The Travelers Companies, Inc. (TRV) is a leading provider of property and casualty insurance products and services, operating primarily in the United States, Canada, the United Kingdom, the Republic of Ireland, and other parts of the world. The company is organized into three main business segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance **[0000086312-24-000031_a991pressrelease33124.htm:7]** **[0000086312-24-000058_a992finsupp93024.htm:31]**. Travelers offers a wide range of insurance products, including property and casualty insurance for businesses and individuals, as well as specialty insurance products **[0000086312-24-000031_a991pressrelease33124.htm:7]** **[0000086312-24-000012_trv-20231231.htm:6]**.

1. **Business Insurance** - Offers a wide range of property and casualty insurance products and services to businesses of various sizes, including small businesses, mid-sized businesses, large companies, and a broad customer base.
   - **Select Accounts** - Tailored for small businesses.
   - **Middle Market** - Designed for mid-sized businesses.
   - **National Accounts** - Caters to large companies.
   - **National Property and Other** - Serves a broad customer base.

2. **Personal Insurance** - Provides personal property and casualty insurance products, including automobile and homeowners insurance, primarily in the United States and Canada.

3. **Bond & Specialty Insurance** - Provides surety, fidelity, management liability, professional liability, and other specialty insurance products, operating primarily in the United States with some international presence.

426d09095dec19b442216104c09570d85764f25e552b239b54e65b9f0383af66

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

d5a7636e937e9502236d3b6f006262e01859f63addc222758b87920f17a5336f

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Goodwill (USD, millions)

Intangible Assets (USD, millions)

Long-term Debt (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

45ec621b44b7195a3172d2e765ccac6018fceb8b790a24cb8932715373ad64fb

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

D&A (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD/share)

EPS - Diluted (USD/share)

73941ae0d1226ecfad8debfb3841f0c24490611ae9c7910f4276906138f870e6

| Metric [Unit: $ Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Business Insurance**   | 4,453  **[0000086312-23-000005_a992finsupp123122.htm:7]**  | 5,096  **[0000086312-23-000037_trv-20230331.htm:27]**  | 5,318  **[0000086312-23-000053_trv-20230630.htm:7]**  | 5,680  **[0000086312-23-000063_trv-20230930.htm:7]**  | 5,767  **[0000086312-24-000004_a992finsupp123123.htm:7]**  | 5,947  **[0000086312-24-000032_trv-20240331.htm:6]**  | 5,982  **[0000086312-24-000051_trv-20240630.htm:34]**  | 6,314  **[0000086312-24-000059_trv-20240930.htm:7]**  |
| **Bond & Specialty Insurance** | N/A | 953  **[0000086312-23-000037_trv-20230331.htm:30]**  | 996  **[0000086312-23-000053_trv-20230630.htm:7]**  | 1,027  **[0000086312-23-000063_trv-20230930.htm:7]**  | N/A | 1,055  **[0000086312-24-000032_trv-20240331.htm:6]**  | 1,077  **[0000086312-24-000051_trv-20240630.htm:39]**  | 1,117  **[0000086312-24-000059_trv-20240930.htm:7]**  |
| **Personal Insurance**   | 3,515  **[0000086312-23-000005_a991pressrelease123122.htm:8]**  | N/A | 3,819  **[0000086312-23-000053_trv-20230630.htm:7]**  | 3,993  **[0000086312-23-000063_trv-20230930.htm:7]**  | N/A | 4,191  **[0000086312-24-000032_trv-20240331.htm:6]**  | 4,289  **[0000086312-24-000051_trv-20240630.htm:7]**  | 4,418  **[0000086312-24-000059_trv-20240930.htm:7]**  |

5266b99695c0683b97d452851f56a282d9e05536d75f325e666cb19f5087a9c6

9f3a9cfda43f5f1ca98dc3faeac7ad8222812acde19811eba6c644ada9ea57ee

- Travelers achieved **record new business** in their **Personal Auto segment** in Q4 2024, with **new business up 6%** compared to the prior year quarter, indicating successful growth strategies in Personal Auto.  **[TRV_3413007_32]**
- The company reports **strong margins** in their **Business Insurance segment**, with **near double-digit renewal premium change (RPC)**, **high retention**, and a **stable market outlook**, suggesting continued profitability and growth opportunities in this segment.  **[TRV_3413007_19]**
- The **underlying loss ratio** in Business Insurance **improved**, driven by **earned pricing**, and the company maintained **conservative reserving practices** by adding IBNR to casualty lines, indicating strong underwriting discipline and financial strength.  **[TRV_3413007_17]**

387dbde7832a1c55be8363893ff7d55fecbb094ff968ee309ee7dca203e5917a

- The **underlying combined ratio in Business Insurance is as good as it's been in 20 years**, suggesting that margins **may have peaked** and might not improve further. When asked about this, the CEO did not forecast future margin directions and stopped short of indicating further improvement.  **[TRV_3413007_19]**
- The company **added more IBNR (Incurred But Not Reported) reserves to the casualty line**, **reflecting uncertainty** in that line, which may indicate **potential future losses**.  **[TRV_3413007_17]**
- The **California wildfires could have a significant impact on first quarter earnings**, as the company expects the losses to be a "**big number**" and **does not anticipate reinsurance recoveries** at this point. This could lead to **higher catastrophe losses** in future quarters.  **[TRV_3413007_26]**

0b0409dfdf84ed1297078f5e44dc7edefab7adf0036a2ca4a61f88827d35ceee

1. **California Wildfire Impact**  
   **Q:** How will California wildfires affect earnings?  
   **A:** The California wildfires will significantly impact our first-quarter earnings, but it's too early to provide specific numbers. While the event will contribute toward our **$4 billion** catastrophe retention, making reinsurance recoveries possible if activity remains high, we have taken steps to manage our exposure in wildfire-prone areas.  **[TRV_3413007_12]** **[TRV_3413007_24]** **[TRV_3413007_26]** **[TRV_3413007_27]** 

