Document


			Page Number
Consolidated Results
Financial Highlights			1
Reconciliation to Net Income and Earnings Per Share			2
Statement of Income			3
Net Income by Major Component and Combined Ratio			4
Core Income			5
Selected Statistics - Property and Casualty Operations			6
Written and Earned Premiums - Property and Casualty Operations			7

Business Insurance
Segment Income			8
Segment Income by Major Component and Combined Ratio			9
Selected Statistics			10
Net Written Premiums			11

Bond & Specialty Insurance
Segment Income			12
Segment Income by Major Component and Combined Ratio			13
Selected Statistics			14
Net Written Premiums			15

Personal Insurance
Segment Income (Loss)			16
Segment Income (Loss) by Major Component and Combined Ratio			17
Selected Statistics			18
Net Written Premiums			19
Selected Statistics - Automobile			20
Selected Statistics - Homeowners and Other			21

Supplemental Detail
Interest Expense and Other			22
Consolidated Balance Sheet			23
Investment Portfolio			24
Investment Portfolio - Fixed Maturities Data			25
Investment Income			26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity			27
Reinsurance Recoverables			28
Net Reserves for Losses and Loss Adjustment Expense			29
Asbestos Reserves			30
Capitalization			31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation			32
Statement of Cash Flows			33
Statement of Cash Flows (continued)			34
Glossary of Financial Measures and Description of Reportable Business Segments			35-36


($ and shares in millions, except for per share data)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Net income	$	1,123		$	534		$	1,260		$	2,082		$	395		$	1,509		$	1,657		$	1,904
Net income per share:
Basic	$	4.87		$	2.32		$	5.50		$	9.11		$	1.73		$	6.63		$	7.19		$	8.35
Diluted	$	4.80		$	2.29		$	5.42		$	8.96		$	1.70		$	6.53		$	7.09		$	8.23
Core income	$	1,096		$	585		$	1,218		$	2,126		$	443		$	1,504		$	1,681		$	1,947
Core income per share:
Basic	$	4.75		$	2.54		$	5.31		$	9.30		$	1.94		$	6.61		$	7.29		$	8.54
Diluted	$	4.69		$	2.51		$	5.24		$	9.15		$	1.91		$	6.51		$	7.20		$	8.42
Return on equity	18.0		%	8.6		%	19.2		%	30.0		%	5.6		%	20.9		%	13.3		%	13.4		%
Core return on equity	15.4		%	8.1		%	16.6		%	27.7		%	5.6		%	18.8		%	11.8		%	12.3		%
Total assets, at period end	$	127,410		$	129,315		$	134,588		$	133,189		$	135,977		$	138,873		$	129,315		$	138,873
Total equity, at period end	$	25,022		$	24,862		$	27,696		$	27,864		$	28,191		$	29,518		$	24,862		$	29,518
Book value per share, at period end	$	109.28		$	109.08		$	122.00		$	122.97		$	124.43		$	131.11		$	109.08		$	131.11
Less: Net unrealized investment gains (losses), net of tax	(16.25)			(17.44)			(9.30)			(16.07)			(14.56)			(13.46)			(17.44)			(13.46)
Adjusted book value per share, at period end	$	125.53		$	126.52		$	131.30		$	139.04		$	138.99		$	144.57		$	126.52		$	144.57

Weighted average number of common shares outstanding (basic)	229.0			228.6			227.4			226.9			226.9			225.9			228.8			226.4
Weighted average number of common shares outstanding and common stock equivalents (diluted)	232.0			231.5			230.6			230.7			230.4			229.3			231.8			229.7
Common shares outstanding at period end	229.0			227.9			227.0			226.6			226.6			225.1			227.9			225.1
Common stock dividends declared	$	232		$	245		$	243		$	242		$	241		$	252		$	477		$	493
Common stock repurchased:
Under Board of Directors authorization
Shares	1.2			1.1			1.1			1.0			1.0			1.8			2.3			2.8
Cost	$	250		$	250		$	250		$	250		$	250		$	500		$	500		$	750
Other
Shares	0.6			0.1			—			—			0.4			0.3			0.7			0.7
Cost	$	138		$	3		$	3		$	2		$	108		$	57		$	141		$	165


($ and shares in millions, except earnings per share)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net income
Net income	$	1,123	$	534	$	1,260	$	2,082	$	395	$	1,509	$	1,657	$	1,904
Adjustments:
Net realized investment (gains) losses, after-tax	(27)		51		(42)		44		48		(5)		24		43

Core income	$	1,096	$	585	$	1,218	$	2,126	$	443	$	1,504	$	1,681	$	1,947
Basic earnings per share
Net income	$	4.87	$	2.32	$	5.50	$	9.11	$	1.73	$	6.63	$	7.19	$	8.35
Adjustments:
Net realized investment (gains) losses, after-tax	(0.12)		0.22		(0.19)		0.19		0.21		(0.02)		0.10		0.19

Core income	$	4.75	$	2.54	$	5.31	$	9.30	$	1.94	$	6.61	$	7.29	$	8.54
Diluted earnings per share
Net income	$	4.80	$	2.29	$	5.42	$	8.96	$	1.70	$	6.53	$	7.09	$	8.23
Adjustments:
Net realized investment (gains) losses, after-tax	(0.11)		0.22		(0.18)		0.19		0.21		(0.02)		0.11		0.19

Core income	$	4.69	$	2.51	$	5.24	$	9.15	$	1.91	$	6.51	$	7.20	$	8.42

Adjustments to net income and weighted average shares for net income EPS calculations: (1)


Basic and Diluted	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net income, as reported	$	1,123	$	534	$	1,260	$	2,082	$	395	$	1,509	$	1,657	$	1,904
Participating share-based awards - allocated income	(8)		(5)		(10)		(15)		(3)		(11)		(13)		(14)
Net income available to common shareholders - basic and diluted	$	1,115	$	529	$	1,250	$	2,067	$	392	$	1,498	$	1,644	$	1,890
Common Shares
Basic
Weighted average shares outstanding	229.0		228.6		227.4		226.9		226.9		225.9		228.8		226.4
Diluted
Weighted average shares outstanding	229.0		228.6		227.4		226.9		226.9		225.9		228.8		226.4
Weighted average effects of dilutive securities - stock options and performance shares	3.0		2.9		3.2		3.8		3.5		3.4		3.0		3.3
Diluted weighted average shares outstanding	232.0		231.5		230.6		230.7		230.4		229.3		231.8		229.7


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Revenues
Premiums	$	10,126		$	10,243		$	10,704		$	10,868		$	10,710		$	10,921		$	20,369		$	21,631
Net investment income	846			885			904			955			930			942			1,731			1,872
Fee income	109			115			121			128			119			124			224			243
Net realized investment gains (losses)	35			(65)			55			(55)			(61)			6			(30)			(55)
Other revenues	112			105			120			112			112			123			217			235
Total revenues	11,228			11,283			11,904			12,008			11,810			12,116			22,511			23,926
Claims and expenses
Claims and claim adjustment expenses	6,656			7,373			6,996			6,034			8,006			6,789			14,029			14,795
Amortization of deferred acquisition costs	1,698			1,678			1,790			1,807			1,778			1,802			3,376			3,580
General and administrative expenses	1,406			1,478			1,460			1,475			1,459			1,545			2,884			3,004
Interest expense	98			98			98			98			99			99			196			198
Total claims and expenses	9,858			10,627			10,344			9,414			11,342			10,235			20,485			21,577
Income before income taxes	1,370			656			1,560			2,594			468			1,881			2,026			2,349
Income tax expense	247			122			300			512			73			372			369			445
Net income	$	1,123		$	534		$	1,260		$	2,082		$	395		$	1,509		$	1,657		$	1,904






