The Travelers Companies reported a strong rebound in their second-quarter results, with net income soaring to around $1.5 billion, up $975 million from the same period last year. This turnaround reversed an underwriting loss they had faced in the prior year’s quarter.
One of the biggest improvements came from their underwriting profit, which hit about $1 billion this quarter, compared to a $65 million loss in the second quarter of 2024. This change was fueled largely by lower catastrophe losses. Travelers faced $927 million in catastrophe losses this quarter, down from about $1.5 billion during last year’s period. Much of the damage in both years was caused by wind and hail storms across multiple states.
The company also benefited from favorable adjustments to past claims reserves, improving by $315 million this quarter versus $230 million the year before. This helped push the combined ratio—a key measure of underwriting profitability—to 90.3, nearly 10 points better than a year ago.
Premiums written grew 4% overall, reaching about $11.5 billion. CEO Alan Schnitzer pointed to solid contributions across Travelers’ three main business areas: personal insurance, business insurance, and bond & specialty.
Personal lines showed the most dramatic improvement. Travelers turned a $373 million underwriting loss in the second quarter of 2024 into a $480 million gain this year. Income in this segment reached $534 million, a big jump from a $153 million loss a year earlier. The combined ratio improved as well, dropping from 108.5 to 88.4. U.S. homeowners insurance premiums increased 7% to roughly $2.5 billion.
In the business segment, premiums grew 5% to $5.8 billion. Renewal premiums for middle-market and small commercial businesses rose by 8.6% and 10.7%, respectively. The segment’s combined ratio also improved slightly, from 89.2 to 88.3.
These second-quarter gains follow a tough start to the year. In the first quarter, Travelers reported a 65% drop in net income to $395 million and an underwriting loss of $305 million. Catastrophe losses in that quarter were high, totaling about $2.3 billion, mostly due to wildfires in California.
So far this year, Travelers is showing a 15% increase in net income, totaling about $1.9 billion. The insurer’s second-quarter results signal a strong recovery, helped by fewer major losses and good performance across its key insurance lines.