Document


			Page Number
Consolidated Results
Financial Highlights			1
Reconciliation to Net Income (Loss) and Earnings Per Share			2
Statement of Income (Loss)			3
Net Income (Loss) by Major Component and Combined Ratio			4
Core Income			5
Selected Statistics - Property and Casualty Operations			6
Written and Earned Premiums - Property and Casualty Operations			7

Business Insurance
Segment Income			8
Segment Income by Major Component and Combined Ratio			9
Selected Statistics			10
Net Written Premiums			11

Bond & Specialty Insurance
Segment Income			12
Segment Income by Major Component and Combined Ratio			13
Selected Statistics			14
Net Written Premiums			15

Personal Insurance
Segment Income (Loss)			16
Segment Income (Loss) by Major Component and Combined Ratio			17
Selected Statistics			18
Net Written Premiums			19
Selected Statistics - Automobile			20
Selected Statistics - Homeowners and Other			21

Supplemental Detail
Interest Expense and Other			22
Consolidated Balance Sheet			23
Investment Portfolio			24
Investment Portfolio - Fixed Maturities Data			25
Investment Income			26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity			27
Reinsurance Recoverables			28
Net Reserves for Losses and Loss Adjustment Expense			29
Asbestos Reserves			30
Capitalization			31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation			32
Statement of Cash Flows			33
Statement of Cash Flows (continued)			34
Glossary of Financial Measures and Description of Reportable Business Segments			35-36


($ and shares in millions, except for per share data)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Net income (loss)	$	975		$	(14)		$	404		$	1,626		$	1,123		$	534		$	1,260		$	2,082		$	2,991		$	4,999
Net income (loss) per share:
Basic	$	4.18		$	(0.07)		$	1.75		$	7.07		$	4.87		$	2.32		$	5.50		$	9.11		$	12.93		$	21.76
Diluted	$	4.13		$	(0.07)		$	1.74		$	6.99		$	4.80		$	2.29		$	5.42		$	8.96		$	12.79		$	21.47
Core income	$	970		$	15		$	454		$	1,633		$	1,096		$	585		$	1,218		$	2,126		$	3,072		$	5,025
Core income per share:
Basic	$	4.16		$	0.06		$	1.97		$	7.09		$	4.75		$	2.54		$	5.31		$	9.30		$	13.28		$	21.87
Diluted	$	4.11		$	0.06		$	1.95		$	7.01		$	4.69		$	2.51		$	5.24		$	9.15		$	13.13		$	21.58
Return on equity	17.5		%	(0.2)		%	7.7		%	29.0		%	18.0		%	8.6		%	19.2		%	30.0		%	13.6		%	19.2		%
Core return on equity	14.5		%	0.2		%	6.9		%	24.0		%	15.4		%	8.1		%	16.6		%	27.7		%	11.5		%	17.2		%
Total assets, at period end	$	118,352		$	120,573		$	121,384		$	125,978		$	127,410		$	129,315		$	134,588		$	133,189		$	125,978		$	133,189
Total equity, at period end	$	23,052		$	21,855		$	19,978		$	24,921		$	25,022		$	24,862		$	27,696		$	27,864		$	24,921		$	27,864
Book value per share, at period end	$	99.80		$	95.46		$	87.47		$	109.19		$	109.28		$	109.08		$	122.00		$	122.97		$	109.19		$	122.97
Less: Net unrealized investment gains (losses), net of tax	(16.75)			(19.99)			(28.31)			(13.71)			(16.25)			(17.44)			(9.30)			(16.07)			(13.71)			(16.07)
Adjusted book value per share, at period end	$	116.55		$	115.45		$	115.78		$	122.90		$	125.53		$	126.52		$	131.30		$	139.04		$	122.90		$	139.04

Weighted average number of common shares outstanding (basic)	231.7			229.7			228.8			228.4			229.0			228.6			227.4			226.9			229.7			228.0
Weighted average number of common shares outstanding and common stock equivalents (diluted)	234.4			229.7			231.1			231.1			232.0			231.5			230.6			230.7			232.2			231.1
Common shares outstanding at period end	231.0			228.9			228.4			228.2			229.0			227.9			227.0			226.6			228.2			226.6
Common stock dividends declared	$	218		$	233		$	232		$	232		$	232		$	245		$	243		$	242		$	915		$	962
Common stock repurchased:
Under Board of Directors authorization
Shares	2.2			2.2			0.6			0.4			1.2			1.1			1.1			1.0			5.4			4.4
Cost	$	400		$	400		$	100		$	65		$	250		$	250		$	250		$	250		$	965		$	1,000
Other
Shares	0.3			—			—			—			0.6			0.1			—			—			0.3			0.7
Cost	$	62		$	—		$	1		$	1		$	138		$	3		$	3		$	2		$	64		$	146


($ and shares in millions, except earnings per share)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net income (loss)
Net income (loss)	$	975	$	(14)	$	404	$	1,626	$	1,123	$	534	$	1,260	$	2,082	$	2,991	$	4,999
Adjustments:
Net realized investment (gains) losses, after-tax	(5)		29		50		7		(27)		51		(42)		44		81		26

Core income	$	970	$	15	$	454	$	1,633	$	1,096	$	585	$	1,218	$	2,126	$	3,072	$	5,025
Basic earnings per share
Net income (loss)	$	4.18	$	(0.07)	$	1.75	$	7.07	$	4.87	$	2.32	$	5.50	$	9.11	$	12.93	$	21.76
Adjustments:
Net realized investment (gains) losses, after-tax	(0.02)		0.13		0.22		0.02		(0.12)		0.22		(0.19)		0.19		0.35		0.11

Core income	$	4.16	$	0.06	$	1.97	$	7.09	$	4.75	$	2.54	$	5.31	$	9.30	$	13.28	$	21.87
Diluted earnings per share
Net income (loss)	$	4.13	$	(0.07)	$	1.74	$	6.99	$	4.80	$	2.29	$	5.42	$	8.96	$	12.79	$	21.47
Adjustments:
Net realized investment (gains) losses, after-tax	(0.02)		0.13		0.21		0.02		(0.11)		0.22		(0.18)		0.19		0.34		0.11

Core income	$	4.11	$	0.06	$	1.95	$	7.01	$	4.69	$	2.51	$	5.24	$	9.15	$	13.13	$	21.58

Adjustments to net income (loss) and weighted average shares for net income (loss) EPS calculations: (1)


Basic and Diluted	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net income (loss), as reported	$	975	$	(14)	$	404	$	1,626	$	1,123	$	534	$	1,260	$	2,082	$	2,991	$	4,999
Participating share-based awards - allocated income	(7)		(1)		(3)		(12)		(8)		(5)		(10)		(15)		(22)		(38)
Net income (loss) available to common shareholders - basic and diluted	$	968	$	(15)	$	401	$	1,614	$	1,115	$	529	$	1,250	$	2,067	$	2,969	$	4,961
Common Shares
Basic
Weighted average shares outstanding	231.7		229.7		228.8		228.4		229.0		228.6		227.4		226.9		229.7		228.0
Diluted
Weighted average shares outstanding	231.7		229.7		228.8		228.4		229.0		228.6		227.4		226.9		229.7		228.0
Weighted average effects of dilutive securities - stock options and performance shares	2.7		—		2.3		2.7		3.0		2.9		3.2		3.8		2.5		3.1
Diluted weighted average shares outstanding	234.4		229.7		231.1		231.1		232.0		231.5		230.6		230.7		232.2		231.1

(1) Adjustments to net income and weighted average shares for net income EPS calculations can generally be used for the core income EPS calculations. The net loss EPS calculation for 2Q 2023 excluded the allocation of $2 million of undistributed loss to participating share-based awards, since such allocation would result in anti-dilution of basic and diluted earnings per share. In addition, the net loss EPS calculation for 2Q 2023 excluded the incremental impact of 2.5 million stock options and performance shares, since the impact of these potential shares of common stock and their effects on income was anti-dilutive. The core income EPS calculation for 2Q 2023 included these items.


