Travelers Q4 Net Income Up 20% on Underwriting, Lower Catastrophe Losses

Fourth quarter 2025 net income at The Travelers Cos. increased about 20% compared with the same period a year ago, to about $2.5 billion.

Underwriting, lower catastrophe losses, and more favorable prior year reserve development bolstered financial results for the last three months of 2025.

Travelers booked an underwriting gain of about $2.2 billion versus about $1.8 billion during Q4 2024, and catastrophe losses—mostly from winter storms—were down $80 million to $95 million for the period. Net favorable reserves were $321 million in Q4 2025, compared with $262 the year prior.

The combined ratio for the New York-based insurer improved 3 points to 80.2 for the fourth quarter.

For all of 2025, Travelers recorded an improvement of about 26% in net income to about $6.3 billion. The insurer posted a 43% increase in its underwriting profit compared to 2024, finishing at about $4.3 billion despite a $355 million increase in catastrophe losses to about $3.7 billion for all of 2025. Catastrophe losses included the California wildfires to start the year.

Focusing on Q4, total net premiums were up 1% to about $10.9 billion. Travelers’ business insurance segment grew net premiums 2% to about $5.5 billion, led by domestic growth. Underwriting income was $877 million for Q4 2025 compared with $808 million a year ago. The combined ratio in the segment improved to 84.4 from 85.2 the year prior.

In personal lines, underwriting income for Q4 went up more than $300 million to about $1.1 billion. Catastrophe losses net of reinsurance were $37 million compared with $79 million a year ago. The Q4 combined ratio improved 6.7 points to finish at 74.0. Total domestic net premiums for Q4 were flat compared to the prior year, at about $4.1 billion. There was 3% growth in Travelers’ homeowners business.

Topics Catastrophe Trends Profit Loss Underwriting