The Travelers Companies, Inc.

of our third quarter 2025 results. We released our press release, financial supplement, and webcast presentation earlier this morning. All of these materials can be found on our website at travelers.com under the investors section. Speaking today will be Alan Schnitzer, Chairman and CEO, Dan Fry, CFO, and our three segment presidents, Greg Teslowski of business insurance, Jeff Clank of bond and specialty insurance, and Michael Klein of personal insurance. They will discuss the financial results of our business and the current market environment. They will refer to the webcast presentation as they go through prepared remarks, and then we will take questions. Before I turn the call over to Alan, I'd like to draw your attention to the explanatory note included at the end of the webcast presentation. Our presentation today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statement due to a variety of factors. These factors described under forward-looking statements in our earnings press release and in our most recent 10Q and 10K filed with the SEC. We do not undertake any obligation to update forward-looking statements. Also in our remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations are included in our recent earnings press release, financial supplement, and other materials available in the investor section on our website. And now I'd like to turn the call over to Alan Schnitzer.

Thank you, Abby. Good morning, everyone, and thank you for joining us today. We are pleased to report excellent third quarter results. We earned a core income of $1.9 billion, or $8.14 per diluted share. Core return on equity for the quarter was 22.6%, bringing our core return on equity for the trailing 12 months to 18.7%. Very strong underwriting results and higher investment income drove the bottom line. Underwriting income of $1.4 billion pre-tax more than doubled compared to the prior year quarter, benefiting from both the lower level of catastrophe losses and higher underlying underwriting income. The underlying result was driven by higher net earned premiums, and an underlying combined ratio that improved 1.7 points to an exceptional 83.9%. Underwriting income was higher in all three segments. Our high-quality investment portfolio also continued to perform well, generating after-tax net investment income of $850 million for the quarter, up 15%, driven by strong and reliable returns from our growing fixed income portfolio. Our underwriting and investment results, together with our strong balance sheet, enabled us to return almost $900 million of capital to shareholders during the quarter, including $628 million of share repurchases. At the same time, we continued to make strategic investments in our business. Even after this deployment of capital, adjusted book value per share was up 15% compared to a year ago. With strong results over the past year and a particularly light CAT quarter, we have a higher than usual level of excess capital and liquidity. Consequently, we anticipate a higher level of share repurchases over the next couple of quarters. Dan will have more to say about that in a minute. Turning to the top line, we grew net written premiums to $11.5 billion in the quarter. In business insurance, we grew net written premiums by 3% to $5.7 billion, led by 4% growth in our domestic business. Excluding the property line, we grew domestic net written premiums in the segment by more than 6%. The declining premium volume in property continues to be a large account dynamic. In fact, we grew property in both middle market and small commercial. We've seen this dynamic in the large property market before, and we won't compromise our underwriting discipline. Over time, particularly as catastrophic events inevitably unfold, The value of that discipline and the cost of those who abandon it will become unmistakable. Renewal premium and change in business insurance was 7.1%, given by continued historically high RPC in our middle market and select businesses. Excluding the property line, renewal premium change in the segment was a very strong 9%, and renewal rate change was a very strong 6.7%. Greg will share additional detail by line. Retention in the segment was 85%. Given the high quality of the book, we were very pleased with that result. In bond and specialty insurance, we grew net written premiums to $1.1 billion with higher renewal premium change and continued strong retention of 87% in our high-quality management liability business. Net written premiums in our market-leading surety business remained strong. In personal insurance, net written premiums were $4.7 billion, the strong renewal premium change in our homeowner's business. You'll hear more shortly from Greg, Jeff, and Michael about our segment results. As we head toward the end of the year, our planning for 2026 is well underway. As always, that process involves assessing the environment ahead. There are uncertainties out there, economic, political, geopolitical, not to mention the lost environment. We are very confident that we're built and very well positioned for whatever