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Revenues
Premiums	$	8,854		$	9,216		$	9,718		$	9,973		$	10,126		$	10,243		$	10,704		$	10,868		$	37,761		$	41,941
Net investment income	663			712			769			778			846			885			904			955			2,922			3,590
Fee income	106			106			112			109			109			115			121			128			433			473
Net realized investment gains (losses)	6			(35)			(65)			(11)			35			(65)			55			(55)			(105)			(30)
Other revenues	75			99			101			78			112			105			120			112			353			449
Total revenues	9,704			10,098			10,635			10,927			11,228			11,283			11,904			12,008			41,364			46,423
Claims and expenses
Claims and claim adjustment expenses	5,959			7,227			7,149			5,880			6,656			7,373			6,996			6,034			26,215			27,059
Amortization of deferred acquisition costs	1,462			1,519			1,604			1,641			1,698			1,678			1,790			1,807			6,226			6,973
General and administrative expenses	1,267			1,308			1,312			1,289			1,406			1,478			1,460			1,475			5,176			5,819
Interest expense	88			92			98			98			98			98			98			98			376			392
Total claims and expenses	8,776			10,146			10,163			8,908			9,858			10,627			10,344			9,414			37,993			40,243
Income (loss) before income taxes	928			(48)			472			2,019			1,370			656			1,560			2,594			3,371			6,180
Income tax expense (benefit)	(47)			(34)			68			393			247			122			300			512			380			1,181
Net income (loss)	$	975		$	(14)		$	404		$	1,626		$	1,123		$	534		$	1,260		$	2,082		$	2,991		$	4,999






Other statistics
Effective tax rate on net investment income	16.0		%	16.5		%	16.8		%	17.0		%	17.6		%	17.8		%	17.9		%	17.9		%	16.6		%	17.8		%
Net investment income (after-tax)	$	557		$	594		$	640		$	645		$	698		$	727		$	742		$	785		$	2,436		$	2,952

Catastrophes, net of reinsurance:
Pre-tax	$	535		$	1,481		$	850		$	125		$	712		$	1,509		$	939		$	175		$	2,991		$	3,335
After-tax	$	422		$	1,171		$	669		$	99		$	563		$	1,192		$	739		$	138		$	2,361		$	2,632

Prior year reserve development - favorable (unfavorable):
Pre-tax	$	105		$	60		$	(154)		$	132		$	91		$	230		$	126		$	262		$	143		$	709
After-tax	$	83		$	47		$	(122)		$	105		$	71		$	182		$	99		$	207		$	113		$	559


($ in millions, net of tax)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Underwriting gain (loss)	$	501		$	(509)		$	(107)		$	1,088		$	472		$	(58)		$	547		$	1,420		$	973		$	2,381
Net investment income	557			594			640			645			698			727			742			785			2,436			2,952
Other income (expense), including interest expense	(88)			(70)			(79)			(100)			(74)			(84)			(71)			(79)			(337)			(308)
Core income	970			15			454			1,633			1,096			585			1,218			2,126			3,072			5,025
Net realized investment gains (losses)	5			(29)			(50)			(7)			27			(51)			42			(44)			(81)			(26)

Net income (loss)	$	975		$	(14)		$	404		$	1,626		$	1,123		$	534		$	1,260		$	2,082		$	2,991		$	4,999
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	66.7		%	77.9		%	73.0		%	58.4		%	65.2		%	71.4		%	64.8		%	55.0		%	68.9		%	64.0		%
Underwriting expense ratio	28.7		%	28.6		%	28.0		%	27.4		%	28.7		%	28.8		%	28.4		%	28.2		%	28.1		%	28.5		%
Combined ratio	95.4		%	106.5		%	101.0		%	85.8		%	93.9		%	100.2		%	93.2		%	83.2		%	97.0		%	92.5		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	(1.2)		%	(0.7)		%	1.6		%	(1.3)		%	(0.9)		%	(2.2)		%	(1.2)		%	(2.4)		%	(0.4)		%	(1.7)		%
Catastrophes, net of reinsurance	6.0		%	16.1		%	8.8		%	1.2		%	7.1		%	14.7		%	8.8		%	1.6		%	7.9		%	8.0		%
Underlying combined ratio	90.6		%	91.1		%	90.6		%	85.9		%	87.7		%	87.7		%	85.6		%	84.0		%	89.5		%	86.2		%



(1) Before policyholder dividends. (2) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	28		$	28		$	28		$	29		$	30		$	30		$	28		$	28		$	113		$	116
Fee income:
Loss and loss adjustment expenses	$	42		$	40		$	42		$	40		$	39		$	42		$	44		$	47		$	164		$	172
Underwriting expenses	64			66			70			69			70			73			77			81			269			301
Total fee income	$	106		$	106		$	112		$	109		$	109		$	115		$	121		$	128		$	433		$	473
Non-insurance general and administrative expenses	$	95		$	92		$	99		$	103		$	102		$	106		$	106		$	107		$	389		$	421


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Revenues
Premiums	$	8,854		$	9,216		$	9,718		$	9,973		$	10,126		$	10,243		$	10,704		$	10,868		$	37,761		$	41,941
Net investment income	663			712			769			778			846			885			904			955			2,922			3,590
Fee income	106			106			112			109			109			115			121			128			433			473
Other revenues	75			99			101			78			112			105			120			112			353			449
Total revenues	9,698			10,133			10,700			10,938			11,193			11,348			11,849			12,063			41,469			46,453
Claims and expenses
Claims and claim adjustment expenses	5,959			7,227			7,149			5,880			6,656			7,373			6,996			6,034			26,215			27,059
Amortization of deferred acquisition costs	1,462			1,519			1,604			1,641			1,698			1,678			1,790			1,807			6,226			6,973
General and administrative expenses	1,267			1,308			1,312			1,289			1,406			1,478			1,460			1,475			5,176			5,819
Interest expense	88			92			98			98			98			98			98			98			376			392
Total claims and expenses	8,776			10,146			10,163			8,908			9,858			10,627			10,344			9,414			37,993			40,243
Core income (loss) before income taxes	922			(13)			537			2,030			1,335			721			1,505			2,649			3,476			6,210
Income tax expense (benefit)	(48)			(28)			83			397			239			136			287			523			404			1,185
Core income	$	970		$	15		$	454		$	1,633		$	1,096		$	585		$	1,218		$	2,126		$	3,072		$	5,025
Other statistics
Effective tax rate on net investment income	16.0		%	16.5		%	16.8		%	17.0		%	17.6		%	17.8		%	17.9		%	17.9		%	16.6		%	17.8		%
Net investment income (after-tax)	$	557		$	594		$	640		$	645		$	698		$	727		$	742		$	785		$	2,436		$	2,952
Catastrophes, net of reinsurance:
Pre-tax	$	535		$	1,481		$	850		$	125		$	712		$	1,509		$	939		$	175		$	2,991		$	3,335
After-tax	$	422		$	1,171		$	669		$	99		$	563		$	1,192		$	739		$	138		$	2,361		$	2,632
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	105		$	60		$	(154)		$	132		$	91		$	230		$	126		$	262		$	143		$	709
After-tax	$	83		$	47		$	(122)		$	105		$	71		$	182		$	99		$	207		$	113		$	559


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Statutory underwriting
Gross written premiums	$	10,347	$	10,907	$	11,263	$	10,455	$	11,310	$	11,865	$	12,149	$	11,226	$	42,972	$	46,550
Net written premiums	$	9,396	$	10,318	$	10,493	$	9,994	$	10,184	$	11,115	$	11,317	$	10,742	$	40,201	$	43,358
Net earned premiums	$	8,854	$	9,216	$	9,718	$	9,973	$	10,128	$	10,243	$	10,704	$	10,868	$	37,761	$	41,943
Losses and loss adjustment expenses	5,906		7,179		7,091		5,826		6,602		7,320		6,940		5,966		26,002		26,828
Underwriting expenses	2,727		2,863		2,860		2,748		3,012		3,111		3,139		3,038		11,198		12,300
Statutory underwriting gain (loss)	221		(826)		(233)		1,399		514		(188)		625		1,864		561		2,815
Policyholder dividends	12		10		14		13		12		12		12		11		49		47
Statutory underwriting gain (loss) after policyholder dividends	$	209	$	(836)	$	(247)	$	1,386	$	502	$	(200)	$	613	$	1,853	$	512	$	2,768
Other statutory statistics
Reserves for losses and loss adjustment expenses	$	51,164	$	52,643	$	53,692	$	53,717	$	54,578	$	55,922	$	56,909	$	56,326	$	53,717	$	56,326
Increase (decrease) in reserves	$	402	$	1,479	$	1,049	$	25	$	861	$	1,344	$	987	$	(583)	$	2,955	$	2,609
Statutory capital and surplus	$	23,689	$	22,934	$	23,267	$	25,114	$	25,329	$	25,210	$	26,191	$	27,715	$	25,114	$	27,715
Net written premiums/surplus (1)	1.54:1		1.65:1		1.68:1		1.60:1		1.62:1		1.66:1		1.63:1		1.56:1		1.60:1		1.56:1


