basis. Our high-quality investment portfolio generated after-tax net investment income of $867 million. These results, along with our strong balance sheet, enabled us to return $1.9 billion of excess capital to our shareholders this quarter, including $1.7 billion of share repurchases.

"For the full year, core income was up 26% to $6.3 billion, or $27.59 per diluted share, generating core return on equity of 19.4%. During the year, we grew adjusted book value per share by 14%, after returning $4.2 billion of excess capital to shareholders and investing more than $1.5 billion in cutting-edge AI and other technology initiatives.

"Through disciplined marketplace execution across all three segments, we grew net written premiums in the quarter to $10.9 billion. In Business Insurance, we grew net written premiums to $5.5 billion. Retention remained strong at 85%, renewal premium change was 6.1% and new business was very strong at $675 million. In Bond & Specialty Insurance, we grew net written premiums to $1.1 billion, with excellent retention of 87% and positive renewal premium change in our high-quality management liability business. In our industry-leading surety business, we grew net written premiums from a very strong level in the prior year quarter. In Personal Insurance, net written premiums of $4.2 billion reflected continued strong renewal premium change in Homeowners and higher new business in Auto.

"Our proven strategy positions us to continue generating substantial shareholder value. The durability of our underlying business performance provides a powerful foundation. Delivering a compelling value proposition to customers and distribution partners, combined with underwriting excellence across our diversified portfolio and gains in productivity, drives consistently strong profitability and substantial cash flow. Our investment expertise, growing portfolio and higher reinvestment rates are delivering meaningful growth in net investment income. Operating from this position of strength, we remain highly confident in the outlook for Travelers in 2026 and beyond."

Consolidated Results
	Three Months Ended December 31,												Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	2,170			$	1,787			$	383			$	4,265			$	2,984			$	1,281
Underwriting gain includes:
Net favorable prior year reserve development		321				262				59				1,036				709				327
Catastrophes, net of reinsurance		(95	)			(175	)			80				(3,690	)			(3,335	)			(355	)
Net investment income		1,054				955				99				3,959				3,590				369
Other income (expense), including interest expense		(101	)			(93	)			(8	)			(380	)			(364	)			(16	)
Core income before income taxes		3,123				2,649				474				7,844				6,210				1,634
Income tax expense		612				523				89				1,519				1,185				334
Core income		2,511				2,126				385				6,325				5,025				1,300
Net realized investment losses after income taxes		(15	)			(44	)			29				(37	)			(26	)			(11	)
Net income	$	2,496			$	2,082			$	414			$	6,288			$	4,999			$	1,289

Combined ratio		80.2	%			83.2	%			(3.0	)	pts		89.9	%			92.5	%			(2.6	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(2.9	)	pts		(2.4	)	pts		(0.5	)	pts		(2.4	)	pts		(1.7	)	pts		(0.7	)	pts
Catastrophes, net of reinsurance		0.9		pts		1.6		pts		(0.7	)	pts		8.4		pts		8.0		pts		0.4		pts
Underlying combined ratio		82.2	%			84.0	%			(1.8	)	pts		83.9	%			86.2	%			(2.3	)	pts

Net written premiums
Business Insurance	$	5,514			$	5,426				2	%		$	22,679			$	22,078				3	%
Bond & Specialty Insurance		1,098				1,054				4				4,262				4,109				4
Personal Insurance		4,244				4,262				—				17,446				17,169				2
Total	$	10,856			$	10,742				1	%		$	44,387			$	43,356				2	%

Fourth Quarter 2025 Results

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

Net income of $2.496 billion increased $414 million, driven by higher core income and lower net realized investment losses. Core income of $2.511 billion increased $385 million, primarily due to a higher underlying underwriting gain, higher net investment income, lower catastrophe losses and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes. Net realized investment losses were $20 million pre-tax ($15 million after-tax), compared to $55 million pre-tax ($44 million after-tax) in the prior year quarter.

Combined ratio:

The combined ratio of 80.2% improved 3.0 points due to an improvement in the underlying combined ratio (1.8 points), lower catastrophe losses (0.7 points) and higher net favorable prior year reserve development (0.5 points).

The underlying combined ratio improved 1.8 points to an excellent 82.2%. 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 primarily resulted from winter storms in multiple states.

Net investment income of $1.054 billion pre-tax ($867 million after-tax) increased 10%, 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 $10.856 billion increased 1%. See below for further details by segment.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Net income of $6.288 billion increased $1.289 billion, driven by higher core income, partially offset by higher net realized investment losses. Core income of $6.325 billion increased $1.300 billion, 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 $48 million pre-tax ($37 million after-tax), compared to $30 million pre-tax ($26 million after-tax) in the prior year.

