Travelers Q1 2025 Earnings Beat Wall Street Estimates Despite $2.26 Billion California Wildfires Losses, Revenue Falls Short Of Estimates

The Travelers Companies, Inc. (TRV) shares rose 3% on Wednesday morning after the insurer’s first-quarter (Q1) earnings surpassed Wall Street estimates despite a massive hit due to the California wildfires.

Total revenue rose 5% year-over-year (YoY) to $11.81 billion but fell short of a Street expectation of $10.97 billion. Core income stood at $1.91 per share, and net income of $1.7 per share surpassed an analyst estimate of $0.77.

However, compared to the same period last year, core income declined 60% to $443 million while net income fell 65% to $395 million.

Travelers reported a 3% rise in net written premiums to $10.52 billion. The company said that the growth took a hit due to higher levels of ceded premium, primarily associated with an enhanced casualty reinsurance program in Business Insurance.

For the quarter, the firm reported catastrophe losses of $2.266 billion pre-tax, primarily driven by the January 2025 California wildfires.

CEO Alan Schnitzer said the company remains confident that its ongoing strategic initiatives and roadmap will continue to extend and deepen its competitive advantages, drive profitable growth, and contribute to leading shareholder value over time.

“Our trailing twelve-month core return on equity of 14.5% reflects the strong momentum we have at our backs as we benefit from investments we have made over a number of years,” he said.

During the quarter, the company returned nearly $600 million of excess capital to shareholders, including $358 million through share repurchases.

The board declared a 5% increase in quarterly cash dividend to $1.10 per share.

Travelers highlighted that this marks 21 consecutive years of dividend increases with a compound annual growth rate of 8% during this period.

TRV shares have gained nearly 7% in 2025 and over 15% in the past 12 months.

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