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Written premiums
Gross	$	10,347	$	10,907	$	11,263	$	10,455	$	11,310	$	11,865	$	12,149	$	11,226	$	42,972	$	46,550
Ceded	(951)		(589)		(770)		(461)		(1,128)		(750)		(832)		(484)		(2,771)		(3,194)
Net	$	9,396	$	10,318	$	10,493	$	9,994	$	10,182	$	11,115	$	11,317	$	10,742	$	40,201	$	43,356
Earned premiums
Gross	$	9,469	$	9,866	$	10,397	$	10,678	$	10,867	$	11,083	$	11,484	$	11,644	$	40,410	$	45,078
Ceded	(615)		(650)		(679)		(705)		(741)		(840)		(780)		(776)		(2,649)		(3,137)
Net	$	8,854	$	9,216	$	9,718	$	9,973	$	10,126	$	10,243	$	10,704	$	10,868	$	37,761	$	41,941


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Revenues
Premiums	$	4,477		$	4,644		$	4,956		$	5,067		$	5,160		$	5,168		$	5,474		$	5,543		$	19,144		$	21,345
Net investment income	473			509			551			552			609			632			642			677			2,085			2,560
Fee income	99			98			102			101			101			105			109			115			400			430
Other revenues	47			67			71			47			77			77			89			79			232			322
Total revenues	5,096			5,318			5,680			5,767			5,947			5,982			6,314			6,414			21,861			24,657
Claims and expenses
Claims and claim adjustment expenses	2,907			3,296			3,519			2,974			3,331			3,471			3,698			3,179			12,696			13,679
Amortization of deferred acquisition costs	742			773			820			838			864			861			930			933			3,173			3,588
General and administrative expenses	734			764			772			771			818			835			826			824			3,041			3,303
Total claims and expenses	4,383			4,833			5,111			4,583			5,013			5,167			5,454			4,936			18,910			20,570
Segment income before income taxes	713			485			569			1,184			934			815			860			1,478			2,951			4,087
Income tax expense (benefit)	(43)			83			101			227			170			159			162			290			368			781
Segment income	$	756		$	402		$	468		$	957		$	764		$	656		$	698		$	1,188		$	2,583		$	3,306
Other statistics
Effective tax rate on net investment income	15.8		%	16.4		%	16.8		%	16.8		%	17.4		%	17.7		%	17.7		%	17.8		%	16.5		%	17.7		%
Net investment income (after-tax)	$	398		$	426		$	458		$	459		$	502		$	521		$	528		$	557		$	1,741		$	2,108
Catastrophes, net of reinsurance:
Pre-tax	$	199		$	396		$	203		$	40		$	209		$	389		$	340		$	94		$	838		$	1,032
After-tax	$	157		$	313		$	160		$	32		$	166		$	307		$	268		$	74		$	662		$	815
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	19		$	(101)		$	(263)		$	56		$	—		$	34		$	(91)		$	147		$	(289)		$	90
After-tax	$	15		$	(80)		$	(207)		$	44		$	—		$	26		$	(72)		$	116		$	(228)		$	70


($ in millions, net of tax)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Underwriting gain (loss)	$	388		$	(12)		$	22		$	531		$	274		$	148		$	176		$	642		$	929		$	1,240
Net investment income	398			426			458			459			502			521			528			557			1,741			2,108
Other income (expense)	(30)			(12)			(12)			(33)			(12)			(13)			(6)			(11)			(87)			(42)
Segment income	$	756		$	402		$	468		$	957		$	764		$	656		$	698		$	1,188		$	2,583		$	3,306
Combined ratio (1) (2)
Loss and loss adjustment expense ratio	63.8		%	70.0		%	70.0		%	57.7		%	63.6		%	66.2		%	66.6		%	56.4		%	65.3		%	63.1		%
Underwriting expense ratio	29.8		%	30.1		%	29.1		%	28.8		%	29.7		%	29.9		%	29.2		%	28.8		%	29.4		%	29.4		%
Combined ratio	93.6		%	100.1		%	99.1		%	86.5		%	93.3		%	96.1		%	95.8		%	85.2		%	94.7		%	92.5		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	(0.4)		%	2.2		%	5.3		%	(1.1)		%	—		%	(0.6)		%	1.7		%	(2.7)		%	1.5		%	(0.4)		%
Catastrophes, net of reinsurance	4.4		%	8.5		%	4.1		%	0.8		%	4.1		%	7.5		%	6.2		%	1.7		%	4.3		%	4.8		%
Underlying combined ratio	89.6		%	89.4		%	89.7		%	86.8		%	89.2		%	89.2		%	87.9		%	86.2		%	88.9		%	88.1		%



(1) Before policyholder dividends. (2) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	4		$	4		$	4		$	4		$	4		$	4		$	4		$	4		$	16		$	16
Fee income:
Loss and loss adjustment expenses	$	42		$	40		$	42		$	40		$	39		$	42		$	44		$	47		$	164		$	172
Underwriting expenses	57			58			60			61			62			63			65			68			236			258
Total fee income	$	99		$	98		$	102		$	101		$	101		$	105		$	109		$	115		$	400		$	430
Non-insurance general and administrative expenses	$	80		$	77		$	84		$	84		$	86		$	87		$	90		$	86		$	325		$	349


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Statutory underwriting
Gross written premiums	$	5,828	$	5,662	$	5,685	$	5,394	$	6,383	$	6,169	$	6,173	$	5,790	$	22,569	$	24,515
Net written premiums	$	5,157	$	5,175	$	5,080	$	5,018	$	5,598	$	5,539	$	5,517	$	5,426	$	20,430	$	22,080
Net earned premiums	$	4,477	$	4,644	$	4,956	$	5,067	$	5,162	$	5,168	$	5,474	$	5,543	$	19,144	$	21,347
Losses and loss adjustment expenses	2,858		3,251		3,467		2,924		3,282		3,422		3,645		3,116		12,500		13,465
Underwriting expenses	1,492		1,507		1,459		1,464		1,630		1,620		1,583		1,566		5,922		6,399
Statutory underwriting gain (loss)	127		(114)		30		679		250		126		246		861		722		1,483
Policyholder dividends	8		7		8		8		8		7		9		7		31		31
Statutory underwriting gain (loss) after policyholder dividends	$	119	$	(121)	$	22	$	671	$	242	$	119	$	237	$	854	$	691	$	1,452


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net written premiums by market
Domestic
Select Accounts	$	908	$	883	$	824	$	862	$	974	$	975	$	885	$	893	$	3,477	$	3,727
Middle Market	2,926		2,618		2,750		2,751		3,213		2,769		3,030		3,011		11,045		12,023
National Accounts	294		277		247		317		327		312		264		356		1,135		1,259
National Property and Other	590		862		874		682		642		912		896		684		3,008		3,134
Total Domestic	4,718		4,640		4,695		4,612		5,156		4,968		5,075		4,944		18,665		20,143
International	439		535		385		406		440		571		442		482		1,765		1,935
Total	$	5,157	$	5,175	$	5,080	$	5,018	$	5,596	$	5,539	$	5,517	$	5,426	$	20,430	$	22,078
Net written premiums by product line
Domestic
Workers’ compensation	$	1,051	$	852	$	777	$	812	$	1,019	$	847	$	795	$	808	$	3,492	$	3,469
Commercial automobile	851		830		835		830		964		923		937		954		3,346		3,778
Commercial property	693		988		968		845		763		1,054		1,022		859		3,494		3,698
General liability	866		744		829		825		965		809		914		903		3,264		3,591
Commercial multi-peril	1,241		1,227		1,240		1,292		1,416		1,345		1,367		1,409		5,000		5,537
Other	16		(1)		46		8		29		(10)		40		11		69		70
Total Domestic	4,718		4,640		4,695		4,612		5,156		4,968		5,075		4,944		18,665		20,143
International	439		535		385		406		440		571		442		482		1,765		1,935
Total	$	5,157	$	5,175	$	5,080	$	5,018	$	5,596	$	5,539	$	5,517	$	5,426	$	20,430	$	22,078


