EX-99.23a992finsupp33126.htmEX-99.2 Document
The Travelers Companies, Inc.
Financial Supplement - First Quarter 2026
Exhibit 99.2
Page Number
Consolidated Results
Financial Highlights
1
Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share
2
Statement of Income
3
Net Income by Major Component and Combined Ratio
4
Core Income
5
Selected Statistics - Property and Casualty Operations
6
Written and Earned Premiums - Property and Casualty Operations
7
Business Insurance
Segment Income
8
Segment Income by Major Component and Combined Ratio
9
Selected Statistics
10
Net Written Premiums
11
Bond & Specialty Insurance
Segment Income
12
Segment Income by Major Component and Combined Ratio
13
Selected Statistics
14
Net Written Premiums
15
Personal Insurance
Segment Income (Loss)
16
Segment Income (Loss) by Major Component and Combined Ratio
17
Selected Statistics
18
Net Written Premiums
19
Selected Statistics - Automobile
20
Selected Statistics - Homeowners and Other
21
Supplemental Detail
Interest Expense and Other
22
Consolidated Balance Sheet
23
Investment Portfolio
24
Investment Portfolio - Fixed Maturities Data
25
Investment Income
26
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders’ Equity
27
Reinsurance Recoverables
28
Net Reserves for Losses and Loss Adjustment Expense
29
Asbestos Reserves
30
Capitalization
31
Statutory Capital and Surplus to GAAP Shareholders’ Equity Reconciliation
32
Statement of Cash Flows
33
Statement of Cash Flows (continued)
34
Glossary of Financial Measures and Description of Reportable Business Segments
35-36
The information included in the Financial Supplement is unaudited. This document should be read in conjunction with the Company’s Form 10-Q which will be filed with the Securities and Exchange Commission.
Index
The Travelers Companies, Inc.
Financial Highlights
($ and shares in millions, except for per share data)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net income
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Net income per share:
Basic
$
1.73
$
6.63
$
8.37
$
11.24
$
7.89
Diluted
$
1.70
$
6.53
$
8.24
$
11.06
$
7.78
Core income
$
443
$
1,504
$
1,867
$
2,511
$
1,696
Core income per share:
Basic
$
1.94
$
6.61
$
8.27
$
11.31
$
7.82
Diluted
$
1.91
$
6.51
$
8.14
$
11.13
$
7.71
Return on equity
5.6
%
20.9
%
24.7
%
31.0
%
21.1
%
Core return on equity
5.6
%
18.8
%
22.6
%
29.6
%
19.7
%
Total assets, at period end
$
135,977
$
138,873
$
143,678
$
143,708
$
142,309
Total equity, at period end
$
28,191
$
29,518
$
31,609
$
32,894
$
31,986
Book value per share, at period end
$
124.43
$
131.11
$
141.72
$
151.21
$
150.42
Less: Net unrealized investment gains (losses), net of tax
(14.56)
(13.46)
(8.83)
(6.80)
(11.18)
Adjusted book value per share, at period end
$
138.99
$
144.57
$
150.55
$
158.01
$
161.60
Weighted average number of common shares outstanding (basic)
226.9
225.9
224.1
220.3
215.2
Weighted average number of common shares outstanding and common stock equivalents (diluted)
230.4
229.3
227.5
224.0
218.4
Common shares outstanding at period end
226.6
225.1
223.0
217.5
212.6
Common stock dividends declared
$
241
$
252
$
250
$
244
$
238
Common stock repurchased:
Under Board of Directors authorization
Shares
1.0
1.8
2.3
5.8
6.0
Cost
$
250
$
500
$
625
$
1,650
$
1,800
Other
Shares
0.4
0.3
—
—
0.6
Cost
$
108
$
57
$
3
$
3
$
185
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
1
The Travelers Companies, Inc.
Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share
($ and shares in millions, except earnings per share)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net income
Net income
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Net realized investment (gains) losses, after-tax
48
(5)
(21)
15
(15)
Core income
$
443
$
1,504
$
1,867
$
2,511
$
1,696
Basic
Net income per share
$
1.73
$
6.63
$
8.37
$
11.24
$
7.89
Net realized investment (gains) losses, after-tax
0.21
(0.02)
(0.10)
0.07
(0.07)
Core income per share
$
1.94
$
6.61
$
8.27
$
11.31
$
7.82
Diluted
Net income per share
$
1.70
$
6.53
$
8.24
$
11.06
$
7.78
Net realized investment (gains) losses, after-tax
0.21
(0.02)
(0.10)
0.07
(0.07)
Core income per share
$
1.91
$
6.51
$
8.14
$
11.13
$
7.71
Adjustments to net and core income and weighted average shares for net and core income EPS calculations:
Basic and Diluted
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net income, as reported
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Participating share-based awards - allocated net income
(3)
(11)
(13)
(19)
(12)
Net income available to common shareholders - basic and diluted
$
392
$
1,498
$
1,875
$
2,477
$
1,699
Core income, as reported
$
443
$
1,504
$
1,867
$
2,511
$
1,696
Participating share-based awards - allocated core income
(3)
(11)
(14)
(18)
(12)
Core income available to common shareholders - basic and diluted
$
440
$
1,493
$
1,853
$
2,493
$
1,684
Common Shares
Basic
Weighted average shares outstanding
226.9
225.9
224.1
220.3
215.2
Diluted
Weighted average shares outstanding
226.9
225.9
224.1
220.3
215.2
Weighted average effect of dilutive securities - stock options and performance shares
3.5
3.4
3.4
3.7
3.2
Diluted weighted average shares outstanding
230.4
229.3
227.5
224.0
218.4
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
2
The Travelers Companies, Inc.
