Travelers' Q3 Net Income Soars 50% on Strong Premiums, Lower Cat Losses

Ticker: TRV · Form: 10-Q · Filed: Oct 16, 2025 · CIK: 86312

Sentiment: bullish

Topics: Insurance, Property & Casualty, Earnings Beat, Strategic Divestiture, Investment Income Growth, Catastrophe Losses, Shareholder Returns

Related Tickers: TRV, DFY

TL;DR

**TRV crushed Q3 with a 50% net income jump, proving their underwriting power and making that Canadian sale look like a smart strategic play.**

AI Summary

Travelers Companies, Inc. (TRV) reported a robust financial performance for the three and nine months ended September 30, 2025. For the three-month period, total revenues increased by 4.75% to $12.47 billion from $11.904 billion in the prior year, driven by a 4.03% rise in premiums to $11.135 billion and a 14.27% increase in net investment income to $1.033 billion. Net income surged by 49.84% to $1.888 billion, up from $1.260 billion in Q3 2024, with diluted EPS growing to $8.24 from $5.42. For the nine-month period, total revenues grew 5.76% to $36.396 billion, and net income increased by 30.07% to $3.792 billion. Key business changes include an agreement to sell its Canadian personal and most commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion, expected to close in Q1 2026. Catastrophe losses significantly decreased by 57.29% to $402 million in Q3 2025 from $939 million in Q3 2024, contributing to improved profitability. The company also saw a net favorable prior year reserve development of $22 million in Q3 2025, a notable shift from an unfavorable development of $126 million in Q3 2024.

Why It Matters

This strong performance, particularly the significant jump in net income and reduced catastrophe losses, signals robust underwriting discipline and effective risk management for investors. The planned sale of its Canadian operations for $2.4 billion indicates a strategic focus on core markets, potentially freeing up capital for share repurchases or higher dividends, which could benefit shareholders. For employees and customers, stable financial health ensures job security and reliable service, while the competitive landscape sees Travelers strengthening its position against rivals by optimizing its business portfolio and improving profitability metrics.

Risk Assessment

Risk Level: medium — While net income surged, the company reported a net unfavorable prior year reserve development of $125 million in Business Insurance for the three months ended September 30, 2025, indicating potential underestimation of past claims. Additionally, total debt increased to $9.267 billion as of September 30, 2025, from $8.033 billion at December 31, 2024, representing a 15.36% increase, which could impact future financial flexibility.

Analyst Insight

Investors should consider Travelers' strong Q3 results as a positive indicator of operational efficiency and capital management. The significant increase in net income and reduction in catastrophe losses suggest a healthy core business. Monitor the progress of the Canadian business sale and how the proceeds are deployed, as this could further enhance shareholder value through buybacks or debt reduction.

Financial Highlights

revenue
$12.47B
total Assets
$103.684B
total Debt
$9.267B
net Income
$1.888B
eps
$8.24
cash Position
$729M
revenue Growth
+4.75%

Revenue Breakdown

SegmentRevenueGrowth
Business Insurance$11,135M+4.03%
Bond & Specialty Insurance$1,042M+3.27%
Personal Insurance$4,393M+4.07%
Net Investment Income$1,033M+14.27%
Fee Income$127M+4.96%
Other Revenues$148M+23.33%

Key Numbers

Key Players & Entities

FAQ

How did Travelers' net income change in Q3 2025 compared to Q3 2024?

Travelers' net income for the three months ended September 30, 2025, increased by 49.84% to $1.888 billion, up from $1.260 billion in the same period of 2024.

What were Travelers' total revenues for the third quarter of 2025?

For the three months ended September 30, 2025, Travelers reported total revenues of $12.470 billion, an increase from $11.904 billion in Q3 2024.

What strategic business change did Travelers announce in May 2025?

On May 27, 2025, Travelers entered into an agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion.

How did catastrophe losses impact Travelers' Q3 2025 results?

Catastrophe losses significantly decreased to $402 million in Q3 2025, a 57.29% reduction from $939 million in Q3 2024, contributing positively to the company's profitability.

What was the diluted earnings per share for Travelers in Q3 2025?

Travelers reported diluted earnings per share of $8.24 for the three months ended September 30, 2025, compared to $5.42 in the prior year's third quarter.

What was the trend in Travelers' net investment income?