2. **Business Insurance Margins**  
   **Q:** Are current BI margins sustainable?  
   **A:** Our Business Insurance margins are exceptional, among the best in **20 years**, driven by earned pricing and strong underwriting. We are pleased with our current business and market stability but won't forecast future margins.  **[TRV_3413007_17]** **[TRV_3413007_19]** **[TRV_3413007_25]** 

3. **Workers' Comp Reserve Releases**  
   **Q:** Any notable reserve releases in commercial lines?  
   **A:** We had approximately **$250 million** of favorable prior-year development in workers' compensation this quarter, reflecting ongoing favorable trends in that line.  **[TRV_3413007_15]** **[TRV_3413007_22]** 

4. **Reinsurance Strategy**  
   **Q:** Why increase casualty reinsurance protection?  
   **A:** We enhanced our reinsurance coverage because market conditions allowed us to achieve a favorable risk-reward outcome, supporting our growth strategy in casualty lines.  **[TRV_3413007_18]** **[TRV_3413007_26]** 

5. **Pricing Trends**  
   **Q:** What are current pricing trends in Business Insurance?  
   **A:** Pricing remains stable overall. In workers' comp, the renewal rate change is slightly negative, but with exposure growth, it becomes slightly positive. We haven't seen meaningful shifts in pricing trends.  **[TRV_3413007_11]** **[TRV_3413007_13]** **[TRV_3413007_16]** 

6. **California Market Share**  
   **Q:** How exposed are you to California wildfires?  
   **A:** Estimating our exposure is challenging due to outdated market share data and regional differences. While we've managed our exposure in wildfire-prone areas, it's difficult to quantify impacts at this time.  **[TRV_3413007_24]** **[TRV_3413007_26]** 

7. **Personal Lines Strategy**  
   **Q:** Does strong Homeowners result change growth plans?  
   **A:** Not really. Despite favorable frequency in property, we're focused on improving profitability and achieving target returns before pursuing growth in Homeowners insurance.  **[TRV_3413007_23]** 

8. **Technology Investments**  
   **Q:** Can you provide details on technology investments?  
   **A:** We spent over **$1.5 billion** last year on technology, focusing on digitizing the value chain, modernizing infrastructure, and investing in talent, AI, and data analytics to enhance speed to market and pricing accuracy.  **[TRV_3413007_14]** 

9. **Tort Environment**  
   **Q:** Any improvement in the tort environment?  
   **A:** The tort environment remains challenging but is gaining recognition as a broader issue affecting businesses and consumers. Some states are enacting reforms, including litigation financing disclosure, which is a positive trend.  **[TRV_3413007_20]** 

10. **Commercial Auto Growth**  
    **Q:** What's driving Commercial Auto growth?  
    **A:** Growth in Commercial Auto is primarily driven by renewal premium changes, reflecting increases in rate and exposure.  **[TRV_3413007_31]** 

11. **Personal Auto Competitive Landscape**  
    **Q:** What's the current Personal Auto market like?  
    **A:** The competitive environment is consistent with previous quarters. We continue to make progress, achieving record new business in Auto during the fourth quarter.  **[TRV_3413007_32]** 

12. **Policies Excluding Wildfire**  
    **Q:** Do your policies exclude wildfire coverage?  
    **A:** In California, we offer standard policies that include wildfire coverage and **DIC policies** that exclude it. Customers may pair DIC policies with FAIR Plan coverage to obtain comprehensive protection.  **[TRV_3413007_29]** 

13. **High-Value Home Exposure**  
    **Q:** What's your appetite for high-value homes?  
    **A:** Our exposure to **$5 million** homes in California is very limited. We focus on middle-market and mass affluent segments, not the high-net-worth market.  **[TRV_3413007_30]** 

80038fa50e32b09c723b4512f0061b3582c98bac9dced2ce8b6a263cbb40f268

1. Given the strong renewal premium change of 10.5% in Business Insurance, at what point do you expect renewal premium changes to moderate, and how might that impact your growth and profitability objectives?  **[TRV_3402954_9]** 

2. With $939 million of pre-tax catastrophe losses due to Hurricanes Helene and Milton, how effective are your exposure management strategies, including eligibility restrictions and higher deductibles in high-risk catastrophe areas, in mitigating future catastrophe risk?  **[TRV_3402954_1]** **[TRV_3402954_8]** **[TRV_3402954_7]** 

3. You have implemented significant actions in Personal Insurance to improve profitability, such as restricting eligibility and tightening underwriting, leading to declines in new business premium and policies in force; how do you plan to balance these actions with the need for growth and maintaining market share in Personal Lines?  **[TRV_3402954_8]** **[TRV_3402954_7]** 

4. The asbestos charge of $242 million in Business Insurance is notable; can you provide more context on the factors leading to this charge, and are there concerns about potential emerging trends impacting reserve adequacy in other lines?  **[TRV_3402954_3]** **[TRV_3402954_18]** 

5. In Personal Auto, you reported a 9.4-point improvement in the underlying combined ratio, including a 2-point benefit from re-estimation of prior quarters; can you clarify the nature of this re-estimation and whether similar adjustments are expected to impact future results?  **[TRV_3402954_7]** 