Combined ratio:

The combined ratio of 89.9% improved 2.6 points due to an improvement in the underlying combined ratio (2.3 points) and higher net favorable prior year reserve development (0.7 points), partially offset by higher catastrophe losses (0.4 points).

The underlying combined ratio of 83.9% improved 2.3 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 fourth quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first nine months of 2025.

Net investment income of $3.959 billion pre-tax ($3.254 billion after-tax) increased 10% driven by the same factors described above for the fourth quarter of 2025.

Net written premiums of $44.387 billion increased 2%. See below for further details by segment.

Shareholders' Equity

Shareholders' equity of $32.894 billion increased 18% over year-end 2024, primarily due to net income of $6.288 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 $1.862 billion pre-tax ($1.478 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 $151.21 increased 23% over year-end 2024. Adjusted book value per share of $158.01, which excludes net unrealized investment losses, increased 14% over year-end 2024.

The Company repurchased 5.8 million shares during the fourth quarter at an average price of $285.04 per share for a total cost of $1.653 billion. At December 31, 2025, the Company had $2.015 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 $31.064 billion, and the ratio of debt-to-capital was 22.0%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders' equity was 21.2%, 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 March 31, 2026, to shareholders of record at the close of business on March 10, 2026. The Board of Directors also authorized an additional $5.0 billion of share repurchases. This amount is in addition to the $2.015 billion that remained from previous authorizations as of December 31, 2025. This authorization does not have a stated expiration date. The timing and actual number of shares to be repurchased will depend on a variety of factors, including the factors described below in the Forward-Looking Statements section.

Business Insurance Segment Financial Results
	Three Months Ended December 31,												Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	877			$	808			$	69			$	1,810			$	1,554			$	256
Underwriting gain includes:
Net favorable prior year reserve development		205				147				58				233				90				143
Catastrophes, net of reinsurance		(57	)			(94	)			37				(1,073	)			(1,032	)			(41	)
Net investment income		737				677				60				2,782				2,560				222
Other income (expense)		2				(7	)			9				(6	)			(27	)			21
Segment income before income taxes		1,616				1,478				138				4,586				4,087				499
Income tax expense		324				290				34				891				781				110
Segment income	$	1,292			$	1,188			$	104			$	3,695			$	3,306			$	389

Combined ratio		84.4	%			85.2	%			(0.8	)	pts		91.7	%			92.5	%			(0.8	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(3.6	)	pts		(2.7	)	pts		(0.9	)	pts		(1.1	)	pts		(0.4	)	pts		(0.7	)	pts
Catastrophes, net of reinsurance		1.0		pts		1.7		pts		(0.7	)	pts		4.8		pts		4.8		pts		—		pts
Underlying combined ratio		87.0	%			86.2	%			0.8		pts		88.0	%			88.1	%			(0.1	)	pts

Net written premiums by market
Domestic
Select Accounts	$	930			$	893				4	%		$	3,830			$	3,727				3	%
Middle Market		3,109				3,011				3				12,541				12,023				4
National Accounts		348				356				(2	)			1,262				1,259				—
National Property and Other		666				684				(3	)			3,112				3,134				(1	)
Total Domestic		5,053				4,944				2				20,745				20,143				3
International		461				482				(4	)			1,934				1,935				—
Total	$	5,514			$	5,426				2	%		$	22,679			$	22,078				3	%

Fourth Quarter 2025 Results

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

Segment income for Business Insurance was $1.292 billion after-tax, an increase of $104 million. Segment income increased primarily due to higher net investment income, higher net favorable prior year reserve development and lower catastrophe losses, partially offset by a lower underlying underwriting gain.

Combined ratio:

The combined ratio of 84.4% improved 0.8 points due to higher net favorable prior year reserve development (0.9 points) and lower catastrophe losses (0.7 points), partially offset by a higher underlying combined ratio (0.8 points).

The underlying combined ratio was an excellent 87.0%.

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.

Net written premiums of $5.514 billion increased 2%, led by growth of 4% in our Select Accounts small commercial business and 3% in our core Middle Market business, partially offset by a decline in net written premiums in National Property, reflecting disciplined underwriting.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Segment income for Business Insurance was $3.695 billion after-tax, an increase of $389 million. Segment income increased primarily due to higher net investment income, a higher underlying underwriting gain and higher net favorable prior year reserve development, partially offset by higher catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 91.7% improved 0.8 points due to higher net favorable prior year reserve development (0.7 points) and an improvement in the underlying combined ratio (0.1 points).

The underlying combined ratio was an excellent 88.0%.

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 $22.679 billion increased 3%, led by growth of 4% in our core Middle Market business and 3% in our Select Accounts small commercial business.

