TRAVELERS COMPANIES, INC. (TRV) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that TRAVELERS COMPANIES, INC. surfaced in its latest filing.

• Our estimated deductible under the Terrorism Risk Insurance Program is $4.01 billion for 2026.2026
• The Terrorism Risk Insurance Program is scheduled to expire on December 31, 2027.December 31, 2027
• The January 2025 California wildfires resulted in assessments to insurers from the California FAIR Plan.January 2025
• Fixed maturity and short-term investments comprised approximately 94% of the carrying value of the investment portfolio as of December 31, 2025.December 31, 2025
• The Covered Agreements between the U.S. and each of the EU and U.K. eliminate the requirement for European and U.K. reinsurers operating in the U.S. to provide collateral, making it more difficult for U.S. companies to obtain collateral from such reinsurers.
• We have maintained a distribution arrangement for homeowners’ business with GEICO’s agency affiliate since 1995.1995
• We conduct business outside the United States primarily in the United Kingdom, the Republic of Ireland and Canada.
• We conduct business in Brazil through a joint venture.
• We conduct business as a corporate member of Lloyd’s.
• We conduct business through our quota share agreement with Fidelis.
• We are exposed to mass tort claims related to perfluoroalkyl and polyfluoroalkyl substances (PFAS).
• We are exposed to mass tort claims related to talc.
• We are exposed to mass tort claims related to opioids.
• We are exposed to mass tort claims related to lead.
• We continue to receive a significant number of asbestos claims, with factors including intensive advertising by lawyers seeking asbestos claimants and focus on defendants not traditionally primary targets (e.g., manufacturers of talcum powder).
• We are involved in coverage litigation where policyholders (some in bankruptcy) assert that all or a portion of asbestos-related claims are not subject to aggregate limits on coverage, or that each individual bodily injury claim should be treated as a separate occurrence.
• There are direct actions against insurers, including us, for handling of past asbestos claims and for damages from alleged asbestos-related bodily injuries, with possible future direct actions.
• Some of the life insurance companies from which we have purchased annuities have been downgraded to below investment grade credit ratings subsequent to the time of the purchase.
• We are subject to the Foreign Corrupt Practices Act and similar laws in other countries.
• Potential repeal of the McCarran-Ferguson Act, which exempts insurance from most federal regulation, could significantly harm the insurance industry including us.