TRAVELERS COMPANIES, INC.TRV
TRAVELERS COMPANIES, INC. Debt Disclosure
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, 20261 | 200 | — | ||||||||||||
| Total short-term debt | 300 | 100 | ||||||||||||
| Long-term: | ||||||||||||||
7.75% Senior notes due April 15, 20261 | — | 200 | ||||||||||||
7.625% Junior subordinated debentures due December 15, 2027 (effective interest rate 6.147%) | 125 | 125 | ||||||||||||
6.375% Senior notes due March 15, 20331 | 500 | 500 | ||||||||||||
5.05% Senior notes due July 24, 20351 | 500 | — | ||||||||||||
6.75% Senior notes due June 20, 20361 | 400 | 400 | ||||||||||||
6.25% Senior notes due June 15, 20371 | 800 | 800 | ||||||||||||
5.35% Senior notes due November 1, 20401 | 750 | 750 | ||||||||||||
4.60% Senior notes due August 1, 20431 | 500 | 500 | ||||||||||||
4.30% Senior notes due August 25, 20451 | 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, 20461 | 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, 20471 | 700 | 700 | ||||||||||||
4.05% Senior notes due March 7, 20481 | 500 | 500 | ||||||||||||
4.10% Senior notes due March 4, 20491 | 500 | 500 | ||||||||||||
2.55% Senior notes due April 27, 20501 | 500 | 500 | ||||||||||||
3.05% Senior notes due June 8, 20511 | 750 | 750 | ||||||||||||
5.45% Senior notes due May 25, 20531 | 750 | 750 | ||||||||||||
5.70% Senior notes due July 24, 20551 | 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 interest rate to maturity does not differ materially from the issued rate.
2025 Debt Issuance. On July 24, 2025, the Company issued a total of $1.25 billion of debt in two tranches:
•$500 million aggregate principal amount of 5.05% senior notes that will mature on July 24, 2035 (the “2035 notes”), and
•$750 million aggregate principal amount of 5.70% senior notes that will mature on July 24, 2055 (the “2055 notes” and together with the 2035 notes, the “senior notes”).
The net proceeds of the issuance, after deducting the underwriting discount and expenses payable by the Company, totaled approximately $1.23 billion. Interest on the senior notes is payable semi-annually in arrears on January 24 and July 24.
The 2035 notes may be redeemed prior to April 24, 2035, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any 2035 notes to be redeemed or
(b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding April 24, 2035 on any 2035 notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the 2035 notes), plus 15 basis points. On or after April 24, 2035, the 2035 notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any 2035 notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
The 2055 notes may be redeemed prior to January 24, 2055, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any 2055 notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding January 24, 2055 on any 2055 notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the 2055 notes), plus 15 basis points. On or after January 24, 2055, the 2055 notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any 2055 notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
2023 Debt Issuance. On May 25, 2023, the Company issued $750 million aggregate principal amount of 5.45% senior notes that will mature on May 25, 2053. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $738 million. Interest on the senior notes is payable semi-annually in arrears on May 25 and November 25. Prior to November 25, 2052, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding November 25, 2052 on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury rate (as defined in the senior notes), plus 25 basis points. On or after November 25, 2052, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.
Description of Debt
Commercial Paper—The Company maintains an $800 million commercial paper program. Interest rates on commercial paper issued in 2025 ranged from 3.87% to 4.35%, and in 2024 ranged from 4.59% to 5.36%.
Senior Notes—The Company’s various senior debt issues are unsecured obligations that rank equally with one another. Interest payments are made semi-annually. The Company generally may redeem some or all of the notes prior to maturity in accordance with terms unique to each debt instrument.
The Travelers Companies, Inc. fully and unconditionally guarantees the payment of all principal, premiums, if any, and interest on certain debt obligations of its subsidiaries Travelers Property Casualty Corp. (TPC) and Travelers Insurance Group Holdings Inc. (TIGHI). The guarantees pertain to the $200 million 7.75% notes due 2026 and the $500 million 6.375% notes due 2033.
Junior Subordinated Debentures—The Company’s three junior subordinated debenture instruments are all similar in nature to each other. Three separate business trusts issued preferred securities to investors and used the proceeds to purchase the Company’s junior subordinated debentures. Interest on each of the instruments is paid semi-annually.
The Company’s consolidated balance sheet includes the debt instruments acquired in a business acquisition, which were recorded at fair value as of the acquisition date. The resulting fair value adjustment is being amortized over the remaining life of the respective debt instruments using the effective-interest method. The amortization of the fair value adjustment reduced interest expense by $3 million and $1 million for the years ended December 31, 2025 and 2024, respectively.
The following table presents merger-related unamortized fair value adjustments.
| Unamortized Fair Value Purchase Adjustment at December 31, | ||||||||||||||||||||||||||
| (in millions) | Issue Rate | Maturity Date | 2025 | 2024 | ||||||||||||||||||||||
| Junior subordinated debentures | 7.625 | % | Dec. 2027 | $ | 3 | $ | 5 | |||||||||||||||||||
| 8.500 | % | Dec. 2045 | 13 | 13 | ||||||||||||||||||||||
| 8.312 | % | Jul. 2046 | 15 | 16 | ||||||||||||||||||||||
| Total | $ | 31 | $ | 34 | ||||||||||||||||||||||
Maturities—Other than commercial paper, the amount of debt obligations that become due in each of the next five years is as follows: 2026, $200 million; 2027, $125 million; 2028, $0; 2029, $0; and 2030, $0.
Credit Agreement
On June 15, 2022, the Company entered into to a five-year, $1.0 billion revolving credit agreement with a syndicate of financial institutions. Pursuant to the credit agreement covenants, the Company must maintain a minimum 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), less goodwill and other intangible assets. That threshold is fixed during the term of the credit agreement at an amount equal to $13.9 billion (57.5% of the Company’s net worth as of March 31, 2022). In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change in control, which would occur upon the acquisition of 35% or more of the Company’s voting stock or certain changes in the composition of the Company’s Board of Directors. As of December 31, 2025, the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from the Secured Overnight Financing Rate () plus 85 basis points (including a credit spread adjustment) to plus 147.5 basis points (including a credit spread adjustment), depending on the Company’s credit ratings. As of December 31, 2025, that cost would have been plus 110 basis points (including a credit spread adjustment), had there been any amounts outstanding under the credit agreement.
The Company has uncollateralized letters of credit with an aggregate limit of $299 million as of December 31, 2025, including $260 million that provides a portion of the capital needed to support the Company’s obligations at Lloyd’s.
Shelf Registration
The Company has a shelf registration statement filed with the Securities and Exchange Commission that expires on June 4, 2028 which permits it to issue securities from time to time at prices and on other terms to be determined at the time of offering.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 11, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.