Other statistics
Effective tax rate on net investment income	17.6		%	17.8		%	17.9		%	17.9		%	17.9		%	17.9		%	17.7		%	17.9		%
Net investment income (after-tax)	$	698		$	727		$	742		$	785		$	763		$	774		$	1,425		$	1,537

Catastrophes, net of reinsurance:
Pre-tax	$	712		$	1,509		$	939		$	175		$	2,266		$	927		$	2,221		$	3,193
After-tax	$	563		$	1,192		$	739		$	138		$	1,790		$	732		$	1,755		$	2,522

Prior year reserve development - favorable:
Pre-tax	$	91		$	230		$	126		$	262		$	378		$	315		$	321		$	693
After-tax	$	71		$	182		$	99		$	207		$	297		$	249		$	253		$	546


($ in millions, net of tax)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Underwriting gain (loss)	$	472		$	(58)		$	547		$	1,420		$	(239)		$	808		$	414		$	569
Net investment income	698			727			742			785			763			774			1,425			1,537
Other income (expense), including interest expense	(74)			(84)			(71)			(79)			(81)			(78)			(158)			(159)
Core income	1,096			585			1,218			2,126			443			1,504			1,681			1,947
Net realized investment gains (losses)	27			(51)			42			(44)			(48)			5			(24)			(43)

Net income	$	1,123		$	534		$	1,260		$	2,082		$	395		$	1,509		$	1,657		$	1,904
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	65.2		%	71.4		%	64.8		%	55.0		%	74.2		%	61.7		%	68.4		%	67.9		%
Underwriting expense ratio	28.7		%	28.8		%	28.4		%	28.2		%	28.3		%	28.6		%	28.7		%	28.4		%
Combined ratio	93.9		%	100.2		%	93.2		%	83.2		%	102.5		%	90.3		%	97.1		%	96.3		%
Impact on combined ratio:
Net favorable prior year reserve development	(0.9)		%	(2.2)		%	(1.2)		%	(2.4)		%	(3.5)		%	(2.9)		%	(1.5)		%	(3.2)		%
Catastrophes, net of reinsurance	7.1		%	14.7		%	8.8		%	1.6		%	21.2		%	8.5		%	10.9		%	14.8		%
Underlying combined ratio	87.7		%	87.7		%	85.6		%	84.0		%	84.8		%	84.7		%	87.7		%	84.7		%



(1) Before policyholder dividends. (2) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	30		$	30		$	28		$	28		$	28		$	29		$	60		$	57
Fee income:
Loss and loss adjustment expenses	$	39		$	42		$	44		$	47		$	45		$	45		$	81		$	90
Underwriting expenses	70			73			77			81			74			79			143			153
Total fee income	$	109		$	115		$	121		$	128		$	119		$	124		$	224		$	243
Non-insurance general and administrative expenses	$	102		$	106		$	106		$	107		$	109		$	113		$	208		$	222


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Revenues
Premiums	$	10,126		$	10,243		$	10,704		$	10,868		$	10,710		$	10,921		$	20,369		$	21,631
Net investment income	846			885			904			955			930			942			1,731			1,872
Fee income	109			115			121			128			119			124			224			243
Other revenues	112			105			120			112			112			123			217			235
Total revenues	11,193			11,348			11,849			12,063			11,871			12,110			22,541			23,981
Claims and expenses
Claims and claim adjustment expenses	6,656			7,373			6,996			6,034			8,006			6,789			14,029			14,795
Amortization of deferred acquisition costs	1,698			1,678			1,790			1,807			1,778			1,802			3,376			3,580
General and administrative expenses	1,406			1,478			1,460			1,475			1,459			1,545			2,884			3,004
Interest expense	98			98			98			98			99			99			196			198
Total claims and expenses	9,858			10,627			10,344			9,414			11,342			10,235			20,485			21,577
Core income before income taxes	1,335			721			1,505			2,649			529			1,875			2,056			2,404
Income tax expense	239			136			287			523			86			371			375			457
Core income	$	1,096		$	585		$	1,218		$	2,126		$	443		$	1,504		$	1,681		$	1,947
Other statistics
Effective tax rate on net investment income	17.6		%	17.8		%	17.9		%	17.9		%	17.9		%	17.9		%	17.7		%	17.9		%
Net investment income (after-tax)	$	698		$	727		$	742		$	785		$	763		$	774		$	1,425		$	1,537
Catastrophes, net of reinsurance:
Pre-tax	$	712		$	1,509		$	939		$	175		$	2,266		$	927		$	2,221		$	3,193
After-tax	$	563		$	1,192		$	739		$	138		$	1,790		$	732		$	1,755		$	2,522
Prior year reserve development - favorable:
Pre-tax	$	91		$	230		$	126		$	262		$	378		$	315		$	321		$	693
After-tax	$	71		$	182		$	99		$	207		$	297		$	249		$	253		$	546


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Statutory underwriting
Gross written premiums	$	11,310	$	11,865	$	12,149	$	11,226	$	11,890	$	12,225	$	23,175	$	24,115
Net written premiums	$	10,184	$	11,115	$	11,317	$	10,742	$	10,515	$	11,516	$	21,299	$	22,031
Net earned premiums	$	10,128	$	10,243	$	10,704	$	10,868	$	10,710	$	10,897	$	20,371	$	21,607
Losses and loss adjustment expenses	6,602		7,320		6,940		5,966		7,947		6,731		13,922		14,678
Underwriting expenses	3,012		3,111		3,139		3,038		3,098		3,260		6,123		6,358
Statutory underwriting gain (loss)	514		(188)		625		1,864		(335)		906		326		571
Policyholder dividends	12		12		12		11		13		10		24		23
Statutory underwriting gain (loss) after policyholder dividends	$	502	$	(200)	$	613	$	1,853	$	(348)	$	896	$	302	$	548
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	54,578	$	55,922	$	56,909	$	56,326	$	58,091	$	59,072	$	55,922	$	59,072
Increase (decrease) in reserves	$	861	$	1,344	$	987	$	(583)	$	1,765	$	981	$	2,205	$	2,746
Statutory capital and surplus	$	25,329	$	25,210	$	26,191	$	27,715	$	27,785	$	28,364	$	25,210	$	28,364
Net written premiums/surplus (1)	1.62:1		1.66:1		1.63:1		1.56:1		1.57:1		1.55:1		1.66:1		1.55:1