lies ahead. We're operating from a position of considerable strength. Profitability is strong, reflecting our leading underwriting expertise and the operating leverage we've built through a sustained focus on productivity and efficiency. Our competitive advantages have never been stronger or more relevant. Strong underwriting is the flywheel that sets everything in motion. Our premium growth at attractive margins has generated strong cash flow, which enables us to make strategic investments in our business, return excess capital to shareholders, and grow our investment portfolio. Since 2016, we have successfully invested $13 billion in technology, returned more than $20 billion of excess capital to our shareholders, and grown our investment portfolio by nearly 50% to more than $100 billion. Scale matters, increasingly so. We have the scale to win in an environment where technology and AI will continue to segment the marketplace. We have a track record of identifying the right strategic priorities and driving value from them. You can see that in the 300 basis point reduction we've achieved in our expense ratio since 2016, even while we were significantly increasing our overall technology spend. Importantly, Our size gives us the data to power AI, creating a virtuous cycle. Better insights, better decisions, better outcomes, more resources to invest. For example, our long-time focus on organizing and curating data has given us access to more than 65 billion clean data points from decades of history across multiple business lines. We leverage that to sharpen our underwriting and shape our claim strategies. the vast majority of our business in North America, we hold a leading position in the largest and most stable insurance market in the world, an advantage that insulates us from much of the risk arising from the economic instability and geopolitical uncertainty around the globe. Our Fortress balance sheet and exceptional cash flow provide us with the financial strength to invest consistently in the business, regardless of the external conditions. Our financial strength also enables us to manage comfortably through large loss events, like the January California wildfires. When it comes to the loss environment, from weather volatility to the impact of social inflation on casualty lines, no one is better positioned. Diversification provides powerful protection. In fact, our business mix produces a consolidated loss ratio that's actually less volatile than the loss ratio of our least volatile segment. That's the power of a balanced and diversified portfolio. Equally important is our demonstrated ability to confront the loss environment head on. We have the data, the analytics, and the discipline to establish reserves and loss picks appropriately and generally ahead of the market. That matters because until you have an accurate view of the loss environment, your risk selection, underwriting, and claim strategies are all operating with the wrong inputs. Since our early identification of the acceleration of social inflation in 2019, who'd grown the business and delivered significantly improved margins. Getting an accurate and timely view of the loss environment isn't just about the balance sheet. It's foundational to running the business effectively. Our internally managed investment portfolio is another source of strength. Our disciplined focus on achieving appropriate risk-adjusted returns has served us exceptionally well through various markets, especially during periods of market turmoil. More than 90% of our portfolio is in fixed income with an average credit rating of AA. We're highly selective, we don't reach for yield, we hold the vast majority of our fixed income securities to maturity, and we carefully coordinate the duration of our assets and liabilities. The track record speaks for itself. Our default rates during the most challenging environments over the past two decades were a fraction of industry averages. This consistency comes from a world-class investment team with extraordinary tenure and a shared long-term perspective. In short, the franchise we've built, the capabilities we've developed, and our depth of expertise create advantages that are durable across operating environments. Before I wrap up, I'll share that we're just back from one of the industry's premier conferences where we had the opportunity to meet with dozens of our key agents and brokers who collectively represent a substantial amount of our business. we left as convinced as ever that our position with the independent distribution channel is an unmatched strategic advantage. We heard clearly that our strategic investments are resonating and that looking ahead, we're focused on the right priorities to extend that advantage. I want to acknowledge and thank all of our distribution partners. I also want to reiterate our unwavering commitment to being an indispensable partner for them and the undeniable choice for their customers. To sum it up, We're very well positioned and very confident about the road ahead. And with that, I'm pleased to turn the call over to Dan. Thank you, Alan.

