Property and casualty insurer Travelers (NYSE: TRV) met Wall Streets revenue expectations in Q4 CY2025, with sales up 3.1% year on year to $12.43 billion. Its non-GAAP profit of $11.13 per share was 26.8% above analysts’ consensus estimates.
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Travelers (TRV) Q4 CY2025 Highlights:
- Net Premiums Earned: $11.15 billion vs analyst estimates of $11.15 billion (2.6% year-on-year growth, in line)
- Revenue: $12.43 billion vs analyst estimates of $12.39 billion (3.1% year-on-year growth, in line)
- Combined Ratio: 80.2% vs analyst estimates of 86.4% (617.3 basis point beat)
- Adjusted EPS: $11.13 vs analyst estimates of $8.78 (26.8% beat)
- Book Value per Share: $151.21 vs analyst estimates of $161.40 (23% year-on-year growth, 6.3% miss)
- Market Capitalization: $60.14 billion
Company Overview
Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.
Revenue Growth
Insurance companies earn revenue from three primary sources: 1) The core insurance business itself, often called underwriting and represented in the income statement as premiums 2) Income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities 3) Fees from various sources such as policy administration, annuities, or other value-added services. Luckily, Travelers’s revenue grew at a decent 8.8% compounded annual growth rate over the last five years. Its growth was slightly above the average insurance company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Travelers’s annualized revenue growth of 8.5% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Travelers grew its revenue by 3.1% year on year, and its $12.43 billion of revenue was in line with Wall Street’s estimates.
Net premiums earned made up 90.3% of the company’s total revenue during the last five years, meaning Travelers lives and dies by its underwriting activities because non-insurance operations barely move the needle.
While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.
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Book Value Per Share (BVPS)
Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Travelers’s BVPS grew at a tepid 5.5% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 17.7% annually over the last two years from $109.21 to $151.21 per share.
Over the next 12 months, Consensus estimates call for Travelers’s BVPS to grow by 20.7% to $161.48, elite growth rate.
Key Takeaways from Travelers’s Q4 Results
It was good to see Travelers beat analysts’ EPS expectations this quarter. We were also happy its revenue was in line with Wall Street’s estimates. On the other hand, its book value per share missed. Overall, this print had some key positives. The stock traded up 1.8% to $274.40 immediately after reporting.
Big picture, is Travelers a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
