Travelers Q2 Net Income Soars on Less Losses, Favorable Reserves

The Travelers Cos. increased second quarter net income $975 million for a total of about $1.5 billion, and reversed an underwriting loss posted last year for the same period.

Travelers’ second quarter underwriting profit was about $1 billion compared to a loss of $65 million for Q2 2024, as catastrophe losses net of reinsurance during the timeframe were lower—$927 million this year versus about $1.5 billion a year ago. The insurer said the losses were primarily from wind and hail storms in multiple states.

Additionally, Travelers booked favorable prior-year reserve development of $315 million, compared to $230 million for Q2 2024.

The Q2 combined ratio for the New York-based insurer was 90.3, almost a 10-point improvement over last year.

Overall net premiums written (NPW) grew 4% to about $11.5 billion during Q2, and in a statement CEO Alan Schnitzer credited contributions from all three insurance segments—business, personal, and bond & specialty.

However, the most dramatic results were seen in personal lines, where Travelers reversed a Q2 2024 underwriting loss of $373 million to a gain of $480 million for the same quarter this year. Income for the segment was $534 million compared to a loss of $153 million a year ago, and the combined ratio came in at 88.4 versus 108.5 for Q2 2024. U.S. homeowners insurance NPW increased 7% to about $2.5 billion.

NPW in the business segment increased 5% to $5.8 billion as renewal premiums were up 8.6% for middle-market business and 10.7% for small commercial. The Q2 combined ratio in the business segment was 88.3, compared to 89.2 last year during the same time.

The second quarter turned around results from the first three months of 2025. Looking at year-to-date results, net income is up 15% to about $1.9 billion. The company recorded net income of $395 million for Q1, down 65%, with an underwriting loss of $305 million. Travelers paid out about $2.3 billion in Q1 catastrophe losses, mostly on the California wildfires.

Topics Profit Loss