In the third quarter, we once again delivered excellent financial results on a consolidated basis and in each of our three segments. Core income for the quarter of $1.9 billion resulted in core return on equity of 22.6%, reflecting both excellent underwriting results and strong investment income. We generated higher levels of written premium and earned premium while delivering excellent combined ratios on both a reported and underlying basis. At 83.9%, the underlying combined ratio marked its fourth consecutive quarter below 85. The combination of higher premiums and the excellent underlying combined ratio led to an 18% increase in after-tax underlying underwriting income which surpassed $1 billion for the fifth consecutive quarter. The expense ratio for the third quarter was 28.6%, bringing the year-to-date expense ratio to 28.5%. We continue to expect an expense ratio of around 28.5% for the full year 2025 and expect to manage to that level again in 2026. Catastrophe losses in the quarter were fairly benign at $402 million pre-tax consisting mainly of tornado hail events in the central United States. Turning to prior year reserve development, we had total net favorable development of $22 million pre-tax. In business insurance, the annual asbestos review resulted in a charge of $277 million. Excluding asbestos, Business insurance had net favorable PYD of $152 million, driven by continued favorability in workers' comp. In bond and specialty, net favorable PYD was $43 million pre-tax, with favorability in fidelity and surety. Personal insurance had net favorable PYD of $104 million pre-tax, driven by favorability in auto. After-tax net investment income of $850 million increased by 15% from the prior year quarter. Fixed maturity NII was again the driver of the increase, reflecting both the benefit of higher invested assets and higher average yields. Returns in the non-fixed income portfolio were also up from the prior year quarter. During the quarter, we grew our investment portfolio by approximately $4 billion. Our outlook for fixed income NII, including earnings from short-term securities, has increased from the outlook we provided a quarter ago, and we now expect approximately $810 million after tax in the fourth quarter. For 2026, we expect more than $3.3 billion, with quarterly figures starting at around $810 million in Q1 and growing to around $885 million in Q4. New money rates as of September 30th are roughly 70 to 75 basis points above the yield embedded in the portfolio. Turning to capital management, operating cash flows for the quarter were a new record at $4.2 billion, and we ended the quarter withholding company liquidity of approximately $2.8 billion. Interest rates decreased during the quarter, and as a result, our net unrealized investment loss decreased. from $3 billion after tax at June 30th to $2 billion after tax at September 30th. Adjusted book value per share, which excludes net unrealized investment gains and losses, was $150.55 at quarter end, up 8% from year end, and up 15% from a year ago. Also of note for Q3, we issued $1.25 billion of debt back in July, with $500 million of 10-year notes, and $750 million of 30-year notes. This was simply ordinary course capital management, maintaining a debt-to-capital ratio in our target range as we continue to grow the business. Sticking with the theme of capital management, we returned $878 million of our capital to shareholders this quarter, comprising share repurchases of $628 million and dividends of $250 million. As Alan shared, are very strong earnings over the past year that provided us with an elevated level of capital and liquidity well in excess of what we had planned to use for investment and to support continued growth. As a result, we expect to increase the level of share repurchases in the fourth quarter to roughly $1.3 billion. Also keep in mind that we previously shared our plan to deploy about $700 million from the sale of our Canadian operations expected to close in early 2026, for additional share repurchases as well. So if we look across the three-quarter period from Q3 2025 through Q1 2026, our repurchases in Q3 combined with our current outlook for the next two quarters has us repurchasing a total of somewhere around $3.5 billion worth of our stock. Using the average share price over the past 30 days for purchases during the next two quarters, That would result in a reduction of our outstanding share count of about 5% in the nine-month period. Of course, the actual amount and timing of repurchases will depend on a number of factors, including the timing of the closing of the transaction in Canada, actual quarterly earnings, and other factors we disclose in our SEC filings. Recapping our results, Q3 was another quarter of excellent underwriting profitability on both an underlying and as reported basis and another quarter of rising investment income. These strong fundamentals delivered core return on equity of 22.6 for the quarter and 18.7% on a trailing 12-month basis and position us very well to continue delivering strong results in the future. And now for discussion of results in business insurance, I'll turn the call over to Greg.