Revenue growth has normalized to 1.0% as of 2026Q1, while underwriting profitability remains volatile, evidenced by a combined ratio that fluctuated between 75.0% and 96.0% over the last five quarters.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Revenue | 48.94B | 48.83B | 46.43B | 41.37B | 36.9B | 34.82B | 31.98B | 31.58B | 30.28B | 28.9B | 27.63B | 26.82B | 27.17B | 26.19B | 25.74B | 25.45B | 25.11B | 24.68B | 24.48B | 26.02B | 25.09B | 24.36B | 22.54B | 15.14B | 14.27B | 9.03B | 7.95B | 7.15B | 9.11B | 9.62B | 9.23B |
| Revenue Growth % | 4.11% | 5.17% | 12.22% | 12.13% | 5.97% | 8.86% | 1.27% | 4.29% | 4.77% | 4.62% | 3.02% | -1.32% | 3.75% | 1.75% | 1.16% | 1.33% | 1.75% | 0.83% | -5.92% | 3.69% | 2.98% | 8.08% | 48.91% | 6.09% | 57.99% | 13.67% | 11.15% | -21.51% | -5.35% | 4.24% | 70.65% |
| Medical Costs & Claims | 27.4B | 27.22B | 34.03B | 32.44B | 28.37B | 25.34B | 23.9B | 23.73B | 22.67B | 21.63B | 19.05B | 17.61B | 17.75B | 17.13B | 18.59B | 20.15B | 17.01B | 16.22B | 16.87B | 16.1B | 15.58B | 18.18B | 18.42B | 11.1B | 12.95B | 9.18B | 5.31B | 5.04B | 7.53B | 5.05B | 5B |
| Medical Cost Ratio % | 55.98% | 55.75% | 73.3% | 78.41% | 76.89% | 72.79% | 74.72% | 75.15% | 74.87% | 74.85% | 68.98% | 65.66% | 65.33% | 65.4% | 72.21% | 79.2% | 67.74% | 65.73% | 68.93% | 61.89% | 62.11% | 74.61% | 81.69% | 73.33% | 90.74% | 101.65% | 66.81% | 70.51% | 82.67% | 52.52% | 54.17% |
| Gross Profit | 21.54B | 21.61B | 12.4B | 8.93B | 8.53B | 9.47B | 8.09B | 7.85B | 7.61B | 7.27B | 8.57B | 9.21B | 9.42B | 9.06B | 7.15B | 5.29B | 8.1B | 8.46B | 7.6B | 9.91B | 9.51B | 6.19B | 4.13B | 4.04B | 1.32B | -149M | 2.64B | 2.11B | 1.58B | 4.57B | 4.23B |
| Gross Margin % | 44.02% | 44.25% | 26.7% | 21.59% | 23.11% | 27.21% | 25.28% | 24.85% | 25.13% | 25.15% | 31.02% | 34.34% | 34.67% | 34.6% | 27.79% | 20.8% | 32.26% | 34.27% | 31.07% | 38.11% | 37.89% | 25.39% | 18.31% | 26.67% | 9.26% | -1.65% | 33.19% | 29.49% | 17.33% | 47.48% | 45.83% |
| Gross Profit Growth % | - | 74.31% | 38.78% | 4.75% | -10.01% | 17.19% | 3.03% | 3.11% | 4.69% | -15.18% | -6.92% | -2.28% | 3.96% | 26.68% | 35.13% | -34.64% | -4.24% | 11.24% | -23.3% | 4.28% | 53.69% | 49.89% | 2.23% | 205.6% | 986.58% | -105.65% | 25.09% | 33.55% | -65.45% | 8% | 150.56% |
| Operating Expenses | 12.1B | 13.81B | 6.22B | 5.56B | 5.17B | 5.02B | 4.85B | 4.71B | 4.65B | 4.54B | 4.52B | 4.47B | 4.33B | 4.12B | 3.99B | 3.94B | 3.79B | 3.75B | 3.89B | 3.7B | 3.78B | 3.52B | 3.18B | 1.81B | 1.58B | 1.28B | 1.24B | 1.16B | 1.62B | -2.14B | -2.23B |
| OpEx / Revenue % | 24.71% | 28.29% | 13.39% | 13.44% | 14.02% | 14.41% | 15.16% | 14.91% | 15.35% | 15.7% | 16.35% | 16.66% | 15.95% | 15.72% | 15.49% | 15.49% | 15.11% | 15.19% | 15.88% | 14.21% | 15.07% | 14.43% | 14.11% | 11.94% | 11.08% | 14.19% | 15.55% | 16.18% | 17.84% | -22.21% | -24.12% |
| Depreciation & Amortization | 685M | 680M | 715M | 722M | 826M | 870M | 789M | 763M | 803M | 813M | 826M | 818M | 864M | 867M | 827M | 802M | 812M | 797M | 821M | 811M | 808M | 691M | 522M | 85M | 42M | 180M | 105M | 118M | 132.9M | 108M | 98M |
