Travelers Companies, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 16 October 2026: press release. The quarter’s numbers.

Key takeaways

Net income and core income both rose: Net income was $1.917 billion, or $9.04 per diluted share, against $8.24 a year earlier. Core income was $1.947 billion, or $9.18 per diluted share. Source
Reserve gains and investment income lifted core income: Core income rose $80 million, mainly from higher net favorable prior year reserve development and higher net investment income, partly offset by higher catastrophe losses. Source
Catastrophe losses rose from a year earlier: Catastrophe losses net of reinsurance were $538 million pre-tax against $402 million; the combined ratio impact was 4.8 points, mainly from severe wind and hail storms. Source
Reserve development added $234 million: Favorable prior year development was $234 million pre-tax, or 2.1 points on the combined ratio, with favorable development in all three segments. Source
Share repurchases of $1.508 billion: The company bought back 4.0 million shares at an average $376.00, and $2.415 billion of authorization capacity remained at September 30, 2026. Source
Adjusted book value per share rose 9%: Adjusted book value per share was $172.47, up 9% from year-end 2025, while reported book value per share was $141.48, down 6%. Source
Premiums up 2% excluding Canadian sale: Net written premiums were $11.480 billion, slightly up on the prior year; excluding the sale of Canadian operations, they rose 2%. Source

“It was another in a run of successful quarters, with very strong underwriting performance across all three segments and a record result from our investment portfolio.”
Alan Schnitzer, Chairman and Chief Executive Officer

Results and earnings drivers

Net income and core income both rose: Net income was $1.917 billion, or $9.04 per diluted share, against $8.24 a year earlier. Core income was $1.947 billion, or $9.18 per diluted share. Source
Reserve gains and investment income lifted core income: Core income rose $80 million, mainly from higher net favorable prior year reserve development and higher net investment income, partly offset by higher catastrophe losses. Source
Buybacks lifted per-share results: Diluted weighted average shares fell to 210.6 million from 227.5 million, and per-share amounts benefited from the repurchases. Source
Realized investment losses reversed prior gains: Net realized investment losses were $34 million pre-tax, compared with $27 million of gains a year earlier; after tax the loss was $30 million. Source
Nine-month net income rose on lower catastrophes: Nine-month net income was $5.836 billion, or $27.05 per diluted share, against $3.792 billion, or $16.45, last year; nine-month core income was $5.803 billion. Source

Business Insurance segment

Business Insurance segment income rose: Segment income was $1.036 billion, up $129 million, mainly on net favorable prior year development compared with unfavorable development a year earlier, and higher net investment income. Source
Reported ratio improved, underlying ratio rose: Reported combined ratio improved 2.0 points to 90.9%, mainly on prior year development; underlying combined ratio rose 0.6 points to 88.9%. Source
Reserve gains and asbestos addition: Favorable development came from better loss experience across major product lines for recent accident years, net of a $295 million addition to asbestos reserves. Source
Business Insurance premiums up 3%: Net written premiums were $5.868 billion; Middle Market rose 7% and Domestic Select Accounts rose 1%, while International fell 4%. Source

“Profitability was excellent on both a reported and underlying basis.”
Alan Schnitzer, Chairman and Chief Executive Officer

Bond & Specialty Insurance segment

Bond & Specialty segment income grew: Segment income was $309 million, up $59 million, on higher net favorable prior year development, a higher underlying underwriting gain and higher net investment income. Source
Surety premiums grew 21%: Surety net written premiums rose 21% to $414 million, while total segment net written premiums rose 12% to $1.209 billion. Source
Combined ratio improved on reserves: Combined ratio was 77.3%, improved 4.3 points on favorable prior year development of 4.4 points; underlying combined ratio was 85.8%, unchanged. Source
Management Liability renewal change improved: Management Liability renewal premium change rose to 3.8%, retention held at 89%, and new business in the segment was up 18%. Source

Personal Insurance segment

Personal segment income declined: Segment income was $706 million, down $101 million, mainly because catastrophe losses rose. Source
Catastrophe losses lifted combined ratio: Combined ratio rose 2.2 points to 83.5% as catastrophe losses added 3.2 points, partly offset by a 1.0 point improvement in the underlying ratio. Source
Underlying ratio improved in Automobile: Underlying combined ratio was 76.7%, improved 1.0 points, primarily on Automobile. Favorable development came from better recent accident-year loss experience in both lines. Source
Personal premiums fell 7%: Net written premiums were $4.403 billion, down 7%; Automobile fell 8% while Homeowners and Other rose 1%. Source

“We are well positioned to finish the year strong.”
Alan Schnitzer, Chairman and Chief Executive Officer

Catastrophes and reserve development

Catastrophe losses rose from a year earlier: Catastrophe losses net of reinsurance were $538 million pre-tax against $402 million; the combined ratio impact was 4.8 points, mainly from severe wind and hail storms. Source
Nine-month catastrophe losses fell: Nine-month catastrophe losses were $1.817 billion pre-tax, against $3.595 billion, and were 5.6 points on the combined ratio compared with 11.0 points last year. Source
Reserve development added $234 million: Favorable prior year development was $234 million pre-tax, or 2.1 points on the combined ratio, with favorable development in all three segments. Source

Investment income and portfolio

Net investment income set a record: Pre-tax net investment income was $1.098 billion, up 6%, from a higher yield on the long-term fixed income portfolio and growth in average invested assets. Source
Nine-month investment income up 9%: Nine-month pre-tax net investment income was $3.176 billion, up 9%, from the same drivers. Source
Unrealized investment losses increased: Net unrealized investment losses were $8.049 billion pre-tax, compared with $1.862 billion at year-end 2025. Source

Capital, book value and shareholder returns

Share repurchases of $1.508 billion: The company bought back 4.0 million shares at an average $376.00, and $2.415 billion of authorization capacity remained at September 30, 2026. Source
Adjusted book value per share rose 9%: Adjusted book value per share was $172.47, up 9% from year-end 2025, while reported book value per share was $141.48, down 6%. Source
Shareholders’ equity declined 12%: Shareholders’ equity was $28.995 billion, down 12% from year-end 2025, with buybacks, dividends and net unrealized losses, partly offset by nine-month net income. Source
Debt-to-capital within target range: Debt-to-capital was 25.3%, or 21.7% excluding after-tax net unrealized investment losses, within the 15% to 25% target range. Statutory capital and surplus was $31.596 billion. Source
Regular dividend declared at $1.25: The Board declared a regular quarterly dividend of $1.25 per share. Source

