US Market News
3月前
Travelers Reports Excellent First Quarter ResultsApril 16, 2026 6:57 AM
Business Wire
First Quarter 2026 Net Income per Diluted Share of $7.78 and Core Income per Diluted Share of $7.71
First Quarter 2026 Return on Equity of 21.1% and Core Return on Equity of 19.7%
Board of Directors Declares 14% Increase in Regular Quarterly Cash Dividend to $1.25 per Share
Very strong first quarter net income of $1.711 billion and core income of $1.696 billion.
Underlying underwriting income of $1.521 billion pre-tax - sixth consecutive quarter above $1.5 billion.
Excellent consolidated combined ratio of 88.6% and underlying combined ratio of 85.3%.
Catastrophe losses of $761 million pre-tax, compared to $2.266 billion pre-tax in the prior year quarter.
Net favorable prior year reserve development in all three segments totaled $413 million pre-tax.
Net written premiums of $10.338 billion.
Net investment income increased 9% to $833 million after-tax.
Total capital of $2.223 billion returned to shareholders, including $1.985 billion of share repurchases.
The Travelers Companies, Inc. today reported net income of $1.711 billion, or $7.78 per diluted share, for the quarter ended March 31, 2026, compared to $395 million, or $1.70 per diluted share, in the prior year quarter. Core income in the current quarter was $1.696 billion, or $7.71 per diluted share, compared to $443 million, or $1.91 per diluted share, in the prior year quarter. Core income increased primarily due to lower catastrophe losses and higher net investment income. Net realized investment gains in the current quarter were $49 million pre-tax ($15 million after-tax), compared to net realized investment losses of $61 million pre-tax ($48 million after-tax) in the prior year quarter. Per diluted share amounts benefited from the impact of share repurchases.
Consolidated Highlights
($ in millions, except for per share amounts, and after-tax, except for premiums and revenues)
Three Months Ended March 31,
2026
2025
Change
Net written premiums
$
10,338
$
10,515
(2
)%
Total revenues
$
11,924
$
11,810
1
Net income
$
1,711
$
395
333
per diluted share
$
7.78
$
1.70
358
Core income
$
1,696
$
443
283
per diluted share
$
7.71
$
1.91
304
Diluted weighted average shares outstanding
218.4
230.4
(5
)
Combined ratio
88.6
%
102.5
%
(13.9
)
pts
Underlying combined ratio
85.3
%
84.8
%
0.5
pts
Return on equity
21.1
%
5.6
%
15.5
pts
Core return on equity
19.7
%
5.6
%
14.1
pts
As of
Change From
March 31, 2026
December 31, 2025
March 31, 2025
December 31, 2025
March 31, 2025
Book value per share
$
150.42
$
151.21
$
124.43
(1
)%
21
%
Adjusted book value per share
161.60
158.01
138.99
2
%
16
%
See Glossary of Financial Measures for definitions and the statistical supplement for additional financial data.
“We are pleased to report an excellent first quarter with strong underwriting performance across all three segments and a strong result from our investment portfolio,” said Alan Schnitzer, Chairman and Chief Executive Officer. “Core income for the quarter was $1.7 billion, or $7.71 per diluted share. Core return on equity for the quarter was 19.7%, bringing core return on equity over the last four quarters to 22.7%, driven by excellent underlying fundamentals. The first quarter’s underwriting income of $1.2 billion pre-tax benefited from strong levels of underlying underwriting income and net favorable prior year development. Our high-quality investment portfolio generated after-tax net investment income of $833 million.
“These results, along with our exceptionally strong balance sheet, enabled us to return more than $2.2 billion of excess capital to our shareholders during the quarter, including $2.0 billion of share repurchases. In recognition of our very strong financial position and confidence in the outlook for our business, I am pleased to share that our Board of Directors declared a 14% increase in our quarterly cash dividend to $1.25 per share, marking 22 consecutive years of dividend increases with a compound annual growth rate of 8% over that period.
“Through disciplined marketplace execution across all three segments, we generated net written premiums in the quarter of $10.3 billion. In Business Insurance, we grew net written premiums to $5.8 billion. We grew our leading Middle Market business and Select Accounts small commercial business by 5% and 3%, respectively. Renewal premium change in Business Insurance was 5.8%, while retention increased one point from recent quarters to a very strong 86%. New business was a record $775 million. In Bond & Specialty Insurance, we grew net written premiums by 7% to $1.1 billion. In our high-quality Management Liability business, renewal premium change ticked up sequentially, with excellent retention of 87%. In our industry-leading Surety business, we grew net written premiums by 14%. In Personal Insurance, we generated net written premiums of $3.5 billion with solid retention and positive renewal premium change in both Auto and Homeowners.