Bond & Specialty Insurance Segment Financial Results
	Three Months Ended December 31,												Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	174			$	172			$	2			$	728			$	603			$	125
Underwriting gain includes:
Net favorable prior year reserve development		30				45				(15	)			221				129				92
Catastrophes, net of reinsurance		(1	)			(2	)			1				(25	)			(51	)			26
Net investment income		120				105				15				445				390				55
Other income		6				6				—				21				23				(2	)
Segment income before income taxes		300				283				17				1,194				1,016				178
Income tax expense		64				55				9				244				201				43
Segment income	$	236			$	228			$	8			$	950			$	815			$	135

Combined ratio		83.0	%			82.7	%			0.3		pts		81.9	%			84.3	%			(2.4	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(2.8	)	pts		(4.3	)	pts		1.5		pts		(5.4	)	pts		(3.3	)	pts		(2.1	)	pts
Catastrophes, net of reinsurance		0.1		pts		0.2		pts		(0.1	)	pts		0.7		pts		1.3		pts		(0.6	)	pts
Underlying combined ratio		85.7	%			86.8	%			(1.1	)	pts		86.6	%			86.3	%			0.3		pts

Net written premiums
Domestic
Management Liability	$	571			$	563				1	%		$	2,326			$	2,309				1	%
Surety		337				329				2				1,354				1,294				5
Total Domestic		908				892				2				3,680				3,603				2
International		190				162				17				582				506				15
Total	$	1,098			$	1,054				4	%		$	4,262			$	4,109				4	%

Fourth Quarter 2025 Results

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

Segment income for Bond & Specialty Insurance was $236 million after-tax, an increase of $8 million. Segment income increased primarily due to higher net investment income and a higher underlying underwriting gain, 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 83.0% increased 0.3 points due to lower net favorable prior year reserve development (1.5 points), partially offset by a lower underlying combined ratio (1.1 points) and lower catastrophe losses (0.1 points).

The underlying combined ratio was very strong at 85.7%.

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 $1.098 billion increased 4%, reflecting production growth in both surety and management liability.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $950 million after-tax, an increase of $135 million. Segment income increased primarily due to higher net favorable prior year reserve development, higher net investment income and lower catastrophe losses. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 81.9% improved 2.4 points due to higher net favorable prior year reserve development (2.1 points) and lower catastrophe losses (0.6 points), partially offset by a higher underlying combined ratio (0.3 points).

The underlying combined ratio was very strong at 86.6%.

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

Net written premiums of $4.262 billion increased 4%, reflecting the same factors described above for the fourth quarter of 2025.

Personal Insurance Segment Financial Results
	Three Months Ended December 31,												Twelve Months Ended December 31,
($ in millions and pre-tax, unless noted otherwise)	2025				2024				Change				2025				2024				Change
Underwriting gain:	$	1,119			$	807			$	312			$	1,727			$	827			$	900
Underwriting gain includes:
Net favorable prior year reserve development		86				70				16				582				490				92
Catastrophes, net of reinsurance		(37	)			(79	)			42				(2,592	)			(2,252	)			(340	)
Net investment income		197				173				24				732				640				92
Other income		20				19				1				79				76				3
Segment income before income taxes		1,336				999				337				2,538				1,543				995
Income tax expense		250				201				49				485				294				191
Segment income	$	1,086			$	798			$	288			$	2,053			$	1,249			$	804

Combined ratio		74.0	%			80.7	%			(6.7	)	pts		89.5	%			94.4	%			(4.9	)	pts
Impact on combined ratio
Net favorable prior year reserve development		(1.9	)	pts		(1.6	)	pts		(0.3	)	pts		(3.4	)	pts		(3.0	)	pts		(0.4	)	pts
Catastrophes, net of reinsurance		0.8		pts		1.8		pts		(1.0	)	pts		14.9		pts		13.5		pts		1.4		pts
Underlying combined ratio		75.1	%			80.5	%			(5.4	)	pts		78.0	%			83.9	%			(5.9	)	pts

Net written premiums
Domestic
Automobile	$	1,856			$	1,927				(4	)%		$	7,745			$	7,925				(2	)%
Homeowners and Other		2,229				2,158				3				9,051				8,550				6
Total Domestic		4,085				4,085				—				16,796				16,475				2
International		159				177				(10	)			650				694				(6	)
Total	$	4,244			$	4,262				—	%		$	17,446			$	17,169				2	%

Fourth Quarter 2025 Results

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

Segment income for Personal Insurance was $1.086 billion after-tax, an increase of $288 million. Segment income increased primarily due to a higher underlying underwriting gain, lower catastrophe losses, higher net investment income and higher net favorable prior year reserve development. The underlying underwriting gain benefited from higher business volumes.

Combined ratio:

The combined ratio of 74.0% improved 6.7 points due to an improvement in the underlying combined ratio (5.4 points), lower catastrophe losses (1.0 points) and higher net favorable prior year reserve development (0.3 points).