Premium growth and demand

Premiums up 2% excluding Canadian sale: Net written premiums were $11.480 billion, slightly up on the prior year; excluding the sale of Canadian operations, they rose 2%. Source
Business Insurance grew outside Property: Business Insurance grew in every line except Property, with net written premiums of $5.9 billion, up 4% after adjusting for the Canadian sale. Source
Renewal premium change and retention: Business Insurance renewal premium change was 4.1%, or 7.0% excluding Property; retention was 86%, higher or stable in every line. Source
New business at third-quarter record: New business in Business Insurance was a third-quarter record of $699 million, up 4%. Source
Personal retention solid, Homeowners new business higher: Personal Insurance premiums of $4.4 billion had solid retention in Auto and Homeowners, with higher Homeowners new business. Source

Loss and expense ratios

Loss and LAE ratio improved: Loss and loss adjustment expense ratio fell to 57.9% from 58.7%, while the underwriting expense ratio rose to 28.9% from 28.6%. Source
Expense ratio rose slightly: Nine-month underwriting expense ratio was 29.0% against 28.5%, with general and administrative expenses of $4.688 billion against $4.576 billion. Source
Claims expenses fell year over year: Quarterly claims and claim adjustment expenses were $6.487 billion, down from $6.594 billion; nine-month expenses were $18.791 billion, down from $21.389 billion. Source

Coming up, as management said on 16 October 2026

Quarterly dividend payment and record date: The $1.25 regular dividend is payable December 31, 2026, to holders of record at close of business December 10, 2026. Source
Innovation agenda carried into 2027: Management said its advances on the innovation agenda underpin its confidence heading into 2027 and beyond. Source

Figures management reported

Figure	Reported
Combined ratio Source	86.8%
Underlying combined ratio Source	84.1%
Net written premiums Source	$11.480 billion
Prior year reserve development Source	$234 million pre-tax favorable
Catastrophe losses Source	$538 million pre-tax
Net investment income Source	$1.098 billion pre-tax
Book value per share Source	$141.48

Risks management discussed

External: Severe wind and hail storms in multiple states drove the quarter's catastrophe losses. Source
Financial: Higher interest rates increased net unrealized investment losses, which reduce shareholders’ equity; adjusted book value excludes them. Source
Financial: A $295 million addition to asbestos reserves was recorded this quarter, partly offsetting favorable prior year development. Source
Demand: National Property and Other premiums fell 4% to $809 million, the one line where management reported no growth. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

The Travelers Companies, Inc.

485 Lexington Avenue

New York, NY 10017-2630

www.travelers.com

NYSE: TRV

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

Third Quarter 2026 Net Income per Diluted Share of $9.04 and Core Income per Diluted Share of $9.18

Third Quarter 2026 Return on Equity of 24.7% and Core Return on Equity of 22.1%

Third quarter net income of $1.917 billion and core income of $1.947 billion.
Underwriting income of $1.432 billion pre-tax and underlying underwriting income of $1.736 billion pre-tax.
Strong margins with a consolidated combined ratio of 86.8% and underlying combined ratio of 84.1%.
Net favorable prior year reserve development in all three segments totaled $234 million pre-tax.
Net written premiums of $11.480 billion.
Record net investment income of $1.098 billion pre-tax ($908 million after-tax) increased 6%.
Total capital of $1.769 billion returned to shareholders, including $1.508 billion of share repurchases.

New York, October 16, 2026 - The Travelers Companies, Inc. today reported net income of $1.917 billion, or $9.04 per diluted share, for the quarter ended September 30, 2026, compared to $1.888 billion, or $8.24 per diluted share, in the prior year quarter. 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. Core income increased primarily due to higher net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Net realized investment losses in the current quarter were $34 million pre-tax ($30 million after-tax), compared to net realized investment gains of $27 million pre-tax ($21 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.

Consolidated Highlights

($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)		Three Months Ended September 30,						Nine Months Ended September 30,
	2026		2025		Change		2026		2025		Change
Net written premiums		$11,480		$11,473		- %		$33,347		$33,531		(1)%
Total revenues		$12,412		$12,470		-		$36,489		$36,396		-
Net income		$1,917		$1,888		2		$5,836		$3,792		54
per diluted share		$9.04		$8.24		10		$27.05		$16.45		64
Core income		$1,947		$1,867		4		$5,803		$3,814		52
per diluted share		$9.18		$8.14		13		$26.90		$16.54		63
Diluted weighted average shares outstanding		210.6		227.5		(7)		214.2		228.9		(6)
Combined ratio		86.8%		87.3%		(0.5)pts		86.3%		93.2%		(6.9)pts
Underlying combined ratio		84.1%		83.9%		0.2pts		84.5%		84.4%		0.1pts
Return on equity		24.7%		24.7%		- pts		24.3%		17.3%		7.0pts
Core return on equity		22.1%		22.6%		(0.5)pts		22.3%		15.8%		6.5pts

	As of			Change From
	September 30, 2026	December 31, 2025	September 30, 2025	December 31, 2025	September 30, 2025
Book value per share	$141.48	$151.21	$141.72	(6)%	- %
Adjusted book value per share	172.47	158.01	150.55	9%	15%

See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.

“We are pleased to report excellent third quarter results,” said Alan Schnitzer, Chairman and Chief Executive Officer. “It was another in a run of successful quarters, with very strong underwriting performance across all three segments and a record result from our investment portfolio. Core income for the quarter was $1.9 billion, or $9.18 per diluted share. Core return on equity for the quarter was 22.1%, bringing core return on equity over the last four quarters to 24.1%. Third quarter underwriting income of $1.4 billion pre-tax benefited from continued strong levels of underlying underwriting income and net favorable prior year development. Profitability was excellent on both a reported and underlying basis. The combined ratio improved to 86.8%, and the underlying combined ratio remained very strong at 84.1%.