Statement of Income - Consolidated
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Premiums
$
10,710
$
10,921
$
11,135
$
11,148
$
10,605
Net investment income
930
942
1,033
1,054
1,008
Fee income
119
124
127
125
121
Net realized investment gains (losses)
(61)
6
27
(20)
49
Other revenues
112
123
148
125
141
Total revenues
11,810
12,116
12,470
12,432
11,924
Claims and expenses
Claims and claim adjustment expenses
8,006
6,789
6,594
5,832
6,382
Amortization of deferred acquisition costs
1,778
1,802
1,849
1,837
1,766
General and administrative expenses
1,459
1,545
1,572
1,544
1,541
Interest expense
99
99
111
116
116
Total claims and expenses
11,342
10,235
10,126
9,329
9,805
Income before income taxes
468
1,881
2,344
3,103
2,119
Income tax expense
73
372
456
607
408
Net income
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Other statistics
Effective tax rate on net investment income
17.9
%
17.9
%
17.8
%
17.7
%
17.4
%
Net investment income (after-tax)
$
763
$
774
$
850
$
867
$
833
Catastrophes, net of reinsurance:
Pre-tax
$
2,266
$
927
$
402
$
95
$
761
After-tax
$
1,790
$
732
$
318
$
75
$
601
Prior year reserve development - favorable:
Pre-tax
$
378
$
315
$
22
$
321
$
413
After-tax
$
297
$
249
$
16
$
253
$
325
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
3
The Travelers Companies, Inc.
Net Income by Major Component and Combined Ratio - Consolidated
($ in millions, net of tax)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Underwriting gain (loss)
$
(239)
$
808
$
1,099
$
1,729
$
955
Net investment income
763
774
850
867
833
Other income (expense), including interest expense
(81)
(78)
(82)
(85)
(92)
Core income
443
1,504
1,867
2,511
1,696
Net realized investment gains (losses)
(48)
5
21
(15)
15
Net income
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Combined ratio (1) (2)
Loss and loss adjustment expense ratio
74.2
%
61.7
%
58.7
%
51.8
%
59.6
%
Underwriting expense ratio
28.3
%
28.6
%
28.6
%
28.4
%
29.0
%
Combined ratio
102.5
%
90.3
%
87.3
%
80.2
%
88.6
%
Impact on combined ratio:
Net favorable prior year reserve development
(3.5)
%
(2.9)
%
(0.2)
%
(2.9)
%
(3.9)
%
Catastrophes, net of reinsurance
21.2
%
8.5
%
3.6
%
0.9
%
7.2
%
Underlying combined ratio
84.8
%
84.7
%
83.9
%
82.2
%
85.3
%
(1) Before policyholder dividends.
(2) 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. See following:
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
28
$
29
$
28
$
28
$
25
Fee income:
Loss and loss adjustment expenses
$
45
$
45
$
48
$
48
$
48
Underwriting expenses
74
79
79
77
73
Total fee income
$
119
$
124
$
127
$
125
$
121
Non-insurance general and administrative expenses
$
109
$
113
$
131
$
110
$
136
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
4
The Travelers Companies, Inc.
Core Income - Consolidated
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Premiums
$
10,710
$
10,921
$
11,135
$
11,148
$
10,605
Net investment income
930
942
1,033
1,054
1,008
Fee income
119
124
127
125
121
Other revenues
112
123
148
125
141
Total revenues
11,871
12,110
12,443
12,452
11,875
Claims and expenses
Claims and claim adjustment expenses
8,006
6,789
6,594
5,832
6,382
Amortization of deferred acquisition costs
1,778
1,802
1,849
1,837
1,766
General and administrative expenses
1,459
1,545
1,572
1,544
1,541
Interest expense
99
99
111
116
116
Total claims and expenses
11,342
10,235
10,126
9,329
9,805
Core income before income taxes
529
1,875
2,317
3,123
2,070
Income tax expense
86
371
450
612
374
Core income
$
443
$
1,504
$
1,867
$
2,511
$
1,696
Other statistics
Effective tax rate on net investment income
17.9
%
17.9
%
17.8
%
17.7
%
17.4
%
Net investment income (after-tax)
$
763
$
774
$
850
$
867
$
833
Catastrophes, net of reinsurance:
Pre-tax
$
2,266
$
927
$
402
$
95
$
761
After-tax
$
1,790
$
732
$
318
$
75
$
601
Prior year reserve development - favorable:
Pre-tax
$
378
$
315
$
22
$
321
$
413
After-tax
$
297
$
249
$
16
$
253
$
325
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
5
The Travelers Companies, Inc.
Selected Statistics - Property and Casualty Operations
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
11,890
$
12,225
$
12,292
$
11,296
$
11,750
Net written premiums
$
10,515
$
11,516
$
11,472
$
10,856
$
10,323
Net earned premiums
$
10,710
$
10,897
$
11,133
$
11,146
$
10,593
Losses and loss adjustment expenses
7,947
6,731
6,537
5,768
6,310
Underwriting expenses
3,098
3,260
3,239
3,114
3,400
Statutory underwriting gain (loss)
(335)
906
1,357
2,264
883
Policyholder dividends
13
10
12
10
12
Statutory underwriting gain (loss) after policyholder dividends
$
(348)
$
896
$
1,345
$
2,254
$
871
Other statutory statistics
Reserves for losses and loss adjustment expenses
$
58,091
$
59,072
$
59,620
$
59,747
$
59,215
Increase (decrease) in reserves
$
1,765
$
981
$
548
$
127
$
(532)
Statutory capital and surplus
$
27,785
$
28,364
$
29,965
$
31,064
$
31,063
Net written premiums/surplus (1)
1.57:1
1.55:1
1.48:1
1.43:1
1.42:1
(1) Based on 12 months of rolling net written premiums.
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
6
The Travelers Companies, Inc.