“We are off to an excellent start for 2026. Over time and across a wide range of conditions, we have consistently delivered growth at industry-leading returns with low volatility. That performance reflects the strength of our capabilities across both sides of the balance sheet and a focus on creating shareholder value. We are confident that the advantages we have built will continue to drive strong results and extend our record of outperformance.”
Consolidated Results
Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)
2026
2025
Change
Underwriting gain (loss):
$
1,173
$
(305
)
$
1,478
Underwriting gain (loss) includes:
Net favorable prior year reserve development
413
378
35
Catastrophes, net of reinsurance
(761
)
(2,266
)
1,505
Net investment income
1,008
930
78
Other income (expense), including interest expense
(111
)
(96
)
(15
)
Core income before income taxes
2,070
529
1,541
Income tax expense
374
86
288
Core income
1,696
443
1,253
Net realized investment gains (losses) after income taxes
15
(48
)
63
Net income
$
1,711
$
395
$
1,316
Combined ratio
88.6
%
102.5
%
(13.9
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(3.9
)
pts
(3.5
)
pts
(0.4
)
pts
Catastrophes, net of reinsurance
7.2
pts
21.2
pts
(14.0
)
pts
Underlying combined ratio
85.3
%
84.8
%
0.5
pts
Net written premiums
Business Insurance
$
5,786
$
5,698
2
%
Bond & Specialty Insurance
1,066
999
7
Personal Insurance
3,486
3,818
(9
)
Total
$
10,338
$
10,515
(2
)%
First Quarter 2026 Results
(All comparisons vs. first quarter 2025, unless noted otherwise)
Net income of $1.711 billion increased $1.316 billion, driven by higher core income and net realized investment gains compared to net realized investment losses in the prior year quarter. Core income of $1.696 billion increased $1.253 billion, primarily due to lower catastrophe losses and higher net investment income. Net realized investment gains were $49 million pre-tax ($15 million after-tax), compared to net realized investment losses of $61 million pre-tax ($48 million after-tax) in the prior year quarter.
Combined ratio:
The combined ratio of 88.6% improved 13.9 points due to lower catastrophe losses (14.0 points) and higher net favorable prior year reserve development (0.4 points), partially offset by a higher underlying combined ratio (0.5 points).
The underlying combined ratio was an excellent 85.3%. See below for further details by segment.
The underwriting expense ratio increased 0.7 points to 29.0%, reflecting normal quarter-to-quarter variability. The Company continues to expect 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 primarily resulted from severe wind and hail storms and winter storms in multiple states.
Net investment income of $1.008 billion pre-tax ($833 million after-tax) increased 8%, driven by the long-term fixed income investment portfolio which benefited from a higher yield and growth in average invested assets.
Net written premiums were $10.338 billion. Net written premiums in the prior year quarter included $223 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 slightly over the prior year quarter. See below for further details by segment.
Shareholders’ Equity
Shareholders’ equity of $31.986 billion decreased 3% 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 $1.711 billion. Net unrealized investment losses included in shareholders’ equity were $3.008 billion pre-tax ($2.378 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 $150.42 decreased 1% from year-end 2025. Adjusted book value per share of $161.60, which excludes net unrealized investment losses, increased 2% over year-end 2025.
The Company repurchased 6.0 million shares in the open market during the first quarter under its share repurchase authorizations at an average price of $300.30 per share for a total cost of $1.800 billion. In addition, the Company acquired 0.6 million shares for a total cost of $185 million in connection with employee share-based compensation. At March 31, 2026, the Company had $5.215 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 $31.063 billion, and the ratio of debt-to-capital was 22.5%. The ratio of debt-to-capital excluding after-tax net unrealized investment losses included in shareholders’ equity was 21.2%, within the Company’s target range of 15% to 25%.
The Board of Directors declared a 14% increase in the regular quarterly dividend to $1.25 per share. The dividend is payable June 30, 2026, to shareholders of record at the close of business on June 10, 2026.
Business Insurance Segment Financial Results
Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)
2026
2025
Change
Underwriting gain:
$
330
$
195
$
135
Underwriting gain includes:
Net favorable prior year reserve development
162
74
88
Catastrophes, net of reinsurance
(379
)
(509
)
130
Net investment income
708
656
52
Other income (expense)
(3
)
(9
)
6
Segment income before income taxes
1,035
842
193
Income tax expense
196
159
37
Segment income
$
839
$
683
$
156
Combined ratio
93.8
%
96.2
%
(2.4
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(2.9
)
pts
(1.3
)
pts
(1.6
)
pts
Catastrophes, net of reinsurance
6.9
pts
9.3
pts
(2.4
)
pts
Underlying combined ratio
89.8
%
88.2
%
1.6
pts
Net written premiums by market
Domestic
Select Accounts
$
1,006
$
976
3
%
Middle Market
3,329
3,166
5
National Accounts
343
312
10
National Property and Other
691
720
(4
)
Total Domestic
5,369
5,174
4
International
417
524
(20
)
Total
$
5,786
$
5,698
2
%
First Quarter 2026 Results
(All comparisons vs. first quarter 2025, unless noted otherwise)
Segment income for Business Insurance was $839 million after-tax, an increase of $156 million. Segment income increased primarily due to lower catastrophe losses and higher net favorable prior year reserve development.
Combined ratio:
The combined ratio of 93.8% improved 2.4 points due to lower catastrophe losses (2.4 points) and higher net favorable prior year reserve development (1.6 points), partially offset by a higher underlying combined ratio (1.6 points).
The underlying combined ratio was an excellent 89.8%.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in the commercial property and workers’ compensation product lines for multiple accident years.
Net written premiums of $5.786 billion increased 2%. Net written premiums in the prior year quarter included $67 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 3%.
Bond & Specialty Insurance Segment Financial Results
Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)
2026
2025
Change
Underwriting gain:
$
166
$
170
$
(4
)
Underwriting gain includes:
Net favorable prior year reserve development
65
67
(2
)
Catastrophes, net of reinsurance
(8
)
(19
)
11
Net investment income
113
102
11
Other income
3
5
(2
)
Segment income before income taxes
282
277
5
Income tax expense
28
57
(29
)
Segment income
$
254
$
220
$
34
Combined ratio
83.3
%
82.5
%
0.8
pts
Impact on combined ratio
Net favorable prior year reserve development
(6.4
)
pts
(6.7
)
pts
0.3
pts
Catastrophes, net of reinsurance
0.8
pts
1.9
pts
(1.1
)
pts
Underlying combined ratio
88.9
%
87.3
%
1.6
pts
Net written premiums
Domestic
Management Liability
$
572
$
553
3
%
Surety
381
333
14
Total Domestic
953
886
8
International
113
113
—
Total
$
1,066
$
999
7
%
First Quarter 2026 Results
(All comparisons vs. first quarter 2025, unless noted otherwise)
Segment income for Bond & Specialty Insurance was $254 million after-tax, an increase of $34 million. Segment income increased primarily due to a higher underlying underwriting gain (i.e., excluding net prior year reserve development and catastrophe losses), higher net investment income and lower catastrophe losses. The underlying underwriting gain benefited from a non-recurring tax item and higher business volumes.
Combined ratio:
The combined ratio of 83.3% increased 0.8 points due to a higher underlying combined ratio (1.6 points) and lower net favorable prior year reserve development (0.3 points), partially offset by lower catastrophe losses (1.1 points).
The underlying combined ratio was very strong at 88.9%.
Net favorable prior year reserve development was primarily driven by better than expected loss experience in the fidelity and surety product line for multiple accident years.
Net written premiums of $1.066 billion increased 7%. Net written premiums in the prior year quarter included $10 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums grew 8%.
Personal Insurance Segment Financial Results
Three Months Ended March 31,
($ in millions and pre-tax, unless noted otherwise)
2026
2025
Change
Underwriting gain (loss):
$
677
$
(670
)
$
1,347
Underwriting gain (loss) includes:
Net favorable prior year reserve development
186
237
(51
)
Catastrophes, net of reinsurance
(374
)
(1,738
)
1,364
Net investment income
187
172
15
Other income
18
18
—
Segment income (loss) before income taxes
882
(480
)
1,362
Income tax expense (benefit)
178
(106
)
284
Segment income (loss)
$
704
$
(374
)
$
1,078
Combined ratio
82.9
%
115.2
%
(32.3
)
pts
Impact on combined ratio
Net favorable prior year reserve development
(4.5
)
pts
(5.6
)
pts
1.1
pts
Catastrophes, net of reinsurance
9.1
pts
40.9
pts
(31.8
)
pts
Underlying combined ratio
78.3
%
79.9
%
(1.6
)
pts
Net written premiums
Domestic
Automobile
$
1,756
$
1,859
(6
)%
Homeowners and Other
1,730
1,813
(5
)
Total Domestic
3,486
3,672
(5
)
International
—
146
(100
)
Total
$
3,486
$
3,818
(9
)%
First Quarter 2026 Results
(All comparisons vs. first quarter 2025, unless noted otherwise)
Segment income for Personal Insurance was $704 million after-tax, an increase of $1.078 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.
Combined ratio:
The combined ratio of 82.9% improved 32.3 points due to lower catastrophe losses (31.8 points) and an improvement in the underlying combined ratio (1.6 points), partially offset by lower net favorable prior year reserve development (1.1 points).
The underlying combined ratio of 78.3% improved 1.6 points, reflecting improvement in 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 $3.486 billion decreased 9% from the prior year quarter. Net written premiums in the prior year quarter 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 decreased 5%.
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 9:30 a.m. Eastern (8:30 a.m. Central) on Thursday, April 16, 2026. Investors can access the call via webcast at investor.travelers.com and by dialing 1.888.440.6281 within the United States or 1.646.960.0218 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 1.800.770.2030 within the United States or 1.647.362.9199 outside the United States. All callers should use conference ID 5449478.
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 approximately 34,000 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 capital levels appropriate for the Company’s business operations, changes in levels of written premiums, funding of the Company’s qualified pension plan, 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 April 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
March 31,
Twelve Months Ended
March 31,
($ in millions, after-tax)
2026
2025
2026
2025
Net income
$
1,711
$
395
$
7,604
$
4,271
Adjustments:
Net realized investment (gains) losses
(15
)
48
(26
)
101
Core income
$
1,696
$
443
$
7,578
$
4,372
Three Months Ended
March 31,
($ in millions, pre-tax)
2026
2025
Net income
$
2,119
$
468
Adjustments:
Net realized investment (gains) losses
(49
)
61
Core income
$
2,070
$
529
Twelve Months Ended December 31,
Average
Annual
($ 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
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)
Reconciliation of Net Income per Share to Core Income per Share on a Diluted Basis
Three Months Ended
March 31,
2026
2025
Diluted income per share
Net income
$
7.78
$
1.70
Adjustments:
Net realized investment (gains) losses, after-tax
(0.07
)
0.21
Core income
$
7.71
$
1.91
Reconciliation of Segment Income (Loss) to Total Core Income
Three Months Ended
March 31,
($ in millions, after-tax)
2026
2025
Business Insurance
$
839
$
683
Bond & Specialty Insurance
254
220
Personal Insurance
704
(374
)
Total segment income
1,797
529
Interest Expense and Other
(101
)
(86
)
Total core income
$
1,696
$
443
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 March 31,
($ in millions)
2026
2025
Shareholders’ equity
$
31,986
$
28,191
Adjustments:
Net unrealized investment losses, net of tax, included in shareholders’ equity
2,378
3,299
Net realized investment (gains) losses, net of tax
(15
)
48
Adjusted shareholders’ equity
$
34,349
$
31,538
As of December 31,
Average
Annual
($ 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
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)
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
March 31,
Twelve Months Ended
March 31,
($ in millions, after-tax)
2026
2025
2026
2025
Annualized net income
$
6,843
$
1,580
$
7,604
$
4,271
Average shareholders’ equity
32,440
28,027
31,027
26,757
Return on equity
21.1
%
5.6
%
24.5
%
16.0
%
Annualized core income
$
6,785
$
1,773
$
7,578
$
4,372
Adjusted average shareholders’ equity
34,361
31,521
33,353
30,079
Core return on equity
19.7
%
5.6
%
22.7
%
14.5
%
Twelve Months Ended December 31,
Average
Annual
($ 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 $30 million of losses before reinsurance and taxes.
Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company’s management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.
