Third Quarter 2026
Filed Oct 16, 2026Travelers Reports Excellent Third Quarter and Year-to-Date Results
Third-quarter net income and core income increased, the consolidated combined ratio improved to 86.8%, record net investment income increased 6%, and the company returned $1.769 billion of capital to shareholders. Higher catastrophe losses and declining Personal Insurance net written premiums tempered the result.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 total revenuesGAAP | $12.41B | – | — |
| Nine Months Ended September 30, 2026 total revenuesGAAP | $36.49B | – | — |
| Third Quarter 2026 net written premiumsother | $11.48B | – | — % |
| Nine Months Ended September 30, 2026 net written premiumsother | $33.35B | – | (1) % |
| Third Quarter 2026 net incomeGAAP | $1.92B | – | 2 % |
| Nine Months Ended September 30, 2026 net incomeGAAP | $5.84B | – | 54 % |
| Third Quarter 2026 net income per diluted shareGAAP | $9.04 | – | 10 % |
| Nine Months Ended September 30, 2026 net income per diluted shareGAAP | $27.05 | – | 64 % |
| Third Quarter 2026 core incomenon-GAAP | $1.95B | – | 4 % |
| Nine Months Ended September 30, 2026 core incomenon-GAAP | $5.80B | – | 52 % |
| Third Quarter 2026 core income per diluted sharenon-GAAP | $9.18 | – | 13 % |
| Nine Months Ended September 30, 2026 core income per diluted sharenon-GAAP | $26.90 | – | 63 % |
| Third Quarter 2026 diluted weighted average shares outstandingGAAP | 210.6M | – | (7) % |
| Nine Months Ended September 30, 2026 diluted weighted average shares outstandingGAAP | 214.2M | – | (6) % |
| Third Quarter 2026 underwriting gainnon-GAAP | $1.43B | – | $54 million |
| Nine Months Ended September 30, 2026 underwriting gainnon-GAAP | $4.34B | – | $2,248 million |
| Third Quarter 2026 pre-tax underlying underwriting incomenon-GAAP | $1.74B | – | – |
| Nine Months Ended September 30, 2026 pre-tax underlying underwriting incomenon-GAAP | $4.93B | – | – |
| Third Quarter 2026 net favorable prior year reserve developmentother | $234M | – | $212 million |
| Nine Months Ended September 30, 2026 net favorable prior year reserve developmentother | $1.23B | – | $510 million |
| Third Quarter 2026 catastrophes, net of reinsuranceother | −$538M | – | $(136) million |
| Nine Months Ended September 30, 2026 catastrophes, net of reinsuranceother | −$1.82B | – | $1,778 million |
| Third Quarter 2026 net investment incomeother | $1.10B | – | $65 million |
| Nine Months Ended September 30, 2026 net investment incomeother | $3.18B | – | $271 million |
| Third Quarter 2026 combined rationon-GAAP | 86.8 % | – | (0.5) pts |
| Nine Months Ended September 30, 2026 combined rationon-GAAP | 86.3 % | – | (6.9) pts |
| Third Quarter 2026 underlying combined rationon-GAAP | 84.1 % | – | 0.2 pts |
| Nine Months Ended September 30, 2026 underlying combined rationon-GAAP | 84.5 % | – | 0.1 pts |
| Third Quarter 2026 return on equitynon-GAAP | 24.7 % | – | — pts |
| Nine Months Ended September 30, 2026 return on equitynon-GAAP | 24.3 % | – | 7.0 pts |
| Third Quarter 2026 core return on equitynon-GAAP | 22.1 % | – | (0.5) pts |
| Nine Months Ended September 30, 2026 core return on equitynon-GAAP | 22.3 % | – | 6.5 pts |
| Book value per share as of September 30, 2026GAAP | $141.48 | – | — % |
| Adjusted book value per share as of September 30, 2026non-GAAP | 172.47 | – | 15 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Business Insurance net written premiums, Third Quarter 2026Growth in Middle Market and Domestic Select Accounts was partly offset by lower National Property and Other and International premiums. | $5.87B | – | 3 % |
| Bond & Specialty Insurance net written premiums, Third Quarter 2026Surety net written premiums increased 21%, while Domestic Management Liability increased 6% and International increased 17%. | $1.21B | – | 12 % |