| Combined Ratio % | 80.7% | 84.03% | 86.69% | 91.85% | 90.91% | 87.2% | 89.88% | 90.06% | 90.22% | 90.55% | 85.33% | 82.32% | 81.27% | 81.12% | 87.7% | 94.69% | 82.85% | 80.91% | 84.82% | 76.11% | 77.18% | 89.04% | 95.8% | 85.28% | 101.82% | 115.84% | 82.37% | 86.7% | 100.51% | 30.31% | 30.05% |
| Operating Income | 9.45B | 7.8B | 6.18B | 3.37B | 3.35B | 4.46B | 3.24B | 3.14B | 2.96B | 2.73B | 4.05B | 4.74B | 5.09B | 4.95B | 3.17B | 1.35B | 4.31B | 4.71B | 3.72B | 6.22B | 5.72B | 2.67B | 946M | 2.23B | -260M | -1.43B | 1.4B | 951M | -46.29M | 6.71B | 6.46B |
| Operating Margin % | 19.3% | 15.97% | 13.31% | 8.15% | 9.09% | 12.8% | 10.12% | 9.94% | 9.78% | 9.45% | 14.67% | 17.68% | 18.73% | 18.88% | 12.3% | 5.31% | 17.15% | 19.09% | 15.18% | 23.89% | 22.82% | 10.96% | 4.2% | 14.72% | -1.82% | -15.84% | 17.63% | 13.3% | -0.51% | 69.69% | 69.95% |
| Operating Income Growth % | - | 26.15% | 83.33% | 0.51% | -24.76% | 37.72% | 3.15% | 5.98% | 8.46% | -32.64% | -14.49% | -6.86% | 2.91% | 56.19% | 134.17% | -68.6% | -8.6% | 26.78% | -40.22% | 8.58% | 114.34% | 182.35% | -57.56% | 957.31% | 81.83% | -202.14% | 47.32% | 2154.57% | -100.69% | 3.85% | 884.01% |
| EBITDA | 10.13B | 8.48B | 6.89B | 4.09B | 4.18B | 5.33B | 4.03B | 3.9B | 3.76B | 3.54B | 4.88B | 5.56B | 5.95B | 5.81B | 3.99B | 2.15B | 5.12B | 5.51B | 4.54B | 7.03B | 6.53B | 3.36B | 1.47B | 2.31B | -218M | -1.25B | 1.51B | 1.07B | 86.61M | 6.81B | 6.56B |
| EBITDA Margin % | 20.7% | 17.36% | 14.85% | 9.89% | 11.33% | 15.3% | 12.59% | 12.35% | 12.43% | 12.26% | 17.66% | 20.73% | 21.91% | 22.19% | 15.51% | 8.46% | 20.38% | 22.32% | 18.54% | 27.01% | 26.04% | 13.8% | 6.51% | 15.29% | -1.53% | -13.85% | 18.95% | 14.95% | 0.95% | 70.81% | 71.01% |
| Interest Expense | 442M | 425M | 392M | 376M | 351M | 340M | 339M | 344M | 352M | 369M | 363M | 373M | 369M | 361M | 378M | 386M | 388M | 382M | 370M | 346M | 324M | 286M | 236M | 167M | 157M | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | -442M | -425M | -392M | -376M | -351M | -340M | -339M | -344M | -352M | -369M | -363M | -373M | -369M | -361M | -378M | -386M | -388M | -382M | -370M | -346M | -324M | -286M | -236M | -167M | -157M | 0 | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 9.45B | 7.8B | 6.18B | 3.37B | 3.35B | 4.46B | 3.24B | 3.14B | 2.96B | 2.73B | 4.05B | 4.74B | 5.09B | 4.95B | 3.17B | 1.35B | 4.31B | 4.71B | 3.72B | 6.22B | 5.72B | 2.67B | 946M | 2.23B | -260M | -1.43B | 1.4B | 951M | -46.29M | 1.34B | 991.1M |
| Pretax Margin % | 19.3% | 15.97% | 13.31% | 8.15% | 9.09% | 12.8% | 10.12% | 9.94% | 9.78% | 9.45% | 14.67% | 17.68% | 18.73% | 18.88% | 12.3% | 5.31% | 17.15% | 19.09% | 15.18% | 23.89% | 22.82% | 10.96% | 4.2% | 14.72% | -1.82% | -15.84% | 17.63% | 13.3% | -0.51% | 13.88% | 10.74% |
| Income Tax | 1.84B | 1.51B | 1.18B | 380M | 512M | 796M | 540M | 516M | 438M | 674M | 1.04B | 1.3B | 1.4B | 1.27B | 693M | -74M | 1.09B | 1.09B | 792M | 1.61B | 1.52B | 610M | 69M | 537M | -477M | -422M | 431M | 219M | -135.63M | 338.7M | 150.6M |