Reconciliation of Net Income to Pre-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended
March 31,
($ in millions, after-tax, except as noted)
2026
2025
Net income
$
1,711
$
395
Net realized investment (gains) losses
(15
)
48
Core income
1,696
443
Net investment income
(833
)
(763
)
Other (income) expense, including interest expense
92
81
Underwriting income (loss)
955
(239
)
Income tax expense (benefit) on underwriting results
218
(66
)
Pre-tax underwriting income (loss)
1,173
(305
)
Pre-tax impact of net favorable prior year reserve development
(413
)
(378
)
Pre-tax impact of catastrophes
761
2,266
Pre-tax underlying underwriting income
$
1,521
$
1,583
Reconciliation of Net Income to After-Tax Underlying Underwriting Income (also known as Underlying Underwriting Gain)
Three Months Ended
March 31,
($ in millions, after-tax)
2026
2025
Net income
$
1,711
$
395
Net realized investment (gains) losses
(15
)
48
Core income
1,696
443
Net investment income
(833
)
(763
)
Other (income) expense, including interest expense
92
81
Underwriting income
955
(239
)
Impact of net favorable prior year reserve development
(325
)
(297
)
Impact of catastrophes
601
1,790
Underlying underwriting income
$
1,231
$
1,254
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
(2) 2017 reflects impact of Tax Cuts and Jobs Act of 2017 (TCJA)
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, 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
March 31,
($ in millions, pre-tax)
2026
2025
Loss and loss adjustment expense ratio
Claims and claim adjustment expenses
$
6,382
$
8,006
Less:
Policyholder dividends
12
13
Allocated fee income
48
45
Loss ratio numerator
$
6,322
$
7,948
Underwriting expense ratio
Amortization of deferred acquisition costs
$
1,766
$
1,778
General and administrative expenses (G&A)
1,541
1,459
Less:
Non-insurance G&A
136
109
Allocated fee income
73
74
Billing and policy fees and other
25
28
Expense ratio numerator
$
3,073
$
3,026
Earned premium
$
10,605
$
10,710
Combined ratio (1)
Loss and loss adjustment expense ratio
59.6
%
74.2
%
Underwriting expense ratio
29.0
%
28.3
%
Combined ratio
88.6
%
102.5
%
Impact on combined ratio:
Net favorable prior year reserve development
(3.9
)%
(3.5
)%
Catastrophes, net of reinsurance
7.2
%
21.2
%
Underlying combined ratio
85.3
%
84.8
%
(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)
March 31,
2026
December 31,
2025
March 31,
2025
Shareholders’ equity
$
31,986
$
32,894
$
28,191
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity
(2,378
)
(1,478
)
(3,299
)
Common shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
34,364
34,372
31,490
Less:
Goodwill (includes $208 million of goodwill classified as held for sale as of December 31, 2025)
4,060
4,274
4,245
Other intangible assets (includes $1 million of other intangible assets classified as held for sale as of December 31, 2025)
331
337
356
Impact of deferred tax on other intangible assets
(47
)
(93
)
(88
)
Tangible shareholders’ equity, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
$
30,020
$
29,854
$
26,977
Common shares outstanding
212.6
217.5
226.6
Book value per share
$
150.42
$
151.21
$
124.43
Adjusted book value per share
161.60
158.01
138.99
Tangible book value per share, excluding net unrealized investment losses, net of tax, included in shareholders’ equity
141.18
137.24
119.07
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)
March 31,
2026
December 31,
2025
Debt
$
9,268
$
9,267
Shareholders’ equity
31,986
32,894
Total capitalization
41,254
42,161
Less: Net unrealized investment losses, net of tax, included in shareholders’ equity
(2,378
)
(1,478
)
Total capitalization excluding net unrealized losses on investments, net of tax, included in shareholders’ equity
$
43,632
$
43,639
Debt-to-capital ratio
22.5
%
22.0
%
Debt-to-capital ratio excluding net unrealized investment losses, net of tax, included in shareholders’ equity
21.2
%
21.2
%
RECONCILIATION OF INVESTED ASSETS TO INVESTED ASSETS EXCLUDING NET UNREALIZED INVESTMENT GAINS (LOSSES)
As of March 31,
($ in millions)
2026
2025
Invested assets
$
102,978
$
95,696
Less: Net unrealized investment losses, pre-tax
(3,008
)
(4,172
)
Invested assets excluding net unrealized investment losses
$
105,986
$
99,868
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260414188200/en/
Media:
Patrick Linehan
917.778.6267
Institutional Investors:
Abbe Goldstein
917.778.6825
Original: Travelers Reports Excellent First Quarter Results
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