Written and Earned Premiums - Property and Casualty Operations
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Written premiums
Gross
$
11,890
$
12,251
$
12,293
$
11,296
$
11,765
Ceded
(1,375)
(708)
(820)
(440)
(1,427)
Net
$
10,515
$
11,543
$
11,473
$
10,856
$
10,338
Earned premiums
Gross
$
11,487
$
11,749
$
11,964
$
11,952
$
11,438
Ceded
(777)
(828)
(829)
(804)
(833)
Net
$
10,710
$
10,921
$
11,135
$
11,148
$
10,605
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
7
The Travelers Companies, Inc.
Segment Income - Business Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Premiums
$
5,465
$
5,545
$
5,700
$
5,702
$
5,493
Net investment income
656
662
727
737
708
Fee income
108
111
114
112
111
Other revenues
82
95
111
91
104
Total revenues
6,311
6,413
6,652
6,642
6,416
Claims and expenses
Claims and claim adjustment expenses
3,705
3,584
3,667
3,198
3,531
Amortization of deferred acquisition costs
917
944
973
962
938
General and administrative expenses
847
875
894
866
912
Total claims and expenses
5,469
5,403
5,534
5,026
5,381
Segment income before income taxes
842
1,010
1,118
1,616
1,035
Income tax expense
159
197
211
324
196
Segment income
$
683
$
813
$
907
$
1,292
$
839
Other statistics
Effective tax rate on net investment income
17.8
%
17.7
%
17.7
%
17.5
%
17.3
%
Net investment income (after-tax)
$
539
$
545
$
598
$
607
$
586
Catastrophes, net of reinsurance:
Pre-tax
$
509
$
368
$
139
$
57
$
379
After-tax
$
402
$
291
$
110
$
44
$
299
Prior year reserve development - favorable (unfavorable):
Pre-tax
$
74
$
79
$
(125)
$
205
$
162
After-tax
$
58
$
62
$
(99)
$
162
$
127
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
8
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Business Insurance
($ in millions, net of tax)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Underwriting gain
$
157
$
274
$
318
$
690
$
261
Net investment income
539
545
598
607
586
Other income (expense)
(13)
(6)
(9)
(5)
(8)
Segment income
$
683
$
813
$
907
$
1,292
$
839
Combined ratio (1) (2)
Loss and loss adjustment expense ratio
66.8
%
63.7
%
63.3
%
55.1
%
63.3
%
Underwriting expense ratio
29.4
%
29.9
%
29.6
%
29.3
%
30.5
%
Combined ratio
96.2
%
93.6
%
92.9
%
84.4
%
93.8
%
Impact on combined ratio:
Net (favorable) unfavorable prior year reserve development
(1.3)
%
(1.4)
%
2.2
%
(3.6)
%
(2.9)
%
Catastrophes, net of reinsurance
9.3
%
6.7
%
2.4
%
1.0
%
6.9
%
Underlying combined ratio
88.2
%
88.3
%
88.3
%
87.0
%
89.8
%
(1) Before policyholder dividends.
(2) 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. See following:
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
4
$
5
$
4
$
4
$
4
Fee income:
Loss and loss adjustment expenses
$
45
$
45
$
48
$
48
$
48
Underwriting expenses
63
66
66
64
63
Total fee income
$
108
$
111
$
114
$
112
$
111
Non-insurance general and administrative expenses
$
91
$
93
$
112
$
89
$
107
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
9
The Travelers Companies, Inc.
Selected Statistics - Business Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
6,740
$
6,359
$
6,284
$
5,840
$
6,791
Net written premiums
$
5,698
$
5,765
$
5,674
$
5,514
$
5,771
Net earned premiums
$
5,465
$
5,521
$
5,698
$
5,700
$
5,481
Losses and loss adjustment expenses
3,650
3,530
3,614
3,138
3,463
Underwriting expenses
1,700
1,704
1,654
1,615
1,787
Statutory underwriting gain
115
287
430
947
231
Policyholder dividends
9
5
9
5
8
Statutory underwriting gain after policyholder dividends
$
106
$
282
$
421
$
942
$
223
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
10
The Travelers Companies, Inc.
Net Written Premiums - Business Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net written premiums by market
Domestic
Select Accounts
$
976
$
1,004
$
920
$
930
$
1,006
Middle Market
3,166
3,034
3,232
3,109
3,329
National Accounts
312
329
273
348
343
National Property and Other
720
885
841
666
691
Total Domestic
5,174
5,252
5,266
5,053
5,369
International
524
540
409
461
417
Total
$
5,698
$
5,792
$
5,675
$
5,514
$
5,786
Net written premiums by product line
Domestic
Workers’ compensation
$
950
$
821
$
792
$
786
$
980
Commercial automobile
1,030
1,019
1,030
1,017
1,106
Commercial property
873
1,051
961
820
821
General liability
753
878
998
967
847
Commercial multi-peril
1,532
1,486
1,447
1,461
1,580
Other
36
(3)
38
2
35
Total Domestic
5,174
5,252
5,266
5,053
5,369
International
524
540
409
461
417
Total
$
5,698
$
5,792
$
5,675
$
5,514
$
5,786
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
11
The Travelers Companies, Inc.
Segment Income - Bond & Specialty Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Premiums
$
995
$
1,021
$
1,042
$
1,049
$
1,018
Net investment income
102
107
116
120
113
Other revenues
6
5
8
8
5
Total revenues
1,103
1,133
1,166
1,177
1,136
Claims and expenses
Claims and claim adjustment expenses
434
418
451
461
441
Amortization of deferred acquisition costs
187
195
197
199
194
General and administrative expenses
205
214
207
217
219
Total claims and expenses
826
827
855
877
854
Segment income before income taxes
277
306
311
300
282
Income tax expense
57
62
61
64
28
Segment income
$
220
$
244
$
250
$
236
$
254
Other statistics
Effective tax rate on net investment income
18.4
%
18.5
%
17.7
%
18.4
%
18.5
%
Net investment income (after-tax)
$
83
$
88
$
95
$
98
$
92
Catastrophes, net of reinsurance:
Pre-tax
$
19
$
5
$
—
$
1
$
8
After-tax
$
15
$
4
$
—
$
1
$
7
Prior year reserve development - favorable:
Pre-tax
$
67
$
81
$
43
$
30
$
65
After-tax
$
52
$
65
$
33
$
24
$
51
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
12
The Travelers Companies, Inc.
