Financial Analysis

DEBT Debt outstanding was as follows: (as of December 31, in millions) 2025 2024 Short-term: Commercial paper $ 100 $ 100 7.75% Senior notes due April 15, 2026 1 200 Total short-term debt 300 100 Long-term: 7.75% Senior notes due April 15, 2026 1 200 7.625% Junior subordinated debentures due December 15, 2027 (effective interest rate 6.147%) 125 125 6.375% Senior notes due March 15, 2033 1 500 500 5.05% Senior notes due July 24, 2035 1 500 6.75% Senior notes due June 20, 2036 1 400 400 6.25% Senior notes due June 15, 2037 1 800 800 5.35% Senior notes due November 1, 2040 1 750 750 4.60% Senior notes due August 1, 2043 1 500 500 4.30% Senior notes due August 25, 2045 1 400 400 8.50% Junior subordinated debentures due December 15, 2045 (effective interest rate 6.362%) 56 56 3.75% Senior notes due May 15, 2046 1 500 500 8.312% Junior subordinated debentures due July 1, 2046 (effective interest rate 6.362%) 73 73 4.00% Senior notes due May 30, 2047 1 700 700 4.05% Senior notes due March 7, 2048 1 500 500 4.10% Senior notes due March 4, 2049 1 500 500 2.55% Senior notes due April 27, 2050 1 500 500 3.05% Senior notes due June 8, 2051 1 750 750 5.45% Senior notes due May 25, 2053 1 750 750 5.70% Senior notes due July 24, 2055 1 750 Total long-term debt 9,054 8,004 Total debt principal 9,354 8,104 Unamortized fair value adjustment 31 34 Unamortized debt issuance costs (118) (105) Total debt $ 9,267 $ 8,033 ________________________________________________________ (1) The effective in …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

SHARE-BASED INCENTIVE COMPENSATION The Company has a share-based incentive compensation plan, The Travelers Companies, Inc. Amended and Restated 2023 Stock Incentive Plan (the 2023 Incentive Plan), the purposes of which are to align the interests of the Companys non-employee directors, executive officers and other employees with those of the Companys shareholders and to attract and retain personnel by providing incentives in the form of share-based awards. The 2023 Incentive Plan permits grants of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, deferred stock, deferred stock units, performance awards and other share-based or share-denominated awards with respect to the Companys common stock. The Company has a policy of issuing new shares to settle the exercise of stock option awards under the various settlement alternatives allowed under the 2023 Incentive Plan, and the vesting of other equity awards. In connection with the adoption of the 2023 Incentive Plan, The Travelers Companies, Inc. Amended and Restated 2014 Stock Incentive Plan, as amended (the 2014 Incentive Plan) was terminated, joining several other legacy share-based incentive compensation plans that had been terminated in prior years (together, the legacy plans). Outstanding grants were not affected by the termination of the legacy plans. The 2023 Incentive Plan is currently the only plan pursuant to which future stock-based awards may be g …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS The Companys estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Companys significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, et …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Companys goodwill by segment. Each reportable segment includes goodwill associated with the Companys international business which is subject to the impact of changes in foreign currency exchange rates. (as of December 31, in millions) 2025 2024 Business Insurance $ 2,601 $ 2,572 Bond & Specialty Insurance 838 834 Personal Insurance 809 801 Other 26 26 Less amounts classified as held for sale 208 Total $ 4,066 $ 4,233 Other Intangible Assets The following tables present a summary of the Companys other intangible assets by major asset class. (as of December 31, 2025, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 186 $ 93 $ 93 Contract-based 204 198 6 Marketing-related 18 6 12 Total subject to amortization 408 297 111 Not subject to amortization 226 226 Less amounts classified as held for sale 5 4 1 Total $ 629 $ 293 $ 336 (as of December 31, 2024, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 185 $ 74 $ 111 Contract-based 204 196 8 Marketing-related 18 3 15 Total subject to amortization 407 273 134 Not subject to amortization 226 226 Total $ 633 $ 273 $ 360 Amortization expense of intangible assets was $20 million, $21 million and $12 million for the years ended December 31, 2025, 2024 and 2023, respectively. Amortization expense for all intangible asset …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Enactment of the One Big