Travelers third-quarter results show net income of $1.917 billion and core income of $1.947 billion, according to the company’s release filed with the SEC as an exhibit to a current report. The release also reports a consolidated combined ratio of 86.8% and underlying combined ratio of 84.1%.
Per-share earnings and return on equity at Travelers
The Travelers Companies, Inc. put its per-share figures in the headline of its third-quarter results release: “Third Quarter 2026 Net Income per Diluted Share of $9.04 and Core Income per Diluted Share of $9.18”.
The same release gives the return metrics under the headline “Third Quarter 2026 Return on Equity of 24.7% and Core Return on Equity of 22.1%”.
The release sets the quarter against the prior year quarter, as in this sentence. Core income in the current quarter was $1.947 billion, or $9.18 per diluted share, compared to $1.867 billion, or $8.14 per diluted share, in the prior year quarter.
On the movement in core income, Travelers stated the following. Core income of $1.947 billion increased $80 million, primarily due to higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses.
“We are pleased to report excellent third quarter results,” said Alan Schnitzer, Chairman and Chief Executive Officer.
InsuraBeat has separate coverage of its second-quarter results.
Higher favorable reserve development drives the combined ratio improvement
Travelers also broke down the change in its consolidated combined ratio in the release. The combined ratio of 86.8% improved 0.5 points due to higher net favorable prior year reserve development (1.9 points), partially offset by higher catastrophe losses (1.2 points) and a higher underlying combined ratio (0.2 points).
Beyond the combined ratio, Travelers also reported underwriting results for the quarter, giving underwriting income of $1.432 billion pre-tax and underlying underwriting income of $1.736 billion pre-tax.
On reserve development across the business, the company said in the release: Net favorable prior year reserve development in all three segments totaled $234 million pre-tax.
On asbestos reserves, Travelers stated the following. Net favorable prior year reserve development occurred in all segments, including an addition to asbestos reserves of $295 million.
On the source of catastrophe losses, Travelers said in the SEC exhibit that catastrophe losses primarily resulted from severe wind and hail storms in multiple states.
InsuraBeat has separate coverage of Chubb’s second-quarter underwriting gain.
Net written premiums and record net investment income
On premium volume for the quarter as a whole, Travelers reported net written premiums of $11.480 billion.
On investment income, Travelers described the result as follows. Record net investment income of $1.098 billion pre-tax ($908 million after-tax) increased 6%.
Travelers also stated what drove the rise in net investment income: the increase was driven by the long-term fixed income investment portfolio which benefited from a higher yield and growth in average invested assets, according to its results release.
InsuraBeat has separate coverage of Progressive’s September results.
Business Insurance and Bond & Specialty income rise as Personal Insurance income declines
The segments covered in the release are Business Insurance, Bond & Specialty Insurance and Personal Insurance. Starting with Business Insurance, the company stated the following in its release. Segment income for Business Insurance was $1.036 billion after-tax, an increase of $129 million.
In that segment, the combined ratio of 90.9% improved 2.0 points. In the company’s own words, the segment’s underlying combined ratio was an excellent 88.9%, and its net written premiums of $5.868 billion increased 3%.
Moving to Bond & Specialty Insurance, the company then stated the following for that segment. Segment income for Bond & Specialty Insurance was $309 million after-tax, an increase of $59 million.
There, the combined ratio of 77.3% improved 4.3 points due to higher net favorable prior year reserve development (4.4 points), partially offset by higher catastrophe losses (0.1 points). In the company’s own words again, the underlying combined ratio was an excellent 85.8%, and net written premiums of $1.209 billion increased 12%.
The last of the three segments in the release is Personal Insurance, and the company stated the following for it. Segment income for Personal Insurance was $706 million after-tax, a decrease of $101 million.
In Personal Insurance, the combined ratio of 83.5% increased 2.2 points due to higher catastrophe losses (3.2 points), partially offset by an improvement in the underlying combined ratio (1.0 points). The release adds that the underlying combined ratio of 76.7% improved 1.0 points, primarily reflecting improvement in Automobile, and that net written premiums of $4.403 billion decreased 7%. A footnote in the release adds that net written premiums in the prior year quarter included $167 million related to the Canadian operations which the Company divested in the first quarter of 2026.
InsuraBeat has separate coverage of the US property/casualty underwriting gain report.
Share repurchases and book value per share
Turning to capital management, Travelers reported the following in the release. Total capital of $1.769 billion returned to shareholders, including $1.508 billion of share repurchases.
On the share repurchase programme, the company stated in the same document that it 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, as set out in the release.
On book value, Travelers’ book value per share of $141.48 decreased 6% from year-end 2025. Its adjusted book value per share of $172.47, which excludes net unrealized investment losses, increased 9% over year-end 2025.