Segment Income by Major Component and Combined Ratio - Bond & Specialty Insurance
($ in millions, net of tax)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Underwriting gain
$
133
$
154
$
150
$
132
$
159
Net investment income
83
88
95
98
92
Other income
4
2
5
6
3
Segment income
$
220
$
244
$
250
$
236
$
254
Combined ratio (1)
Loss and loss adjustment expense ratio
43.2
%
40.5
%
42.9
%
43.5
%
43.0
%
Underwriting expense ratio
39.3
%
39.8
%
38.7
%
39.5
%
40.3
%
Combined ratio
82.5
%
80.3
%
81.6
%
83.0
%
83.3
%
Impact on combined ratio:
Net favorable prior year reserve development
(6.7)
%
(8.0)
%
(4.2)
%
(2.8)
%
(6.4)
%
Catastrophes, net of reinsurance
1.9
%
0.5
%
—
%
0.1
%
0.8
%
Underlying combined ratio
87.3
%
87.8
%
85.8
%
85.7
%
88.9
%
(1) Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses 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. See following:
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
—
$
—
$
1
$
—
$
—
Non-insurance general and administrative expenses
$
1
$
2
$
1
$
2
$
2
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
13
The Travelers Companies, Inc.
Selected Statistics - Bond & Specialty Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
1,129
$
1,166
$
1,160
$
1,192
$
1,211
Net written premiums
$
999
$
1,085
$
1,080
$
1,098
$
1,066
Net earned premiums
$
995
$
1,021
$
1,042
$
1,049
$
1,018
Losses and loss adjustment expenses
430
414
447
457
437
Underwriting expenses
422
434
424
433
676
Statutory underwriting gain (loss)
143
173
171
159
(95)
Policyholder dividends
4
5
3
5
4
Statutory underwriting gain (loss) after policyholder dividends
$
139
$
168
$
168
$
154
$
(99)
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
14
The Travelers Companies, Inc.
Net Written Premiums - Bond & Specialty Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net written premiums by market
Domestic
Management Liability
$
553
$
589
$
613
$
571
$
572
Surety
333
342
342
337
381
Total Domestic
886
931
955
908
953
International
113
154
125
190
113
Total
$
999
$
1,085
$
1,080
$
1,098
$
1,066
Net written premiums by product line
Domestic
Fidelity and surety
$
394
$
400
$
407
$
395
$
447
General liability
440
469
475
458
455
Other
52
62
73
55
51
Total Domestic
886
931
955
908
953
International
113
154
125
190
113
Total
$
999
$
1,085
$
1,080
$
1,098
$
1,066
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
15
The Travelers Companies, Inc.
Segment Income (Loss) - Personal Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Premiums
$
4,250
$
4,355
$
4,393
$
4,397
$
4,094
Net investment income
172
173
190
197
187
Fee income
11
13
13
13
10
Other revenues
24
23
29
26
32
Total revenues
4,457
4,564
4,625
4,633
4,323
Claims and expenses
Claims and claim adjustment expenses
3,867
2,787
2,476
2,173
2,410
Amortization of deferred acquisition costs
674
663
679
676
634
General and administrative expenses
396
444
458
448
397
Total claims and expenses
4,937
3,894
3,613
3,297
3,441
Segment income (loss) before income taxes
(480)
670
1,012
1,336
882
Income tax expense (benefit)
(106)
136
205
250
178
Segment income (loss)
$
(374)
$
534
$
807
$
1,086
$
704
Other statistics
Effective tax rate on net investment income
18.1
%
18.0
%
18.0
%
17.7
%
17.1
%
Net investment income (after-tax)
$
141
$
141
$
157
$
162
$
155
Catastrophes, net of reinsurance:
Pre-tax
$
1,738
$
554
$
263
$
37
$
374
After-tax
$
1,373
$
437
$
208
$
30
$
295
Prior year reserve development - favorable:
Pre-tax
$
237
$
155
$
104
$
86
$
186
After-tax
$
187
$
122
$
82
$
67
$
147
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
16
The Travelers Companies, Inc.
Segment Income (Loss) by Major Component and Combined Ratio - Personal Insurance
($ in millions, net of tax)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Underwriting gain (loss)
$
(529)
$
380
$
631
$
907
$
535
Net investment income
141
141
157
162
155
Other income
14
13
19
17
14
Segment income (loss)
$
(374)
$
534
$
807
$
1,086
$
704
Combined ratio (1)
Loss and loss adjustment expense ratio
91.0
%
64.0
%
56.4
%
49.4
%
58.8
%
Underwriting expense ratio
24.2
%
24.4
%
24.9
%
24.6
%
24.1
%
Combined ratio
115.2
%
88.4
%
81.3
%
74.0
%
82.9
%
Impact on combined ratio:
Net favorable prior year reserve development
(5.6)
%
(3.6)
%
(2.4)
%
(1.9)
%
(4.5)
%
Catastrophes, net of reinsurance
40.9
%
12.7
%
6.0
%
0.8
%
9.1
%
Underlying combined ratio
79.9
%
79.3
%
77.7
%
75.1
%
78.3
%
(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses 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. See following:
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
24
$
24
$
23
$
24
$
21
Fee income
$
11
$
13
$
13
$
13
$
10
Non-insurance general and administrative expenses
$
6
$
6
$
5
$
6
$
14
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
17
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
4,021
$
4,700
$
4,848
$
4,264
$
3,748
Net written premiums
$
3,818
$
4,666
$
4,718
$
4,244
$
3,486
Net earned premiums
$
4,250
$
4,355
$
4,393
$
4,397
$
4,094
Losses and loss adjustment expenses
3,867
2,787
2,476
2,173
2,410
Underwriting expenses
976
1,122
1,161
1,066
937
Statutory underwriting gain (loss)
$
(593)
$
446
$
756
$
1,158
$
747
Policies in force (in thousands)
Automobile
3,118
3,083
3,050
3,025
2,819
Homeowners and Other
5,980
5,882
5,768
5,679
5,449
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
18
The Travelers Companies, Inc.