The underlying combined ratio of 75.1% improved 5.4 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 $4.244 billion were comparable to the prior year quarter.

Full Year 2025 Results

(All comparisons vs. full year 2024, unless noted otherwise)

Segment income for Personal Insurance was $2.053 billion after-tax, an increase of $804 million. Segment income increased 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.

Combined ratio:

The combined ratio of 89.5% improved 4.9 points due to an improvement in the underlying combined ratio (5.9 points) and higher net favorable prior year reserve development (0.4 points), partially offset by higher catastrophe losses (1.4 points).

The underlying combined ratio of 78.0% improved 5.9 points, reflecting improvement in both Homeowners and Other and Automobile.

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

Net written premiums of $17.446 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 Wednesday, January 21, 2026. 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 nearly $49 billion in 2025. 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 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. 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 (including the 2026 plan) and modeling;
the impact of investment, economic and underwriting market conditions, including interest rates, 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; and
the impact of developments in the geopolitical environment.

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 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; and
future pandemics.

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 our most recent annual report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 13, 2025, 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

December 31,

Twelve Months Ended

December 31,

($ in millions, after-tax)

2025

2024

2025

2024

Net income

2,496

2,082

6,288

4,999

Adjustments:

Net realized investment losses

Core income

2,511

2,126

6,325

5,025

Three Months Ended

December 31,

Twelve Months Ended

December 31,

($ in millions, pre-tax)

2025

2024

2025

2024

Net income

3,103

2,594

7,796

6,180

Adjustments:

Net realized investment losses

Core income

3,123

2,649

7,844

6,210

	Twelve Months Ended December 31,																						Average Annual
($ in millions, after-tax)	2023		2022		2021			2020			2019			2018			2017			2016			2005 - 2020
Net income	$	2,991	$	2,842	$	3,662		$	2,697		$	2,622		$	2,523		$	2,056		$	3,014		$	2,988
Less: Loss from discontinued operations		—		—		—			—			—			—			—			—			(27	)
Income from continuing operations		2,991		2,842		3,662			2,697			2,622			2,523			2,056			3,014			3,015
Adjustments:
Net realized investment (gains) losses		81		156		(132	)		(11	)		(85	)		(93	)		(142	)		(47	)		(42	)
Impact of changes in tax laws and/or tax rates (1) (2)		—		—		(8	)		—			—			—			129			—			8
Core income		3,072		2,998		3,522			2,686			2,537			2,430			2,043			2,967			2,981
Less: Preferred dividends		—		—		—			—			—			—			—			—			1
Core income, less preferred dividends	$	3,072	$	2,998	$	3,522		$	2,686		$	2,537		$	2,430		$	2,043		$	2,967		$	2,980
(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

December 31,

Twelve Months Ended

December 31,

2025

2024

2025

2024

Diluted income per share

Net income

11.06

8.96

27.43

21.47

Adjustments:

Net realized investment losses, after-tax

0.07

0.19

0.16

0.11

Core income

11.13

9.15

27.59

21.58

	Twelve Months Ended December 31,
	2023		2022		2021			2020			2019			2018			2017			2016
Diluted income per share
Net income	$	12.79	$	11.77	$	14.49		$	10.52		$	9.92		$	9.28		$	7.33		$	10.28
Adjustments:
Net realized investment (gains) losses, after-tax		0.34		0.65		(0.52	)		(0.04	)		(0.32	)		(0.34	)		(0.51	)		(0.16	)
Impact of changes in tax laws and/or tax rates (1) (2)		—		—		(0.03	)		—			—			—			0.46			—
Core income	$	13.13	$	12.42	$	13.94		$	10.48		$	9.60		$	8.94		$	7.28		$	10.12
(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 Segment Income to Total Core Income
	Three Months Ended December 31,						Twelve Months Ended December 31,
($ in millions, after-tax)	2025			2024			2025			2024
Business Insurance	$	1,292		$	1,188		$	3,695		$	3,306
Bond & Specialty Insurance		236			228			950			815
Personal Insurance		1,086			798			2,053			1,249
Total segment income		2,614			2,214			6,698			5,370
Interest Expense and Other		(103	)		(88	)		(373	)		(345	)
Total core income	$	2,511		$	2,126		$	6,325		$	5,025

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 December 31,																							Average Annual
($ in millions)	2025		2024		2023		2022		2021			2020			2019			2018		2017		2016		2005 - 2020
Shareholders' equity	$	32,894	$	27,864	$	24,921	$	21,560	$	28,887		$	29,201		$	25,943		$	22,894	$	23,731	$	23,221	$	25,023
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders' equity		1,478		3,640		3,129		4,898		(2,415	)		(4,074	)		(2,246	)		113		(1,112

Travelers Reports Excellent Fourth Quarter and Full Year Results