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Written premiums
Gross	$	11,310	$	11,865	$	12,149	$	11,226	$	11,890	$	12,251	$	23,175	$	24,141
Ceded	(1,128)		(750)		(832)		(484)		(1,375)		(708)		(1,878)		(2,083)
Net	$	10,182	$	11,115	$	11,317	$	10,742	$	10,515	$	11,543	$	21,297	$	22,058
Earned premiums
Gross	$	10,867	$	11,083	$	11,484	$	11,644	$	11,487	$	11,749	$	21,950	$	23,236
Ceded	(741)		(840)		(780)		(776)		(777)		(828)		(1,581)		(1,605)
Net	$	10,126	$	10,243	$	10,704	$	10,868	$	10,710	$	10,921	$	20,369	$	21,631


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Revenues
Premiums	$	5,160		$	5,168		$	5,474		$	5,543		$	5,465		$	5,545		$	10,328		$	11,010
Net investment income	609			632			642			677			656			662			1,241			1,318
Fee income	101			105			109			115			108			111			206			219
Other revenues	77			77			89			79			82			95			154			177
Total revenues	5,947			5,982			6,314			6,414			6,311			6,413			11,929			12,724
Claims and expenses
Claims and claim adjustment expenses	3,331			3,471			3,698			3,179			3,705			3,584			6,802			7,289
Amortization of deferred acquisition costs	864			861			930			933			917			944			1,725			1,861
General and administrative expenses	818			835			826			824			847			875			1,653			1,722
Total claims and expenses	5,013			5,167			5,454			4,936			5,469			5,403			10,180			10,872
Segment income before income taxes	934			815			860			1,478			842			1,010			1,749			1,852
Income tax expense	170			159			162			290			159			197			329			356
Segment income	$	764		$	656		$	698		$	1,188		$	683		$	813		$	1,420		$	1,496
Other statistics
Effective tax rate on net investment income	17.4		%	17.7		%	17.7		%	17.8		%	17.8		%	17.7		%	17.6		%	17.8		%
Net investment income (after-tax)	$	502		$	521		$	528		$	557		$	539		$	545		$	1,023		$	1,084
Catastrophes, net of reinsurance:
Pre-tax	$	209		$	389		$	340		$	94		$	509		$	368		$	598		$	877
After-tax	$	166		$	307		$	268		$	74		$	402		$	291		$	473		$	693
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	—		$	34		$	(91)		$	147		$	74		$	79		$	34		$	153
After-tax	$	—		$	26		$	(72)		$	116		$	58		$	62		$	26		$	120


($ in millions, net of tax)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Underwriting gain	$	274		$	148		$	176		$	642		$	157		$	274		$	422		$	431
Net investment income	502			521			528			557			539			545			1,023			1,084
Other income (expense)	(12)			(13)			(6)			(11)			(13)			(6)			(25)			(19)
Segment income	$	764		$	656		$	698		$	1,188		$	683		$	813		$	1,420		$	1,496
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	63.6		%	66.2		%	66.6		%	56.4		%	66.8		%	63.7		%	64.9		%	65.3		%
Underwriting expense ratio	29.7		%	29.9		%	29.2		%	28.8		%	29.4		%	29.9		%	29.8		%	29.6		%
Combined ratio	93.3		%	96.1		%	95.8		%	85.2		%	96.2		%	93.6		%	94.7		%	94.9		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	—		%	(0.6)		%	1.7		%	(2.7)		%	(1.3)		%	(1.4)		%	(0.3)		%	(1.4)		%
Catastrophes, net of reinsurance	4.1		%	7.5		%	6.2		%	1.7		%	9.3		%	6.7		%	5.8		%	8.0		%
Underlying combined ratio	89.2		%	89.2		%	87.9		%	86.2		%	88.2		%	88.3		%	89.2		%	88.3		%



(1) Before policyholder dividends. (2) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	4		$	4		$	4		$	4		$	4		$	5		$	8		$	9
Fee income:
Loss and loss adjustment expenses	$	39		$	42		$	44		$	47		$	45		$	45		$	81		$	90
Underwriting expenses	62			63			65			68			63			66			125			129
Total fee income	$	101		$	105		$	109		$	115		$	108		$	111		$	206		$	219
Non-insurance general and administrative expenses	$	86		$	87		$	90		$	86		$	91		$	93		$	173		$	184


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Statutory underwriting
Gross written premiums	$	6,383	$	6,169	$	6,173	$	5,790	$	6,740	$	6,359	$	12,552	$	13,099
Net written premiums	$	5,598	$	5,539	$	5,517	$	5,426	$	5,698	$	5,765	$	11,137	$	11,463
Net earned premiums	$	5,162	$	5,168	$	5,474	$	5,543	$	5,465	$	5,521	$	10,330	$	10,986
Losses and loss adjustment expenses	3,282		3,422		3,645		3,116		3,650		3,530		6,704		7,180
Underwriting expenses	1,630		1,620		1,583		1,566		1,700		1,704		3,250		3,404
Statutory underwriting gain	250		126		246		861		115		287		376		402
Policyholder dividends	8		7		9		7		9		5		15		14
Statutory underwriting gain after policyholder dividends	$	242	$	119	$	237	$	854	$	106	$	282	$	361	$	388


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net written premiums by market
Domestic
Select Accounts	$	974	$	975	$	885	$	893	$	976	$	1,004	$	1,949	$	1,980
Middle Market	3,213		2,769		3,030		3,011		3,166		3,034		5,982		6,200
National Accounts	327		312		264		356		312		329		639		641
National Property and Other	642		912		896		684		720		885		1,554		1,605
Total Domestic	5,156		4,968		5,075		4,944		5,174		5,252		10,124		10,426
International	440		571		442		482		524		540		1,011		1,064
Total	$	5,596	$	5,539	$	5,517	$	5,426	$	5,698	$	5,792	$	11,135	$	11,490
Net written premiums by product line
Domestic
Workers’ compensation	$	1,019	$	847	$	795	$	808	$	950	$	821	$	1,866	$	1,771
Commercial automobile	964		923		937		954		1,030		1,019		1,887		2,049
Commercial property	763		1,054		1,022		859		873		1,051		1,817		1,924
General liability	965		809		914		903		753		878		1,774		1,631
Commercial multi-peril	1,416		1,345		1,367		1,409		1,532		1,486		2,761		3,018
Other	29		(10)		40		11		36		(3)		19		33
Total Domestic	5,156		4,968		5,075		4,944		5,174		5,252		10,124		10,426
International	440		571		442		482		524		540		1,011		1,064
Total	$	5,596	$	5,539	$	5,517	$	5,426	$	5,698	$	5,792	$	11,135	$	11,490