Beautiful Bill Act of 2025 On July 4, 2025, the U.S. enacted a budget reconciliation package known as the One Big Beautiful Bill Act of 2025 (OBBBA), which includes both tax and non-tax provisions. The changes resulting from the tax provisions in OBBBA did not have a material impact on the Companys income tax expense and results of operations, financial position or liquidity. Components of Income Tax Expense The following table presents the components of the Companys U.S. federal and state, as well as foreign income tax expense (benefit) included in the amounts reported in the Companys consolidated financial statements. (for the year ended December 31, in millions) 2025 2024 2023 Composition of income tax expense included in the consolidated statement of income Current expense: Federal $ 1,171 $ 1,252 $ 477 Foreign 89 70 20 State 17 14 7 Total current tax expense 1,277 1,336 504 Deferred expense (benefit): Federal 210 (152) (163) Foreign 21 (3) 39 Total deferred tax expense (benefit) 231 (155) (124) Total income tax expense included in the consolidated statement of income 1,508 1,181 380 Composition of income tax expense (benefit) included in shareholders equity Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss) 620 (79) 520 Total income tax expense included in the consolidated financial statements $ 2,128 $ 1,102 $ 90 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease, and a right-of-use asset and lease liability is recognized as part of other assets and other liabilities, respectively, in the consolidated balance sheet. Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Companys discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease, if that rate is readily determinable, or the Companys incremental secured borrowing rate commensurate with the term of the underlying lease. Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Companys real estate operating leases is as follows: (for the year ended December 31, in millions) 2025 2024 2023 Lease cost Operating leases $ 64 $ 73 $ 76 Short-term leases (1) 2 3 3 Lease expense 66 76 79 Less: sublease income (2) Net lease cost $ 66 $ 76 $ 79 Other information on operating leases Cash payments to settle a lease liability reported in cash fl …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The Company sponsors a qualified non-contributory defined benefit pension plan (the qualified domestic pension plan), which covers substantially all U.S. domestic employees and provides benefits under a cash balance formula, except that certain limited groups of legacy participants are covered by a prior traditional final average pay formula. In addition, the Company sponsors a nonqualified defined benefit pension plan which covers certain highly-compensated employees, pension plans for employees of its foreign subsidiaries, and a postretirement health and life insurance benefit plan for employees satisfying certain age and service requirements and for certain retirees. Obligations and Funded Status The following tables summarize the funded status, obligations and amounts recognized in the consolidated balance sheet for the Companys benefit plans. The Company uses a December 31 measurement date for its pension and postretirement benefit plans. (as of and for the year ended December 31, in millions) Qualified Domestic Pension Plan Nonqualified and Foreign Pension Plans Total 2025 2024 2025 2024 2025 2024 Change in projected benefit obligation: Benefit obligation as of beginning of year $ 3,245 $ 3,454 $ 186 $ 184 $ 3,431 $ 3,638 Benefits earned 110 111 4 5 114 116 Interest cost on benefit obligation 167 163 9 9 176 172 Actuarial (gain) loss 127 (159) 4 4 131 (155) Benefits paid (234) (324) (13) (14) (247) (338) Foreign curre …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION The accounting policies used to prepare the segment reporting data for the Companys three reportable business segments are the same as those described in the Summary of Significant Accounting Policies in note 1. The chief operating decision maker (CODM) is the Companys Chairman and Chief Executive Officer. The CODM reviews the financial performance of the reportable business segments to assess the efficiency with which capital is employed, the effective management of risk, the achievement of strategic initiatives, and how to allocate resources to reportable business segments based on the segments historical and projected financial performance. The significant measures of the reportable business segments financial performance include segment revenues, consisting of premiums, net investment income, fee income and other