“Our high-quality investment portfolio generated after-tax net investment income of $908 million, an increase of 7%. These results, along with our exceptionally strong balance sheet, enabled us to return $1.8 billion of excess capital to our shareholders during the quarter, including $1.5 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 in every line other than Property, generating net written premiums of $5.9 billion, up 4% from the prior year quarter adjusting for the sale of our Canadian businesses. Renewal premium change in the segment was 4.1%, including renewal premium change of 5.4% in our core Middle Market business and 7.8% in our small commercial Select business. Excluding the Property line, renewal premium change in the segment was 7.0%. Retention remained very strong at 86% and was higher or stable in every line. Renewal premium change was by and large orderly and when viewed together with retention and returns reflects excellent execution. New business was a third quarter record at $699 million, up 4% over the prior year quarter.

“In Bond & Specialty Insurance, we grew net written premiums by 12% to $1.2 billion. In our high-quality Management Liability business renewal premium change improved sequentially to 3.8% while retention remained steady at an excellent 89%. New business in the segment was up 18% over the prior year quarter. In our leading Surety business, we grew net written premiums by 21%, reflecting continued strong production across the portfolio.

“In Personal Insurance, we generated net written premiums of $4.4 billion, with solid retention in both Auto and Homeowners and higher new business in our Homeowners business.

“Our strong underwriting and investment results through the first nine months of the year reflect the strength of our franchise. We are well positioned to finish the year strong. That momentum, and the advances we are making on our innovation agenda, give us real confidence heading into 2027 and beyond.”

Consolidated Results

	Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)		2026		2025	Change		2026		2025	Change
Underwriting gain:	$1,432		$1,378		$54	$4,343		$2,095		$2,248
Underwriting gain includes:
Net favorable prior year reserve development	234		22		212	1,225		715		510
Catastrophes, net of reinsurance	(538)		(402)		(136)	(1,817)		(3,595)		1,778
Net investment income	1,098		1,033		65	3,176		2,905		271
Other income (expense), including interest expense	(127)		(94)		(33)	(339)		(279)		(60)
Core income before income taxes	2,403		2,317		86	7,180		4,721		2,459
Income tax expense	456		450		6	1,377		907		470
Core income	1,947		1,867		80	5,803		3,814		1,989
Net realized investment gains (losses) after income taxes	(30)		21		(51)	33		(22)		55
Net income	$1,917		$1,888		$29	$5,836		$3,792		$2,044
Combined ratio	86.8%		87.3%		(0.5)pts	86.3%		93.2%		(6.9)pts
Impact on combined ratio
Net favorable prior year reserve development	(2.1)pts		(0.2)pts		(1.9)pts	(3.8)pts		(2.2)pts		(1.6)pts
Catastrophes, net of reinsurance	4.8pts		3.6pts		1.2pts	5.6pts		11.0pts		(5.4)pts
Underlying combined ratio	84.1%		83.9%		0.2pts	84.5%		84.4%		0.1pts
Net written premiums
Business Insurance		$5,868		$5,675	3%		$17,638		$17,165	3%
Bond & Specialty Insurance		1,209		1,080	12		3,512		3,164	11
Personal Insurance		4,403		4,718	(7)		12,197		13,202	(8)
Total		$11,480		$11,473	- %		$33,347		$33,531	(1)%

Third Quarter 2026 Results

Net income of $1.917 billion increased $29 million, driven by higher core income, partially offset by net realized investment losses compared to net realized investment gains in the prior year quarter. 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. Net realized investment losses were $34 million pre-tax ($30 million after-tax), compared to net realized investment gains of $27 million pre-tax ($21 million after-tax) in the prior year quarter.

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).
The underlying combined ratio was an excellent 84.1%. See below for further details by segment.
Net favorable prior year reserve development occurred in all segments, including an addition to asbestos reserves of $295 million. See below for further details by segment.
Catastrophe losses primarily resulted from severe wind and hail storms in multiple states.

Net investment income of $1.098 billion pre-tax ($908 million after-tax) increased 6%, 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 $11.480 billion increased slightly over the prior year quarter. Net written premiums in the prior year quarter included $240 million related to the Canadian operations which the Company divested 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

Net income of $5.836 billion increased $2.044 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 $5.803 billion increased $1.989 billion, primarily due to lower catastrophe losses, higher net favorable prior year reserve development and higher net investment income. Net realized investment gains were $75 million pre-tax ($33 million after-tax), compared to net realized investment losses of $28 million pre-tax ($22 million after-tax) in the prior year period.

The combined ratio of 86.3% improved 6.9 points due to lower catastrophe losses (5.4 points) and higher net favorable prior year reserve development (1.6 points), partially offset by a higher underlying combined ratio (0.1 points).
The underlying combined ratio was an excellent 84.5%. 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 included the third quarter events described above, as well as severe wind and hail storms and winter storms in multiple states in the first six months of 2026.

Net investment income of $3.176 billion pre-tax ($2.624 billion after-tax) increased 9%, driven by the same factors described above for the third quarter of 2026.

Net written premiums of $33.347 billion decreased 1%. Net written premiums in the prior year period included $736 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased 2% over the prior year period. See below for further details by segment.

Shareholders’ Equity

Shareholders’ equity of $28.995 billion decreased 12% from year-end 2025, primarily due to higher net unrealized investment losses, common share repurchases and dividends to shareholders, partially offset by net income of $5.836 billion. 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. The increase in net unrealized investment losses was driven by higher interest rates. Book value per share of $141.48 decreased 6% from year-end 2025. Adjusted book value per share of $172.47, which excludes net unrealized investment losses, increased 9% over year-end 2025.

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. At the end of the quarter, statutory capital and surplus was $31.596 billion, and the ratio of debt-to-capital was 25.3%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 21.7%, 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 December 31, 2026 to shareholders of record at the close of business on December 10, 2026.

