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Mar 31, 2025
Travelers Q1 2025 Earnings Report
Travelers reported a sharp drop in profits in Q1 2025 due to severe catastrophe losses.
Key Takeaways
Despite strong underlying results and investment income, Travelers saw a significant year-over-year decline in earnings due to $2.27 billion in catastrophe losses, largely from California wildfires.
Net income fell to $395 million, down from $1.123 billion last year.
Catastrophe losses reached $2.266 billion, primarily due to wildfires in California.
Underlying underwriting income grew over 30% to $1.583 billion pre-tax.
Net written premiums increased 3% to $10.515 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Travelers remains confident in its strategic roadmap and long-term profitability despite recent catastrophe losses.
Positive Outlook
- Strong underlying underwriting performance
- Significant prior year reserve development gains
- Higher net investment income
- Improved underlying combined ratio
- Record new business in Business Insurance
Challenges Ahead
- Severe catastrophe losses impacted earnings
- Personal Insurance segment posted a loss of $374 million
- Decreased EPS and ROE compared to prior year
- Ceded premium from reinsurance program lowered premium growth
- Realized investment losses of $61 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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