| Effective Tax Rate % | 19.51% | 19.34% | 19.11% | 11.27% | 15.27% | 17.86% | 16.68% | 16.44% | 14.79% | 24.69% | 25.64% | 27.45% | 27.45% | 25.72% | 21.89% | -5.47% | 25.31% | 23.12% | 21.31% | 25.98% | 26.5% | 22.84% | 7.29% | 24.09% | 183.46% | 29.49% | 30.76% | 23.03% | 293.03% | 25.36% | 15.2% |
| Net Income | 7.6B | 6.29B | 5B | 2.99B | 2.84B | 3.66B | 2.7B | 2.62B | 2.52B | 2.06B | 3.01B | 3.44B | 3.69B | 3.67B | 2.47B | 1.43B | 3.22B | 3.62B | 2.92B | 4.6B | 4.21B | 1.62B | 955M | 1.7B | -27M | -1.09B | 993M | 834M | 89.35M | 929.2M | 732.7M |
| Net Margin % | 15.54% | 12.88% | 10.77% | 7.23% | 7.7% | 10.52% | 8.43% | 8.3% | 8.33% | 7.11% | 10.91% | 12.82% | 13.59% | 14.02% | 9.61% | 5.6% | 12.81% | 14.68% | 11.95% | 17.68% | 16.77% | 6.66% | 4.24% | 11.2% | -0.19% | -12.05% | 12.5% | 11.67% | 0.98% | 9.66% | 7.94% |
| Net Income Growth % | 78.04% | 25.79% | 67.13% | 5.24% | -22.39% | 35.78% | 2.86% | 3.92% | 22.71% | -31.79% | -12.36% | -6.85% | 0.52% | 48.52% | 73.42% | -55.66% | -11.21% | 23.87% | -36.45% | 9.34% | 159.43% | 69.84% | -43.69% | 6381.48% | 97.52% | -209.57% | 19.06% | 833.43% | -90.38% | 26.82% | 40.58% |
| EPS (Diluted) | 34.82 | 27.43 | 21.47 | 12.79 | 11.77 | 14.49 | 10.52 | 9.92 | 9.35 | 7.33 | 10.28 | 10.88 | 10.70 | 9.74 | 6.30 | 3.36 | 6.62 | 6.33 | 4.81 | 6.85 | 5.91 | 2.33 | 1.53 | 3.80 | 0.93 | -5.13 | 4.24 | 3.41 | 0.32 | 3.97 | 2.84 |
| EPS Growth % | 82.96% | 27.76% | 67.87% | 8.67% | -18.77% | 37.74% | 6.05% | 6.1% | 27.56% | -28.7% | -5.51% | 1.68% | 9.86% | 54.6% | 87.5% | -49.24% | 4.58% | 31.6% | -29.78% | 15.91% | 153.65% | 52.29% | -59.74% | 308.6% | 118.13% | -220.99% | 24.34% | 965.63% | -91.94% | 39.79% | 0% |
| EPS (Basic) | - | 27.84 | 21.76 | 12.93 | 11.91 | 14.63 | 10.56 | 10.01 | 9.44 | 7.39 | 10.39 | 10.99 | 10.82 | 9.84 | 6.35 | 3.40 | 6.69 | 6.38 | 4.87 | 7.00 | 6.12 | 2.39 | 1.56 | 3.91 | 0.97 | -5.13 | 4.50 | 3.61 | 0.33 | 3.97 | 3.01 |
| Diluted Shares Outstanding | 218.4M | 227.6M | 231.1M | 232.2M | 239.7M | 250.8M | 254.6M | 262.3M | 269.8M | 278.6M | 291M | 313.9M | 342.5M | 374.3M | 389.8M | 420.5M | 482.5M | 577.5M | 604.3M | 668.6M | 716.7M | 712.8M | 628.3M | 453.3M | 233.5M | 212M | 233M | 246M | 252.65M | 176.8M | 188.25M |
Severe convective storm frequency
As reported in recent financial statements, Travelers' revenue growth has decelerated from a peak of 15.7% in 2024Q1 to 1.0% in 2026Q1, suggesting that the initial tailwinds from aggressive rate increases are beginning to moderate as the market cycle shifts toward a more stable pricing environment.
The transition from double-digit growth to low single-digit expansion indicates that the company is likely reaching a saturation point in its current rate-taking cycle. Investors should monitor whether this deceleration reflects a strategic choice to prioritize underwriting discipline over volume or if competitive pressures are beginning to limit the company's ability to push further price hikes.