Net Written Premiums - Personal Insurance
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net written premiums by product line
Domestic
Automobile
$
1,859
$
1,968
$
2,062
$
1,856
$
1,756
Homeowners and Other
1,813
2,520
2,489
2,229
1,730
Total Domestic
3,672
4,488
4,551
4,085
3,486
International
146
178
167
159
—
Total
$
3,818
$
4,666
$
4,718
$
4,244
$
3,486
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
19
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Automobile
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
1,967
$
2,083
$
2,177
$
1,967
$
1,767
Net written premiums
$
1,955
$
2,074
$
2,165
$
1,956
$
1,756
Net earned premiums
$
2,071
$
2,091
$
2,091
$
2,075
$
1,892
Losses and loss adjustment expenses
1,270
1,320
1,300
1,393
1,145
Underwriting expenses
444
477
495
458
415
Statutory underwriting gain
$
357
$
294
$
296
$
224
$
332
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio
61.3
%
63.1
%
62.1
%
67.1
%
60.6
%
Underwriting expense ratio
22.1
%
22.2
%
22.8
%
22.3
%
22.3
%
Combined ratio
83.4
%
85.3
%
84.9
%
89.4
%
82.9
%
Impact on combined ratio:
Net favorable prior year reserve development
(6.0)
%
(5.0)
%
(4.3)
%
(3.0)
%
(6.3)
%
Catastrophes, net of reinsurance
1.9
%
1.3
%
0.9
%
0.2
%
0.9
%
Underlying combined ratio
87.5
%
89.0
%
88.3
%
92.2
%
88.3
%
Catastrophes, net of reinsurance:
Pre-tax
$
39
$
27
$
19
$
4
$
15
After-tax
$
30
$
22
$
15
$
3
$
12
Prior year reserve development - favorable:
Pre-tax
$
125
$
104
$
89
$
61
$
120
After-tax
$
98
$
83
$
70
$
47
$
95
Policies in force (in thousands)
3,118
3,083
3,050
3,025
2,819
Change from prior year quarter
(2.9)
%
(3.1)
%
(3.4)
%
(4.0)
%
(9.6)
%
Change from prior quarter
(1.0)
%
(1.1)
%
(1.1)
%
(0.8)
%
(6.8)
%
(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
14
$
15
$
14
$
14
$
13
Fee income
$
6
$
6
$
7
$
7
$
5
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
20
The Travelers Companies, Inc.
Selected Statistics - Personal Insurance - Homeowners and Other
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory underwriting
Gross written premiums
$
2,054
$
2,617
$
2,671
$
2,297
$
1,981
Net written premiums
$
1,863
$
2,592
$
2,553
$
2,288
$
1,730
Net earned premiums
$
2,179
$
2,264
$
2,302
$
2,322
$
2,202
Losses and loss adjustment expenses
2,597
1,467
1,176
780
1,265
Underwriting expenses
532
645
666
608
522
Statutory underwriting gain (loss)
$
(950)
$
152
$
460
$
934
$
415
Other statistics
Combined ratio (1):
Loss and loss adjustment expense ratio
119.2
%
64.8
%
51.1
%
33.6
%
57.4
%
Underwriting expense ratio
26.3
%
26.5
%
26.9
%
26.7
%
25.6
%
Combined ratio
145.5
%
91.3
%
78.0
%
60.3
%
83.0
%
Impact on combined ratio:
Net favorable prior year reserve development
(5.1)
%
(2.2)
%
(0.7)
%
(1.1)
%
(3.0)
%
Catastrophes, net of reinsurance
78.0
%
23.2
%
10.7
%
1.5
%
16.3
%
Underlying combined ratio
72.6
%
70.3
%
68.0
%
59.9
%
69.7
%
Catastrophes, net of reinsurance:
Pre-tax
$
1,699
$
527
$
244
$
33
$
359
After-tax
$
1,343
$
415
$
193
$
27
$
283
Prior year reserve development - favorable:
Pre-tax
$
112
$
51
$
15
$
25
$
66
After-tax
$
89
$
39
$
12
$
20
$
52
Policies in force (in thousands)
5,980
5,882
5,768
5,679
5,449
Change from prior year quarter
(4.1)
%
(4.6)
%
(5.5)
%
(6.3)
%
(8.9)
%
Change from prior quarter
(1.3)
%
(1.6)
%
(1.9)
%
(1.5)
%
(4.1)
%
(1) Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Billing and policy fees and other
$
10
$
9
$
9
$
10
$
8
Fee income
$
5
$
7
$
6
$
6
$
5
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
21
The Travelers Companies, Inc.
Interest Expense and Other
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Revenues
Other revenues
$
—
$
—
$
—
$
—
$
—
Claims and expenses
Interest expense
99
99
111
116
116
General and administrative expenses
11
12
13
13
13
Total claims and expenses
110
111
124
129
129
Loss before income tax benefit
(110)
(111)
(124)
(129)
(129)
Income tax benefit
(24)
(24)
(27)
(26)
(28)
Loss
$
(86)
$
(87)
$
(97)
$
(103)
$
(101)
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
22
The Travelers Companies, Inc.