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Revenues
Premiums	$	956		$	977		$	1,009		$	1,016		$	995		$	1,021		$	1,933		$	2,016
Net investment income	90			94			101			105			102			107			184			209
Other revenues	9			6			7			8			6			5			15			11
Total revenues	1,055			1,077			1,117			1,129			1,103			1,133			2,132			2,236
Claims and expenses
Claims and claim adjustment expenses	428			473			441			432			434			418			901			852
Amortization of deferred acquisition costs	182			183			194			197			187			195			365			382
General and administrative expenses	205			207			203			217			205			214			412			419
Total claims and expenses	815			863			838			846			826			827			1,678			1,653
Segment income before income taxes	240			214			279			283			277			306			454			583
Income tax expense	45			44			57			55			57			62			89			119
Segment income	$	195		$	170		$	222		$	228		$	220		$	244		$	365		$	464
Other statistics
Effective tax rate on net investment income	18.0		%	18.2		%	18.8		%	18.5		%	18.4		%	18.5		%	18.1		%	18.5		%
Net investment income (after-tax)	$	74		$	77		$	81		$	87		$	83		$	88		$	151		$	171
Catastrophes, net of reinsurance:
Pre-tax	$	5		$	40		$	4		$	2		$	19		$	5		$	45		$	24
After-tax	$	4		$	31		$	3		$	2		$	15		$	4		$	35		$	19
Prior year reserve development - favorable:
Pre-tax	$	24		$	24		$	36		$	45		$	67		$	81		$	48		$	148
After-tax	$	19		$	19		$	28		$	35		$	52		$	65		$	38		$	117


($ in millions, net of tax)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Underwriting gain	$	116		$	90		$	135		$	137		$	133		$	154		$	206		$	287
Net investment income	74			77			81			87			83			88			151			171
Other income	5			3			6			4			4			2			8			6
Segment income	$	195		$	170		$	222		$	228		$	220		$	244		$	365		$	464
Combined ratio (1)
Loss and loss adjustment expense ratio	44.4		%	48.0		%	43.4		%	42.1		%	43.2		%	40.5		%	46.2		%	41.8		%
Underwriting expense ratio	40.1		%	39.7		%	39.1		%	40.6		%	39.3		%	39.8		%	39.9		%	39.6		%
Combined ratio	84.5		%	87.7		%	82.5		%	82.7		%	82.5		%	80.3		%	86.1		%	81.4		%
Impact on combined ratio:
Net favorable prior year reserve development	(2.5)		%	(2.5)		%	(3.5)		%	(4.3)		%	(6.7)		%	(8.0)		%	(2.5)		%	(7.3)		%
Catastrophes, net of reinsurance	0.5		%	4.1		%	0.4		%	0.2		%	1.9		%	0.5		%	2.3		%	1.2		%
Underlying combined ratio	86.5		%	86.1		%	85.6		%	86.8		%	87.3		%	87.8		%	86.3		%	87.5		%



(1) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	—		$	1		$	1		$	—		$	—		$	—		$	1		$	—
Non-insurance general and administrative expenses	$	3		$	1		$	1		$	2		$	1		$	2		$	4		$	3


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Statutory underwriting
Gross written premiums	$	1,076	$	1,127	$	1,165	$	1,151	$	1,129	$	1,166	$	2,203	$	2,295
Net written premiums	$	943	$	1,040	$	1,072	$	1,054	$	999	$	1,085	$	1,983	$	2,084
Net earned premiums	$	956	$	977	$	1,009	$	1,016	$	995	$	1,021	$	1,933	$	2,016
Losses and loss adjustment expenses	424		468		438		427		430		414		892		844
Underwriting expenses	411		408		421		421		422		434		819		856
Statutory underwriting gain	121		101		150		168		143		173		222		316
Policyholder dividends	4		5		3		4		4		5		9		9
Statutory underwriting gain after policyholder dividends	$	117	$	96	$	147	$	164	$	139	$	168	$	213	$	307


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net written premiums by market
Domestic
Management Liability	$	543	$	586	$	617	$	563	$	553	$	589	$	1,129	$	1,142
Surety	296		325		344		329		333		342		621		675
Total Domestic	839		911		961		892		886		931		1,750		1,817
International	104		129		111		162		113		154		233		267
Total	$	943	$	1,040	$	1,072	$	1,054	$	999	$	1,085	$	1,983	$	2,084
Net written premiums by product line
Domestic
Fidelity and surety	$	356	$	382	$	411	$	387	$	394	$	400	$	738	$	794
General liability	434		468		479		452		440		469		902		909
Other	49		61		71		53		52		62		110		114
Total Domestic	839		911		961		892		886		931		1,750		1,817
International	104		129		111		162		113		154		233		267
Total	$	943	$	1,040	$	1,072	$	1,054	$	999	$	1,085	$	1,983	$	2,084


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Revenues
Premiums	$	4,010		$	4,098		$	4,221		$	4,309		$	4,250		$	4,355		$	8,108		$	8,605
Net investment income	147			159			161			173			172			173			306			345
Fee income	8			10			12			13			11			13			18			24
Other revenues	26			22			24			25			24			23			48			47
Total revenues	4,191			4,289			4,418			4,520			4,457			4,564			8,480			9,021
Claims and expenses
Claims and claim adjustment expenses	2,897			3,429			2,857			2,423			3,867			2,787			6,326			6,654
Amortization of deferred acquisition costs	652			634			666			677			674			663			1,286			1,337
General and administrative expenses	375			424			420			421			396			444			799			840
Total claims and expenses	3,924			4,487			3,943			3,521			4,937			3,894			8,411			8,831
Segment income (loss) before income taxes	267			(198)			475			999			(480)			670			69			190
Income tax expense (benefit)	47			(45)			91			201			(106)			136			2			30
Segment income (loss)	$	220		$	(153)		$	384		$	798		$	(374)		$	534		$	67		$	160
Other statistics
Effective tax rate on net investment income	17.7		%	18.0		%	18.0		%	18.1		%	18.1		%	18.0		%	17.9		%	18.0		%
Net investment income (after-tax)	$	122		$	129		$	133		$	141		$	141		$	141		$	251		$	282
Catastrophes, net of reinsurance:
Pre-tax	$	498		$	1,080		$	595		$	79		$	1,738		$	554		$	1,578		$	2,292
After-tax	$	393		$	854		$	468		$	62		$	1,373		$	437		$	1,247		$	1,810
Prior year reserve development - favorable:
Pre-tax	$	67		$	172		$	181		$	70		$	237		$	155		$	239		$	392
After-tax	$	52		$	137		$	143		$	56		$	187		$	122		$	189		$	309


($ in millions, net of tax)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Underwriting gain (loss)	$	82		$	(296)		$	236		$	641		$	(529)		$	380		$	(214)		$	(149)
Net investment income	122			129			133			141			141			141			251			282
Other income	16			14			15			16			14			13			30			27
Segment income (loss)	$	220		$	(153)		$	384		$	798		$	(374)		$	534		$	67		$	160
Combined ratio (1)
Loss and loss adjustment expense ratio	72.2		%	83.7		%	67.7		%	56.2		%	91.0		%	64.0		%	78.0		%	77.4		%
Underwriting expense ratio	24.7		%	24.8		%	24.8		%	24.5		%	24.2		%	24.4		%	24.8		%	24.3		%
Combined ratio	96.9		%	108.5		%	92.5		%	80.7		%	115.2		%	88.4		%	102.8		%	101.7		%