Business Insurance Segment Financial Results

	Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)		2026		2025	Change		2026		2025	Change
Underwriting gain:	$522		$392		$130	$1,580		$933		$647
Underwriting gain includes:
Net favorable (unfavorable) prior year reserve development	41		(125)		166	522		28		494
Catastrophes, net of reinsurance	(157)		(139)		(18)	(774)		(1,016)		242
Net investment income	766		727		39	2,236		2,045		191
Other income (expense)	(11)		(1)		(10)	(6)		(8)		2
Segment income before income taxes	1,277		1,118		159	3,810		2,970		840
Income tax expense	241		211		30	737		567		170
Segment income	$1,036		$907		$129	$3,073		$2,403		$670
Combined ratio	90.9%		92.9%		(2.0)pts	90.5%		94.2%		(3.7)pts
Impact on combined ratio
Net (favorable) unfavorable prior year reserve development	(0.7)pts		2.2pts		(2.9)pts	(3.1)pts		(0.2)pts		(2.9)pts
Catastrophes, net of reinsurance	2.7pts		2.4pts		0.3pts	4.6pts		6.1pts		(1.5)pts
Underlying combined ratio	88.9%		88.3%		0.6pts	89.0%		88.3%		0.7pts
Net written premiums by market
Domestic
Select Accounts	$932		$920		1%	$2,978		$2,900		3%
Middle Market	3,448		3,232		7	10,012		9,432		6
National Accounts	286		273		5	973		914		6
National Property and Other	809		841		(4)	2,366		2,446		(3)
Total Domestic	5,475		5,266		4	16,329		15,692		4
International	393		409		(4)	1,309		1,473		(11)
Total	$5,868		$5,675		3%	$17,638		$17,165		3%

Third Quarter 2026 Results

Segment income for Business Insurance was $1.036 billion after-tax, an increase of $129 million. Segment income increased primarily due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter and higher net investment income, partially offset by a lower underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses) and higher catastrophe losses.

The combined ratio of 90.9% improved 2.0 points due to net favorable prior year reserve development compared to net unfavorable prior year reserve development in the prior year quarter (2.9 points), partially offset by a higher underlying combined ratio (0.6 points) and higher catastrophe losses (0.3 points).
The underlying combined ratio was an excellent 88.9%.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in all major product lines primarily for recent accident years, partially offset by an addition to asbestos reserves of $295 million.

Net written premiums of $5.868 billion increased 3%. Net written premiums in the prior year quarter included $59 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 4%.

Year-to-Date 2026 Results

Segment income for Business Insurance was $3.073 billion after-tax, an increase of $670 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.

The combined ratio of 90.5% improved 3.7 points due to higher net favorable prior year reserve development (2.9 points) and lower catastrophe losses (1.5 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 all major product lines for recent accident years, partially offset by an addition to reserves related to run-off operations, including an addition to asbestos reserves of $295 million.

Net written premiums of $17.638 billion increased 3%. Net written premiums in the prior year period included $205 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 4%.

Bond & Specialty Insurance Segment Financial Results

	Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)		2026		2025	Change		2026		2025	Change
Underwriting gain:	$246		$188		$58	$590		$554		$36
Underwriting gain includes:
Net favorable prior year reserve development	95		43		52	235		191		44
Catastrophes, net of reinsurance	(1)		-		(1)	(13)		(24)		11
Net investment income	127		116		11	353		325		28
Other income	5		7		(2)	12		15		(3)
Segment income before income taxes	378		311		67	955		894		61
Income tax expense	69		61		8	158		180		(22)
Segment income	$309		$250		$59	$797		$714		$83
Combined ratio	77.3%		81.6%		(4.3)pts	81.0%		81.5%		(0.5)pts
Impact on combined ratio
Net favorable prior year reserve development	(8.6)pts		(4.2)pts		(4.4)pts	(7.4)pts		(6.2)pts		(1.2)pts
Catastrophes, net of reinsurance	0.1pts		- pts		0.1pts	0.4pts		0.8pts		(0.4)pts
Underlying combined ratio	85.8%		85.8%		- pts	88.0%		86.9%		1.1pts
Net written premiums
Domestic
Management Liability	$649		$613		6%	$1,832		$1,755		4%
Surety	414		342		21	1,275		1,017		25
Total Domestic	1,063		955		11	3,107		2,772		12
International	146		125		17	405		392		3
Total	$1,209		$1,080		12%	$3,512		$3,164		11%

Third Quarter 2026 Results

Segment income for Bond & Specialty Insurance was $309 million after-tax, an increase of $59 million. Segment income increased primarily due to higher net favorable prior year reserve development, a higher underlying underwriting gain and higher net investment income.

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).
The underlying combined ratio was an excellent 85.8%.
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 $1.209 billion increased 12%. Net written premiums in the prior year quarter included $14 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 13%.

Year-to-Date 2026 Results

Segment income for Bond & Specialty Insurance was $797 million after-tax, an increase of $83 million. Segment income increased primarily due to higher net favorable prior year reserve development, higher net investment income, a higher underlying underwriting gain and lower catastrophe losses. The underlying underwriting gain benefited from a non-recurring tax item.

The combined ratio of 81.0% improved 0.5 points due to higher net favorable prior year reserve development (1.2 points) and lower catastrophe losses (0.4 points), partially offset by a higher underlying combined ratio (1.1 points).
The underlying combined ratio was an excellent 88.0%.
Net favorable prior year reserve development was primarily driven by the same factors described above for the third quarter of 2026.

Net written premiums of $3.512 billion increased 11%. Net written premiums in the prior year period included $40 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 12%.

Personal Insurance Segment Financial Results

	Three Months Ended September 30,					Nine Months Ended September 30,
($ in millions and pre-tax, unless noted otherwise)		2026		2025	Change		2026		2025	Change
Underwriting gain:	$664		$798		$(134)	$2,173		$608		$1,565
Underwriting gain includes:
Net favorable prior year reserve development	98		104		(6)	468		496		(28)
Catastrophes, net of reinsurance	(380)		(263)		(117)	(1,030)		(2,555)		1,525
Net investment income	205		190		15	587		535		52
Other income	10		24		(14)	41		59		(18)
Segment income before income taxes	879		1,012		(133)	2,801		1,202		1,599
Income tax expense	173		205		(32)	564		235		329
Segment income	$706		$807		$(101)	$2,237		$967		$1,270
Combined ratio	83.5%		81.3%		2.2pts	82.0%		94.8%		(12.8)pts
Impact on combined ratio
Net favorable prior year reserve development	(2.4)pts		(2.4)pts		- pts	(3.8)pts		(3.8)pts		- pts
Catastrophes, net of reinsurance	9.2pts		6.0pts		3.2pts	8.4pts		19.7pts		(11.3)pts
Underlying combined ratio	76.7%		77.7%		(1.0)pts	77.4%		78.9%		(1.5)pts
Net written premiums
Domestic
Automobile	$1,892		$2,062		(8)%	$5,506		$5,889		(7)%
Homeowners and Other	2,511		2,489		1	6,691		6,822		(2)
Total Domestic	4,403		4,551		(3)	12,197		12,711		(4)
International	-		167		(100)	-		491		(100)
Total	$4,403		$4,718		(7)%	$12,197		$13,202		(8)%

Third Quarter 2026 Results

Segment income for Personal Insurance was $706 million after-tax, a decrease of $101 million. Segment income decreased primarily due to higher catastrophe losses.

