Travelers Companies Reports $5 Billion Net Income for 2024, 67% Increase Year-Over-Year

Travelers Companies, Inc. reported net income of $5.0 billion, or $21.76 per basic share and $21.47 per diluted share, for the year ended December 31, 2024, a 67% increase compared to the $2.99 billion net income in 2023. Net earned premiums totaled $41.94 billion, an 11% increase year-over-year. The increase in net income was primarily driven by higher underwriting margins (excluding catastrophe losses and prior year reserve development), higher net investment income, higher net favorable prior year reserve development, and lower net realized investment losses, partially offset by higher catastrophe losses. Catastrophe losses reached $3.34 billion in 2024, compared to $2.99 billion in 2023.

The company's three operating segments—Business Insurance, Bond & Specialty Insurance, and Personal Insurance—all contributed to the overall increase in profitability. Business Insurance saw a 28% increase in segment income, driven by higher net investment income and underlying underwriting margins, and net favorable prior year reserve development. Bond & Specialty Insurance experienced an 8% increase in earned premiums but a 13% decrease in segment income due to lower underlying underwriting margins and net favorable prior year reserve development. Personal Insurance reported a significant turnaround, achieving segment income of $1.25 billion compared to a loss of $128 million in 2023, primarily due to higher underlying underwriting margins and net favorable prior year reserve development.

During 2024, Travelers completed the acquisition of Corvus Insurance Holdings, Inc., a cyber insurance managing general underwriter, for approximately $427 million. This acquisition added to the company's Bond & Specialty Insurance segment. The company also renewed a quota share reinsurance agreement with Fidelis Insurance Holdings Limited, assuming 20% of Fidelis's gross written premiums. Travelers employed approximately 34,000 employees as of December 31, 2024, with 90% located in the United States. The average employee tenure was over 11 years, and the global voluntary turnover rate averaged approximately 9% over the past three years.

The company's investment portfolio totaled $94.22 billion at the end of 2024, with 94% invested in fixed maturity and short-term securities. The estimated effective duration of the fixed maturity portfolio exceeded the estimated effective duration of the company's net insurance liabilities. The company reported net unrealized investment losses of $4.61 billion (after tax), primarily due to changes in interest rates. Travelers returned $2.11 billion to shareholders through share repurchases ($1.15 billion) and dividends ($962 million). The company's outlook anticipates strong retention rates in 2025, but acknowledges the competitive market conditions and the inherent unpredictability of catastrophe losses and reserve development. The company also noted preliminary estimates of $1.7 billion in pre-tax catastrophe losses from the January 2025 California wildfires. The company maintains a strong capital position and intends to continue returning capital to shareholders, subject to various factors including regulatory constraints and business needs.