Travelers reported total revenue of $46.8 billion for FY 2025, a 13% increase over 2024. Net income reached $5.1 billion, or $22.45 per diluted share, compared to $13.22 in the prior year. Growth was driven by strong renewal premium change across all segments and significantly higher net investment income. The consolidated combined ratio improved to 89.2%, reflecting lower catastrophe losses and disciplined underwriting in the Business Insurance and Personal Insurance segments.
Note: Travelers' FY'25 ended on December 31, 2025.
The company achieved a record underlying underwriting gain of $3.6 billion for the full year, driven by earned premium growth and expense efficiencies. Travelers also returned $2.6 billion to shareholders in 2025, including $1.6 billion in share repurchases and $1.0 billion in dividends. The board recently increased the quarterly dividend by 5% to $1.10 per share, marking the 21st consecutive year of dividend increases.
Below are key drivers of Travelers' value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Travelers at the top of the page.
Travelers is a leading provider of property casualty insurance for auto, home, and business. The company operates through three primary segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. Its business model relies on sophisticated data analytics for risk pricing, a massive independent agency distribution network, and a conservative investment portfolio designed to support claims-paying ability while generating steady income.
The Business Insurance segment remains the primary engine of value, contributing over half of the company's total earned premiums and the majority of its technical underwriting profit.
Travelers holds a top-tier market position in US commercial lines, supported by relationships with over 13,500 independent agents and brokers. This vast network provides a competitive moat by ensuring a steady flow of diverse risks, allowing the company to be selective in its underwriting and maintain a superior combined ratio relative to the industry average.
The company's investment in claim and underwriting technology, including AI-driven property inspections and geospatial data, allows for highly accurate risk segmentation. This technological edge enables Travelers to price more accurately than smaller peers, particularly in the middle-market and small-business sectors, leading to more stable loss ratios over long cycles.
The insurance industry is grappling with "social inflation," where rising litigation costs and larger jury awards inflate casualty claims. Travelers is responding by increasing reserves for older accident years and raising premiums in liability-heavy lines. Their ability to manage these legal trends better than competitors is a key differentiator for 2026.
After several years of high loss costs in the Auto and Homeowners segments due to inflation and catastrophes, Travelers has achieved a significant turnaround. Massive rate hikes implemented in 2024 and 2025 have finally caught up to loss trends, leading to a return to profitability in Personal Insurance, which saw a combined ratio improvement of nearly 10 points in the latest fiscal year.