| Personal Insurance net written premiums, Third Quarter 2026Domestic Automobile premiums declined 8%; Homeowners and Other increased 1%; prior-year premiums included Canadian operations divested in the first quarter of 2026. | $4.40B | – | (7) % |
| Business Insurance net written premiums, Nine Months Ended September 30, 2026Total Domestic net written premiums increased 4%, partially offset by an 11% decline in International premiums. | $17.64B | – | 3 % |
| Bond & Specialty Insurance net written premiums, Nine Months Ended September 30, 2026Surety premiums increased 25%, Domestic Management Liability increased 4%, and International increased 3%. | $3.51B | – | 11 % |
| Personal Insurance net written premiums, Nine Months Ended September 30, 2026Domestic Automobile declined 7%, Homeowners and Other declined 2%, and prior-year International premiums included Canadian operations divested in the first quarter of 2026. | $12.20B | – | (8) % |
Capital returns
- Total capital of $1.769 billion returned to shareholders during the third quarter, including $1.508 billion of share repurchases.
- The Company repurchased 4.0 million shares of its common stock during the third quarter at an average price of $376.00 per share for a total cost of $1.508 billion.
- At September 30, 2026, the Company had $2.415 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors.
- The Board of Directors declared a regular quarterly dividend of $1.25 per share, payable December 31, 2026 to shareholders of record at the close of business on December 10, 2026.
What drove it
- Third-quarter core income increased primarily because of higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses.
- Net investment income of $1.098 billion pre-tax ($908 million after-tax) increased 6%, driven by the long-term fixed income investment portfolio, a higher yield and growth in average invested assets.
- The consolidated combined ratio improved 0.5 points to 86.8%, as a 1.9-point benefit from higher net favorable prior year reserve development outweighed a 1.2-point increase from catastrophe losses and a 0.2-point increase in the underlying combined ratio.
- Business Insurance segment income increased primarily due to favorable reserve development versus unfavorable development in the prior-year quarter and higher net investment income.
- Bond & Specialty Insurance segment income increased due to higher favorable reserve development, higher underlying underwriting gain and higher net investment income.
- Personal Insurance underlying combined ratio improved 1.0 points to 76.7%, primarily reflecting improvement in Automobile.
Concerns
- Third-quarter catastrophe losses, net of reinsurance, were $(538) million, compared with $(402) million in the prior-year quarter, primarily from severe wind and hail storms in multiple states.
- The consolidated underlying combined ratio increased 0.2 points to 84.1%.
- Personal Insurance segment income decreased $101 million to $706 million due primarily to higher catastrophe losses.
- Personal Insurance net written premiums declined 7%; excluding the impact of the Canadian sale, they declined 3%.
- Book value per share decreased 6% from year-end 2025 to $141.48, primarily amid higher net unrealized investment losses driven by higher interest rates.
- Business Insurance underlying combined ratio increased 0.6 points to 88.9%.
What to watch
- Whether Business Insurance can sustain premium growth after net written premiums increased 3% in the quarter and 4% excluding the sale of Canadian operations.
- The level of catastrophe losses after third-quarter catastrophe losses increased 1.2 points on the consolidated combined ratio.
- Personal Insurance premium trends and whether the 1.0-point improvement in its underlying combined ratio continues.
- The effect of higher interest rates on net unrealized investment losses, book value per share and the debt-to-capital ratio.
- Reserve development, including the $295 million addition to asbestos reserves within Business Insurance favorable reserve development.
- Capital deployment under the remaining $2.415 billion of share repurchase authorization capacity.
Balance sheet and cash flow
- Shareholders’ equity was $28.995 billion, down 12% from year-end 2025.
- Net unrealized investment losses included in shareholders’ equity were $8.049 billion pre-tax ($6.352 billion after-tax), compared to $1.862 billion pre-tax ($1.478 billion after-tax) at year-end 2025.
- Statutory capital and surplus was $31.596 billion at the end of the quarter.
- Debt was $9,813 million as of September 30, 2026, compared with $9,267 million as of December 31, 2025.
- Debt-to-capital ratio was 25.3%; debt-to-capital excluding after-tax net unrealized investment losses was 21.7%.
- Invested assets were $100,588 million as of September 30, 2026, compared with $103,684 million as of September 30, 2025.
- Operating cash flow and free cash flow were not reported.
Analysis
Travelers reported a stronger third quarter, with net income of $1.917 billion and core income of $1.947 billion, compared with $1.888 billion and $1.867 billion, respectively, in the prior-year quarter. Net income per diluted share increased to $9.04 from $8.24, while core income per diluted share increased to $9.18 from $8.14. The company stated that the per-share amounts benefited from share repurchases. For the first nine months, net income was $5.836 billion and core income was $5.803 billion, with both results materially above the corresponding prior-year period.
Underwriting remained profitable. The consolidated combined ratio improved 0.5 points to 86.8%, supported by a 1.9-point benefit from higher net favorable prior year reserve development. The underlying combined ratio rose 0.2 points to 84.1%, while catastrophe losses added 1.2 points to the combined ratio. Underwriting gain increased to $1.432 billion, but pre-tax underlying underwriting income was $1.736 billion versus $1.758 billion in the prior-year quarter. The quarter included $234 million of net favorable prior year reserve development across all three segments and a $295 million addition to asbestos reserves within Business Insurance reserve development.
Premium performance was mixed across the portfolio. Business Insurance net written premiums increased 3% to $5.868 billion and Bond & Specialty Insurance increased 12% to $1.209 billion. Personal Insurance net written premiums declined 7% to $4.403 billion, though the company said the comparable prior-year quarter included $167 million from Canadian operations divested in the first quarter of 2026. Excluding the divestiture, consolidated net written premiums increased 2%, Business Insurance grew 4%, Bond & Specialty grew 13%, and Personal Insurance declined 3%.
Investment income was a meaningful earnings contributor. Record third-quarter net investment income was $1.098 billion pre-tax and $908 million after-tax, up 6% according to the release, driven by higher yield and growth in average invested assets in the long-term fixed income portfolio. The quarter also included net realized investment losses of $34 million pre-tax and $30 million after-tax, compared with net realized investment gains of $27 million pre-tax and $21 million after-tax in the prior-year quarter.
Capital returns were substantial, with $1.769 billion returned to shareholders during the quarter, including $1.508 billion of repurchases. Shareholders’ equity declined 12% from year-end 2025 to $28.995 billion, primarily due to higher net unrealized investment losses, repurchases and dividends, partly offset by net income. The company reported no quantitative forward guidance. Management said it was well positioned to finish the year strong and expressed confidence heading into 2027 and beyond.
Management, verbatim
We are pleased to report excellent third quarter results.
Alan Schnitzer, Chairman and Chief Executive Officer
Our high-quality investment portfolio generated after-tax net investment income of $908 million, an increase of 7%.
Alan Schnitzer, Chairman and Chief Executive Officer
Our strong underwriting and investment results through the first nine months of the year reflect the strength of our franchise.
Alan Schnitzer, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative forward revenue guidance
- Quantitative forward earnings guidance
- Quantitative combined-ratio guidance
- Prior outlook for comparison
- Operating cash flow
- Free cash flow
- Cash and cash equivalents
- Gross margin
- Operating income
- Operating expenses
- Tax rate
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.