Impact on combined ratio:
Net favorable prior year reserve development	(1.6)		%	(4.2)		%	(4.3)		%	(1.6)		%	(5.6)		%	(3.6)		%	(2.9)		%	(4.5)		%
Catastrophes, net of reinsurance	12.4		%	26.4		%	14.1		%	1.8		%	40.9		%	12.7		%	19.5		%	26.6		%
Underlying combined ratio	86.1		%	86.3		%	82.7		%	80.5		%	79.9		%	79.3		%	86.2		%	79.6		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	26		$	25		$	23		$	24		$	24		$	24		$	51		$	48
Fee income	$	8		$	10		$	12		$	13		$	11		$	13		$	18		$	24
Non-insurance general and administrative expenses	$	5		$	6		$	4		$	6		$	6		$	6		$	11		$	12


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Statutory underwriting
Gross written premiums	$	3,851	$	4,569	$	4,811	$	4,285	$	4,021	$	4,700	$	8,420	$	8,721
Net written premiums	$	3,643	$	4,536	$	4,728	$	4,262	$	3,818	$	4,666	$	8,179	$	8,484
Net earned premiums	$	4,010	$	4,098	$	4,221	$	4,309	$	4,250	$	4,355	$	8,108	$	8,605
Losses and loss adjustment expenses	2,896		3,430		2,857		2,423		3,867		2,787		6,326		6,654
Underwriting expenses	971		1,083		1,135		1,051		976		1,122		2,054		2,098
Statutory underwriting gain (loss)	$	143	$	(415)	$	229	$	835	$	(593)	$	446	$	(272)	$	(147)
Policies in force (in thousands)
Automobile	3,212		3,180		3,158		3,150		3,118		3,083		3,180		3,083
Homeowners and Other	6,235		6,167		6,106		6,060		5,980		5,882		6,167		5,882


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net written premiums by product line
Domestic
Automobile	$	1,859	$	2,001	$	2,138	$	1,927	$	1,859	$	1,968	$	3,860	$	3,827
Homeowners and Other	1,635		2,347		2,410		2,158		1,813		2,520		3,982		4,333
Total Domestic	3,494		4,348		4,548		4,085		3,672		4,488		7,842		8,160
International	149		188		180		177		146		178		337		324
Total	$	3,643	$	4,536	$	4,728	$	4,262	$	3,818	$	4,666	$	8,179	$	8,484


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Statutory underwriting
Gross written premiums	$	1,970		$	2,129		$	2,264		$	2,056		$	1,967		$	2,083		$	4,099		$	4,050
Net written premiums	$	1,959		$	2,120		$	2,253		$	2,043		$	1,955		$	2,074		$	4,079		$	4,029
Net earned premiums	$	1,980		$	2,026		$	2,080		$	2,110		$	2,071		$	2,091		$	4,006		$	4,162
Losses and loss adjustment expenses	1,430			1,532			1,477			1,518			1,270			1,320			2,962			2,590
Underwriting expenses	454			468			495			471			444			477			922			921
Statutory underwriting gain	$	96		$	26		$	108		$	121		$	357		$	294		$	122		$	651
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	72.2		%	75.6		%	71.0		%	71.9		%	61.3		%	63.1		%	74.0		%	62.2		%
Underwriting expense ratio	22.4		%	22.3		%	22.4		%	22.3		%	22.1		%	22.2		%	22.3		%	22.1		%
Combined ratio	94.6		%	97.9		%	93.4		%	94.2		%	83.4		%	85.3		%	96.3		%	84.3		%
Impact on combined ratio:
Net favorable prior year reserve development	(2.3)		%	(1.5)		%	(2.7)		%	(1.5)		%	(6.0)		%	(5.0)		%	(1.9)		%	(5.5)		%
Catastrophes, net of reinsurance	2.0		%	4.2		%	4.9		%	(0.6)		%	1.9		%	1.3		%	3.1		%	1.6		%
Underlying combined ratio	94.9		%	95.2		%	91.2		%	96.3		%	87.5		%	89.0		%	95.1		%	88.2		%
Catastrophes, net of reinsurance:
Pre-tax	$	39		$	85		$	103		$	(13)		$	39		$	27		$	124		$	66
After-tax	$	31		$	67		$	81		$	(10)		$	30		$	22		$	98		$	52
Prior year reserve development - favorable:
Pre-tax	$	45		$	30		$	56		$	31		$	125		$	104		$	75		$	229
After-tax	$	34		$	26		$	45		$	25		$	98		$	83		$	60		$	181

Policies in force (in thousands)	3,212			3,180			3,158			3,150			3,118			3,083
Change from prior year quarter	(1.1)		%	(1.4)		%	(2.0)		%	(2.3)		%	(2.9)		%	(3.1)		%
Change from prior quarter	(0.3)		%	(1.0)		%	(0.7)		%	(0.3)		%	(1.0)		%	(1.1)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	15		$	15		$	14		$	15		$	14		$	15		$	30		$	29
Fee income	$	4		$	5		$	7		$	7		$	6		$	6		$	9		$	12


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Statutory underwriting
Gross written premiums	$	1,881		$	2,440		$	2,547		$	2,229		$	2,054		$	2,617		$	4,321		$	4,671
Net written premiums	$	1,684		$	2,416		$	2,475		$	2,219		$	1,863		$	2,592		$	4,100		$	4,455
Net earned premiums	$	2,030		$	2,072		$	2,141		$	2,199		$	2,179		$	2,264		$	4,102		$	4,443
Losses and loss adjustment expenses	1,466			1,898			1,380			905			2,597			1,467			3,364			4,064
Underwriting expenses	517			615			640			580			532			645			1,132			1,177
Statutory underwriting gain (loss)	$	47		$	(441)		$	121		$	714		$	(950)		$	152		$	(394)		$	(798)
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	72.2		%	91.6		%	64.5		%	41.2		%	119.2		%	64.8		%	82.0		%	91.5		%
Underwriting expense ratio	26.9		%	27.2		%	27.0		%	26.6		%	26.3		%	26.5		%	27.1		%	26.4		%
Combined ratio	99.1		%	118.8		%	91.5		%	67.8		%	145.5		%	91.3		%	109.1		%	117.9		%
Impact on combined ratio:
Net favorable prior year reserve development	(1.1)		%	(6.8)		%	(5.9)		%	(1.8)		%	(5.1)		%	(2.2)		%	(4.0)		%	(3.6)		%
Catastrophes, net of reinsurance	22.6		%	48.0		%	23.0		%	4.2		%	78.0		%	23.2		%	35.5		%	50.1		%
Underlying combined ratio	77.6		%	77.6		%	74.4		%	65.4		%	72.6		%	70.3		%	77.6		%	71.4		%
Catastrophes, net of reinsurance:
Pre-tax	$	459		$	995		$	492		$	92		$	1,699		$	527		$	1,454		$	2,226
After-tax	$	362		$	787		$	387		$	72		$	1,343		$	415		$	1,149		$	1,758
Prior year reserve development - favorable:
Pre-tax	$	22		$	142		$	125		$	39		$	112		$	51		$	164		$	163
After-tax	$	18		$	111		$	98		$	31		$	89		$	39		$	129		$	128

