The Travelers Companies, Inc.

Travelers returned $1.9 billion of capital in Q4 (including $1.65B of buybacks) and now expects around $1.8 billion of buybacks in Q1 2026, up from the $1.6 billion previously flagged, including ~$700M from the Canada sale that closed January 2. Dan said Travelers is now more likely to issue debt annually given continued growth.

The January 1 cat XOL renewal lowered the aggregate attachment point from $4 billion to $3 billion while keeping the $100 million per occurrence deductible, with only a modest increase in total ceded premium thanks to more favorable reinsurance pricing. The enhanced casualty reinsurance program was renewed on a roughly margin-neutral basis.

Business insurance segment income reached nearly $1.3 billion in Q4 with an all-in combined ratio of 84.4% and an exceptional underlying combined ratio of 87%. The underlying loss ratio was the second-best quarterly result ever. Full-year 2025 segment income was $3.7 billion on $22.7 billion of net written premium with an 88% underlying CR — the third consecutive year below 90%.

Personal insurance generated over $1 billion of segment income in Q4 on a 74% combined ratio. Auto CR was 89.4% with underlying CR 92.2% (improved 4+ points). Home and Other CR was 60.3% with underlying CR 59.9% (improved 5.5 points). Full-year PI segment income over $2 billion and 89.5% combined ratio despite California wildfires.

Dan reiterated the 2026 fixed income NII outlook of approximately $3.3 billion after tax, starting around $800 million in Q1 and growing to about $870 million in Q4 — nearly twice the 2021 level. New money rates at December 31 were about 70 basis points above embedded yield and the investment portfolio reached $106 billion.