Fourth quarter 2025 net income at The Travelers Cos. increased about 20% compared with the same period a year ago, to about $2.5 billion.
Underwriting, lower catastrophe losses, and more favorable prior year reserve development bolstered financial results for the last three months of 2025.
Travelers booked an underwriting gain of about $2.2 billion versus about $1.8 billion during Q4 2024, and catastrophe losses—mostly from winter storms
—were down $80 million to $95 million for the period. Net favorable reserves were $321 million in Q4 2025, compared with $262 the year prior.
The combined ratio for the New York-based insurer improved 3 points to 80.2 for the fourth quarter.
For all of 2025, Travelers recorded an improvement of about 26% in net income to about $6.3 b
illion. The insurer posted a 43% increase in its underwriting profit compared to 2024, finishing at about $4.3 billion despite a $355 million increase in catastrophe losses to a
bout $3.7 billion for all of 2025. Catastrophe losses included the California wildfires to start the year.
Focusing on Q4, total net premiums were up 1% to about $10.9 billion. Travelers’ business insurance segment grew net premiums 2% to about $5.5 billio
n, led by domestic growth. Underwriting income was $877 million for Q4 2025 compared with $808 m
illion a year ago. The combined ratio in the segment improved to 84.4 from 85.2 the year prior.
In personal lines, underwriting income for Q4 went up more than $300 million to about $1.1 billion. Catastrophe losses net of reinsurance were $37 mill
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ion compared with $79 million a year ago. The Q4 combined ratio improved 6.7 points to finish at 74.0. Total domestic net premiums for Q4 were flat compared to the prior ye
ar, at about $4.1 billion. There was 3% growth in Travelers’ homeowners business.
owa-based Lola’s Fine Sauces alleges in a lawsuit that it lost several hundred thousand dollars after customers complained that Lola’s bottled products bubb
led, exploded and fermented after purcha
se. Lola’s alleges manufacturer EcoIdeas promised it would take remedial actions, such as filing an insurance claim, but is now claiming it has no insurance coverage.
Lola’s filed a lawsuit in December in Iowa district court, and the case has since been transferred to the U.S. District Court of Southern Iowa.
Lola’s products are sold nationwide at major retailers such as Target and Walmart.
According to Lola’s, the company entered into an agreement with Canadian-based EcoIde
as to manufacture mini bottles of Lola’s hot sauces to distribute to retailers. As part of the agreement, EcoIdeas would indemnify and ho
ld Lola’s harmless against all damages, losses, costs and expenses arising out of defects.