Consolidated Balance Sheet
($ and shares in millions)
March 31,
2026
December 31,
2025
Assets
Fixed maturities, available for sale, at fair value (amortized cost $93,742 and $91,717; allowance for expected credit losses of $3 and $3)
$
90,736
$
89,833
Equity securities, at fair value (cost $428 and $457)
591
618
Real estate investments
899
900
Short-term securities
6,660
5,716
Other investments
4,092
4,115
Total investments
102,978
101,182
Cash (including restricted cash of $134 and $132)
615
842
Investment income accrued
801
877
Premiums receivable (net of allowance for expected credit losses of $60 and $58)
11,423
10,992
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $130 and $129)
7,988
7,886
Ceded unearned premiums
1,877
1,283
Deferred acquisition costs
3,587
3,518
Deferred taxes
1,101
887
Contractholder receivables (net of allowance for expected credit losses of $14 and $16)
3,051
3,010
Goodwill
4,060
4,066
Other intangible assets
331
336
Other assets
4,497
4,279
Assets held for sale (1)
—
4,550
Total assets
$
142,309
$
143,708
Liabilities
Claims and claim adjustment expense reserves
$
66,912
$
65,737
Unearned premium reserves
22,772
22,431
Contractholder payables
3,065
3,026
Payables for reinsurance premiums
1,123
529
Debt
9,268
9,267
Other liabilities
7,183
7,282
Liabilities held for sale (1)
—
2,542
Total liabilities
110,323
110,814
Shareholders’ equity
Common stock (1,750.0 shares authorized; 212.6 and 217.5 shares issued and outstanding)
26,092
25,910
Retained earnings
56,404
54,931
Accumulated other comprehensive loss
(3,078)
(2,500)
Treasury stock, at cost (582.5 and 575.9 shares)
(47,432)
(45,447)
Total shareholders’ equity
31,986
32,894
Total liabilities and shareholders’ equity
$
142,309
$
143,708
(1) Amounts relate to the Canadian operations divested by the Company in the first quarter of 2026.
23
The Travelers Companies, Inc.
Investment Portfolio
(at carrying value, $ in millions)
March 31,
2026
Pre-tax Book
Yield (1)
December 31,
2025 (2)
Pre-tax Book
Yield (1)
Investment portfolio
Taxable fixed maturities
$
63,394
4.16
%
$
63,051
4.11
%
Tax-exempt fixed maturities
27,342
3.35
%
26,782
3.29
%
Total fixed maturities
90,736
3.91
%
89,833
3.86
%
Non-redeemable preferred stocks
33
2.01
%
35
1.64
%
Common stocks
558
583
Total equity securities
591
618
Real estate investments
899
900
Short-term securities
6,660
3.78
%
5,716
3.86
%
Private equities
2,732
2,749
Hedge funds
208
212
Real estate partnerships
821
832
Other investments
331
322
Total other investments
4,092
4,115
Total investments
$
102,978
$
101,182
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity
$
(2,378)
$
(1,478)
(1) Yields are provided for those investments with an embedded book yield.
(2) Excludes $3,347 million of total investments classified as held for sale.
24
The Travelers Companies, Inc.
Investment Portfolio - Fixed Maturities Data
(at carrying value, $ in millions)
March 31,
2026
December 31,
2025 (1)
Fixed maturities
U.S. Treasury securities and obligations of U.S. Government corporations and agencies
$
3,383
$
3,857
Obligations of U.S. states and political subdivisions:
Pre-refunded
369
416
All other
31,611
30,962
Total
31,980
31,378
Debt securities issued by foreign governments
358
312
Mortgage-backed securities - principally obligations of U.S. Government agencies
12,848
13,232
Corporate and all other bonds
42,167
41,054
T1Total fixed maturities
$
90,736
$
89,833
Fixed Maturities
Quality Characteristics (2)
March 31, 2026
December 31, 2025 (1)
Amount
% of Total
Amount
% of Total
Quality Ratings
Aaa
$
25,220
27.8
%
$
24,898
27.7
%
Aa
32,538
35.9
33,027
36.7
A
20,512
22.6
19,660
21.9
Baa
11,420
12.5
11,198
12.5
Total investment grade
89,690
98.8
88,783
98.8
Ba
839
1.0
812
1.0
B
182
0.2
205
0.2
Caa and lower
25
—
33
—
Total below investment grade
1,046
1.2
1,050
1.2
Total fixed maturities
$
90,736
100.0
%
$
89,833
100.0
%
Average weighted quality
Aa3, AA-
Aa2, AA
Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases
4.9
4.7
(1) Excludes $3,243 million of fixed maturities classified as held for sale.
(2) Rated using external rating agencies or by Travelers when a public rating does not exist. Below investment grade assets refer to securities rated “Ba” or below.
25
The Travelers Companies, Inc.
Investment Income
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Gross investment income
Fixed maturities
$
812
$
833
$
874
$
914
$
899
Short-term securities
57
55
73
68
75
Other
76
67
101
82
47
945
955
1,048
1,064
1,021
Investment expenses
15
13
15
10
13
Net investment income, pre-tax
930
942
1,033
1,054
1,008
Income taxes
167
168
183
187
175
Net investment income, after-tax
$
763
$
774
$
850
$
867
$
833
Effective tax rate
17.9
%
17.9
%
17.8
%
17.7
%
17.4
%
Average invested assets (1) (2)
$101,000
$102,173
$105,655
$107,932
$106,666
Average yield pre-tax (1)
3.7
%
3.7
%
3.9
%
3.9
%
3.8
%
Average yield after-tax
3.0
%
3.0
%
3.2
%
3.2
%
3.1
%
(1) Excludes net unrealized investment gains (losses), and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.
(2) Includes $3,347 million of invested assets classified as held for sale as of December 31, 2025.
26
The Travelers Companies, Inc.
