Travelers Reports Excellent Second Quarter and Year-to-Date Results

Second Quarter 2026 Net Income per Diluted Share of $10.26 and Core Income per Diluted Share of $10.04

Second Quarter 2026 Return on Equity of 27.1% and Core Return on Equity of 24.9%

• Second quarter net income of $2.208 billion and core income of $2.160 billion.
• Underlying underwriting income of $1.678 billion pre-tax.
• Improved consolidated combined ratio of 83.6% and underlying combined ratio of 84.1%.
• Catastrophe losses of $518 million pre-tax, compared to $927 million pre-tax in the prior year quarter.
• Net favorable prior year reserve development in all three segments totaled $578 million pre-tax.
• Net written premiums of $11.529 billion.
• Net investment income increased 14% to $883 million after-tax.
• Total capital of $1.577 billion returned to shareholders, including $1.311 billion of share repurchases.

NEW YORK--(BUSINESS WIRE)--The Travelers Companies, Inc. today reported net income of $2.208 billion, or $10.26 per diluted share, for the quarter ended June 30, 2026, compared to $1.509 billion, or $6.53 per diluted share, in the prior year quarter. Core income in the current quarter was $2.160 billion, or $10.04 per diluted share, compared to $1.504 billion, or $6.51 per diluted share, in the prior year quarter. Core income increased primarily due to lower catastrophe losses, higher net favorable prior year reserve development, higher net investment income and a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses). Net realized investment gains in the current quarter were $60 million pre-tax ($48 million after-tax), compared to $6 million pre-tax ($5 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

“We are pleased to report excellent second quarter results with very strong underwriting performance across all three segments and a terrific result from our investment portfolio,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income for the quarter was $2.2 billion, or $10.04 per diluted share. Core return on equity for the quarter was 24.9%, bringing core return on equity over the last four quarters to 24.2%. Second quarter underwriting income of $1.7 billion pre-tax benefited from continued strong levels of underlying underwriting income and net favorable prior year development. Reported and underlying profitability were both excellent. The combined ratio improved to 83.6%, and the underlying combined ratio improved to 84.1% driven by a lower underlying loss ratio. Our high-quality investment portfolio generated after-tax net investment income of $883 million, an increase of 14%. These results, along with our exceptionally strong balance sheet, enabled us to return more than $1.5 billion of excess capital to our shareholders during the quarter, including $1.3 billion of share repurchases.

“Through disciplined marketplace execution across all three segments, we generated net written premiums in the quarter of $11.5 billion. In Business Insurance, we grew net written premiums to $6.0 billion, 5% higher than the prior year quarter adjusting for the sale of our Canadian business. We grew our leading Middle Market business by 7% and small commercial Select business by 4%. Renewal premium change in the segment was 4.8%, with stable renewal premium change of 6.1% in our core Middle Market business and higher renewal premium change of 9.4% in our small commercial Select business. Retention remained very strong at 86%, and new business was a record $805 million, up 8% over the prior year quarter. In Bond & Specialty Insurance, we grew net written premiums by 14% to $1.2 billion. In our high-quality Management Liability business renewal premium change remained steady while retention improved to an excellent 88%. New business in the segment was up 8% over the prior year quarter. In our leading Surety business, we grew net written premiums by 40%, reflecting success with large projects and continued strong production across the portfolio. In Personal Insurance, we generated net written premiums of $4.3 billion, with solid retention in both Auto and Homeowners and higher new business in our Homeowners business.

“The strong results we have delivered in the first half of the year reflect durable underlying fundamentals, the discipline with which we manage our balance sheet and the successful execution of our winning strategy. The scale of our earnings and cash flow enable us to invest in differentiating technology, including AI, at a level that sets us apart, further strengthening the competitive advantages that power those results. Operating from this position of strength, we remain highly confident in the outlook for Travelers.”

Second Quarter 2026 Results
(All comparisons vs. second quarter 2025, unless noted otherwise)

Net income of $2.208 billion increased $699 million, driven by higher core income and higher net realized investment gains. Core income of $2.160 billion increased $656 million, primarily due to lower catastrophe losses, higher net favorable prior year reserve development, higher net investment income and a higher underlying underwriting gain. Net realized investment gains were $60 million pre-tax ($48 million after-tax), compared to $6 million pre-tax ($5 million after-tax) in the prior year quarter.

Combined ratio:

• The combined ratio of 83.6% improved 6.7 points due to lower catastrophe losses (3.6 points), higher net favorable prior year reserve development (2.5 points) and an improvement in the underlying combined ratio (0.6 points).

• The underlying combined ratio improved 0.6 points to an excellent 84.1%. See below for further details by segment.

• Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

• Catastrophe losses primarily resulted from severe wind and hail storms in multiple states.

Net investment income of $1.070 billion pre-tax ($883 million after-tax) increased 14%, driven by the long-term fixed income investment portfolio which benefited from a higher yield and growth in average invested assets.

Net written premiums of $11.529 billion were comparable with the prior year quarter. Net written premiums in the prior year quarter included $273 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased 2% over the prior year quarter. See below for further details by segment.

Year-to-Date 2026 Results
(All comparisons vs. year-to-date 2025, unless noted otherwise)

Net income of $3.919 billion increased $2.015 billion, driven by higher core income and net realized investment gains compared to net realized investment losses in the prior year period. Core income of $3.856 billion increased $1.909 billion, primarily due to lower catastrophe losses, higher net favorable prior year reserve development, higher net investment income and a higher underlying underwriting gain. Net realized investment gains were $109 million pre-tax ($63 million after-tax), compared to net realized investment losses of $55 million pre-tax ($43 million after-tax) in the prior year period.

Combined ratio:

• The combined ratio of 86.1% improved 10.2 points due to lower catastrophe losses (8.8 points) and higher net favorable prior year reserve development (1.4 points).

• The underlying combined ratio of 84.7% was comparable with the prior year period. See below for further details by segment.

• The underwriting expense ratio increased 0.6 points to 29.0%. The Company expects the full year 2026 expense ratio to be approximately 28.5%.

• Net favorable prior year reserve development occurred in all segments. See below for further details by segment.

• Catastrophe losses included the second quarter events described above, as well as severe wind and hail storms and winter storms in multiple states in the first three months of 2026.

Net investment income of $2.078 billion pre-tax ($1.716 billion after-tax) increased 11% driven by the same factors described above for the second quarter of 2026.

Net written premiums of $21.867 billion decreased 1%. Net written premiums in the prior year period included $496 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased 1% over the prior year period. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $33.121 billion increased 1% over year-end 2025, primarily due to net income of $3.919 billion, partially offset by common share repurchases, dividends to shareholders and higher net unrealized investment losses. Net unrealized investment losses included in shareholders’ equity were $2.478 billion pre-tax ($1.960 billion after-tax), compared to $1.862 billion pre-tax ($1.478 billion after-tax) at year-end 2025. The increase in net unrealized investment losses was driven by higher interest rates. Book value per share of $158.81 increased 5% over year-end 2025. Adjusted book value per share of $168.20, which excludes net unrealized investment losses, increased 6% over year-end 2025.

The Company repurchased 4.3 million shares of its common stock during the second quarter at an average price of $304.06 per share for a total cost of $1.311 billion. At June 30, 2026, the Company had $3.915 billion of capacity remaining under its share repurchase authorizations approved by the Board of Directors. At the end of the quarter, statutory capital and surplus was $31.433 billion, and the ratio of debt-to-capital was 21.5%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 20.5%, within the Company’s target range of 15% to 25%.

The Board of Directors declared a regular quarterly dividend of $1.25 per share. The dividend is payable September 30, 2026 to shareholders of record at the close of business on September 10, 2026.

Second Quarter 2026 Results
(All comparisons vs. second quarter 2025, unless noted otherwise)

Segment income for Business Insurance was $1.198 billion after-tax, an increase of $385 million. Segment income increased primarily due to higher net favorable prior year reserve development, lower catastrophe losses and higher net investment income.

Combined ratio:

• The combined ratio of 86.8% improved 6.8 points due to higher net favorable prior year reserve development (4.3 points), lower catastrophe losses (2.4 points) and an improvement in the underlying combined ratio (0.1 points).

• The underlying combined ratio was an excellent 88.2%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years and in the commercial property product line for recent accident years.

Net written premiums of $5.984 billion increased 3%. Net written premiums in the prior year quarter included $79 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 5%.

Year-to-Date 2026 Results
(All comparisons vs. year-to-date 2025, unless noted otherwise)

Segment income for Business Insurance was $2.037 billion after-tax, an increase of $541 million. Segment income increased primarily due to higher net favorable prior year reserve development, lower catastrophe losses and higher net investment income, partially offset by a lower underlying underwriting gain.

Combined ratio:

• The combined ratio of 90.2% improved 4.7 points due to higher net favorable prior year reserve development (3.0 points) and lower catastrophe losses (2.4 points), partially offset by a higher underlying combined ratio (0.7 points).

• The underlying combined ratio was an excellent 89.0%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the workers’ compensation and commercial property product lines for multiple accident years.

Net written premiums of $11.770 billion increased 2%. Net written premiums in the prior year period included $146 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 4%.

Second Quarter 2026 Results
(All comparisons vs. second quarter 2025, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $234 million after-tax, a decrease of $10 million. Segment income decreased primarily due to a lower underlying underwriting gain and lower net favorable prior year reserve development, partially offset by higher net investment income.

Combined ratio:

• The combined ratio of 82.8% increased 2.5 points due to a higher underlying combined ratio (1.8 points) and lower net favorable prior year reserve development (0.8 points), partially offset by lower catastrophe losses (0.1 points).

• The underlying combined ratio was very strong at 89.6%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the general liability product line for management liability coverages for multiple accident years and in the fidelity and surety product line for recent accident years.

Net written premiums of $1.237 billion increased 14%. Net written premiums in the prior year quarter included $16 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 16%.

Year-to-Date 2026 Results
(All comparisons vs. year-to-date 2025, unless noted otherwise)

Segment income for Bond & Specialty Insurance was $488 million after-tax, an increase of $24 million. Segment income increased primarily due to higher net investment income, lower catastrophe losses and a higher underlying underwriting gain, partially offset by lower net favorable prior year reserve development. The underlying underwriting gain benefited from a non-recurring tax item.

Combined ratio:

• The combined ratio of 83.0% increased 1.6 points due to a higher underlying combined ratio (1.7 points) and lower net favorable prior year reserve development (0.5 points), partially offset by lower catastrophe losses (0.6 points).

• The underlying combined ratio was very strong at 89.2%.

• Net favorable prior year reserve development was primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years and in the general liability product line for management liability coverages for multiple accident years.

Net written premiums of $2.303 billion increased 11%. Net written premiums in the prior year period included $26 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 12%.

Second Quarter 2026 Results
(All comparisons vs. second quarter 2025, unless noted otherwise)

Segment income for Personal Insurance was $827 million after-tax, an increase of $293 million. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain, higher net favorable prior year reserve development and higher net investment income.

Combined ratio:

• The combined ratio of 79.5% improved 8.9 points due to lower catastrophe losses (6.0 points), an improvement in the underlying combined ratio (2.0 points) and higher net favorable prior year reserve development (0.

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