revenues, less segment expenses, consisting of claims and claim adjustment expenses, deferred acquisition costs, and general and administrative expenses. Except as described below for certain legal entities, the Company allocates its invested assets and the related net investment income to its reportable business segments. Pre-tax net investment income is allocated based upon an investable funds concept, which takes into account liabilities (net of non-invested assets) and appropriate capital considerations for each segment. For investable funds, a benchmark investment yield is developed that reflects the estimated duration of the loss reserve …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SHAREHOLDERS EQUITY AND DIVIDEND AVAILABILITY Authorized Shares The number of authorized shares of the Company is 1.755 billion, consisting of five million shares of preferred stock, 1.745 billion shares of voting common stock and five million undesignated shares. The Companys Articles of Incorporation authorize the Board of Directors to establish, from the undesignated shares, one or more classes and series of shares, and to further designate the type of shares and terms thereof. Preferred Stock The Companys Articles of Incorporation provide authority to issue up to five million shares of preferred stock. Common Stock The Company is governed by the Minnesota Business Corporation Act. All authorized shares of voting common stock have no par value. Shares of common stock reacquired are considered authorized and unissued shares. Treasury Stock The Companys Board of Directors has approved common share repurchase authorizations under which repurchases may be made from time to time in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, in private transactions or otherwise. The authorizations do not have a stated expiration date. The timing and actual number of shares to be repurchased in the future will depend on a variety of factors, including the Companys financial position, earnings, share price, catastrophe losses, maintaining appropriate capital levels for business operations, changes in the lev …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Agreement . On May 15, 2026, the Company entered into a five-year $1.2 billion revolving credit agreement with a syndicate of financial institutions, replacing its existing five-year $1.0 billion revolving credit agreement, which was terminated on May 15, 2026. Pursuant to the credit agreement covenants, the Company must maintain an excess of consolidated net worth, defined as shareholders equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital), over goodwill and other intangible assets. The minimum consolidated net worth requirement is fixed during the term of the credit agreement at an amount equal to $17.8 billion (57.5% of the Companys net worth as defined above as of March 31, 2026). In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change of control, which would occur upon the acquisition of 35% or more of the Companys voting stock or certain changes in the composition of the Companys Board of Directors. As of June 30, 2026, the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from the Secured Overnight Financing Rate ( SOFR ) plus 75 basis points to SOFR …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

SHARE-BASED INCENTIVE COMPENSATION The following information relates to fully vested stock option awards as of June 30, 2026. Stock Options Number Weighted Average Exercise Price Weighted Average Contractual Life Remaining Aggregate Intrinsic Value ($ in millions) Vested at end of period (1) 5,278,503 $ 175.52 5.5 years $ 816 Exercisable at end of period 4,021,929 $ 153.61 4.5 years $ 710 _______________________________________________ (1) Represents awards for which the requisite service has been rendered, including those that are retirement eligible. The total compensation cost for all share-based incentive compensation awards recognized in earnings was $61 million and $57 million for the three months ended June 30, 2026 and 2025, respectively, and $148 million and $140 million for the six months ended June 30, 2026 and 2025, respectively. The related tax benefits recognized in the consolidated statement of income were $11 million and $9 million for the three months ended June 30, 2026 and 2025, respectively, and $24 million and $22 million for the six months ended June 30, 2026 and 2025, respectively. The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards as of June 30, 2026 was $367 million, which is expected to be recognized over a weighted-average period of 2.0 years.

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FAIR VALUE MEASUREMENTS The Companys estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Companys significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows: Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, et …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The following table presents the carrying amount of the Companys goodwill by segment. Business Insurance and Bond & Specialty Insurance include goodwill associated with the Companys international business which is subject to the impact of changes in foreign currency exchange rates. (in millions) June 30, 2026 December 31, 2025 Business Insurance $ 2,551 $ 2,601 Bond & Specialty Insurance 837 838 Personal Insurance 646 809 Other 26 26 Less amounts classified as held for sale 208 Total $ 4,060 $ 4,066 Other Intangible Assets The following tables present a summary of the Companys other intangible assets by major asset class. (as of June 30, 2026, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 184 $ 100 $ 84 Contract-based 201 196 5 Marketing-related 18 7 11 Total subject to amortization 403 303 100 Not subject to amortization 225 225 Total $ 628 $ 303 $ 325 (as of December 31, 2025, in millions) Gross Carrying Amount Accumulated Amortization Net Subject to amortization Customer-related $ 186 $ 93 $ 93 Contract-based 204 198 6 Marketing-related 18 6 12 Total subject to amortization 408 297 111 Not subject to amortization 226 226 Less amounts classified as held for sale 5 4 1 Total $ 629 $ 293 $ 336 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease, and a right-of-use asset and lease liability is recognized as part of other assets and other liabilities, respectively, in the consolidated balance sheet. Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Companys discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease, if that rate is readily determinable, or the Companys incremental secured borrowing rate commensurate with the term of the underlying lease. Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Companys real estate operating leases is as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2026 2025 2026 2025 Lease cost Operating leases $ 14 $ 16 $ 29 $ 32 Short-term leases (1) 1 2 1 Lease expense 15 16 31 33 Less: sublease income (2) Net lease cost $ 15 $ 16 $ 31 $ 33 Other information on operating leases Cash payments to sett …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS The following table summarizes the components of net periodic benefit cost (benefit) for the Companys pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2026 and 2025. Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2026 2025 2026 2025 Net Periodic Benefit Cost (Benefit): Service cost $ 30 $ 29 $ $ Non-service cost (benefit): Interest cost on benefit obligation 43 44 Expected return on plan assets (75) (70) Amortization of unrecognized: Prior service benefit (1) Net actuarial (gain) loss 1 3 (2) (3) Total non-service cost (benefit) (31) (23) (3) (3) Net periodic benefit cost (benefit) $ (1) $ 6 $ (3) $ (3) The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended June 30, 2026 and 2025. Pension Plans Postretirement Benefit Plans (for the three months ended June 30, in millions) 2026 2025 2026 2025 Service Cost: Claims and claim adjustment expenses $ 12 $ 11 $ $ General and administrative expenses 18 18 Total service cost 30 29 Non-Service Cost (Benefit): Claims and claim adjustment expenses (11) (9) (1) (1) General and administrative expenses (20) (14) (2) (2) Total non-service cost (benefit) (31) (23) (3) (3) Net periodic benefit cost (benefit) $ (1) $ 6 $ (3) $ (3) The …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION Nature of Operations The Companys results are reported in the following three business segments Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Companys businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Companys nature of operations, see the Nature of Operations section of note 1 of the notes to the consolidated financial statements in the Companys 2025 Annual Report. The following tables summarize the components of the Companys revenues, income and total assets by reportable business segments. (for the three months ended June 30, in millions) Business Insurance Bond & Specialty Insurance Personal Insurance Total Reportable Segments 2026 Premiums $ 5,551 $ 1,056 $ 4,146 $ 10,753 Net investment income 762 113 195 1,070 Fee income 117 9 126 Other revenues 113 6 25 144 Total segment revenues (1) 6,543 1,175 4,375 12,093 Claims and claim adjustment expenses 3,188 458 2,276 5,922 Amortization of deferred acquisition costs 945 204 637 1,786 General and administrative expenses 912 218 422 1,552 Income tax expense 300 61 213 574 Segment income (1) $ 1,198 $ 234 $ 827 $ 2,259 2025 Premiums $ 5,545 $ 1,021 $ 4,355 $ 10,921 Net investment income 662 107 173 942 Fee income 111 13 124 Other revenues 95 5 23 123 Tota …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing