Travelers Companies, Inc. ( TRV ) shares were trading lower in the premarket session on Thursday after the company reported third-quarter FY25 earnings.

Earnings Details

Sales rose 5% year over year (Y/Y) to $12.47 billion, outpacing analyst consensus estimates of $11.81 billion.

Adjusted EPS of $8.14, beating the street view of $6.29.

Core income increased to $1.87 billion from $1.22 billion in the same quarter last year, led by a decline in catastrophe losses, a higher underlying underwriting gain, and an increase in net investment income.

Also Read: Travelers Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

Net realized investment gains stood at $27 million pre-tax ($21 million after-tax), vs. $55 million pre-tax ($42 million after-tax) in the prior year quarter. 

Net investment income increased 15% Y/Y after-tax in the quarter. Adjusted book value per share by 15% Y/Y to $150.55 in the quarter.

Net written premiums rose 1% Y/Y to $11.5 billion in the quarter under review.

Segment Review

Business Insurance segment: Net written premiums rose 3% Y/Y to $5.7 billion, driven by 4% domestic business growth.

Bond & Specialty Insurance: Net written premiums reached $1.1 billion, up 1% Y/Y, supported by higher renewal pricing and strong 87% retention in management liability, while the surety business remained robust.

Personal Insurance: Net written premiums totaled $4.7 billion, flat Y/Y, led by solid renewal premium gains in the Homeowners segment.

Buyback

The company repurchased 2.3 million shares during the quarter for a total cost of $628 million. 

As of September 30, 2025, the company had $3.665 billion of capacity under its share repurchase authorizations.

Dividend:

The company declared a regular quarterly dividend of $1.10 per share, payable on December 31, 2025, to shareholders of record as of the close of business on December 10.

Management Commentary

"Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance driven by competitive advantages that distinguish us in the marketplace, along with the returns from our more than $100 billion investment portfolio,” said Alan Schnitzer, chairman and CEO.

Investors can gain exposure to the stock through the Invesco KBW Property & Casualty Insurance ETF and the iShares U.S. Insurance ETF .

Price Action: TRV shares are trading lower by 6.11% to $253.00 premarket at the last check on Thursday.

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