Policies in force (in thousands)	6,235			6,167			6,106			6,060			5,980			5,882
Change from prior year quarter	(1.9)		%	(3.0)		%	(3.8)		%	(3.7)		%	(4.1)		%	(4.6)		%
Change from prior quarter	(0.9)		%	(1.1)		%	(1.0)		%	(0.8)		%	(1.3)		%	(1.6)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Billing and policy fees and other	$	11		$	10		$	9		$	9		$	10		$	9		$	21		$	19
Fee income	$	4		$	5		$	5		$	6		$	5		$	7		$	9		$	12


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Revenues
Other revenues	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Claims and expenses
Interest expense	98		98		98		98		99		99		196		198
General and administrative expenses	8		12		11		13		11		12		20		23
Total claims and expenses	106		110		109		111		110		111		216		221

Loss before income tax benefit	(106)		(110)		(109)		(111)		(110)		(111)		(216)		(221)
Income tax benefit	(23)		(22)		(23)		(23)		(24)		(24)		(45)		(48)
Loss	$	(83)	$	(88)	$	(86)	$	(88)	$	(86)	$	(87)	$	(171)	$	(173)


($ and shares in millions)	June 30, 2025		December 31, 2024
Assets
Fixed maturities, available for sale, at fair value (amortized cost $91,406 and $88,277; allowance for expected credit losses of $4 and $2)	$	87,569	$	83,666
Equity securities, at fair value (cost $505 and $544)	651		687
Real estate investments	891		902
Short-term securities	4,748		4,766
Other investments	4,206		4,202
Total investments	98,065		94,223
Cash (including restricted cash of $138 and $131)	659		699
Investment income accrued	785		752
Premiums receivable (net of allowance for expected credit losses of $61 and $58)	12,042		11,110
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $127 and $119)	8,059		8,000
Ceded unearned premiums	1,692		1,202
Deferred acquisition costs	3,667		3,494
Deferred taxes	1,630		1,762
Contractholder receivables (net of allowance for expected credit losses of $17 and $18)	3,095		3,171
Goodwill	4,283		4,233
Other intangible assets	348		360
Other assets	4,548		4,183
Total assets	$	138,873	$	133,189

Liabilities
Claims and claim adjustment expense reserves	$	66,941	$	64,093
Unearned premium reserves	23,288		22,289
Contractholder payables	3,112		3,189
Payables for reinsurance premiums	987		550

Debt	8,034		8,033
Other liabilities	6,993		7,171
Total liabilities	109,355		105,325
Shareholders’ equity
Common stock (1,750.0 shares authorized; 225.1 and 226.6 shares issued and outstanding)	25,728		25,452
Retained earnings	51,041		49,630
Accumulated other comprehensive loss	(4,085)		(4,967)
Treasury stock, at cost (567.8 and 564.3 shares)	(43,166)		(42,251)
Total shareholders’ equity	29,518		27,864
Total liabilities and shareholders’ equity	$	138,873	$	133,189


(at carrying value, $ in millions)	June 30, 2025		Pre-tax Book Yield (1)		December 31, 2024		Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities	$	63,588	3.98	%	$	61,012	3.87	%
Tax-exempt fixed maturities	23,981		3.15	%	22,654		3.00	%
Total fixed maturities	87,569		3.74	%	83,666		3.63	%
Non-redeemable preferred stocks	43		2.20	%	48		2.20	%
Common stocks	608				639
Total equity securities	651				687
Real estate investments	891				902
Short-term securities	4,748		4.43	%	4,766		4.54	%
Private equities	2,806				2,815
Hedge funds	208				219
Real estate partnerships	862				858
Other investments	330				310
Total other investments	4,206				4,202
Total investments	$	98,065			$	94,223



Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	(3,031)			$	(3,640)


(at carrying value, $ in millions)	June 30, 2025				December 31, 2024
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	3,843			$	5,570
Obligations of U.S. states and political subdivisions:
Pre-refunded	575				572
All other	27,985				26,613
Total	28,560				27,185
Debt securities issued by foreign governments	978				909
Mortgage-backed securities - principally obligations of U.S. Government agencies	13,112				12,605
Corporate and all other bonds	41,076				37,397
Total fixed maturities	$	87,569			$	83,666

Fixed Maturities Quality Characteristics (1)
	June 30, 2025				December 31, 2024
	Amount		% of Total		Amount		% of Total
Quality Ratings
Aaa	$	24,519	28.0	%	$	40,411	48.3	%
Aa	32,429		37.0		15,278		18.3
A	18,507		21.1		16,181		19.3
Baa	11,084		12.7		10,816		12.9
Total investment grade	86,539		98.8		82,686		98.8
Ba	736		0.8		686		0.8
B	254		0.3		247		0.3
Caa and lower	40		0.1		47		0.1
Total below investment grade	1,030		1.2		980		1.2
Total fixed maturities	$	87,569	100.0	%	$	83,666	100.0	%
Average weighted quality	Aa2, AA				Aa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.6				4.3


($ in millions)	1Q2024			2Q2024			3Q2024			4Q2024			1Q2025			2Q2025			YTD 2Q2024			YTD 2Q2025
Gross investment income
Fixed maturities	$	692		$	709		$	749		$	798		$	812		$	833		$	1,401		$	1,645
Short-term securities	70			70			77			63			57			55			140			112
Other	98			118			90			103			76			67			216			143
	860			897			916			964			945			955			1,757			1,900
Investment expenses	14			12			12			9			15			13			26			28
Net investment income, pre-tax	846			885			904			955			930			942			1,731			1,872
Income taxes	148			158			162			170			167			168			306			335
Net investment income, after-tax	$	698		$	727		$	742		$	785		$	763		$	774		$	1,425		$	1,537

Effective tax rate	17.6		%	17.8		%	17.9		%	17.9		%	17.9		%	17.9		%	17.7		%	17.9		%

Average invested assets (1)	$94,677			$95,402			$97,736			$100,046			$101,000			$102,173			$95,062			$101,634

Average yield pre-tax (1)	3.6		%	3.7		%	3.7		%	3.8		%	3.7		%	3.7		%	3.6		%	3.7		%
Average yield after-tax	2.9		%	3.0		%	3.0		%	3.1		%	3.0		%	3.0		%	3.0		%	3.0		%


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Net realized investment gains (losses)
Fixed maturities	$	(40)	$	(35)	$	(17)	$	(39)	$	(31)	$	(17)	$	(75)	$	(48)
Equity securities	79		(28)		53		(5)		(22)		20		51		(2)
Other	(4)		(2)		19		(11)		(8)		3		(6)		(5)
Realized investment gains (losses) before tax	35		(65)		55		(55)		(61)		6		(30)		(55)
Related taxes	8		(14)		13		(11)		(13)		1		(6)		(12)
Net realized investment gains (losses)	$	27	$	(51)	$	42	$	(44)	$	(48)	$	5	$	(24)	$	(43)