Based on the provided quarterly data, the combined ratio has demonstrated significant volatility, ranging from a low of 75.0% in 2025Q4 to a high of 96.0% in 2025Q1, which highlights the inherent sensitivity of the company's underwriting margins to periodic catastrophe events and seasonal loss activity.
Despite the quarterly fluctuations, the company consistently maintains a combined ratio below the 100% threshold, which suggests that the core underwriting business remains fundamentally profitable. The ability to recover from high-loss quarters, such as the 82.8% loss ratio observed in 2025Q1, implies that the company's pricing models are effectively recalibrating to account for evolving risk profiles.
According to the historical income statement data, the 2025Q2 period served as a critical inflection point where a 70.9% loss ratio triggered a sharp contraction in operating income, underscoring the vulnerability of the company's earnings to sudden, large-scale claims events that disrupt the typical quarterly profit trajectory.
This period serves as a reminder that even with sophisticated data analytics, the company remains exposed to unpredictable weather-related losses that can temporarily overwhelm operational efficiency. Analysts should focus on the underlying combined ratio, excluding these episodic events, to determine if the company's long-term underwriting margin is truly expanding or merely benefiting from favorable weather cycles.
While current underwriting results appear robust, the persistent trend of rising loss ratios in recent quarters suggests that social inflation and increasing litigation costs may be creating a latent liability that could necessitate future reserve strengthening, potentially impacting the company's long-term net income stability and capital adequacy.
The upward pressure on loss ratios in several recent periods warrants further investigation into whether the company's current reserve levels are sufficient to cover the long-tail impact of nuclear jury verdicts. If these costs continue to outpace premium adjustments, the company may face a structural margin squeeze that is not currently reflected in the headline profitability metrics.
Quick answers to the most common questions about buying TRV stock.
For fiscal year 2025, The Travelers Companies, Inc. (TRV) reported total revenue of $48.83B. This represents a 428.9% increase compared to $9.23B in 1996.
The Travelers Companies, Inc. (TRV) is profitable, generating $6.29B in net income for the fiscal year ending 2025 with a net profit margin of 12.9%.
The Travelers Companies, Inc. (TRV) reported an operating income of $7.80B, resulting in an operating profit margin of 16.0%. This margin reflects the operational efficiency of the business before interest and taxes.
The Travelers Companies, Inc. (TRV) generated $21.61B in gross profit for the year, representing a gross profit margin of 44.3%. This demonstrates the company's core pricing power and production efficiency.