Travelers delivered adjusted fourth-quarter earnings per share of $11.13, surpassing the consensus estimate of $8.45 and improving from $9.15 in the year-ago period. Total revenue also exceeded Street forecasts, driven by higher net written premiums across business, bond and specialty, and personal insurance segments. The company reported a combined ratio of 85.2%, reflecting disciplined underwriting and favorable claims experience versus the prior year ratio of 90.5%.

The underwriting gain increased by 18% year-over-year to $2.3 billion, reflecting stronger pricing in property and casualty lines and lower catastrophe losses following a relatively quiet hurricane season. Net investment income rose 12% to $1.4 billion, fueled by higher yields on fixed-maturity portfolios and strategic allocations to high-quality corporate bonds. Favorable prior-year reserve development contributed $450 million to pre-tax income, an improvement of $120 million compared with Q4 2024.

Travelers repurchased 5.8 million shares for $1.65 billion in the quarter and secured board approval for an additional $5 billion buyback authorization. The company ended December with shareholders' equity of $31 billion and a debt-to-capital ratio of 20%, supporting an annualized return on equity of 29.6%. Management projects blended premium growth above 4% in 2026 and plans to maintain disciplined expense management while targeting a combined ratio below 90% over the next twelve months.