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Revenues
Premiums	$	875		$	911		$	935		$	934		$	956		$	977		$	1,009		$	1,016		$	3,655		$	3,958
Net investment income	73			78			86			91			90			94			101			105			328			390
Other revenues	5			7			6			7			9			6			7			8			25			30
Total revenues	953			996			1,027			1,032			1,055			1,077			1,117			1,129			4,008			4,378
Claims and expenses
Claims and claim adjustment expenses	380			366			351			388			428			473			441			432			1,485			1,774
Amortization of deferred acquisition costs	160			168			173			172			182			183			194			197			673			756
General and administrative expenses	165			173			172			171			205			207			203			217			681			832
Total claims and expenses	705			707			696			731			815			863			838			846			2,839			3,362
Segment income before income taxes	248			289			331			301			240			214			279			283			1,169			1,016
Income tax expense	41			59			66			61			45			44			57			55			227			201
Segment income	$	207		$	230		$	265		$	240		$	195		$	170		$	222		$	228		$	942		$	815
Other statistics
Effective tax rate on net investment income	16.5		%	17.0		%	16.6		%	17.9		%	18.0		%	18.2		%	18.8		%	18.5		%	17.0		%	18.4		%
Net investment income (after-tax)	$	61		$	65		$	71		$	75		$	74		$	77		$	81		$	87		$	272		$	319
Catastrophes, net of reinsurance:
Pre-tax	$	5		$	21		$	5		$	6		$	5		$	40		$	4		$	2		$	37		$	51
After-tax	$	4		$	17		$	4		$	4		$	4		$	31		$	3		$	2		$	29		$	40
Prior year reserve development - favorable:
Pre-tax	$	58		$	119		$	72		$	36		$	24		$	24		$	36		$	45		$	285		$	129
After-tax	$	46		$	93		$	57		$	29		$	19		$	19		$	28		$	35		$	225		$	101


($ in millions, net of tax)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Underwriting gain	$	143		$	160		$	190		$	163		$	116		$	90		$	135		$	137		$	656		$	478
Net investment income	61			65			71			75			74			77			81			87			272			319
Other income	3			5			4			2			5			3			6			4			14			18
Segment income	$	207		$	230		$	265		$	240		$	195		$	170		$	222		$	228		$	942		$	815
Combined ratio (1)
Loss and loss adjustment expense ratio	43.0		%	39.8		%	36.9		%	41.1		%	44.4		%	48.0		%	43.4		%	42.1		%	40.1		%	44.4		%
Underwriting expense ratio	37.0		%	37.3		%	36.7		%	36.2		%	40.1		%	39.7		%	39.1		%	40.6		%	36.8		%	39.9		%
Combined ratio	80.0		%	77.1		%	73.6		%	77.3		%	84.5		%	87.7		%	82.5		%	82.7		%	76.9		%	84.3		%
Impact on combined ratio:
Net favorable prior year reserve development	(6.7)		%	(13.0)		%	(7.7)		%	(3.9)		%	(2.5)		%	(2.5)		%	(3.5)		%	(4.3)		%	(7.8)		%	(3.3)		%
Catastrophes, net of reinsurance	0.6		%	2.3		%	0.6		%	0.6		%	0.5		%	4.1		%	0.4		%	0.2		%	1.0		%	1.3		%
Underlying combined ratio	86.1		%	87.8		%	80.7		%	80.6		%	86.5		%	86.1		%	85.6		%	86.8		%	83.7		%	86.3		%



(1) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	—		$	—		$	—		$	—		$	—		$	1		$	1		$	—		$	—		$	2
Non-insurance general and administrative expenses	$	1		$	1		$	2		$	4		$	3		$	1		$	1		$	2		$	8		$	7


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Statutory underwriting
Gross written premiums	$	1,010	$	1,035	$	1,082	$	1,060	$	1,076	$	1,127	$	1,165	$	1,151	$	4,187	$	4,519
Net written premiums	$	886	$	964	$	1,003	$	989	$	943	$	1,040	$	1,072	$	1,054	$	3,842	$	4,109
Net earned premiums	$	875	$	911	$	935	$	934	$	956	$	977	$	1,009	$	1,016	$	3,655	$	3,958
Losses and loss adjustment expenses	376		363		345		384		424		468		438		427		1,468		1,757
Underwriting expenses	346		352		359		333		411		408		421		421		1,390		1,661
Statutory underwriting gain	153		196		231		217		121		101		150		168		797		540
Policyholder dividends	4		3		6		5		4		5		3		4		18		16
Statutory underwriting gain after policyholder dividends	$	149	$	193	$	225	$	212	$	117	$	96	$	147	$	164	$	779	$	524


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net written premiums by market
Domestic
Management Liability	$	511	$	541	$	551	$	553	$	543	$	586	$	617	$	563	$	2,156	$	2,309
Surety	257		293		321		276		296		325		344		329		1,147		1,294
Total Domestic	768		834		872		829		839		911		961		892		3,303		3,603
International	118		130		131		160		104		129		111		162		539		506
Total	$	886	$	964	$	1,003	$	989	$	943	$	1,040	$	1,072	$	1,054	$	3,842	$	4,109
Net written premiums by product line
Domestic
Fidelity & surety	$	318	$	350	$	385	$	334	$	356	$	382	$	411	$	387	$	1,387	$	1,536
General liability	399		425		419		443		434		468		479		452		1,686		1,833
Other	51		59		68		52		49		61		71		53		230		234
Total Domestic	768		834		872		829		839		911		961		892		3,303		3,603
International	118		130		131		160		104		129		111		162		539		506
Total	$	886	$	964	$	1,003	$	989	$	943	$	1,040	$	1,072	$	1,054	$	3,842	$	4,109


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Revenues
Premiums	$	3,502		$	3,661		$	3,827		$	3,972		$	4,010		$	4,098		$	4,221		$	4,309		$	14,962		$	16,638
Net investment income	117			125			132			135			147			159			161			173			509			640
Fee income	7			8			10			8			8			10			12			13			33			43
Other revenues	23			25			24			24			26			22			24			25			96			97
Total revenues	3,649			3,819			3,993			4,139			4,191			4,289			4,418			4,520			15,600			17,418
Claims and expenses
Claims and claim adjustment expenses	2,672			3,565			3,279			2,518			2,897			3,429			2,857			2,423			12,034			11,606
Amortization of deferred acquisition costs	560			578			611			631			652			634			666			677			2,380			2,629
General and administrative expenses	359			361			359			338			375			424			420			421			1,417			1,640
Total claims and expenses	3,591			4,504			4,249			3,487			3,924			4,487			3,943			3,521			15,831			15,875
Segment income (loss) before income taxes	58			(685)			(256)			652			267			(198)			475			999			(231)			1,543
Income tax expense (benefit)	(25)			(147)			(63)			132			47			(45)			91			201			(103)			294
Segment income (loss)	$	83		$	(538)		$	(193)		$	520		$	220		$	(153)		$	384		$	798		$	(128)		$	1,249
Other statistics
Effective tax rate on net investment income	16.3		%	16.9		%	17.2		%	17.3		%	17.7		%	18.0		%	18.0		%	18.1		%	17.0		%	18.0		%
Net investment income (after-tax)	$	98		$	103		$	111		$	111		$	122		$	129		$	133		$	141		$	423		$	525
Catastrophes, net of reinsurance:
Pre-tax	$	331		$	1,064		$	642		$	79		$	498		$	1,080		$	595		$	79		$	2,116		$	2,252
After-tax	$	261		$	841		$	505		$	63		$	393		$	854		$	468		$	62		$	1,670		$	1,777
Prior year reserve development - favorable:
Pre-tax	$	28		$	42		$	37		$	40		$	67		$	172		$	181		$	70		$	147		$	490
After-tax	$	22		$	34		$	28		$	32		$	52		$	137		$	143		$	56		$	116		$	388