Gross investment gains	$	85	$	7	$	85	$	10	$	4	$	41	$	92	$	45
Gross investment losses before impairments	(47)		(72)		(25)		(63)		(63)		(35)		(119)		(98)
Net investment gains (losses) before impairments	38		(65)		60		(53)		(59)		6		(27)		(53)
Net impairment (charges) recoveries	(3)		—		(5)		(2)		(2)		—		(3)		(2)
Net realized investment gains (losses) before tax	35		(65)		55		(55)		(61)		6		(30)		(55)
Related taxes	8		(14)		13		(11)		(13)		1		(6)		(12)
Net realized investment gains (losses)	$	27	$	(51)	$	42	$	(44)	$	(48)	$	5	$	(24)	$	(43)

($ in millions)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 2025
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities	$	(4,718)	$	(5,042)	$	(2,672)	$	(4,609)	$	(4,171)	$	(3,833)
Other	(2)		(1)		—		—		(1)		2
Unrealized investment gains (losses) before tax	(4,720)		(5,043)		(2,672)		(4,609)		(4,172)		(3,831)
Related taxes	(999)		(1,067)		(561)		(969)		(873)		(800)
Balance, end of period	$	(3,721)	$	(3,976)	$	(2,111)	$	(3,640)	$	(3,299)	$	(3,031)

(1) The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:

Reinsurer

A.M. Best Rating of Group's Predominant Reinsurer

June 30, 2025

Swiss Re Group

A+ second highest of 16 ratings

710

Berkshire Hathaway

A++ highest of 16 ratings

446

Munich Re Group

A+ second highest of 16 ratings

332

Axa Group

A+ second highest of 16 ratings

172

Arch Insurance Group

A+ second highest of 16 ratings

171

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims. The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves. Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.

(2) Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments. The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

(3) The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

(4) Of the total reinsurance recoverables at June 30, 2025, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.92 billion, or 88%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 12% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to voluntary pools and 6% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period	$	40,833	$	41,391	$	42,050	$	42,960	$	42,909	$	43,742	$	40,833	$	42,909
Incurred	3,282		3,422		3,645		3,116		3,650		3,530		6,704		7,180
Paid	(2,697)		(2,758)		(2,786)		(3,066)		(2,847)		(2,890)		(5,455)		(5,737)
Foreign exchange and other	(27)		(5)		51		(101)		30		95		(32)		125
End of period	$	41,391	$	42,050	$	42,960	$	42,909	$	43,742	$	44,477	$	42,050	$	44,477
Bond & Specialty Insurance
Beginning of period	$	4,521	$	4,626	$	4,773	$	4,931	$	4,938	$	5,072	$	4,521	$	4,938
Incurred	424		468		438		427		430		414		892		844
Paid	(306)		(320)		(332)		(344)		(325)		(307)		(626)		(632)
Foreign exchange and other	(13)		(1)		52		(76)		29		70		(14)		99
End of period	$	4,626	$	4,773	$	4,931	$	4,938	$	5,072	$	5,249	$	4,773	$	5,249
Personal Insurance
Beginning of period	$	8,363	$	8,561	$	9,099	$	9,018	$	8,479	$	9,277	$	8,363	$	8,479
Incurred	2,896		3,430		2,857		2,423		3,867		2,787		6,326		6,654
Paid	(2,678)		(2,885)		(2,948)		(2,908)		(3,069)		(2,767)		(5,563)		(5,836)
Foreign exchange and other	(20)		(7)		10		(54)		—		49		(27)		49
End of period	$	8,561	$	9,099	$	9,018	$	8,479	$	9,277	$	9,346	$	9,099	$	9,346
Total
Beginning of period	$	53,717	$	54,578	$	55,922	$	56,909	$	56,326	$	58,091	$	53,717	$	56,326
Incurred	6,602		7,320		6,940		5,966		7,947		6,731		13,922		14,678
Paid	(5,681)		(5,963)		(6,066)		(6,318)		(6,241)		(5,964)		(11,644)		(12,205)
Foreign exchange and other	(60)		(13)		113		(231)		59		214		(73)		273
End of period	$	54,578	$	55,922	$	56,909	$	56,326	$	58,091	$	59,072	$	55,922	$	59,072
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—	$	—	$	242	$	—	$	—	$	—	$	—	$	—

All other	—		(34)		(151)		(147)		(74)		(79)		(34)		(153)
Total Business Insurance (1)	—		(34)		91		(147)		(74)		(79)		(34)		(153)
Bond & Specialty Insurance	(24)		(24)		(36)		(45)		(67)		(81)		(48)		(148)
Personal Insurance	(67)		(172)		(181)		(70)		(237)		(155)		(239)		(392)
Total	$	(91)	$	(230)	$	(126)	$	(262)	$	(378)	$	(315)	$	(321)	$	(693)


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Asbestos reserves
Beginning reserves:
Gross	$	1,768	$	1,686	$	1,612	$	1,815	$	1,708	$	1,636	$	1,768	$	1,708
Ceded	(390)		(382)		(368)		(395)		(370)		(357)		(390)		(370)
Net	1,378		1,304		1,244		1,420		1,338		1,279		1,378		1,338
Incurred losses and loss expenses:
Gross	—		—		279		—		—		—		—		—
Ceded	—		—		(37)		—		—		—		—		—
Paid loss and loss expenses:
Gross	82		74		77		106		72		83		156		155
Ceded	(8)		(13)		(11)		(25)		(13)		(39)		(21)		(52)
Foreign exchange and other:
Gross	—		—		1		(1)		—		2		—		2
Ceded	—		1		(1)		—		—		—		1		—
Ending reserves:
Gross	1,686		1,612		1,815		1,708		1,636		1,555		1,612		1,555
Ceded	(382)		(368)		(395)		(370)		(357)		(318)		(368)		(318)
Net	$	1,304	$	1,244	$	1,420	$	1,338	$	1,279	$	1,237	$	1,244	$	1,237


($ in millions)	June 30, 2025			December 31, 2024
Debt

Short-term debt
Commercial paper	$	100		$	100
7.75% Senior notes due April 15, 2026	200			—
Total short-term debt	300			100
Long-term debt
7.75% Senior notes due April 15, 2026	—			200
7.625% Junior subordinated debentures due December 15, 2027	125			125
6.375% Senior notes due March 15, 2033 (1)	500			500
6.75% Senior notes due June 20, 2036 (1)	400			400
6.25% Senior notes due June 15, 2037 (1)	800			800
5.35% Senior notes due November 1, 2040 (1)	750			750
4.60% Senior notes due August 1, 2043 (1)	500			500
4.30% Senior notes due August 25, 2045 (1)	400			400
8.50% Junior subordinated debentures due December 15, 2045	56			56
3.75% Senior notes due May 15, 2046 (1)	500			500
8.312% Junior subordinated debentures due July 1, 2046	73			73
4.00% Senior notes due May 30, 2047 (1)	700			700
4.05% Senior notes due March 7, 2048 (1)	500			500
4.10% Senior notes due March 4, 2049 (1)	500			500
2.55% Senior notes due April 27, 2050 (1)	500			500
3.05% Senior notes due June 8, 2051 (1)	750			750
5.45% Senior notes due May 25, 2053 (1)	750			750
Total long-term debt	7,804			8,004
Unamortized fair value adjustment	33			34
Unamortized debt issuance costs	(103)			(105)
	7,734			7,933
Total debt	8,034			8,033
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	32,549			31,504
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	$	40,583		$	39,537
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	19.8		%	20.3		%


($ in millions)	June 30, 2025 (1)		December 31, 2024
Statutory capital and surplus	$	28,364	$	27,715
GAAP adjustments
Goodwill and intangible assets	3,644		3,635
Investments	(3,305)		(3,982)
Noninsurance companies	(4,032)		(4,350)
Deferred acquisition costs	3,524		3,371
Deferred federal income tax	79		218
Current federal income tax	(5)		(5)
Reinsurance recoverables	44		44
Furniture, equipment & software	935		960
Agents balances	212		230
Other	58		28
Total GAAP adjustments	1,154		149
GAAP shareholders’ equity	$	29,518	$	27,864


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Cash flows from operating activities
Net income	$	1,123	$	534	$	1,260	$	2,082	$	395	$	1,509	$	1,657	$	1,904
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(35)		65		(55)		55		61		(6)		30		55
Depreciation and amortization	196		182		174		163		188		164		378		352
Deferred federal income tax expense (benefit)	42		(85)		(59)		(50)		31		(83)		(43)		(52)
Amortization of deferred acquisition costs	1,698		1,678		1,790		1,807		1,778		1,802		3,376		3,580
Equity in income from other investments	(68)		(89)		(63)		(74)		(53)		(42)		(157)		(95)
Premiums receivable	(557)		(664)		234		128		(459)		(438)		(1,221)		(897)
Reinsurance recoverables	33		(34)		74		38		(97)		78		(1)		(19)
Deferred acquisition costs	(1,776)		(1,807)		(1,856)		(1,734)		(1,822)		(1,917)		(3,583)		(3,739)
Claims and claim adjustment expense reserves	928		1,384		755		(387)		1,818		725		2,312		2,543
Unearned premium reserves	457		788		659		(416)		419		495		1,245		914
Other	(583)		(275)		962		452		(899)		47		(858)		(852)
Net cash provided by operating activities	1,458		1,677		3,875		2,064		1,360		2,334		3,135		3,694
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,709		2,464		1,817		2,547		2,801		3,071		4,173		5,872
Proceeds from sales of investments:
Fixed maturities	942		308		225		159		253		348		1,250		601
Equity securities	21		41		31		50		68		32		62		100
Real estate investments	—		—		64		—		—		—		—		—
Other investments	55		55		101		211		63		79		110		142
Purchases of investments:
Fixed maturities	(3,738)		(4,349)		(4,273)		(4,772)		(4,296)		(4,847)		(8,087)		(9,143)
Equity securities	(26)		(21)		(33)		(44)		(25)		(35)		(47)		(60)
Real estate investments	(13)		(11)		(10)		(14)		(7)		(6)		(24)		(13)
Other investments	(90)		(95)		(98)		(113)		(96)		(80)		(185)		(176)
Net sales (purchases) of short-term securities	454		330		(1,126)		712		239		(215)		784		24
Securities transactions in the course of settlement	111		247		24		(326)		308		64		358		372
Acquisition, net of cash acquired	(381)		(1)		—		—		—		—		(382)		—
Other	(81)		(111)		(113)		(103)		(116)		(127)		(192)		(243)
Net cash used in investing activities	(1,037)		(1,143)		(3,391)		(1,693)		(808)		(1,716)		(2,180)		(2,524)


($ in millions)	1Q2024		2Q2024		3Q2024		4Q2024		1Q2025		2Q2025		YTD 2Q2024		YTD 2Q2025
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations	(250)		(249)		(248)		(256)		(250)		(500)		(499)		(750)
Treasury stock acquired - net employee share-based compensation	(110)		(1)		(1)		(2)		(102)		(22)		(111)		(124)
Dividends paid to shareholders	(229)		(244)		(238)		(240)		(240)		(250)		(473)		(490)


Issuance of common stock - employee share options	190		22		33		76		57		70		212		127
Net cash used in financing activities	(399)		(472)		(454)		(422)		(535)		(702)		(871)		(1,237)
Effect of exchange rate changes on cash and restricted cash	(5)		—		13		(22)		8		19		(5)		27
Net increase (decrease) in cash and restricted cash	17		62		43		(73)		25		(65)		79		(40)
Cash and restricted cash at beginning of period	650		667		729		772		699		724		650		699
Cash and restricted cash at end of period	$	667	$	729	$	772	$	699	$	724	$	659	$	729	$	659
Supplemental disclosure of cash flow information
Income taxes paid	$	24	$	831	$	92	$	363	$	24	$	538	$	855	$	562
Interest paid	$	60	$	135	$	60	$	135	$	61	$	136	$	195	$	197

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Average shareholders’ equity is (a) the sum of total shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted shareholders’ equity is shareholders’ equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)). Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.


	As of
($ in millions)	March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024		March 31, 2025		June 30, 2025
Shareholders’ equity	$	25,022	$	24,862	$	27,696	$	27,864	$	28,191	$	29,518
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	3,721		3,976		2,111		3,640		3,299		3,031
Net realized investment (gains) losses, net of tax	(27)		24		(18)		26		48		43

Adjusted shareholders’ equity	$	28,716	$	28,862	$	29,789	$	31,530	$	31,538	$	32,592

Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) to adjusted average shareholders’ equity for the periods presented. In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses. In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business. This measure is used to assess each segment’s business performance and as a tool in making business decisions.

A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core income and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2025 ranges from $20 million to $30 million of losses before reinsurance and taxes.

Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Combined ratio For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums. For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio. For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums. Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

Total capital is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity. In the opinion of the Company’s management, the debt to capital ratio is useful in an analysis of the Company’s financial leverage.

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s. Business Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited. Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.


($ in millions)	June 30, 2025		December 31, 2024
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)	$	4,161	$	3,962
Gross structured settlements (2)	2,586		2,626
Mandatory pools and associations (3)	1,439		1,531
Gross reinsurance recoverables (4)	8,186		8,119
Allowance for estimated uncollectible reinsurance (5)	(127)		(119)
Net reinsurance recoverables	$	8,059	$	8,000


The Travelers Companies, Inc. Financial Supplement - Second Quarter 2025						Exhibit 99.2


The Travelers Companies, Inc. Reconciliation to Net Income and Earnings per Share


The Travelers Companies, Inc. Statement of Income - Consolidated


The Travelers Companies, Inc. Net Income by Major Component and Combined Ratio - Consolidated


The Travelers Companies, Inc. Selected Statistics - Property and Casualty Operations


The Travelers Companies, Inc. Written and Earned Premiums - Property and Casualty Operations


The Travelers Companies, Inc. Segment Income - Business Insurance


The Travelers Companies, Inc. Net Written Premiums - Business Insurance


The Travelers Companies, Inc. Investment Portfolio - Fixed Maturities Data


The Travelers Companies, Inc. Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity


The Travelers Companies, Inc. Net Reserves for Losses and Loss Adjustment Expense


The Travelers Companies, Inc. Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation


The Travelers Companies, Inc. Glossary of Financial Measures and Description of Reportable Business Segments