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Net realized investment gains (losses)
Fixed maturities
$
(31)
$
(17)
$
(2)
$
(19)
$
(22)
Equity securities
(22)
20
39
8
1
Other (1)
(8)
3
(10)
(9)
70
Realized investment gains (losses) before tax
(61)
6
27
(20)
49
Related taxes
(13)
1
6
(5)
34
Net realized investment gains (losses)
$
(48)
$
5
$
21
$
(15)
$
15
Gross investment gains
$
4
$
41
$
45
$
13
$
277
Gross investment losses before impairments
(63)
(35)
(18)
(33)
(225)
Net investment gains (losses) before impairments
(59)
6
27
(20)
52
Net impairment (charges) recoveries
(2)
—
—
—
(3)
Net realized investment gains (losses) before tax
(61)
6
27
(20)
49
Related taxes
(13)
1
6
(5)
34
Net realized investment gains (losses)
$
(48)
$
5
$
21
$
(15)
$
15
($ in millions)
March 31,
2025
June 30,
2025
September 30,
2025
December 31,
2025
March 31,
2026
Net unrealized investment gains (losses), net of tax, included in shareholders’ equity, by asset type
Fixed maturities
$
(4,171)
$
(3,833)
$
(2,481)
$
(1,859)
$
(3,003)
Other
(1)
2
(3)
(3)
(5)
Unrealized investment gains (losses) before tax
(4,172)
(3,831)
(2,484)
(1,862)
(3,008)
Related taxes
(873)
(800)
(514)
(384)
(630)
Balance, end of period
$
(3,299)
$
(3,031)
$
(1,970)
$
(1,478)
$
(2,378)
(1) Other net realized investment gains in the first quarter of 2026 were driven by net realized investment gains related to the Canadian operations divested by the Company in the first quarter of 2026.
27
The Travelers Companies, Inc.
Reinsurance Recoverables
($ in millions)
March 31, 2026
December 31, 2025
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)
$
4,364
$
4,352
Gross structured settlements (2)
2,279
2,469
Mandatory pools and associations (3)
1,475
1,485
Gross reinsurance recoverables (4)
8,118
8,306
Allowance for estimated uncollectible reinsurance (5)
(130)
(135)
Less amounts classified as held for sale
—
285
Net reinsurance recoverables
$
7,988
$
7,886
(1) The Company’s top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:
Reinsurer
A.M. Best Rating of Group's Predominant Reinsurer
March 31, 2026
Swiss Re Group
A+ second highest of 16 ratings
$
658
Berkshire Hathaway
A++ highest of 16 ratings
411
Munich Re Group
A+ second highest of 16 ratings
363
Sompo Group
A+ second highest of 16 ratings
236
Fairfax Financial Group
A+ second highest of 16 ratings
220
The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims. The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves. Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.
(2) Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers’ compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company’s consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments. The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.
The Company’s top five groups included in gross structured settlements is as follows:
Group
A.M. Best Rating of Group's Predominant Insurer
March 31, 2026
Fidelity & Guaranty Life Group
A third highest of 16 ratings
$
628
Genworth Financial Group
B- eighth highest of 16 ratings
312
Symetra Financial Corporation
A third highest of 16 ratings
160
Brighthouse Financial, Inc.
A third highest of 16 ratings
158
John Hancock Group
A+ second highest of 16 ratings
152
(3) The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers’ compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool’s liabilities.
(4) Of the total reinsurance recoverables at March 31, 2026, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.97 billion, or 90%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 10% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to voluntary pools and 4% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.
(5) The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company’s ongoing review of life insurers’ creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.
28
The Travelers Companies, Inc.
Net Reserves for Losses and Loss Adjustment Expense
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period
$
42,909
$
43,742
$
44,477
$
45,148
$
45,383
Incurred
3,650
3,530
3,614
3,138
3,463
Paid
(2,847)
(2,890)
(2,915)
(2,912)
(2,635)
Foreign exchange and other (1)
30
95
(28)
9
(612)
End of period
$
43,742
$
44,477
$
45,148
$
45,383
$
45,599
Bond & Specialty Insurance
Beginning of period
$
4,938
$
5,072
$
5,249
$
5,304
$
5,367
Incurred
430
414
447
457
437
Paid
(325)
(307)
(372)
(396)
(336)
Foreign exchange and other (1)
29
70
(20)
2
(137)
End of period
$
5,072
$
5,249
$
5,304
$
5,367
$
5,331
Personal Insurance
Beginning of period
$
8,479
$
9,277
$
9,346
$
9,168
$
8,997
Incurred
3,867
2,787
2,476
2,173
2,410
Paid
(3,069)
(2,767)
(2,635)
(2,357)
(2,213)
Foreign exchange and other (1)
—
49
(19)
13
(909)
End of period
$
9,277
$
9,346
$
9,168
$
8,997
$
8,285
Total
Beginning of period
$
56,326
$
58,091
$
59,072
$
59,620
$
59,747
Incurred
7,947
6,731
6,537
5,768
6,310
Paid
(6,241)
(5,964)
(5,922)
(5,665)
(5,184)
Foreign exchange and other (1)
59
214
(67)
24
(1,658)
End of period
$
58,091
$
59,072
$
59,620
$
59,747
$
59,215
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos
$
—
$
—
$
277
$
—
$
—
All other
(74)
(79)
(152)
(205)
(162)
Total Business Insurance (2)
(74)
(79)
125
(205)
(162)
Bond & Specialty Insurance
(67)
(81)
(43)
(30)
(65)
Personal Insurance
(237)
(155)
(104)
(86)
(186)
Total
$
(378)
$
(315)
$
(22)
$
(321)
$
(413)
(1) The amount for 1Q2026 includes the impact of net reserves disposed of related to the Canadian operations divested by the Company in the first quarter of 2026.
(2) Excludes accretion of discount.
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
29
The Travelers Companies, Inc.