($ in millions, net of tax)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Underwriting gain (loss)	$	(30)		$	(657)		$	(319)		$	394		$	82		$	(296)		$	236		$	641		$	(612)		$	663
Net investment income	98			103			111			111			122			129			133			141			423			525
Other income	15			16			15			15			16			14			15			16			61			61
Segment income (loss)	$	83		$	(538)		$	(193)		$	520		$	220		$	(153)		$	384		$	798		$	(128)		$	1,249
Combined ratio (1)
Loss and loss adjustment expense ratio	76.3		%	97.4		%	85.7		%	63.4		%	72.2		%	83.7		%	67.7		%	56.2		%	80.4		%	69.7		%
Underwriting expense ratio	25.2		%	24.6		%	24.3		%	23.4		%	24.7		%	24.8		%	24.8		%	24.5		%	24.4		%	24.7		%
Combined ratio	101.5		%	122.0		%	110.0		%	86.8		%	96.9		%	108.5		%	92.5		%	80.7		%	104.8		%	94.4		%

Impact on combined ratio:
Net favorable prior year reserve development	(0.8)		%	(1.2)		%	(1.0)		%	(1.1)		%	(1.6)		%	(4.2)		%	(4.3)		%	(1.6)		%	(1.0)		%	(3.0)		%
Catastrophes, net of reinsurance	9.4		%	29.1		%	16.8		%	2.0		%	12.4		%	26.4		%	14.1		%	1.8		%	14.1		%	13.5		%
Underlying combined ratio	92.9		%	94.1		%	94.2		%	85.9		%	86.1		%	86.3		%	82.7		%	80.5		%	91.7		%	83.9		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	24		$	24		$	24		$	25		$	26		$	25		$	23		$	24		$	97		$	98
Fee income	$	7		$	8		$	10		$	8		$	8		$	10		$	12		$	13		$	33		$	43
Non-insurance general and administrative expenses	$	5		$	4		$	4		$	6		$	5		$	6		$	4		$	6		$	19		$	21


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Statutory underwriting
Gross written premiums	$	3,509	$	4,210	$	4,496	$	4,001	$	3,851	$	4,569	$	4,811	$	4,285	$	16,216	$	17,516
Net written premiums	$	3,353	$	4,179	$	4,410	$	3,987	$	3,643	$	4,536	$	4,728	$	4,262	$	15,929	$	17,169
Net earned premiums	$	3,502	$	3,661	$	3,827	$	3,972	$	4,010	$	4,098	$	4,221	$	4,309	$	14,962	$	16,638
Losses and loss adjustment expenses	2,672		3,565		3,279		2,518		2,896		3,430		2,857		2,423		12,034		11,606
Underwriting expenses	889		1,004		1,042		951		971		1,083		1,135		1,051		3,886		4,240
Statutory underwriting gain (loss)	$	(59)	$	(908)	$	(494)	$	503	$	143	$	(415)	$	229	$	835	$	(958)	$	792
Policies in force (in thousands)
Automobile	3,248		3,225		3,223		3,223		3,212		3,180		3,158		3,150		3,223		3,150
Homeowners and Other	6,355		6,361		6,348		6,290		6,235		6,167		6,106		6,060		6,290		6,060


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net written premiums by product line
Domestic
Automobile	$	1,654	$	1,823	$	2,022	$	1,831	$	1,859	$	2,001	$	2,138	$	1,927	$	7,330	$	7,925
Homeowners and Other	1,565		2,173		2,216		1,995		1,635		2,347		2,410		2,158		7,949		8,550
Total Domestic	3,219		3,996		4,238		3,826		3,494		4,348		4,548		4,085		15,279		16,475
International	134		183		172		161		149		188		180		177		650		694
Total	$	3,353	$	4,179	$	4,410	$	3,987	$	3,643	$	4,536	$	4,728	$	4,262	$	15,929	$	17,169


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Statutory underwriting
Gross written premiums	$	1,751		$	1,946		$	2,142		$	1,947		$	1,970		$	2,129		$	2,264		$	2,056		$	7,786		$	8,419
Net written premiums	$	1,741		$	1,939		$	2,132		$	1,937		$	1,959		$	2,120		$	2,253		$	2,043		$	7,749		$	8,375
Net earned premiums	$	1,723		$	1,789		$	1,874		$	1,944		$	1,980		$	2,026		$	2,080		$	2,110		$	7,330		$	8,196
Losses and loss adjustment expenses	1,406			1,540			1,525			1,602			1,430			1,532			1,477			1,518			6,073			5,957
Underwriting expenses	409			432			458			424			454			468			495			471			1,723			1,888
Statutory underwriting gain (loss)	$	(92)		$	(183)		$	(109)		$	(82)		$	96		$	26		$	108		$	121		$	(466)		$	351
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	81.7		%	86.0		%	81.4		%	82.4		%	72.2		%	75.6		%	71.0		%	71.9		%	82.8		%	72.6		%
Underwriting expense ratio	23.0		%	22.4		%	22.1		%	21.2		%	22.4		%	22.3		%	22.4		%	22.3		%	22.2		%	22.4		%
Combined ratio	104.7		%	108.4		%	103.5		%	103.6		%	94.6		%	97.9		%	93.4		%	94.2		%	105.0		%	95.0		%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development	0.4		%	0.2		%	0.3		%	0.4		%	(2.3)		%	(1.5)		%	(2.7)		%	(1.5)		%	0.3		%	(2.0)		%
Catastrophes, net of reinsurance	0.9		%	4.7		%	2.6		%	0.5		%	2.0		%	4.2		%	4.9		%	(0.6)		%	2.2		%	2.6		%
Underlying combined ratio	103.4		%	103.5		%	100.6		%	102.7		%	94.9		%	95.2		%	91.2		%	96.3		%	102.5		%	94.4		%
Catastrophes, net of reinsurance:
Pre-tax	$	15		$	85		$	49		$	10		$	39		$	85		$	103		$	(13)		$	159		$	214
After-tax	$	11		$	68		$	38		$	8		$	31		$	67		$	81		$	(10)		$	125		$	169
Prior year reserve development - favorable (unfavorable):
Pre-tax	$	(7)		$	(4)		$	(5)		$	(8)		$	45		$	30		$	56		$	31		$	(24)		$	162
After-tax	$	(6)		$	(2)		$	(4)		$	(6)		$	34		$	26		$	45		$	25		$	(18)		$	130

Policies in force (in thousands)	3,248			3,225			3,223			3,223			3,212			3,180			3,158			3,150
Change from prior year quarter	1.1		%	(0.6)		%	(1.8)		%	(1.7)		%	(1.1)		%	(1.4)		%	(2.0)		%	(2.3)		%
Change from prior quarter	(0.9)		%	(0.7)		%	(0.1)		%	—		%	(0.3)		%	(1.0)		%	(0.7)		%	(0.3)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	14		$	14		$	14		$	15		$	15		$	15		$	14		$	15		$	57		$	59
Fee income	$	4		$	4		$	5		$	4		$	4		$	5		$	7		$	7		$	17		$	23