Net investment income for Travelers increased by 14.27% to $1.033 billion for the three months ended September 30, 2025, from $904 million in Q3 2024.

Did Travelers experience any prior year reserve development in Q3 2025?

Yes, Travelers reported a net favorable prior year reserve development of $22 million for the three months ended September 30, 2025, a positive shift from an unfavorable development of $126 million in Q3 2024.

What is the expected closing timeline for Travelers' Canadian business sale?

The sale of Travelers' Canadian personal and most commercial insurance business to Definity Financial Corporation is expected to close in the first quarter of 2026, subject to regulatory approvals.

How much debt did Travelers have as of September 30, 2025?

As of September 30, 2025, Travelers' total debt stood at $9.267 billion, an increase from $8.033 billion at December 31, 2024.

What new accounting guidance was issued by FASB in September 2025?

In September 2025, FASB issued updated guidance on the accounting for internal-use software costs, clarifying capitalization criteria and expensing of training and maintenance costs, effective for the quarter ended March 31, 2028.

Risk Factors

Industry Context

The property and casualty insurance industry is characterized by intense competition, cyclicality, and sensitivity to economic conditions and catastrophic events. Travelers operates in a mature market where pricing discipline, underwriting expertise, and efficient claims management are critical for profitability. Emerging trends include the increasing impact of climate change on catastrophe losses, evolving regulatory landscapes, and the adoption of technology for underwriting and customer service.

Regulatory Implications

Travelers is subject to stringent regulatory oversight by state insurance departments in the U.S. and international regulators. Compliance with capital adequacy requirements, solvency standards, and consumer protection laws is paramount. Changes in accounting standards or new regulations, such as those related to climate risk disclosure or data privacy, could necessitate adjustments to operations and reporting.

What Investors Should Do

  1. Monitor the impact of the Canadian business divestiture on future revenue and profitability.
  2. Analyze the sustainability of improved profitability drivers, particularly reduced catastrophe losses and favorable reserve development.
  3. Assess the company's investment portfolio performance in light of market interest rate and equity fluctuations.
  4. Evaluate the company's capital allocation strategy, including share repurchases and dividends, in relation to its debt levels and growth opportunities.
  5. Observe competitive dynamics and pricing trends within Travelers' key insurance segments (Business, Bond & Specialty, Personal).

Key Dates

Glossary

Premiums
The amount of money an insurance policyholder pays to an insurance company in exchange for insurance coverage. (Primary revenue source for Travelers' insurance segments, showing a 4.03% increase to $11.135 billion in Q3 2025.)
Net Investment Income
Income generated from the company's investments, excluding realized gains or losses. (A significant contributor to Travelers' profitability, increasing by 14.27% to $1.033 billion in Q3 2025.)
Catastrophe Losses
Losses incurred by an insurer due to major natural or man-made disasters. (A key factor affecting profitability; these losses decreased by 57.29% to $402 million in Q3 2025, boosting net income.)
Prior Year Reserve Development
The adjustment made to the estimated cost of claims from previous years, reflecting new information or changes in circumstances. (A shift to favorable development ($22 million in Q3 2025 vs. $126 million unfavorable in Q3 2024) positively impacted earnings.)
Diluted EPS
Earnings per share calculated by dividing net income by the weighted average number of diluted common shares outstanding. (Key profitability metric for shareholders, growing to $8.24 in Q3 2025 from $5.42 in Q3 2024.)
Deferred Acquisition Costs (DAC)
Costs incurred in acquiring insurance policies that are capitalized and amortized over the expected life of the policies. (Amortization of DAC is a significant expense, totaling $1.849 billion for Q3 2025.)
Amortized Cost
The carrying value of a fixed-income security, adjusted for the amortization of any premium or accretion of any discount over its remaining life. (Used to value the company's large fixed-maturity investment portfolio, with an amortized cost of $93.6 billion for available-for-sale securities.)
Fair Value
The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (Used to report the market value of investment securities, with fixed maturities at fair value totaling $91.1 billion.)

Year-Over-Year Comparison

Travelers Companies, Inc. demonstrated significant year-over-year improvement in its Q3 2025 results compared to Q3 2024. Total revenues grew by 4.75% to $12.47 billion, driven by a 4.03% increase in premiums and a substantial 14.27% rise in net investment income. Net income saw a dramatic surge of 49.84% to $1.888 billion, bolstered by a significant reduction in catastrophe losses (down 57.29%) and a positive shift in prior year reserve development. Diluted EPS also increased substantially to $8.24 from $5.42. Total assets grew to $103.684 billion, while total debt increased by 15.36% to $9.267 billion.