62d0944d251e050c4dfca4eff563b3855a25cae3eb25f5b5ea3dde16e6824ca2

Business Insurance

- Premiums

- Net Investment Income

- Fee Income

- Other Revenues

Bond & Specialty Insurance

Financial, Professional & International Insurance

Personal Insurance

Total Revenue

6ed4e5bab5aa630306f8634ae023f969b3958defaefa1ed1e3c67bb33c754eae

- **GEICO**: The agency affiliate of GEICO has had a distribution arrangement with TRV for homeowners' business since 1995  **[0000086312-24-000012_trv-20231231.htm:75]** .
- **National and Regional Property and Casualty Insurance Companies**: Compete in the Select Accounts market, which generally comprises lower-hazard, "Main Street" business customers  **[0000086312-24-000012_trv-20231231.htm:13]** .
- **National Property and Casualty Insurance Companies**: Compete in the Middle Market business, requiring unique combinations of industry knowledge, customized coverage, and specialized risk control  **[0000086312-24-000012_trv-20231231.htm:13]** .
- **International Companies Doing Business in the U.S.**: Compete in both the Select Accounts and Middle Market segments  **[0000086312-24-000012_trv-20231231.htm:13]** .
- **Other Underwriters of Property and Casualty Insurance in the Alternative Risk Transfer Market**: Compete in the National Accounts market, including self-insurance plans, captives managed by others, third-party administrators, and other risk-financing vehicles  **[0000086312-24-000012_trv-20231231.htm:13]** .
- **International and Domestic Insurers in Canada, the United Kingdom, and the Republic of Ireland**: Compete with TRV on the basis of price, product offerings, distribution partnerships, and the level of claim and risk management services  **[0000086312-24-000012_trv-20231231.htm:13]** .
- **Syndicates Operating in the Lloyd's Market**: Compete with TRV's International segment at Lloyd's, focusing on short-tail insurance lines  **[0000086312-24-000012_trv-20231231.htm:13]** .

652f6f6065e36a746fd8ccc0b67973fff5cb1bbc91b3f3ad6f63e33363b8e6e5

United States

Non-U.S. Total

- Canada

- Other Non-U.S.

Domestic

- Business Insurance

- Bond & Specialty Insurance

- Personal Insurance

International

ec0cd039674ff03a7549ac32987089a04309075034da8e77b33834e3e24b4e3a

Combined Ratio

Loss and Loss Adjustment Expense Ratio

Underwriting Expense Ratio

Metric (in millions)

----------------------

Catastrophe Losses Pre-tax

Catastrophe Losses After-tax

Net Favorable Prior Year Reserve Development

Product Line

--------------

General liability

Commercial property

Commercial multi-peril

Commercial automobile

Workers’ compensation

Fidelity and surety

Personal automobile

Personal homeowners and other

International and other

Accident and health

Net Asbestos Paid Loss and Loss Expenses

ae1af0136176c2ba5b9ff22b8bc4853a19a5ac51083267d5bee7d18412d39a58

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Alan D. Schnitzer     | Chairman of the Board of Directors and Chief Executive Officer           | December 2015    | Alan D. Schnitzer, **age 58**, has been the **Chairman of the Board of Directors since August 2017** and the **Chief Executive Officer and Director since December 2015** at The Travelers Companies, Inc.  **[0000086312-24-000012_trv-20231231.htm:270]** **[0000086312-24-000023_trv-20240402.htm:11]** .                              |
| William H. Heyman     | Vice Chairman and Chairman of the Investment Policy Committee            | August 2019      | William H. Heyman, aged **75**, has been serving as the **Vice Chairman and Chairman of the Investment Policy Committee** at Travelers Companies, Inc. since **August 2019**  **[0000086312-24-000012_trv-20231231.htm:270]** **[0000086312-23-000011_trv-20221231.htm:272]** .                                                             |
| Avrohom J. Kess       | Vice Chairman and Chief Legal Officer                                    | December 2016    | Avrohom J. Kess, aged **55**, has been serving as the **Vice Chairman and Chief Legal Officer** of The Travelers Companies, Inc. since **December 2016**  **[0000086312-24-000012_trv-20231231.htm:270]** **[0000086312-23-000011_trv-20221231.htm:273]** .                                                                                 |
| Daniel S. Frey        | Executive Vice President and Chief Financial Officer                     | September 2018   | Daniel S. Frey has been serving as the **Executive Vice President and Chief Financial Officer** of The Travelers Companies, Inc. since **September 2018**  **[0000086312-24-000012_trv-20231231.htm:270]** **[0000086312-24-000012_trv-20231231.htm:271]** .                                                                                |
| Andy F. Bessette      | Executive Vice President and Chief Administrative Officer                | January 2002     | Andy F. Bessette, aged **70**, has been serving as the **Executive Vice President and Chief Administrative Officer** at Travelers Companies, Inc. since **January 2002**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-24-000012_trv-20231231.htm:270]** .                                                                |
| Michael F. Klein      | Executive Vice President and President, Personal Insurance               | July 2015        | Michael F. Klein, **56**, has been the **Executive Vice President and President, Personal Insurance** at Travelers Companies, Inc. since **July 2015**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-24-000012_trv-20231231.htm:270]** .                                                                                  |
| Jeffrey P. Klenk      | Executive Vice President and President, Bond & Specialty Insurance       | September 2021   | Jeffrey P. Klenk, **54**, has been serving as the **Executive Vice President and President, Bond & Specialty Insurance** since **September 2021**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-24-000012_trv-20231231.htm:270]** .                                                                                        |
| Diane Kurtzman        | Executive Vice President and Chief Human Resources Officer               | August 2020      | Diane Kurtzman has been serving as the **Executive Vice President and Chief Human Resources Officer** at The Travelers Companies, Inc. since **August 2020**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-24-000012_trv-20231231.htm:270]** .                                                                            |
| Mojgan M. Lefebvre    | Executive Vice President and Chief Technology & Operations Officer       | May 2019         | Mojgan M. Lefebvre has been serving as the **Executive Vice President and Chief Technology & Operations Officer** at The Travelers Companies, Inc. since **May 2019**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-23-000011_trv-20221231.htm:273]** .                                                                    |
| Maria Olivo           | Executive Vice President, Strategic Development and President, International | October 2018 | Maria Olivo, **59**, has been serving as the **Executive Vice President, Strategic Development and President, International** at The Travelers Companies, Inc. since **October 2018**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-23-000011_trv-20221231.htm:274]** .                                                   |
| David D. Rowland      | Executive Vice President and Co-Chief Investment Officer                 | August 2019      | David D. Rowland, **58**, has been serving as **Executive Vice President and Co-Chief Investment Officer** at The Travelers Companies, Inc. since **August 2019**  **[0000086312-24-000012_trv-20231231.htm:271]** **[0000086312-23-000011_trv-20221231.htm:274]** .                                                                        |
| Gregory C. Toczydlowski | Executive Vice President and President, Business Insurance             | June 2016        | Gregory C. Toczydlowski, **57**, has been the Executive Vice President and President of Business Insurance at Travelers Companies, Inc. since **June 2016**  **[0000086312-24-000012_trv-20231231.htm:272]** **[0000086312-23-000011_trv-20221231.htm:274]** .                                                                              |
| Daniel T.H. Yin       | Executive Vice President and Co-Chief Investment Officer                 | August 2019      | Daniel T.H. Yin, **58**, has been serving as Executive Vice President and Co-Chief Investment Officer at The Travelers Companies, Inc. since **August 2019**  **[0000086312-24-000012_trv-20231231.htm:272]** **[0000086312-24-000012_trv-20231231.htm:270]** .                                                                             |