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 underlying combined ratio of 76.7% improved 1.0 points, primarily reflecting improvement in Automobile.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in both the Homeowners and Other and Automobile product lines for recent accident years.

Net written premiums of $4.403 billion decreased 7%. 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. Excluding the impact of the sale, net written premiums decreased 3%.

Year-to-Date 2026 Results

Segment income for Personal Insurance was $2.237 billion after-tax, an increase of $1.270 billion. Segment income increased primarily due to lower catastrophe losses, a higher underlying underwriting gain and higher net investment income, partially offset by lower net favorable prior year reserve development.

The combined ratio of 82.0% improved 12.8 points due to lower catastrophe losses (11.3 points) and an improvement in the underlying combined ratio (1.5 points).
The underlying combined ratio of 77.4% improved 1.5 points, reflecting improvement in both Automobile and Homeowners and Other.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in both the Automobile and Homeowners and Other product lines for recent accident years.

Net written premiums of $12.197 billion decreased 8%. Net written premiums in the prior year period included $491 million related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums decreased 4%.

Financial Supplement and Conference Call

The information in this press release should be read in conjunction with the financial supplement that is available on our website at Travelers.com. Travelers management will discuss the contents of this release and other relevant topics via webcast at 9:00 a.m. Eastern (8:00 a.m. Central) on Friday, October 16, 2026. Investors can access the call via webcast at investor.travelers.com and by dialing 1.833.461.5787 within the United States or 1.585.542.9983 outside the United States. Prior to the webcast, a slide presentation pertaining to the quarterly earnings will be available on the Company’s website.

Following the live event, replays will be available via webcast for one year at investor.travelers.com and by telephone for seven days by dialing 1.833.309.1852 within the United States or 1.929.828.5978 outside the United States. All callers should use conference ID 686305383.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $49 billion in 2025. For more information, visit Travelers.com.

Travelers may use its website and/or social media outlets, such as Facebook and X, as distribution channels of material Company information. Financial and other important information regarding the Company is routinely accessible through and posted on our website at investor.travelers.com, our Facebook page at facebook.com/travelers and our X account (@Travelers) at x.com/travelers. In addition, you may automatically receive email alerts and other information about Travelers when you enroll your email address by visiting the Email Notifications section at investor.travelers.com.

Travelers is organized into the following reportable business segments:

Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd’s.

Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and/or specialty insurance products in Canada, the United Kingdom and the Republic of Ireland, as well as Brazil through a joint venture, in each case utilizing various degrees of financially-based underwriting approaches.

Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services in the United States covering individuals’ personal risks. Personal Insurance’s primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.

Forward-Looking Statements

This press release contains, and management may make, certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “ensures,” “estimates” and similar expressions are used to identify these forward-looking statements. These statements include, among other things, the Company’s statements about:

the Company’s outlook, the impact of trends on its business and its future results of operations and financial condition;
the impact of legislative or regulatory actions or court decisions;
share repurchase plans;
future pension plan contributions;
the sufficiency of the Company’s reserves, including asbestos;
the impact of emerging claims issues as well as other insurance and non-insurance litigation;
the cost and availability of reinsurance coverage;
catastrophe losses and modeling;
the impact of investment, economic and underwriting market conditions, including interest rates, tariffs and inflation;
the Company’s approach to managing its investment portfolio;
the impact of changing climate conditions;
strategic and operational initiatives to improve growth, profitability and competitiveness;
the Company’s competitive advantages and innovation agenda, including executing on that agenda with respect to artificial intelligence;
the Company’s cybersecurity policies and practices;
new product offerings;
the impact of developments in the tort environment; and
the impact of developments in the geopolitical environment, including the war with Iran.

The Company cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

Some of the factors that could cause actual results to differ include, but are not limited to, the following:

Insurance-Related Risks

high levels of catastrophe losses;
actual claims may exceed the Company’s claims and claim adjustment expense reserves, the estimated level of claims and claim adjustment expense reserves may increase, or increases in loss costs may not be offset with sufficient price increases, including as a result of, among other things, changes in the legal/tort, regulatory and economic environments, including increased inflation and the impact of tariffs;
the Company’s continued exposure to asbestos claims and related litigation;
the Company is exposed to, and may face adverse developments involving, mass tort claims; and
the effects of emerging claim and coverage issues on the Company’s business are uncertain, and court decisions or legislative changes that take place after the Company issues its policies can result in an unexpected increase in the number of claims.

Financial, Economic and Credit Risks

a period of financial market disruption or an economic downturn;
the Company’s investment portfolio is subject to credit and interest rate risk, and may suffer reduced or low returns or material realized or unrealized losses;
the Company is exposed to credit risk related to reinsurance and structured settlements, and reinsurance coverage may not be available to the Company;
the Company is exposed to credit risk in certain of its insurance operations and with respect to certain guarantee or indemnification arrangements that it has with third parties;
a downgrade in the Company’s claims-paying and financial strength ratings; and
the Company’s insurance subsidiaries may be unable to pay dividends to the Company’s holding company in sufficient amounts.

Business and Operational Risks

the intense competition that the Company faces, including with respect to attracting and retaining employees, and the impact of innovation, technological change, including with respect to artificial intelligence, and changing customer preferences on the insurance industry and the markets in which it operates;
disruptions to the Company’s relationships with its independent agents and brokers or the Company’s inability to manage effectively a changing distribution landscape;
the Company’s efforts to develop new products or services, expand in targeted markets, improve business processes and workflows or pursue acquisitions or dispositions may not be successful and may create enhanced risks;
the Company's pricing and capital models may provide materially different indications than actual results;
loss of or significant restrictions on the use of particular types of underwriting criteria, such as credit scoring, or other data or methodologies, in the pricing and underwriting of the Company’s products;
the Company is subject to additional risks associated with its business outside the United States; and
future pandemics.

Technology and Intellectual Property Risks

as a result of cyber attacks (the risk of which could be exacerbated by geopolitical tensions, including the war with Iran) or otherwise, the Company may experience difficulties with technology, data and network security or outsourcing relationships;
the Company’s dependence on effective information technology systems and on continuing to develop and implement improvements in technology, including with respect to artificial intelligence; and
the Company may be unable to protect and enforce its own intellectual property or may be subject to claims for infringing the intellectual property of others.

Regulatory and Compliance Risks

changes in regulation, including changes in tax laws; and
the Company's compliance controls may not be effective.

In addition, the Company’s share repurchase plans depend on a variety of factors, including the Company’s financial position, earnings, share price, catastrophe losses, maintaining appropriate capital levels for the Company’s business operations, changes in the levels of written premiums, funding of the Company’s qualified pension plan, regulatory capital requirements of the Company’s operating subsidiaries, legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.

Our forward-looking statements speak only as of the date of this press release or as of the date they are made, and we undertake no obligation to update forward-looking statements. For a more detailed discussion of these factors, see the information under the captions “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward Looking Statements” in the quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on October 16, 2026, and in our most recent annual report on Form 10-K filed with the SEC on February 12, 2026, in each case as updated by our periodic filings with the SEC.

GLOSSARY OF FINANCIAL MEASURES AND RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

The following measures are used by the Company’s management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure. Reconciliations of these measures to the most comparable GAAP measures also follow.

In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company’s financial performance.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders’ equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.

RECONCILIATION OF NET INCOME TO CORE INCOME AND CERTAIN OTHER NON-GAAP MEASURES

Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment’s performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis.

Reconciliation of Net Income to Core Income less Preferred Dividends

	Three Months Ended September 30,				Nine Months Ended September 30,				Twelve Months Ended September 30,
($ in millions, after-tax)		2026		2025		2026		2025		2026		2025
Net income	$1,917		$1,888		$5,836		$3,792		$8,332		$5,874
Adjustments:
Net realized investment (gains) losses	30		(21)		(33)		22		(18)		66
Core income	$1,947		$1,867		$5,803		$3,814		$8,314		$5,940

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, pre-tax)		2026		2025		2026		2025
Net income	$2,369		$2,344		$7,255		$4,693
Adjustments:
Net realized investment (gains) losses	34		(27)		(75)		28
Core income	$2,403		$2,317		$7,180		$4,721

	Twelve Months Ended December 31,
($ in millions, after-tax)		2025		2024		2023		2022		2021	2005 - 2020
Net income	$6,288		$4,999		$2,991		$2,842		$3,662		$2,988
Less: Loss from discontinued operations	-		-		-		-		-		(27)
Income from continuing operations	6,288		4,999		2,991		2,842		3,662		3,015
Adjustments:
Net realized investment (gains) losses	37		26		81		156		(132)		(42)
Impact of changes in tax laws and/or tax rates (1) (2)	-		-		-		-		(8)		8
Core income	6,325		5,025		3,072		2,998		3,522		2,981
Less: Preferred dividends	-		-		-		-		-		1
Core income, less preferred dividends	$6,325		$5,025		$3,072		$2,998		$3,522		$2,980

(1) Impact is recognized in the accounting period in which the change is enacted

Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis

	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Diluted income per share
Net income	$9.04	$8.24	$27.05	$16.45
Adjustments:
Net realized investment (gains) losses, after-tax	0.14	(0.10)	(0.15)	0.09
Core income	$9.18	$8.14	$26.90	$16.54

Reconciliation of Segment Income to Total Core Income

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, after-tax)		2026		2025		2026		2025
Business Insurance	$1,036		$907		$3,073		$2,403
Bond & Specialty Insurance	309		250		797		714
Personal Insurance	706		807		2,237		967
Total segment income	2,051		1,964		6,107		4,084
Interest Expense and Other	(104)		(97)		(304)		(270)
Total core income	$1,947		$1,867		$5,803		$3,814

RECONCILIATION OF SHAREHOLDERS’ EQUITY TO ADJUSTED SHAREHOLDERS’ EQUITY AND CALCULATION OF RETURN ON EQUITY AND CORE RETURN ON EQUITY

Adjusted shareholders’ equity is shareholders’ equity excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity, net realized investment gains (losses), net of tax, for the period presented, the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)), preferred stock and discontinued operations.

Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity

	As of September 30,
($ in millions)		2026		2025
Shareholders’ equity	$28,995		$31,609
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity	6,352		1,970
Net realized investment (gains) losses, net of tax	(33)		22
Adjusted shareholders’ equity	$35,314		$33,601

	As of December 31,
($ in millions)		2025		2024		2023		2022		2021	2005 - 2020
Shareholders’ equity	$32,894		$27,864		$24,921		$21,560		$28,887		$25,023
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity	1,478		3,640		3,129		4,898		(2,415)		(1,473)
Net realized investment (gains) losses, net of tax	37		26		81		156		(132)		(42)
Impact of changes in tax laws and/or tax rates (1) (2)	-		-		-		-		(8)		18
Preferred stock	-		-		-		-		-		(39)
Loss from discontinued operations	-		-		-		-		-		27
Adjusted shareholders’ equity	$34,409		$31,530		$28,131		$26,614		$26,332		$23,514

(1) Impact is recognized in the accounting period in which the change is enacted

Return on equity is the ratio of annualized net income (loss) less preferred dividends to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) less preferred dividends to adjusted average shareholders’ equity for the periods presented. In the opinion of the Company’s management, these are important indicators of how well management creates value for its shareholders through its operating activities and its capital management.

Average shareholders’ equity is (a) the sum of total shareholders’ equity excluding preferred stock at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted average shareholders’ equity is (a) the sum of total adjusted shareholders’ equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two.

Calculation of Return on Equity and Core Return on Equity

	Three Months Ended September 30,				Nine Months Ended September 30,				Twelve Months Ended September 30,
($ in millions, after-tax)		2026		2025		2026		2025		2026		2025
Annualized net income	$7,670		$7,554		$7,782		$5,057		$8,332		$5,874
Average shareholders’ equity	31,058		30,563		32,017		29,148		32,076		28,806
Return on equity	24.7%		24.7%		24.3%		17.3%		26.0%		20.4%
Annualized core income	$7,788		$7,467		$7,738		$5,085		$8,314		$5,940
Adjusted average shareholders’ equity	35,228		33,053		34,762		32,197		34,568		31,817
Core return on equity	22.1%		22.6%		22.3%		15.8%		24.1%		18.7%

	Twelve Months Ended December 31,
($ in millions, after-tax)		2025		2024		2023		2022		2021	2005 - 2020
Net income, less preferred dividends	$6,288		$4,999		$2,991		$2,842		$3,662		$2,987
Average shareholders’ equity	29,924		25,993		22,031		23,384		28,735		24,830
Return on equity	21.0%		19.2%		13.6%		12.2%		12.7%		12.0%
Core income, less preferred dividends	$6,325		$5,025		$3,072		$2,998		$3,522		$2,980
Adjusted average shareholders’ equity	32,643		29,295		26,772		26,588		25,718		23,421
Core return on equity	19.4%		17.2%		11.5%		11.3%		13.7%		12.7%

RECONCILIATION OF NET INCOME TO UNDERWRITING GAIN EXCLUDING CERTAIN ITEMS

Underwriting gain (loss) is net earned premiums and fee income less claims and claim adjustment expenses and insurance-related expenses. In the opinion of the Company’s management, it is important to measure the profitability of each segment excluding the results of investing activities, which are managed separately from the insurance business. This measure is used to assess each segment’s business performance and as a tool in making business decisions. Underwriting gain, excluding the impact of catastrophes and net favorable (unfavorable) prior year loss reserve development, is the underwriting gain adjusted to exclude claims and claim adjustment expenses, reinstatement premiums and assessments related to catastrophes and loss reserve development related to time periods prior to the current year. In the opinion of the Company’s management, this measure is meaningful to users of the financial statements to understand the Company’s periodic earnings and the variability of earnings caused by the unpredictable nature (i.e., the timing and amount) of catastrophes and loss reserve development. This measure is also referred to as underlying underwriting gain, underlying underwriting margin, underlying underwriting income or underlying underwriting result.

A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally or unintentionally destructive acts, including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core income (loss) and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools.

The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2026 ranges from $20 million to $30 million of losses before reinsurance and taxes.

Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.

Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, after-tax, except as noted)		2026		2025		2026		2025
Net income	$1,917		$1,888		$5,836		$3,792
Net realized investment (gains) losses	30		(21)		(33)		22
Core income	1,947		1,867		5,803		3,814
Net investment income	(908)		(850)		(2,624)		(2,387)
Other (income) expense, including interest expense	108		82		288		241
Underwriting income	1,147		1,099		3,467		1,668
Income tax expense on underwriting results	285		279		876		427
Pre-tax underwriting income	1,432		1,378		4,343		2,095
Pre-tax impact of net favorable prior year reserve development	(234)		(22)		(1,225)		(715)
Pre-tax impact of catastrophes	538		402		1,817		3,595
Pre-tax underlying underwriting income	$1,736		$1,758		$4,935		$4,975

Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, after-tax)		2026		2025		2026		2025
Net income	$1,917		$1,888		$5,836		$3,792
Net realized investment (gains) losses	30		(21)		(33)		22
Core income	1,947		1,867		5,803		3,814
Net investment income	(908)		(850)		(2,624)		(2,387)
Other (income) expense, including interest expense	108		82		288		241
Underwriting income	1,147		1,099		3,467		1,668
Impact of net favorable prior year reserve development	(185)		(16)		(966)		(562)
Impact of catastrophes	424		318		1,435		2,840
Underlying underwriting income	$1,386		$1,401		$3,936		$3,946

	Twelve Months Ended December 31,
($ in millions, after-tax)		2025		2024		2023		2022		2021		2020		2019		2018		2017		2016
Net income	$6,288		$4,999		$2,991		$2,842		$3,662		$2,697		$2,622		$2,523		$2,056		$3,014
Net realized investment (gains) losses	37		26		81		156		(132)		(11)		(85)		(93)		(142)		(47)
Impact of changes in tax laws and/or tax rates (1) (2)	-		-		-		-		(8)		-		-		-		129		-
Core income	6,325		5,025		3,072		2,998		3,522		2,686		2,537		2,430		2,043		2,967
Net investment income	(3,254)		(2,952)		(2,436)		(2,170)		(2,541)		(1,908)		(2,097)		(2,102)		(1,872)		(1,846)
Other (income) expense, including interest expense	326		308		337		277		235		232		214		248		179		78
Underwriting income	3,397		2,381		973		1,105		1,216		1,010		654		576		350		1,199
Impact of net (favorable) unfavorable prior year reserve development	(815)		(559)		(113)		(512)		(424)		(276)		47		(409)		(378)		(510)
Impact of catastrophes	2,915		2,632		2,361		1,480		1,459		1,274		699		1,355		1,267		576
Underlying underwriting income	$5,497		$4,454		$3,221		$2,073		$2,251		$2,008		$1,400		$1,522		$1,239		$1,265

(1) Impact is recognized in the accounting period in which the change is enacted

COMBINED RATIO AND ADJUSTMENTS FOR UNDERLYING COMBINED RATIO

Combined ratio: For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this earnings release, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.

For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this earnings release, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees and other, to net earned premiums.

The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company’s underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Underlying combined ratio represents the combined ratio excluding the impact of net prior year reserve development and catastrophes. The underlying combined ratio is an indicator of the Company’s underwriting discipline and underwriting profitability for the current accident year.

Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.

Calculation of the Combined Ratio

	Three Months Ended September 30,				Nine Months Ended September 30,
($ in millions, pre-tax)		2026		2025		2026		2025
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses	$6,487		$6,594		$18,791		$21,389
Less:
Policyholder dividends	12		12		32		35
Allocated fee income	50		48		147		138
Loss ratio numerator	$6,425		$6,534		$18,612		$21,216
Underwriting expense ratio
Amortization of deferred acquisition costs	$1,856		$1,849		$5,408		$5,429
General and administrative expenses (G&A)	1,582		1,572		4,688		4,576
Less:
Non-insurance G&A	131		131		399		353
Allocated fee income	73		79		223		232
Billing and policy fees and other	22		28		69		85
Expense ratio numerator	$3,212		$3,183		$9,405		$9,335
Earned premium	$11,103		$11,135		$32,461		$32,766
Combined ratio (1)
Loss and loss adjustment expense ratio	57.9%		58.7%		57.3%		64.7%
Underwriting expense ratio	28.9%		28.6%		29.0%		28.5%
Combined ratio	86.8%		87.3%		86.3%		93.2%
Impact on combined ratio:
Net favorable prior year reserve development	(2.1)%		(0.2)%		(3.8)%		(2.2)%
Catastrophes, net of reinsurance	4.8%		3.6%		5.6%		11.0%
Underlying combined ratio	84.1%		83.9%		84.5%		84.4%

(1) For purposes of computing ratios, billing and policy fees and other (which are a component of other revenues) are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio.

RECONCILIATION OF BOOK VALUE PER SHARE AND SHAREHOLDERS’ EQUITY TO CERTAIN NON-GAAP MEASURES

Book value per share is total common shareholders’ equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders’ equity excluding net unrealized investment gains and losses, net of tax, included in shareholders’ equity, divided by the number of common shares outstanding. In the opinion of the Company’s management, adjusted book value per share is useful in an analysis of a property casualty company’s book value per share as it removes the effect of changing prices on invested assets (i.e., net unrealized investment gains (losses), net of tax), which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves. Tangible book value per share is adjusted book value per share excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. In the opinion of the Company’s management, tangible book value per share is useful in an analysis of a property casualty company’s book value on a nominal basis as it removes certain effects of purchase accounting (i.e., goodwill and other intangible assets), in addition to the effect of changing prices on invested assets.

Reconciliation of Shareholders’ Equity to Tangible Shareholders’ Equity, Excluding Net Unrealized Investment Gains (Losses), Net of Tax and Calculation of Book Value Per Share, Adjusted Book Value Per Share and Tangible Book Value Per Share

	As of
($ in millions, except per share amounts)	September 30, 2026	December 31, 2025	September 30, 2025
Shareholders’ equity	$28,995	$32,894	$31,609
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity	(6,352)	(1,478)	(1,970)
Common shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	35,347	34,372	33,579
Less:
Goodwill (includes $208 million of goodwill classified as held for sale as of December 31, 2025)	4,060	4,274	4,271
Other intangible assets (includes $1 million of other intangible assets classified as held for sale as of December 31, 2025)	326	337	342
Impact of deferred tax on other intangible assets	(49)	(93)	(92)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	$31,010	$29,854	$29,058
Common shares outstanding	204.9	217.5	223.0
Book value per share	$141.48	$151.21	$141.72
Adjusted book value per share	172.47	158.01	150.55
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity	151.31	137.24	130.28

RECONCILIATION OF TOTAL CAPITALIZATION TO TOTAL CAPITALIZATION EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES), NET OF TAX

Total capitalization is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gains (losses) on investments, net of tax, included in shareholders’ equity, is the ratio of debt to total capitalization excluding the after-tax impact of net unrealized investment gains and losses included in shareholders’ equity. In the opinion of the Company’s management, the debt-to-capital ratio is useful in an analysis of the Company’s financial leverage.

	As of
($ in millions)	September 30, 2026	December 31, 2025
Debt	$9,813	$9,267
Shareholders’ equity	28,995	32,894
Total capitalization	38,808	42,161
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity	(6,352)	(1,478)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity	$45,160	$43,639
Debt-to-capital ratio	25.3%	22.0%
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity	21.7%	21.2%

RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)

	As of September 30,
($ in millions)		2026		2025
Invested assets	$100,588		$103,684
Less: Net unrealized investment losses, pre-tax	(8,049)		(2,484)
Invested assets excluding net unrealized investment losses	$108,637		$106,168

	As of December 31,
($ in millions)		2025		2024		2023		2022		2021		2020		2019		2018		2017		2016
Invested assets (1)	$104,529		$94,223		$88,810		$80,454		$87,375		$84,423		$77,884		$72,278		$72,502		$70,488
Less: Net unrealized investment gains (losses), pre-tax	(1,862)		(4,609)		(3,970)		(6,220)		3,060		5,175		2,853		(137)		1,414		1,112
Invested assets excluding net unrealized investment gains (losses)	$106,391		$98,832		$92,780		$86,674		$84,315		$79,248		$75,031		$72,415		$71,088		$69,376

(1) Includes $3,347 million of invested assets classified as held for sale as of December 31, 2025.

OTHER DEFINITIONS

Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. Net written premiums reflect gross written premiums less premiums ceded to reinsurers.

For Business Insurance and Bond & Specialty Insurance, retention is the amount of premium available for renewal that was retained, excluding rate and exposure changes. For Personal Insurance, retention is the ratio of the expected number of renewal policies that will be retained throughout the annual policy period to the number of available renewal base policies. For all of the segments, renewal rate change represents the estimated change in average premium on policies that renew, excluding exposure changes. Exposure is the measure of risk used in the pricing of an insurance product. The change in exposure is the amount of change in premium on policies that renew attributable to the change in portfolio risk. Renewal premium change represents the estimated change in average premium on policies that renew, including rate and exposure changes. New business is the amount of written premium related to new policyholders and additional products sold to existing policyholders. These are operating statistics, which are in part dependent on the use of estimates and are therefore subject to change. For Business Insurance, retention, renewal premium change and new business exclude National Accounts. For Bond & Specialty Insurance, retention, renewal premium change and new business exclude surety and other products that are generally sold on a non-recurring, project specific basis. For each of the segments, production statistics referred to herein are domestic only unless otherwise indicated.

Statutory capital and surplus represents the excess of an insurance company’s admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices.

Holding company liquidity is the total funds available at the holding company level to fund general corporate purposes, primarily the payment of shareholder dividends and debt service. These funds consist of total cash, short-term invested assets and other readily marketable securities held by the holding company.

For a glossary of other financial terms used in this press release, we refer you to the Company’s most recent annual report on Form 10-K filed with the SEC on February 12, 2026, and subsequent periodic filings with the SEC.

Contacts
Media: Patrick Linehan · 917.778.6267
Institutional Investors: Abbe Goldstein · 917.778.6825