Filing Stats: 4,644 words · 19 min read · ~15 pages · Grade level 15.2 · Accepted 2025-10-16 07:00:21

Filing Documents

— Financial Information

Part I — Financial Information

Financial Statements

Item 1. Financial Statements: Consolidated Statement of Income (Unaudited) — Three and Nine Months Ended September 30, 2025 and 2024 3 Consolidated Statement of Comprehensive Income (Loss) (Unaudited) — Three and Nine Months Ended September 30, 2025 and 2024 4 Consolidated Balance Sheet — September 30, 2025 (Unaudited) and December 31, 2024 5 Consolidated Statement of Changes in Shareholders' Equity (Unaudited) — Three and Nine Months Ended September 30, 2025 and 2024 6 Consolidated Statement of Cash Flows (Unaudited) — Nine Months Ended September 30, 2025 and 2024 7

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 64

Controls and Procedures

Item 4. Controls and Procedures 64

— Other Information

Part II — Other Information

Legal Proceedings

Item 1. Legal Proceedings 65

Risk Factors

Item 1A. Risk Factors 65

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 65

Other Information

Item 5. Other Information 66

Exhibits

Item 6. Exhibits 66

SIGNATURES

SIGNATURES 67 2 PART 1 — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (Unaudited) (in millions, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenues Premiums $ 11,135 $ 10,704 $ 32,766 $ 31,073 Net investment income 1,033 904 2,905 2,635 Fee income 127 121 370 345 Net realized investment gains (losses) 27 55 ( 28 ) 25 Other revenues 148 120 383 337 Total revenues 12,470 11,904 36,396 34,415 Claims and expenses Claims and claim adjustment expenses 6,594 6,996 21,389 21,025 Amortization of deferred acquisition costs 1,849 1,790 5,429 5,166 General and administrative expenses 1,572 1,460 4,576 4,344 Interest expense 111 98 309 294 Total claims and expenses 10,126 10,344 31,703 30,829 Income before income taxes 2,344 1,560 4,693 3,586 Income tax expense 456 300 901 669 Net income $ 1,888 $ 1,260 $ 3,792 $ 2,917 Net income per share Basic $ 8.37 $ 5.50 $ 16.69 $ 12.68 Diluted $ 8.24 $ 5.42 $ 16.45 $ 12.51 Weighted average number of common shares outstanding Basic 224.1 227.4 225.6 228.3 Diluted 227.5 230.6 228.9 231.3 Cash dividends declared per common share $ 1.10 $ 1.05 $ 3.25 $ 3.10 The accompanying notes are an integral part of the consolidated financial statements. 3 THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHE NSIVE INCOME (Unaudited) (in millions) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $ 1,888 $ 1,260 $ 3,792 $ 2,917 Other comprehensive income (loss): Changes in net unrealized gains (losses) on investment securities: Having no credit losses recognized in the consolidated statement of income 1,347 2,370 2,124 1,294 Having credit losses recognized in the consolidated statement of income — 1 1 4 Net changes in benefit plan assets and obligations — ( 1 ) — ( 4 ) Net changes in unrealized foreign currency translation ( 72 )

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES Basis of Presentation The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company's management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the Company's 2024 Annual Report). The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. To the extent that the Company changes its accounting for, or presentation of, items in the financial statements, the presentation of such amounts in prior periods is changed to conform to the current period presentation, if appropriate, and disclosed, if material. On May 27, 2025, the Company entered into an agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Defini

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 2. SEGMENT INFORMATION, Continued The following tables summarize the components of the Company's revenues, income and total assets by reportable business segments: (for the three months ended September 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2025 Premiums $ 5,700 $ 1,042 $ 4,393 $ 11,135 Net investment income 727 116 190 1,033 Fee income 114 — 13 127 Other revenues 111 8 29 148 Total segment revenues (1) 6,652 1,166 4,625 12,443 Claims and claim adjustment expenses 3,667 451 2,476 6,594 Amortization of deferred acquisition costs 973 197 679 1,849 General and administrative expenses 894 207 458 1,559 Income tax expense 211 61 205 477 Segment income (1) $ 907 $ 250 $ 807 $ 1,964 2024 Premiums $ 5,474 $ 1,009 $ 4,221 $ 10,704 Net investment income 642 101 161 904 Fee income 109 — 12 121 Other revenues 89 7 24 120 Total segment revenues (1) 6,314 1,117 4,418 11,849 Claims and claim adjustment expenses 3,698 441 2,857 6,996 Amortization of deferred acquisition costs 930 194 666 1,790 General and administrative expenses 826 203 420 1,449 Income tax expense 162 57 91 310 Segment income (1) $ 698 $ 222 $ 384 $ 1,304 ________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income for reportable business segments excludes the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." 9 THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 2. SEGMENT INFORMATION, Continued (for the nine months ended September 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2025 Premiums $ 16,710 $ 3,058 $ 12,998 $ 32,766 Net investment income 2,045 325 535 2,905 Fee income 333 — 37 370 Other revenues 288 19 76 383 Total segment revenues (1) 19,376 3,402 13,646 36,424 Claims and claim adjustment expenses 10,956 1,303 9,130 21,389 Amortization of deferred acquisition costs 2,834 579 2,016 5,429 General and administrative expenses 2,616 626 1,298 4,540 Income tax expense 567 180 235 982 Segment income (1) $ 2,403 $ 714 $ 967 $ 4,084 2024 Premiums $ 15,802 $ 2,942 $ 12,329 $ 31,073 Net investment income 1,883 285 467 2,635 Fee income 315 — 30 345 Other revenues 243 22 72 337 Total segment revenues (1) 18,243 3,249 12,898 34,390 Claims and claim adjustment expenses 10,500 1,342 9,183 21,025 Amortization of deferred acquisition costs 2,655 559 1,952 5,166 General and administrative expenses 2,479 615 1,219 4,313 Income tax expense 491 146 93 730 Segment income (1) $ 2,118 $ 587 $ 451 $ 3,156 ________________________________________________________ (1) Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in "interest expense and other." Segment income for reportable business segments excludes the after-tax impact of net realized investment gains (losses) and income (loss) from "interest expense and other." Prior year reserve development and catastrophe losses by reportable business segments were as follows: (for the three months ended September 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2025 Net favorable (unfavorable) prior year reserve development $ ( 125 ) $ 43 $ 104 $ 22 Catastrophe losses $ 139 $ — $ 263 $ 402 2024 Net favorab

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 2. SEGMENT INFORMATION, Continued (for the nine months ended September 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2025 Net favorable prior year reserve development $ 28 $ 191 $ 496 $ 715 Catastrophe losses $ 1,016 $ 24 $ 2,555 $ 3,595 2024 Net favorable (unfavorable) prior year reserve development $ ( 57 ) $ 84 $ 420 $ 447 Catastrophe losses $ 938 $ 49 $ 2,173 $ 3,160 The following tables present the Company's amortization and depreciation expense by reportable business segment (excluding the amortization of deferred acquisition costs which is disclosed separately in the table above with segment income by reportable business segment): (for the three months ended September 30, in millions) 2025 2024 Business Insurance $ 99 $ 102 Bond & Specialty Insurance 21 21 Personal Insurance 44 50 Total $ 164 $ 173 (for the nine months ended September 30, in millions) 2025 2024 Business Insurance $ 312 $ 330 Bond & Specialty Insurance 62 66 Personal Insurance 139 151 Total $ 513 $ 547 11 THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 2. SEGMENT INFORMATION, Continued Business Segment Reconciliations Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2025 2024 2025 2024 Revenue reconciliation Earned premiums Business Insurance: Domestic: Workers' compensation $ 842 $ 858 $ 2,506 $ 2,602 Commercial automobile 1,011 915 2,921 2,649 Commercial property 942 915 2,839 2,682 General liability 907 871 2,630 2,563 Commercial multi-peril 1,474 1,374 4,309 3,890 Other 20 21 56 51 Total Domestic 5,196 4,954 15,261 14,437 International 504 520 1,449 1,365 Total Business Insurance 5,700 5,474 16,710 15,802 Bond & Specialty Insurance: Domestic: Fidelity and surety 378 359 1,103 1,049 General liability 463 454 1,374 1,317 Other 61 58 178 172 Total Domestic 902 871 2,655 2,538 International 140 138 403 404 Total Bond & Specialty Insurance 1,042 1,009 3,058 2,942 Personal Insurance: Domestic: Automobile 1,987 1,973 5,931 5,766 Homeowners and Other 2,239 2,083 6,563 6,069 Total Domestic 4,226 4,056 12,494 11,835 International 167 165 504 494 Total Personal Insurance 4,393 4,221 12,998 12,329 Total earned premiums 11,135 10,704 32,766 31,073 Net investment income 1,033 904 2,905 2,635 Fee income 127 121 370 345 Other revenues 148 120 383 337 Total segment revenues 12,443 11,849 36,424 34,390 Net realized investment gains (losses) 27 55 ( 28 ) 25 Total revenues $ 12,470 $ 11,904 $ 36,396 $ 34,415 Income reconciliation, net of tax Total segment income $ 1,964 $ 1,304 $ 4,084 $ 3,156 Interest Expense and Other (1) ( 97 ) ( 86 ) ( 270 ) ( 257 ) Core income 1,867 1,218 3,814 2,899 Net realized investment gains (losses) 21 42 ( 22 ) 18 Net income $ 1,888 $ 1,260 $ 3,792 $ 2,917 _________________________________________________________ (1) The primary component of Interest Expense and Other was after-tax interest expense of $ 88 million and $ 77 million for the three months end

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 2. SEGMENT INFORMATION, Continued (in millions) September 30, 2025 December 31, 2024 Asset reconciliation Business Insurance $ 106,018 $ 98,311 Bond & Specialty Insurance 13,767 12,628 Personal Insurance 22,817 21,138 Total assets by reportable segment 142,602 132,077 Other assets (1) 1,076 1,112 Total consolidated assets $ 143,678 $ 133,189 _________________________________________________________ (1) The primary components of other assets as of both September 30, 2025 and December 31, 2024 were the over-funded benefit plan assets related to the Company's qualified domestic pension plan and other intangible assets. 3. INVESTMENTS Fixed Maturities The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows: Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (as of September 30, 2025, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 4,084 $ — $ 15 $ 86 $ 4,013 Obligations of U.S. states, municipalities and political subdivisions: Local general obligation 21,171 — 103 1,342 19,932 Revenue 9,677 — 42 642 9,077 Pre-refunded 324 — 3 1 326 Total obligations of U.S. states, municipalities and political subdivisions 32,191 — 153 2,040 30,304 Debt securities issued by foreign governments 984 — 10 6 988 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 13,287 — 225 151 13,361 Corporate and all other bonds 43,052 4 480 1,081 42,447 Total $ 93,598 $ 4 $ 883 $ 3,364 $ 91,113 13 THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 3. INVESTMENTS, Continued Amortized Cost Allowance for Expected Credit Losses Gross Unrealized Fair Value (as of December 31, 2024, in millions) Gains Losses U.S. Treasury securities and obligations of U.S. government and government agencies and authorities $ 5,735 $ — $ 4 $ 169 $ 5,570 Obligations of U.S. states, municipalities and political subdivisions: Local general obligation 18,604 — 23 1,604 17,023 Revenue 9,268 — 16 704 8,580 Pre-refunded 573 — 2 3 572 Total obligations of U.S. states, municipalities and political subdivisions 29,526 — 43 2,384 27,185 Debt securities issued by foreign governments 917 — 5 13 909 Mortgage-backed securities, collateralized mortgage obligations and pass-through securities 12,888 — 53 336 12,605 Corporate and all other bonds 39,211 2 118 1,930 37,397 Total $ 88,277 $ 2 $ 223 $ 4,832 $ 83,666 Pre-refunded bonds of $ 326 million and $ 572 million as of September 30, 2025 and December 31, 2024, respectively, were bonds for which U.S. states or municipalities have established irrevocable trusts that are almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds. Proceeds from the sales of fixed maturities classified as available for sale were $ 779 million and $ 1.48 billion during the nine months ended September 30, 2025 and 2024, respectively. Gross gains of $ 1 million and $ 2 million and gross losses of $ 29 million and $ 57 million were realized on those sales during the nine months ended September 30, 2025 and 2024, respectively. Included in net realized investment gains (losses) for the nine months ended September 30, 2025 and 2024 were $ 20 million and $ 34 million, respectively, of losses resulting from the early redemption of fixed m

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued 3. INVESTMENTS, Continued Unrealized Investment Losses The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position as of September 30, 2025 and December 31, 2024, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of the notes to the consolidated financial statements in the Company's 2024 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments,

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing