Property and casualty insurer The Travelers Cos. Inc. reported $2.26 billion in catastrophe losses in the first quarter of 2025, mainly from the California wildfires in January, eroding some of its profits.
Travelers said Wednesday that it recorded $395 million in profits, or $1.70 per diluted share, during the first quarter vs. a $1.1 billion profit, $4.80 per diluted share, in the year-ago period.
The earnings were significantly impacted by the California wildfires, which resulted in $1.73 billion in catastrophe losses, according to Travelers, which is headquartered in New York City but has major operations in Hartford.
Those losses were offset by a 3% increase in net written premiums (to $10.5 billion) and a 5% increase in total revenues (to $11.8 billion).
“We are pleased to report a substantial profit for the quarter despite the devastating January California wildfires,” said Alan Schnitzer, Travelers chairman and CEO.
Schnitzer said Travelers returned about $600 million to shareholders during the quarter due to its “strong financial position and confidence.”
The company’s board increased its quarterly cash dividend by 5% to $1.10 per share. Shareholders have enjoyed 21 consecutive years of dividend increases.
Travelers’ investment portfolio also performed well, generating net income of $763 million. Net investment income increased 10% from the first quarter of 2024.
The wildfires, which scorched parts of southern California, including Los Angeles in early January, were fueled by extreme wind and dry conditions.
Severe wind and hail storms in multiple states also contributed to Travelers’ catastrophe losses.
