The Travelers Companies Inc. reported a strong fourth-quarter performance, with net income per diluted share rising 23% to $11.06, supported by improved underwriting results and higher investment income.
Net income for the quarter ended December 31, 2025, reached $2.496 billion, up from $2.082 billion in the prior-year period. For the full year, net income increased 26% to $6.288 billion.
The insurer’s combined ratio improved by 3.0 percentage points to 80.2% in the fourth quarter, reflecting strong underwriting profitability. The underlying combined ratio, excluding catastrophe losses and prior-year reserve adjustments, improved to 82.2%.
Net written premiums rose 1% to $10.856 billion. Business insurance generated $5.514 billion, personal insurance contributed $4.244 billion, and bond and specialty insurance accounted for $1.098 billion.
After-tax net investment income increased 10% to $867 million, driven by higher average invested assets and improved yields in the long-term fixed income portfolio.
Travelers returned $1.897 billion to shareholders during the quarter, including $1.653 billion in share repurchases. The company authorised an additional $5.0 billion share buyback programme and declared a quarterly dividend of $1.10 per share, payable on March 31, 2026.
For the full year, Travelers reported a return on equity of 21.0% and a core return on equity of 19.4%. Book value per share increased 23% to $151.21, while adjusted book value per share rose 14% to $158.01. Operating cash flows reached a record $10.606 billion.
Catastrophe losses in the fourth quarter were primarily driven by winter storms across multiple U.S. states. Full-year catastrophe losses reflected events including California wildfires and severe wind and hail storms.
The results highlight the continued importance of underwriting discipline and investment income in supporting insurer profitability amid persistent catastrophe volatility.
