Reports Q3 $8.14 adj v $6.01e, Rev $12.5B v $12.4Be; Net Written Premiums missed est
Thursday, October 16, 2025 6:57:16 AMEST
- ROE 24.7% v 19.2% y/y
- Core ROE 22.6% v 16.6% y/y
- Underlying Combined Ratio 83.9% v 85.6% y/y
- Net Written Premiums $11.5B, +1% y/y v $11.8Be
- Adj Book value per share $150.55, +15% y/y
- Catastrophes-related losses -$402M v -$939M y/y
- CEO: “We are very pleased to report another quarter of excellent results,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We earned core income of $1.9 billion, or $8.14 per diluted share, generating core return on equity of 22.6%. 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 a 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 to an exceptional 83.9%. Underwriting income was higher in all three segments. Our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $850 million, up 15%. During the quarter, we returned almost $900 million of excess capital to shareholders, including $628 million of share repurchases.
“In the third quarter, we grew net written premiums to $11.5 billion with terrific execution by our field organization. In Business Insurance, we grew net written premiums by 3% to $5.7 billion, led by 4% growth in our domestic business. We grew our leading Middle Market business and our Select Accounts small commercial business by 7% and 4%, respectively. Renewal premium change in the segment of 7.1% and retention of 85% both remained strong. In Bond & 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 premium in our market-leading surety business remained strong. In Personal Insurance, net written premiums were $4.7 billion with strong renewal premium change in our Homeowners business.
“Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance driven by competitive advantages that distinguish us in the marketplace along with the returns from our more than $100 billion investment portfolio. Over this same period, we grew adjusted book value per share by 15%, after returning more than $2.7 billion of excess capital to shareholders and making substantial investments in transformative technology. Looking ahead, this strong momentum, the benefit of scale and the compelling opportunities before us give us great confidence in the outlook for our business.”
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- Core ROE 22.6% v 16.6% y/y
- Underlying Combined Ratio 83.9% v 85.6% y/y
- Net Written Premiums $11.5B, +1% y/y v $11.8Be
- Adj Book value per share $150.55, +15% y/y
- Catastrophes-related losses -$402M v -$939M y/y
- CEO: “We are very pleased to report another quarter of excellent results,” said Alan Schnitzer, Chairman and Chief Executive Officer. “We earned core income of $1.9 billion, or $8.14 per diluted share, generating core return on equity of 22.6%. 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 a 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 to an exceptional 83.9%. Underwriting income was higher in all three segments. Our high-quality investment portfolio continued to perform well, generating after-tax net investment income of $850 million, up 15%. During the quarter, we returned almost $900 million of excess capital to shareholders, including $628 million of share repurchases.
“In the third quarter, we grew net written premiums to $11.5 billion with terrific execution by our field organization. In Business Insurance, we grew net written premiums by 3% to $5.7 billion, led by 4% growth in our domestic business. We grew our leading Middle Market business and our Select Accounts small commercial business by 7% and 4%, respectively. Renewal premium change in the segment of 7.1% and retention of 85% both remained strong. In Bond & 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 premium in our market-leading surety business remained strong. In Personal Insurance, net written premiums were $4.7 billion with strong renewal premium change in our Homeowners business.
“Our trailing twelve-month core return on equity of 18.7% reflects consistently superior underwriting performance driven by competitive advantages that distinguish us in the marketplace along with the returns from our more than $100 billion investment portfolio. Over this same period, we grew adjusted book value per share by 15%, after returning more than $2.7 billion of excess capital to shareholders and making substantial investments in transformative technology. Looking ahead, this strong momentum, the benefit of scale and the compelling opportunities before us give us great confidence in the outlook for our business.”