646021676751491bdd4bc0ab05d6cdb48f9895233d0da5561fb7f0279bc9c215

**Quarterly guidance for Q1 2025:**
- **Fixed Income Net Investment Income (NII)**: $710 million  **[TRV_3413007_4]**  (raised from $700 million  **[TRV_3402954_3]** )

**Quarterly guidance for Q4 2025:**
- **Fixed Income Net Investment Income (NII)**: $790 million  **[TRV_3413007_4]**  (raised from $760 million  **[TRV_3402954_3]** )

**Annual guidance for FY 2025:**
- **Fixed Income Net Investment Income (NII)**: $3 billion  **[TRV_3413007_4]**  (raised from $2.9 billion  **[TRV_3402954_3]** )  
- **Expense Ratio**: 28.5%  **[TRV_3413007_4]**  (no prior guidance)

ef8e3957a77b71f15e5e837470ca01e3f3fbf887002a94a789f050c4ef26547f

| Program Details          | Program 1      |
|--------------------------|----------------|
| Approval Date            | **April 19, 2023**  **[0000086312-24-000059_trv-20240930.htm:81]** **[0000086312-24-000059_trv-20240930.htm:68]**  |
| End Date/Duration        | **No expiration date**  **[0000086312-24-000059_trv-20240930.htm:81]** **[0000086312-24-000059_trv-20240930.htm:68]**  |
| Total additional amount  | **$5.0 billion**  **[0000086312-24-000059_trv-20240930.htm:81]** **[0000086312-24-000059_trv-20240930.htm:68]**  |
| Remaining authorization amount | **$5.29 billion**  **[0000086312-24-000059_trv-20240930.htm:22]** **[0000086312-24-000059_trv-20240930.htm:68]**  |
| Details                  | Part of strategy to return capital to shareholders; factors include financial position, earnings, share price, and other investment opportunities  **[0000086312-24-000051_trv-20240630.htm:71]** **[0000086312-24-000059_trv-20240930.htm:74]** **[0000086312-24-000032_trv-20240331.htm:63]** **[0000086312-23-000037_trv-20230331.htm:61]** **[0000086312-23-000063_trv-20230930.htm:76]** **[0000086312-23-000053_trv-20230630.htm:77]** **[0000086312-24-000032_trv-20240331.htm:57]**  |

fd05f7b5db494d06f0db277ac82018ee0717125cd4a2393c4797d80d049e0dda

TRV Q4 highlights: Personal Auto new biz +6% YOY drove record volumes, BI margins near double-digit renewal premium changes. Underlying combined ratio at a 20-year best but may have peaked. Expect significant CA wildfire impact in Q1 with uncertain reinsurance recoveries.

016f3b28c97301bb7ccd878d6f725e1779b40017deb89b50c87581fffa7b8bf2

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 1994  **[0000086312-24-000012_trv-20231231.htm:177]**    | Present  | Current auditor   |

5f888dc8d9456754f86677622fb579759657151f5308e6cd50b3e11e3644ec9e

- Total Revenue: $12.063B  **[0000086312-25-000004_a992finsupp123124.htm:3]**  (+11% YoY vs. $10.892B  **[0000086312-24-000012_trv-20231231.htm:194]** )  
- Business Insurance: $6.414B  **[0000086312-25-000004_a992finsupp123124.htm:7]**  (+11% YoY vs. $5.767B  **[0000086312-24-000012_trv-20231231.htm:193]** )  
- Bond & Specialty Insurance: $1.129B  **[0000086312-25-000004_a992finsupp123124.htm:10]**  (+9% YoY vs. $1.032B  **[0000086312-24-000012_trv-20231231.htm:193]** )  
- Net Income: **$2.082B**  **[0000086312-25-000004_a992finsupp123124.htm:3]** **[0000086312-25-000004_a992finsupp123124.htm:1]**  (+28% YoY vs. $1.626B  **[0000086312-24-000012_trv-20231231.htm:177]** )  
- Diluted EPS: **$8.96**  **[0000086312-25-000004_a992finsupp123124.htm:1]**  (+29% YoY vs. $6.96  **[0000086312-24-000012_trv-20231231.htm:177]** )  

c0f711939d56548db9da1d45c38bcecb0843aa207a5e8659d9d2cab1dd5d0007

5946f95556fb1ea6bc02a55754fede6abd97b44765065e0410e0d2d5f5ad3761

f25d92f69337a333382c31932054eaa4f68fc6abe2a81bef53ba91dec4acb535

3d278866583d61a8d1e5cd40bf21773e5e0051acfede7b10436cb477796909ab

- **Travelers is making significant changes to terms and conditions**, such as increasing deductibles and restricting eligibility, particularly in catastrophe-exposed geographies, indicating heightened exposure to natural disasters and potential underwriting challenges.  **[TRV_3402954_14]**
- **Positive loss trends are putting pressure on the company**, with executives noting the need for pricing to keep up, suggesting potential earnings pressure if pricing doesn't keep pace with increasing loss costs.  **[TRV_3402954_24]**
- **Earned pricing had an unfavorable impact on the underlying combined ratio** in the management liability section, implying margin pressure in that segment despite excellent returns and high renewal retention.  **[TRV_3402954_24]**

c4985e60aeffade345a7538cb16244485776504d63f1081f00d608a0df9e0a70

- **Strong Financial Performance**: Travelers reported a **record underlying underwriting gain of $952 million after tax**, up **55%** from the prior year quarter, driven by **record levels of earned premium** and an improved underlying combined ratio of **87.7%**, a 340 basis point improvement from last year's strong result.  **[TRV_3393639_3]**
- **Robust Premium Growth and Pricing**: In Business Insurance, net written premiums increased **7%** to an all-time second quarter high of over **$5.5 billion**, with renewal premium change at a historically high **10.1%** and new business up **9%** to a record **$732 million**.  **[TRV_3393639_5]**
- **Positive Outlook on Pricing and Market Position**: Management expects renewal price changes to remain **positive and strong**, particularly in casualty lines, indicating continued pricing power. The company believes it is ahead of the industry in recognizing loss trends, which positions it favorably relative to peers.  **[TRV_3393639_27]**

db5f55053606953c5b465febc4736b05415839c7cdfab9f4ad171467b7097116

- **Travelers reported a decline in net written premiums in Workers' Compensation**, primarily due to rate reductions and decreased exposures, which may impact profitability in this segment.  **[TRV_3379927_18]**
- The company acknowledges **headwinds and uncertainties**, including **social inflation, economic inflation, tight labor market, weather, and geopolitics**, which could negatively affect their business performance.  **[TRV_3379927_12]**
- **Increased dislocation in the small commercial market** suggests potential **competitive pressures** that could impact Travelers' growth and profitability in this segment.  **[TRV_3379927_9]**

50940e442d0f5608ebc468b140d09cea8447936dbd88a4830a5797c5e558476b

- **Travelers is not seeing any material slowdown in their Excess & Surplus (E&S) market segments, maintaining strong performance across diverse businesses.**  **[TRV_3379927_28]**
- **Growth in Commercial Auto accelerated due to increased renewal premium change (RPC) and the rollout of a new automobile product expected to improve return profiles.**  **[TRV_3379927_26]**
- **The integration of Corvus is progressing well, with Travelers feeling confident about the profitability and quality of Corvus's book of business, enhancing their capabilities.**  **[TRV_3379927_29]**

4b954cdc47ee3989796c33f232f6c4aea34ed1486147b441bdd9492569eb8f51

- **Travelers is actively making meaningful changes to terms and conditions in personal lines, particularly in catastrophe-exposed geographies, including adjusting deductibles and reunderwriting the portfolio to manage exposure.**  **[TRV_3402954_14]**
- **The management liability business has excellent returns with a strong renewal retention rate of 90%, reflecting effective execution and profitability.**  **[TRV_3402954_24]**
- **The company is proactive in detecting and reacting to changes in loss activity and feels positive about the actions taken so far, demonstrating strong risk management practices.**  **[TRV_3402954_24]**

841ebdaf36443958671968e568be6aab62593bad0b88eb18bfd3bddeff1b1b1a

- **Strong pricing environment with high retention rates**: Travelers reported that the pricing environment remains very strong and broad-based by any historical standard, and even with another quarter of very strong pricing, **retention remains at historical highs**.  **[TRV_3370490_23]**  This indicates disciplined execution and improved returns compared to previous years.
- **Favorable loss cost trends in workers' compensation**: Loss costs in workers' compensation are coming in better than expected, leading to **another quarter of favorable prior year reserve development**.  **[TRV_3370490_21]** **[TRV_3370490_27]**  Despite some increase in paid medical severity from the very benign pandemic levels, overall frequency has been favorable.  **[TRV_3370490_21]**
- **Favorable price versus trend in Business Insurance**: The company has experienced favorable price versus trend in Business Insurance, contributing to an **improved underlying loss ratio**.  **[TRV_3370490_10]**  This improvement is due to favorable pricing, a slight mix shift towards property, and modestly favorable non-catastrophe weather impacts.  **[TRV_3370490_10]**

45e21945dc9b46274e321623f5c030b5a161b1114387aceab9d9a3695e66f0b5

- **Deceleration in Business Insurance pricing trends:** The Renewal Rate Change (RRC) in Business Insurance decelerated by **40 basis points**, primarily driven by a slowdown in property pricing.  **[TRV_3393639_11]**
- **Potential challenges in Workers' Compensation due to medical inflation and legislative changes:** Concerns were raised about increasing medical costs and regulatory changes, such as the **California benchmark rate decrease by 2%**, which could impact loss severity trends in Workers' Compensation.  **[TRV_3393639_29]** **[TRV_3393639_23]**
- **Competitive environment may impact pricing power and margins:** The company acknowledged uncertainty in the competitive landscape of commercial lines, which may affect pricing power and profitability, especially in casualty lines.  **[TRV_3393639_27]**

bde3849e86cf65103b1f98cad11bc99b7b0307a45a9c5bd81feeb801e1772609

1. **Business Insurance Margins**

   **Q:** Is the strong underlying combined ratio in Business Insurance sustainable?

   **A:** Management believes current margins in Business Insurance are attractive and sustainable. They are pleased with the margins and the **16%** growth achieved on a full-year basis. They appreciate the business they're putting on the books at these margins and see opportunities ahead.  **[TRV_3370490_19]** 

2. **Return on Equity**

   **Q:** Why is ROE running below expectations despite a strong outlook?

   **A:** The full-year ROE was **11.5%**, above the cost of capital but not as high as preferred. Elevated catastrophe losses, especially in the second and third quarters, impacted underwriting contributions. Management does not expect this elevated level of catastrophe losses to continue.  **[TRV_3370490_12]** 

3. **Personal Auto Loss Trends**

   **Q:** What are the loss cost trends and growth strategy in Personal Auto?

   **A:** Loss trends in Personal Auto are moderating but remain at elevated levels. Management is cautiously optimistic and remains disciplined in ensuring rate adequacy state by state. They are pleased with increased new business production and stabilizing policies in force, planning to continue achieving rate equity and adjusting marketplace actions accordingly.  **[TRV_3370490_20]** 

4. **General Liability and Umbrella Reserves**

   **Q:** How are general liability and umbrella returns given recent reserve increases?

   **A:** Despite reserve additions in **5 of the last 7 quarters**, management continues to like the returns in general liability and umbrella lines. Adjustments are modest relative to the scope of reserves, and these lines remain attractive over time.  **[TRV_3370490_11]** **[TRV_3370490_17]** 

5. **Workers' Compensation Trends**

   **Q:** What is the update on workers' comp medical inflation and pricing?

   **A:** Paid medical severity in workers' comp is higher than the benign pandemic levels, but frequency remains favorable. Loss costs are better than expected, leading to favorable prior year development. Pricing is slightly negative in pure rate, but strong exposure increases act like rate due to higher wages. The environment is expected to remain steady.  **[TRV_3370490_21]** **[TRV_3370490_27]** 

6. **Competitive Dynamics**

   **Q:** What drives the disciplined pricing in Business Insurance despite strong returns?

   **A:** The strong pricing environment is due to uncertainties like inflation, tight labor markets, weather, and geopolitics. While returns have improved, the industry remains disciplined, reacting to external headwinds and maintaining strong retention levels even with robust pricing.  **[TRV_3370490_23]** 

7. **Fidelis Impact on Margins**

   **Q:** How does the Fidelis relationship affect margins in Business Insurance?

   **A:** The Fidelis deal provided a modest benefit to margins in **2023** and is expected to help modestly again in **2024** with a larger base of earned premium. Management considers it a modest positive impact but is not providing specific numbers.  **[TRV_3370490_14]** 

8. **Premium Growth Drivers**

   **Q:** What are the drivers behind premium growth in Business Insurance?

   **A:** In the Select business, higher exposure in workers' comp due to wage increases among smaller customers leads to significant growth. The business owner product (CMP) with heavy property coverage also contributes to growth due to inflationary effects.  **[TRV_3370490_22]** 

9. **Importance of Free Cash Flow**

   **Q:** Why is free cash flow important to the company?

   **A:** Strong free cash flow, resulting from profitable growth, enables the company to invest in important areas, return capital to shareholders, and grow the investment portfolio. It's key to their operating model and overall flexibility.  **[TRV_3370490_18]** 

10. **D&O and Cyber Pricing**

    **Q:** What are the pricing trends in D&O and Cyber lines?

    **A:** Public D&O pricing continues to be under pressure compared to other liability lines, and the company is relatively underweight in this area. Cyber is experiencing modest negative pricing due to market perceptions of returns, but management feels positive about their execution and return profiles in these lines.  **[TRV_3370490_26]** 

579acec00ccf012cffef499d7d3ac25d79f7ed344fb28f1e1832ff9c8d65d2de

1. **Umbrella Reserve Strengthening**  
   **Q:** Have you resolved issues with recent umbrella charges?  
   **A:** We strengthened reserves in our umbrella and general liability lines for accident years 2021 to 2023 due to higher claim costs driven by increased attorney representation rates, severity, jury awards, and longer claim development periods. We're confident that our proactive and decisive actions have comprehensively addressed these issues.  **[TRV_3393639_9]** **[TRV_3393639_12]** **[TRV_3393639_21]** 

2. **Underlying Loss Ratio Improvement**  
   **Q:** What's driving improvement in underlying loss ratio?  
   **A:** The underlying loss ratio improved by about **50 basis points year-over-year**, mainly due to earned pricing benefits and favorable non-catastrophe property losses, without significant changes in loss trends or the impact of prior year development.  **[TRV_3393639_10]** 

3. **Business Insurance Pricing Trends**  
   **Q:** Why did BI renewal rate change decelerate?  
   **A:** The slight deceleration in Business Insurance renewal rate change was primarily due to national property, while our Select and Middle Market segments showed improvement, with Select up and Middle Market flat.  **[TRV_3393639_11]** 

4. **Competitor Behavior in Personal Auto**  
   **Q:** Is your Auto positioning aligned with the market?  
   **A:** While some competitors are gaining share in personal auto, our focus on package policies means we're more impacted by challenges in high-risk property geographies. We're pleased with auto new business growth in areas not affected by these challenges, and our actions are intentional to improve profitability.  **[TRV_3393639_16]** **[TRV_3393639_18]** 

5. **Catastrophe Losses and Reinsurance Impact**  
   **Q:** Will you absorb higher cat losses going forward?  
   **A:** We're not retaining more catastrophe risk. The higher cat losses this quarter resulted from the nature of events, not reduced reinsurance usage. Attachment points increased naturally with growth in premiums and insured values, and our net results aren't significantly impacted by reinsurance changes.  **[TRV_3393639_17]** **[TRV_3393639_20]** 

6. **Workers' Compensation Outlook**  
   **Q:** How does medical inflation affect Workers' Comp?  
   **A:** Workers' Compensation continues to perform well, with frequency and severity trends emerging favorably. We monitor state-level changes like medical cost inflation and adjust pricing as needed, maintaining a positive outlook on reserves and the overall health of the book.  **[TRV_3393639_23]** **[TRV_3393639_29]** **[TRV_3393639_30]** 

7. **Growth in E&S Capabilities**  
   **Q:** Why focus more on E&S markets?  
   **A:** While we're predominantly a standard lines writer, we've long had substantial Excess & Surplus lines capabilities. We're capitalizing on attractive opportunities in the E&S market without changing our core strategy, participating at very attractive margins.  **[TRV_3393639_24]** 

8. **Underwriting Income Growth**  
   **Q:** What's the message about underlying profitability?  
   **A:** Our underlying underwriting income has grown significantly, crossing **$2 billion** in 2020 and **$3 billion** in 2023, reflecting increased earnings power from top-line growth at consistent margins. This growth demonstrates the enhanced underlying earnings capability of our franchise compared to five or six years ago.  **[TRV_3393639_28]** 

9. **Court Backlogs Resolved**  
   **Q:** Is the court backlog from COVID resolved?  
   **A:** Yes, based on our data, the court backlogs from COVID-19 shutdowns have been resolved. This resolution likely reflects broader market conditions beyond our own observations.  **[TRV_3393639_13]** 

10. **Reinsurance Impact on Combined Ratio**  
    **Q:** Will reinsurance changes affect combined ratio?  
    **A:** Reinsurance pricing aligned with our expectations. Although costs slightly increased, direct pricing gains offset them, resulting in an insignificant impact on margins and no material effect on our combined ratio.  **[TRV_3393639_14]** 

11. **National Accounts Growth**  
    **Q:** Why did national accounts grow significantly?  
    **A:** Growth in national accounts can vary due to the size of individual accounts. We're pleased with the profitability of this book but not surprised by variability. Our Middle Market segment showed strong margins with **8% growth**, contributing to a solid overall business growth of **7%** year-to-date.  **[TRV_3393639_15]** 

12. **Select Accounts Retention**  
    **Q:** Why is retention lower in Select accounts?  
    **A:** We're optimizing our portfolio through normal housekeeping to enhance risk-return profiles, including in specific geographies. This is part of our continuous effort to improve the quality and profitability of our Select Accounts business.  **[TRV_3393639_22]** 

13. **Supreme Court Impact**  
    **Q:** Does overturning Chevron Doctrine affect exposure?  
    **A:** It's too early to determine the impact of the Supreme Court overturning the Chevron Doctrine on casualty lines. We hesitate to speculate without further analysis, but we're monitoring the situation closely.  **[TRV_3393639_25]** 

14. **Non-Cat vs. Catastrophe Losses**  
    **Q:** Are non-cat weather losses inversely related to cats?  
    **A:** The relationship varies. In some quarters, elevated catastrophe losses may coincide with expected non-catastrophe weather losses, as was the case this quarter. They're not always inversely or directly related, and the impact depends on the specific weather events.  **[TRV_3393639_26]** 

15. **Competitive Pricing Trends**  
    **Q:** Will pricing power trends remain stable or increase?  
    **A:** We expect renewal price changes to remain positive and strong, particularly in casualty lines. Industry uncertainties and anticipated adjustments from peers support the continuation of current favorable pricing trends.  **[TRV_3393639_27]** 

16. **New Jersey Homeowners Pricing**  
    **Q:** What's the rationale for NJ homeowner price increase?  
    **A:** New Jersey poses challenges due to a difficult loss environment and regulatory hurdles, leading us to reduce our homeowner book in the state. Without necessary rate approvals, we must adjust our exposure, and the regulatory dysfunction significantly impacts our ability to write new business there.  **[TRV_3393639_31]** 

de8d93e2724dde35a5aba9a05cada5b293b88cd0ff065ea6001829995d3c07ce

1. **Liability Reserves Increase**  
   **Q:** Why did you increase recent accident year liability reserves?  
   **A:** We made small adjustments to our reserves for recent accident years in liability lines, adding more IBNR to recognize uncertainty. This reflects ongoing trends we've discussed, such as social inflation. Overall, these are **modest changes** with no significant new developments.  **[TRV_3379927_10]** **[TRV_3379927_15]** 

2. **ROE Targets for 2024**  
   **Q:** What's your outlook for ROE targets in 2024?  
   **A:** While we won't share specific targets due to competitive sensitivity, we consider factors like the interest rate environment and aim to achieve margins over the 10-year treasury and our cost of equity.  **[TRV_3379927_13]** 

3. **Personal Auto Improvement**  
   **Q:** Is the improvement in personal auto sustainable?  
   **A:** The improvement is primarily driven by earned pricing, with mild winter weather contributing **less than 1 point** to the underlying combined ratio. While the mild weather benefit is one-off, we expect further improvement as more pricing earns into the book.  **[TRV_3379927_11]** **[TRV_3379927_14]** 

4. **Competitive Landscape in Business Insurance**  
   **Q:** How is the competitive environment affecting rates and retention?  
   **A:** The market remains competitive across all segments. Despite this, we've achieved strong pricing with high retention levels, reflecting a marketplace reacting to uncertainties like social and economic inflation. In small commercial, we saw a **22% increase** in new business due to market dislocation.  **[TRV_3379927_12]** **[TRV_3379927_17]** 

5. **Workers' Compensation Premium Trends**  
   **Q:** Why did workers' comp premiums shrink year over year?  
   **A:** While exposure continues to be strong, it's **down somewhat** as the Fed curtails inflation. The primary driver of the decline is ongoing rate reductions, and we're maintaining disciplined underwriting to ensure profitability.  **[TRV_3379927_18]** 

6. **Maintaining Combined Ratio Improvement**  
   **Q:** How are you maintaining strong underlying combined ratios in Business Insurance?  
   **A:** The improvement stems from **significant earned pricing benefits** and favorable mix, partially offset by modest IBNR additions and some large loss activity. We continue to benefit from a strong pricing environment and high-quality retention.  **[TRV_3379927_22]** 

7. **Homeowners Terms and Conditions**  
   **Q:** Any changes in homeowners terms given higher cat losses?  
   **A:** We're implementing various non-rate actions, including stricter eligibility criteria, **higher deductibles**, and managing exposure aggregation. These measures aim to improve profitability amid increased severe convective storm activity.  **[TRV_3379927_23]** 

8. **Florida Homeowners Market**  
   **Q:** Are Florida reforms prompting you to revisit the market?  
   **A:** While recent reforms are a positive step, Florida remains **highly cat-exposed** with structural challenges. The risk-reward is not yet balanced, and concerns like potential assigned risk obligations persist. We're monitoring but haven't changed our stance on new property business there.  **[TRV_3379927_24]** 

9. **Attorney Involvement in Auto Claims**  
   **Q:** Are you seeing higher attorney involvement in auto BI claims?  
   **A:** Over time, we've observed **increased attorney involvement** impacting bodily injury claims. However, bodily injury loss trends this quarter were **consistent with expectations**, and we remain vigilant to social inflation trends.  **[TRV_3379927_25]** 

10. **Commercial Auto Growth and Pricing**  
    **Q:** What's driving the acceleration in commercial auto growth?  
    **A:** Growth is primarily due to **renewal price changes**, with rates increasing. We've also rolled out a **new commercial auto product**, enhancing segmentation and expected returns.  **[TRV_3379927_26]** 

11. **E&S Market Dynamics**  
    **Q:** Are you seeing changes in E&S market competition or pricing?  
    **A:** We haven't observed a **material slowdown** in the segments where we compete. Our diverse $2.5 billion E&S portfolio continues to perform well amid market conditions.  **[TRV_3379927_28]** 

12. **Corvus Integration Update**  
    **Q:** Any major takeaways from re-underwriting the Corvus book?  
    **A:** After 3.5 months into integration, we're pleased with the **quality and profitability** of the Corvus book. We're leveraging their proprietary technology across our existing book and are comfortable with the results.  **[TRV_3379927_29]** 

13. **Personal Lines Renewal Premium Trends**  
    **Q:** Will renewal premium changes in personal lines decelerate?  
    **A:** For auto, renewal premium change will **moderate gradually**, not sharply, due to our 12-month policies and the earning of prior rate actions. In property, we don't anticipate deceleration and will **continue to drive rate increases** to address loss costs.  **[TRV_3379927_30]** 

3979cf9d79f1834c36a665184e5d0b9e6531502806a542081bd41ca99b961f91

1. **BI Renewal Premium Change**  
   **Q:** When will business insurance renewal premiums begin to moderate?  
   **A:** Management stated they are not forecasting when renewal premium change will moderate but highlighted headwinds such as inflation and uncertainties in the political, regulatory, and geopolitical environments that the market is reacting to.  **[TRV_3402954_9]** 

2. **Capital Management Strategy**  
   **Q:** Should excess cash flow be used for share repurchases?  
   **A:** Management emphasized that their first priority for every dollar of capital generated is to invest back into the business to create shareholder value, whether organically or inorganically. They maintain a high bar for capital deployment and will return capital to shareholders if they cannot find value-creating opportunities.  **[TRV_3402954_10]** 

3. **Sustainability of Rate Environment**  
   **Q:** Is the positive rate environment sustainable, and will recent hurricanes affect property rates?  
   **A:** Management expects renewal price changes to continue being positive and strong due to prevailing uncertainties. While property pricing has been weighing, it reflects the returns on that line. Recent hurricanes are a reminder of potential volatility, which may influence market behavior.  **[TRV_3402954_11]** 

4. **Liability Lines Growth**  
   **Q:** Are you comfortable leaning into growth in liability lines like auto and umbrella?  
   **A:** Management remains comfortable with returns in umbrella and executes on a granular account-by-account basis. They see a huge advantage in reacting quickly to loss cost trends and adjusting pricing accordingly, which gives them confidence in pursuing growth and profitability.  **[TRV_3402954_12]** 

5. **Workers' Compensation Pricing Outlook**  
   **Q:** What is the outlook for workers' compensation pricing?  
   **A:** Management expects a continuation of the current environment, driven by strong experience in the line. They anticipate loss cost recommendations from bureaus to be similar to 2024 levels, with adjustments applied on an individual account basis.  **[TRV_3402954_21]** 

6. **Personal Lines Terms and Conditions**  
   **Q:** Are you making meaningful changes to personal lines terms and conditions?  
   **A:** Management is actively making significant changes to terms and conditions, particularly in property and catastrophe-exposed geographies. Adjustments include changes to deductibles, eligibility restrictions, and reunderwriting the portfolio to manage exposure.  **[TRV_3402954_14]** 

7. **Personal Lines Favorable Development**  
   **Q:** Does favorable development in personal lines indicate overreaction on pricing?  
   **A:** Management believes they are rate adequate across the book and are pleased with results and returns. The combined ratio year-to-date, after adjusting for prior year development, is **97.4%**, indicating they haven't overshot on pricing.  **[TRV_3402954_22]** 

8. **Policy Count Growth in Personal Auto**  
   **Q:** Will policy counts in personal auto grow soon?  
   **A:** Management is focused on profitable growth in auto and is working hard to drive new business growth where rates are adequate. They are addressing states where further rate actions are needed and balancing growth and profitability across the book.  **[TRV_3402954_20]** 

9. **Underlying Loss Ratio Clarity**  
   **Q:** Were there any one-time items affecting the underlying business insurance loss ratio?  
   **A:** Management confirmed the quarter was clean and straightforward, with no adjustments needed for one-time items.  **[TRV_3402954_13]** 

10. **Prior Year Reserve Development**  
    **Q:** Can favorable prior year reserve development in personal lines continue?  
    **A:** Management does not predict reserve development trends but noted they had favorable development of around **$170 million to $180 million** in the past two quarters. This reflects better-than-expected loss experience as loss cost pressures ease.  **[TRV_3402954_23]** 

1b52561e4c177da4ec59a3207fa220094e59a808445c616aea451164ae00e655

Travelers Companies Inc (TRV)

Financials