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Statutory underwriting
Gross written premiums	$	1,758		$	2,264		$	2,354		$	2,054		$	1,881		$	2,440		$	2,547		$	2,229		$	8,430		$	9,097
Net written premiums	$	1,612		$	2,240		$	2,278		$	2,050		$	1,684		$	2,416		$	2,475		$	2,219		$	8,180		$	8,794
Net earned premiums	$	1,779		$	1,872		$	1,953		$	2,028		$	2,030		$	2,072		$	2,141		$	2,199		$	7,632		$	8,442
Losses and loss adjustment expenses	1,266			2,025			1,754			916			1,466			1,898			1,380			905			5,961			5,649
Underwriting expenses	480			572			584			527			517			615			640			580			2,163			2,352
Statutory underwriting gain (loss)	$	33		$	(725)		$	(385)		$	585		$	47		$	(441)		$	121		$	714		$	(492)		$	441
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio	71.2		%	108.2		%	89.7		%	45.2		%	72.2		%	91.6		%	64.5		%	41.2		%	78.1		%	66.9		%
Underwriting expense ratio	27.3		%	26.9		%	26.5		%	25.6		%	26.9		%	27.2		%	27.0		%	26.6		%	26.5		%	27.0		%
Combined ratio	98.5		%	135.1		%	116.2		%	70.8		%	99.1		%	118.8		%	91.5		%	67.8		%	104.6		%	93.9		%
Impact on combined ratio:
Net favorable prior year reserve development	(2.0)		%	(2.4)		%	(2.1)		%	(2.4)		%	(1.1)		%	(6.8)		%	(5.9)		%	(1.8)		%	(2.2)		%	(3.9)		%
Catastrophes, net of reinsurance	17.8		%	52.3		%	30.3		%	3.5		%	22.6		%	48.0		%	23.0		%	4.2		%	25.6		%	24.2		%
Underlying combined ratio	82.7		%	85.2		%	88.0		%	69.7		%	77.6		%	77.6		%	74.4		%	65.4		%	81.2		%	73.6		%
Catastrophes, net of reinsurance:
Pre-tax	$	316		$	979		$	593		$	69		$	459		$	995		$	492		$	92		$	1,957		$	2,038
After-tax	$	250		$	773		$	467		$	55		$	362		$	787		$	387		$	72		$	1,545		$	1,608
Prior year reserve development - favorable:
Pre-tax	$	35		$	46		$	42		$	48		$	22		$	142		$	125		$	39		$	171		$	328
After-tax	$	28		$	36		$	32		$	38		$	18		$	111		$	98		$	31		$	134		$	258

Policies in force (in thousands)	6,355			6,361			6,348			6,290			6,235			6,167			6,106			6,060
Change from prior year quarter	1.1		%	0.4		%	(0.3)		%	(1.3)		%	(1.9)		%	(3.0)		%	(3.8)		%	(3.7)		%
Change from prior quarter	(0.3)		%	0.1		%	(0.2)		%	(0.9)		%	(0.9)		%	(1.1)		%	(1.0)		%	(0.8)		%



(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Billing and policy fees and other	$	10		$	10		$	10		$	10		$	11		$	10		$	9		$	9		$	40		$	39
Fee income	$	3		$	4		$	5		$	4		$	4		$	5		$	5		$	6		$	16		$	20


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Revenues
Other revenues	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Claims and expenses
Interest expense	88		92		98		98		98		98		98		98		376		392
General and administrative expenses	9		10		9		9		8		12		11		13		37		44
Total claims and expenses	97		102		107		107		106		110		109		111		413		436

Loss before income tax benefit	(97)		(102)		(107)		(107)		(106)		(110)		(109)		(111)		(413)		(436)
Income tax benefit	(21)		(23)		(21)		(23)		(23)		(22)		(23)		(23)		(88)		(91)
Loss	$	(76)	$	(79)	$	(86)	$	(84)	$	(83)	$	(88)	$	(86)	$	(88)	$	(325)	$	(345)


($ and shares in millions)	December 31, 2024 (1)		December 31, 2023
Assets
Fixed maturities, available for sale, at fair value (amortized cost $88,277 and $81,781; allowance for expected credit losses of $2 and $5)	$	83,666	$	77,807
Equity securities, at fair value (cost $544 and $553)	687		608
Real estate investments	902		959
Short-term securities	4,766		5,137
Other investments	4,202		4,299
Total investments	94,223		88,810
Cash (including restricted cash of $131 and $150)	699		650
Investment income accrued	752		688
Premiums receivable (net of allowance for expected credit losses of $58 and $69)	11,110		10,282
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $119 and $118)	8,000		8,143
Ceded unearned premiums	1,202		1,150
Deferred acquisition costs	3,494		3,306
Deferred taxes	1,762		1,504
Contractholder receivables (net of allowance for expected credit losses of $18 and $20)	3,171		3,249
Goodwill	4,233		3,976
Other intangible assets	360		277
Other assets	4,183		3,943
Total assets	$	133,189	$	125,978

Liabilities
Claims and claim adjustment expense reserves	$	64,093	$	61,627
Unearned premium reserves	22,289		20,872
Contractholder payables	3,189		3,269
Payables for reinsurance premiums	550		518

Debt	8,033		8,031
Other liabilities	7,171		6,740
Total liabilities	105,325		101,057
Shareholders’ equity
Common stock (1,750.0 shares authorized; 226.6 and 228.2 shares issued and outstanding)	25,452		24,906
Retained earnings	49,630		45,591
Accumulated other comprehensive loss	(4,967)		(4,471)
Treasury stock, at cost (564.3 and 559.2 shares)	(42,251)		(41,105)
Total shareholders’ equity	27,864		24,921
Total liabilities and shareholders’ equity	$	133,189	$	125,978


(at carrying value, $ in millions)	December 31, 2024		Pre-tax Book Yield (1)		December 31, 2023		Pre-tax Book Yield (1)
Investment portfolio
Taxable fixed maturities	$	61,012	3.87	%	$	53,626	3.51	%
Tax-exempt fixed maturities	22,654		3.00	%	24,181		2.92	%
Total fixed maturities	83,666		3.63	%	77,807		3.33	%
Non-redeemable preferred stocks	48		2.20	%	48		2.18	%
Common stocks	639				560
Total equity securities	687				608
Real estate investments	902				959
Short-term securities	4,766		4.54	%	5,137		5.49	%
Private equities	2,815				2,783
Hedge funds	219				219
Real estate partnerships	858				855
Other investments	310				442
Total other investments	4,202				4,299
Total investments	$	94,223			$	88,810



Net unrealized investment gains (losses), net of tax, included in shareholders’ equity	$	(3,640)			$	(3,129)


(at carrying value, $ in millions)	December 31, 2024				December 31, 2023
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies	$	5,570			$	6,368
Obligations of U.S. states and political subdivisions:
Pre-refunded	572				966
All other	26,613				27,540
Total	27,185				28,506
Debt securities issued by foreign governments	909				1,006
Mortgage-backed securities - principally obligations of U.S. Government agencies	12,605				7,818
Corporate and all other bonds	37,397				34,109
Total fixed maturities	$	83,666			$	77,807

Fixed Maturities Quality Characteristics (1)
	December 31, 2024				December 31, 2023
	Amount		% of Total		Amount		% of Total
Quality Ratings
Aaa	$	40,411	48.3	%	$	36,612	47.0	%
Aa	15,278		18.3		15,797		20.3
A	16,181		19.3		14,715		18.9
Baa	10,816		12.9		9,701		12.5
Total investment grade	82,686		98.8		76,825		98.7
Ba	686		0.8		581		0.8
B	247		0.3		335		0.4
Caa and lower	47		0.1		66		0.1
Total below investment grade	980		1.2		982		1.3
Total fixed maturities	$	83,666	100.0	%	$	77,807	100.0	%
Average weighted quality	Aa2, AA				Aa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases	4.3				4.1


($ in millions)	1Q2023			2Q2023			3Q2023			4Q2023			1Q2024			2Q2024			3Q2024			4Q2024			YTD 4Q2023			YTD 4Q2024
Gross investment income
Fixed maturities	$	575		$	591		$	631		$	675		$	692		$	709		$	749		$	798		$	2,472		$	2,948
Short-term securities	47			55			67			72			70			70			77			63			241			280
Other	53			78			82			40			98			118			90			103			253			409
	675			724			780			787			860			897			916			964			2,966			3,637
Investment expenses	12			12			11			9			14			12			12			9			44			47
Net investment income, pre-tax	663			712			769			778			846			885			904			955			2,922			3,590
Income taxes	106			118			129			133			148			158			162			170			486			638
Net investment income, after-tax	$	557		$	594		$	640		$	645		$	698		$	727		$	742		$	785		$	2,436		$	2,952

Effective tax rate	16.0		%	16.5		%	16.8		%	17.0		%	17.6		%	17.8		%	17.9		%	17.9		%	16.6		%	17.8		%

Average invested assets (1)	$88,740			$89,536			$91,591			$93,603			$94,677			$95,402			$97,736			$100,046			$90,941			$97,012

Average yield pre-tax (1)	3.0		%	3.2		%	3.4		%	3.3		%	3.6		%	3.7		%	3.7		%	3.8		%	3.2		%	3.7		%
Average yield after-tax	2.5		%	2.7		%	2.8		%	2.8		%	2.9		%	3.0		%	3.0		%	3.1		%	2.7		%	3.0		%


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Net realized investment gains (losses)
Fixed maturities	$	(11)	$	(22)	$	(36)	$	(27)	$	(40)	$	(35)	$	(17)	$	(39)	$	(96)	$	(131)
Equity securities	18		(19)		(16)		28		79		(28)		53		(5)		11		99
Other	(1)		6		(13)		(12)		(4)		(2)		19		(11)		(20)		2
Realized investment gains (losses) before tax	6		(35)		(65)		(11)		35		(65)		55		(55)		(105)		(30)
Related taxes	1		(6)		(15)		(4)		8		(14)		13		(11)		(24)		(4)
Net realized investment gains (losses)	$	5	$	(29)	$	(50)	$	(7)	$	27	$	(51)	$	42	$	(44)	$	(81)	$	(26)

Gross investment gains	$	46	$	17	$	9	$	33	$	85	$	7	$	85	$	10	$	105	$	187
Gross investment losses before impairments	(39)		(52)		(73)		(34)		(47)		(72)		(25)		(63)		(198)		(207)
Net investment gains (losses) before impairments	7		(35)		(64)		(1)		38		(65)		60		(53)		(93)		(20)
Net impairment (charges) recoveries	(1)		—		(1)		(10)		(3)		—		(5)		(2)		(12)		(10)
Net realized investment gains (losses) before tax	6		(35)		(65)		(11)		35		(65)		55		(55)		(105)		(30)
Related taxes	1		(6)		(15)		(4)		8		(14)		13		(11)		(24)		(4)
Net realized investment gains (losses)	$	5	$	(29)	$	(50)	$	(7)	$	27	$	(51)	$	42	$	(44)	$	(81)	$	(26)

($ in millions)	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities	$	(4,909)	$	(5,811)	$	(8,204)	$	(3,969)	$	(4,718)	$	(5,042)	$	(2,672)	$	(4,609)
Other	(3)		(4)		(2)		(1)		(2)		(1)		—		—
Unrealized investment gains (losses) before tax	(4,912)		(5,815)		(8,206)		(3,970)		(4,720)		(5,043)		(2,672)		(4,609)
Related taxes	(1,044)		(1,239)		(1,740)		(841)		(999)		(1,067)		(561)		(969)
Balance, end of period	$	(3,868)	$	(4,576)	$	(6,466)	$	(3,129)	$	(3,721)	$	(3,976)	$	(2,111)	$	(3,640)

(2) Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments. The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

(3) The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.

(4) Of the total reinsurance recoverables at December 31, 2024, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.79 billion, or 88%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 12% of reinsurance recoverables comprised the following: 6% related to captive insurance companies and 6% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period	$	39,027	$	39,279	$	39,908	$	40,690	$	40,833	$	41,391	$	42,050	$	42,960	$	39,027	$	40,833
Incurred	2,858		3,251		3,467		2,924		3,282		3,422		3,645		3,116		12,500		13,465
Paid	(2,620)		(2,657)		(2,637)		(2,832)		(2,697)		(2,758)		(2,786)		(3,066)		(10,746)		(11,307)
Foreign exchange and other	14		35		(48)		51		(27)		(5)		51		(101)		52		(82)
End of period	$	39,279	$	39,908	$	40,690	$	40,833	$	41,391	$	42,050	$	42,960	$	42,909	$	40,833	$	42,909
Bond & Specialty Insurance
Beginning of period	$	4,167	$	4,318	$	4,448	$	4,423	$	4,521	$	4,626	$	4,773	$	4,931	$	4,167	$	4,521
Incurred	376		363		345		384		424		468		438		427		1,468		1,757
Paid	(238)		(256)		(335)		(325)		(306)		(320)		(332)		(344)		(1,154)		(1,302)
Foreign exchange and other	13		23		(35)		39		(13)		(1)		52		(76)		40		(38)
End of period	$	4,318	$	4,448	$	4,423	$	4,521	$	4,626	$	4,773	$	4,931	$	4,938	$	4,521	$	4,938
Personal Insurance
Beginning of period	$	7,568	$	7,567	$	8,287	$	8,579	$	8,363	$	8,561	$	9,099	$	9,018	$	7,568	$	8,363
Incurred	2,672		3,565		3,279		2,518		2,896		3,430		2,857		2,423		12,034		11,606
Paid	(2,674)		(2,863)		(2,967)		(2,755)		(2,678)		(2,885)		(2,948)		(2,908)		(11,259)		(11,419)
Foreign exchange and other	1		18		(20)		21		(20)		(7)		10		(54)		20		(71)
End of period	$	7,567	$	8,287	$	8,579	$	8,363	$	8,561	$	9,099	$	9,018	$	8,479	$	8,363	$	8,479
Total
Beginning of period	$	50,762	$	51,164	$	52,643	$	53,692	$	53,717	$	54,578	$	55,922	$	56,909	$	50,762	$	53,717
Incurred	5,906		7,179		7,091		5,826		6,602		7,320		6,940		5,966		26,002		26,828
Paid	(5,532)		(5,776)		(5,939)		(5,912)		(5,681)		(5,963)		(6,066)		(6,318)		(23,159)		(24,028)
Foreign exchange and other	28		76		(103)		111		(60)		(13)		113		(231)		112		(191)
End of period	$	51,164	$	52,643	$	53,692	$	53,717	$	54,578	$	55,922	$	56,909	$	56,326	$	53,717	$	56,326
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos	$	—	$	—	$	284	$	—	$	—	$	—	$	242	$	—	$	284	$	242

All other	(19)		101		(21)		(56)		—		(34)		(151)		(147)		5		(332)
Total Business Insurance (1)	(19)		101		263		(56)		—		(34)		91		(147)		289		(90)
Bond & Specialty Insurance	(58)		(119)		(72)		(36)		(24)		(24)		(36)		(45)		(285)		(129)
Personal Insurance	(28)		(42)		(37)		(40)		(67)		(172)		(181)		(70)		(147)		(490)
Total	$	(105)	$	(60)	$	154	$	(132)	$	(91)	$	(230)	$	(126)	$	(262)	$	(143)	$	(709)


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Asbestos reserves
Beginning reserves:
Gross	$	1,674	$	1,620	$	1,552	$	1,848	$	1,768	$	1,686	$	1,612	$	1,815	$	1,674	$	1,768
Ceded	(369)		(348)		(334)		(415)		(390)		(382)		(368)		(395)		(369)		(390)
Net	1,305		1,272		1,218		1,433		1,378		1,304		1,244		1,420		1,305		1,378
Incurred losses and loss expenses:
Gross	—		—		374		—		—		—		279		—		374		279
Ceded	—		—		(90)		—		—		—		(37)		—		(90)		(37)
Paid loss and loss expenses:
Gross	54		69		77		81		82		74		77		106		281		339
Ceded	(21)		(13)		(10)		(25)		(8)		(13)		(11)		(25)		(69)		(57)
Foreign exchange and other:
Gross	—		1		(1)		1		—		—		1		(1)		1		—
Ceded	—		1		(1)		—		—		1		(1)		—		—		—
Ending reserves:
Gross	1,620		1,552		1,848		1,768		1,686		1,612		1,815		1,708		1,768		1,708
Ceded	(348)		(334)		(415)		(390)		(382)		(368)		(395)		(370)		(390)		(370)
Net	$	1,272	$	1,218	$	1,433	$	1,378	$	1,304	$	1,244	$	1,420	$	1,338	$	1,378	$	1,338


($ in millions)	December 31, 2024			December 31, 2023
Debt

Short-term debt
Commercial paper	$	100		$	100
Total short-term debt	100			100
Long-term debt
7.75% Senior notes due April 15, 2026	200			200
7.625% Junior subordinated debentures due December 15, 2027	125			125
6.375% Senior notes due March 15, 2033 (1)	500			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	56			56
3.75% Senior notes due May 15, 2046 (1)	500			500
8.312% Junior subordinated debentures due July 1, 2046	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
Total long-term debt	8,004			8,004
Unamortized fair value adjustment	34			35
Unamortized debt issuance costs	(105)			(108)
	7,933			7,931
Total debt	8,033			8,031
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	31,504			28,050
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	$	39,537		$	36,081
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)	20.3		%	22.3		%


($ in millions)	December 31, 2024 (1)		December 31, 2023
Statutory capital and surplus	$	27,715	$	25,114
GAAP adjustments
Goodwill and intangible assets	3,635		3,657
Investments	(3,982)		(3,455)
Noninsurance companies	(4,350)		(5,183)
Deferred acquisition costs	3,371		3,161
Deferred federal income tax	218		84
Current federal income tax	(5)		(6)
Reinsurance recoverables	44		55
Furniture, equipment & software	960		982
Agents balances	230		189
Other	28		323
Total GAAP adjustments	149		(193)
GAAP shareholders’ equity	$	27,864	$	24,921


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Cash flows from operating activities
Net income (loss)	$	975	$	(14)	$	404	$	1,626	$	1,123	$	534	$	1,260	$	2,082	$	2,991	$	4,999
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Net realized investment (gains) losses	(6)		35		65		11		(35)		65		(55)		55		105		30
Depreciation and amortization	204		179		169		170		196		182		174		163		722		715
Deferred federal income tax expense (benefit)	32		(96)		(43)		(56)		42		(85)		(59)		(50)		(163)		(152)
Amortization of deferred acquisition costs	1,462		1,519		1,604		1,641		1,698		1,678		1,790		1,807		6,226		6,973
Equity in income from other investments	(30)		(55)		(59)		(13)		(68)		(89)		(63)		(74)		(157)		(294)
Premiums receivable	(557)		(832)		(33)		81		(557)		(664)		234		128		(1,341)		(859)
Reinsurance recoverables	(24)		(17)		(163)		141		33		(34)		74		38		(63)		111
Deferred acquisition costs	(1,629)		(1,722)		(1,728)		(1,610)		(1,776)		(1,807)		(1,856)		(1,734)		(6,689)		(7,173)
Claims and claim adjustment expense reserves	381		1,413		1,259		(210)		928		1,384		755		(387)		2,843		2,680
Unearned premium reserves	893		1,042		882		(227)		457		788		659		(416)		2,590		1,488
Other	(689)		97		689		550		(583)		(275)		962		452		647		556
Net cash provided by operating activities	1,012		1,549		3,046		2,104		1,458		1,677		3,875		2,064		7,711		9,074
Cash flows from investing activities
Proceeds from maturities of fixed maturities	1,538		1,493		1,878		1,462		1,709		2,464		1,817		2,547		6,371		8,537
Proceeds from sales of investments:
Fixed maturities	2,364		751		1,504		362		942		308		225		159		4,981		1,634
Equity securities	28		62		27		21		21		41		31		50		138		143
Real estate investments	—		—		—		—		—		—		64		—		—		64
Other investments	64		36		66		89		55		55		101		211		255		422
Purchases of investments:
Fixed maturities	(4,335)		(3,328)		(5,391)		(2,636)		(3,738)		(4,349)		(4,273)		(4,772)		(15,690)		(17,132)
Equity securities	(34)		(16)		(30)		(25)		(26)		(21)		(33)		(44)		(105)		(124)
Real estate investments	(14)		(12)		(20)		(21)		(13)		(11)		(10)		(14)		(67)		(48)
Other investments	(139)		(116)		(120)		(120)		(90)		(95)		(98)		(113)		(495)		(396)
Net sales (purchases) of short-term securities	228		(646)		(600)		(646)		454		330		(1,126)		712		(1,664)		370
Securities transactions in the course of settlement	(35)		50		45		(143)		111		247		24		(326)		(83)		56
Acquisition, net of cash acquired	—		—		—		—		(381)		(1)		—		—		—		(382)
Other	(120)		(131)		(84)		(127)		(81)		(111)		(113)		(103)		(462)		(408)
Net cash used in investing activities	(455)		(1,857)		(2,725)		(1,784)		(1,037)		(1,143)		(3,391)		(1,693)		(6,821)		(7,264)


($ in millions)	1Q2023		2Q2023		3Q2023		4Q2023		1Q2024		2Q2024		3Q2024		4Q2024		YTD 4Q2023		YTD 4Q2024
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations	(398)		(396)		(100)		(64)		(250)		(249)		(248)		(256)		(958)		(1,003)
Treasury stock acquired - net employee share-based compensation	(62)		—		(1)		(1)		(110)		(1)		(1)		(2)		(64)		(114)
Dividends paid to shareholders	(215)		(232)		(229)		(232)		(229)		(244)		(238)		(240)		(908)		(951)

Issuance of debt	—		738		—		—		—		—		—		—		738		—
Issuance of common stock - employee share options	82		28		7		24		190		22		33		76		141		321
Net cash provided by (used in) financing activities	(593)		138		(323)		(273)		(399)		(472)		(454)		(422)		(1,051)		(1,747)
Effect of exchange rate changes on cash and restricted cash	4		8		(10)		10		(5)		—		13		(22)		12		(14)
Net increase (decrease) in cash and restricted cash	(32)		(162)		(12)		57		17		62		43		(73)		(149)		49
Cash and restricted cash at beginning of period	799		767		605		593		650		667		729		772		799		650
Cash and restricted cash at end of period	$	767	$	605	$	593	$	650	$	667	$	729	$	772	$	699	$	650	$	699
Supplemental disclosure of cash flow information
Income taxes paid (received)	$	(16)	$	155	$	13	$	49	$	24	$	831	$	92	$	363	$	201	$	1,310
Interest paid	$	60	$	115	$	59	$	136	$	60	$	135	$	60	$	135	$	370	$	390

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Average shareholders’ equity is (a) the sum of total shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted shareholders’ equity is shareholders’ equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)). Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.


	As of
($ in millions)	March 31, 2023		June 30, 2023		September 30, 2023		December 31, 2023		March 31, 2024		June 30, 2024		September 30, 2024		December 31, 2024
Shareholders’ equity	$	23,052	$	21,855	$	19,978	$	24,921	$	25,022	$	24,862	$	27,696	$	27,864
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	3,868		4,576		6,466		3,129		3,721		3,976		2,111		3,640
Net realized investment (gains) losses, net of tax	(5)		24		74		81		(27)		24		(18)		26

Adjusted shareholders’ equity	$	26,915	$	26,455	$	26,518	$	28,131	$	28,716	$	28,862	$	29,789	$	31,530

A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core income and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2024 ranges from $20 million to $30 million of losses before reinsurance and taxes.

Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Combined ratio For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums. For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio. For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums. Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves.

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s. Business Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited. Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.

Bond & Specialty Insurance’s surety business in Brazil and Colombia is conducted through Junto Holding Brasil S.A. (Junto) and Junto Holding Latam S.A. in Brazil. The Company owns 49.5% of both Junto, a market leader in surety coverages in Brazil, and Junto Holding Latam S.A., which owns a majority interest in JMalucelli Travelers Seguros S.A., a Colombian surety provider. These joint venture investments are accounted for using the equity method and are included in “other investments” on the consolidated balance sheet.


($ in millions)	December 31, 2024		December 31, 2023
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)	$	3,962	$	3,895
Gross structured settlements (2)	2,626		2,707
Mandatory pools and associations (3)	1,531		1,659
Gross reinsurance recoverables (4)	8,119		8,261
Allowance for estimated uncollectible reinsurance (5)	(119)		(118)
Net reinsurance recoverables	$	8,000	$	8,143


The Travelers Companies, Inc. Financial Supplement - Fourth Quarter 2024						Exhibit 99.2


The Travelers Companies, Inc. Reconciliation to Net Income (Loss) and Earnings per Share


The Travelers Companies, Inc. Statement of Income (Loss) - Consolidated


The Travelers Companies, Inc. Net Income (Loss) by Major Component and Combined Ratio - Consolidated


The Travelers Companies, Inc. Selected Statistics - Property and Casualty Operations


The Travelers Companies, Inc. Written and Earned Premiums - Property and Casualty Operations


The Travelers Companies, Inc. Segment Income - Business Insurance


The Travelers Companies, Inc. Net Written Premiums - Business Insurance


The Travelers Companies, Inc. Investment Portfolio - Fixed Maturities Data


The Travelers Companies, Inc. Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity


The Travelers Companies, Inc. Net Reserves for Losses and Loss Adjustment Expense


The Travelers Companies, Inc. Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation


The Travelers Companies, Inc. Glossary of Financial Measures and Description of Reportable Business Segments