Travelers third-quarter net income rises to $1.917 billion, core income up 4%

The Travelers Companies, Inc. (TRV) said Friday it earned $1.917 billion, or $9.04 per diluted share, in the quarter ended Sept. 30, up from $1.888 billion, or $8.24 per diluted share, a year earlier. The insurer said the figures were in a press release furnished to the Securities and Exchange Commission.

Core income, which excludes after-tax net realized investment gains and losses, was $1.947 billion, or $9.18 per diluted share, compared with $1.867 billion, or $8.14 per diluted share. The company said core income rose mainly on higher net favorable prior year reserve development and higher net investment income, partly offset by higher catastrophe losses.

Here's how the company did:

• Net income per diluted share: $9.04, vs. $8.24 a year earlier
• Core income per diluted share: $9.18, vs. $8.14 a year earlier
• Total revenues: $12.412 billion, vs. $12.470 billion a year earlier
• Combined ratio: 86.8%, vs. 87.3% a year earlier
• Underlying combined ratio: 84.1%, vs. 83.9% a year earlier

Here's how Travelers segments did during the quarter:

• Business Insurance segment income: $1.036 billion, vs. $907 million
• Bond & Specialty Insurance segment income: $309 million, vs. $250 million
• Personal Insurance segment income: $706 million, vs. $807 million

Net written premiums were $11.480 billion, slightly up from $11.473 billion a year earlier. The prior-year quarter included $240 million from the Canadian operations the company divested in the first quarter of 2026. Excluding that sale, net written premiums rose 2%.

Net investment income was a record $1.098 billion pre-tax, or $908 million after-tax, up 6%. The company said the increase was driven by a higher yield on its long-term fixed income portfolio and growth in average invested assets.

Catastrophe losses, net of reinsurance, were $538 million pre-tax, compared with $402 million a year earlier. The company said they resulted primarily from severe wind and hail storms in multiple states.

Net favorable prior year reserve development was $234 million pre-tax, against $22 million a year earlier. That total included an addition of $295 million to asbestos reserves.

Business Insurance wrote $5.868 billion of net premiums, up 3%, and its combined ratio improved to 90.9% from 92.9%. Bond & Specialty Insurance wrote $1.209 billion, up 12%, with a combined ratio of 77.3% against 81.6%. Personal Insurance wrote $4.403 billion, down 7%, and its combined ratio rose to 83.5% from 81.3%, as catastrophe losses increased.

"We are pleased to report excellent third quarter results," said Chairman and Chief Executive Officer Alan Schnitzer. "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."

The company returned $1.769 billion to shareholders in the quarter, including $1.508 billion of share repurchases. It bought back 4.0 million shares at an average price of $376.00, and had $2.415 billion of capacity left under its repurchase authorizations at Sept. 30. The board declared a regular quarterly dividend of $1.25 per share, payable Dec. 31 to holders of record on Dec. 10.

Shareholders' equity was $28.995 billion, down 12% from year-end 2025, mainly because of higher net unrealized investment losses, share repurchases and dividends. Book value per share was $141.48, down 6% from year-end 2025. Adjusted book value per share, which excludes those unrealized losses, rose 9% to $172.47.

The debt-to-capital ratio was 25.3%, or 21.7% excluding after-tax unrealized investment losses, within the company's target range of 15% to 25%.

For the first nine months, net income was $5.836 billion, or $27.05 per diluted share, against $3.792 billion, or $16.45 a year earlier. Core income was $5.803 billion, or $26.90 per diluted share. Catastrophe losses fell to $1.817 billion pre-tax from $3.595 billion, and the combined ratio was 86.3% against 93.2%.

The release did not include new full-year financial guidance.