Asbestos Reserves
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Asbestos reserves
Beginning reserves:
Gross
$
1,708
$
1,636
$
1,555
$
1,798
$
1,700
Ceded
(370)
(357)
(318)
(352)
(345)
Net
1,338
1,279
1,237
1,446
1,355
Incurred losses and loss expenses:
Gross
—
—
327
—
—
Ceded
—
—
(50)
—
—
Paid loss and loss expenses:
Gross
72
83
84
98
77
Ceded
(13)
(39)
(16)
(8)
(15)
Foreign exchange and other:
Gross
—
2
—
—
—
Ceded
—
—
—
(1)
—
Ending reserves:
Gross
1,636
1,555
1,798
1,700
1,623
Ceded
(357)
(318)
(352)
(345)
(330)
Net
$
1,279
$
1,237
$
1,446
$
1,355
$
1,293
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
30
The Travelers Companies, Inc.
Capitalization
($ in millions)
March 31,
2026
December 31,
2025
Debt
Short-term debt
Commercial paper
$
100
$
100
7.75% Senior notes due April 15, 2026
200
200
Total short-term debt
300
300
Long-term debt
7.625% Junior subordinated debentures due December 15, 2027
125
125
6.375% Senior notes due March 15, 2033 (1)
500
500
5.05% Senior notes due July 24, 2035 (1)
500
500
6.75% Senior notes due June 20, 2036 (1)
400
400
6.25% Senior notes due June 15, 2037 (1)
800
800
5.35% Senior notes due November 1, 2040 (1)
750
750
4.60% Senior notes due August 1, 2043 (1)
500
500
4.30% Senior notes due August 25, 2045 (1)
400
400
8.50% Junior subordinated debentures due December 15, 2045
56
56
3.75% Senior notes due May 15, 2046 (1)
500
500
8.312% Junior subordinated debentures due July 1, 2046
73
73
4.00% Senior notes due May 30, 2047 (1)
700
700
4.05% Senior notes due March 7, 2048 (1)
500
500
4.10% Senior notes due March 4, 2049 (1)
500
500
2.55% Senior notes due April 27, 2050 (1)
500
500
3.05% Senior notes due June 8, 2051 (1)
750
750
5.45% Senior notes due May 25, 2053 (1)
750
750
5.70% Senior notes due July 24, 2055 (1)
750
750
Total long-term debt
9,054
9,054
Unamortized fair value adjustment
31
31
Unamortized debt issuance costs
(117)
(118)
8,968
8,967
Total debt
9,268
9,267
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)
34,364
34,372
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)
$
43,632
$
43,639
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders’ equity)
21.2
%
21.2
%
(1) Redeemable anytime with “make-whole” premium.
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
31
The Travelers Companies, Inc.
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation
($ in millions)
March 31,
2026 (1)
December 31,
2025
Statutory capital and surplus
$
31,063
$
31,064
GAAP adjustments
Goodwill and intangible assets
3,430
3,640
Investments
(2,291)
(1,238)
Noninsurance companies
(4,907)
(4,876)
Deferred acquisition costs
3,449
3,478
Deferred federal income tax
(111)
(446)
Current federal income tax
(7)
(6)
Reinsurance recoverables
160
41
Furniture, equipment & software
877
948
Agents balances
224
182
Other
99
107
Total GAAP adjustments
923
1,830
GAAP shareholders’ equity
$
31,986
$
32,894
(1) Estimated and Preliminary
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
32
The Travelers Companies, Inc.
Statement of Cash Flows
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Cash flows from operating activities
Net income
$
395
$
1,509
$
1,888
$
2,496
$
1,711
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses
61
(6)
(27)
20
(49)
Depreciation and amortization
188
164
166
162
193
Deferred federal income tax expense (benefit)
31
(83)
320
(58)
51
Amortization of deferred acquisition costs
1,778
1,802
1,849
1,837
1,766
Equity in income from other investments
(53)
(42)
(74)
(57)
(23)
Premiums receivable
(459)
(438)
412
370
(434)
Reinsurance recoverables
(97)
78
(250)
132
(108)
Deferred acquisition costs
(1,822)
(1,917)
(1,877)
(1,757)
(1,837)
Claims and claim adjustment expense reserves
1,818
725
845
(88)
1,211
Unearned premium reserves
419
495
331
(661)
351
Other
(899)
47
644
289
(634)
Net cash provided by operating activities
1,360
2,334
4,227
2,685
2,198
Cash flows from investing activities
Proceeds from maturities of fixed maturities
2,801
3,071
2,886
2,902
3,014
Proceeds from sales of investments:
Fixed maturities
253
348
178
53
251
Equity securities
68
32
31
29
52
Other investments
63
79
68
111
60
Purchases of investments:
Fixed maturities
(4,296)
(4,847)
(5,376)
(4,252)
(5,356)
Equity securities
(25)
(35)
(34)
(32)
(25)
Real estate investments
(7)
(6)
(10)
(25)
(12)
Other investments
(96)
(80)
(86)
(84)
(69)
Net sales (purchases) of short-term securities
239
(215)
(2,051)
1,082
(945)
Securities transactions in the course of settlement
308
64
(4)
(224)
430
Proceeds from the divestiture of the Canadian business
—
—
—
—
2,384
Other
(116)
(127)
(155)
(135)
(119)
Net cash used in investing activities
(808)
(1,716)
(4,553)
(575)
(335)
33
The Travelers Companies, Inc.
Statement of Cash Flows (Continued)
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
Cash flows from financing activities
Treasury stock acquired - share repurchase authorizations
(250)
(500)
(619)
(1,635)
(1,785)
Treasury stock acquired - net employee share-based compensation
(102)
(22)
(1)
(2)
(149)
Dividends paid to shareholders
(240)
(250)
(247)
(242)
(237)
Issuance of debt
—
—
1,233
—
—
Issuance of common stock - employee share options
57
70
36
51
86
Net cash provided by (used in) financing activities
(535)
(702)
402
(1,828)
(2,085)
Effect of exchange rate changes on cash and restricted cash
8
19
(6)
2
(5)
Net increase (decrease) in cash and restricted cash
25
(65)
70
284
(227)
Cash and restricted cash at beginning of period
699
724
659
729
842
Less amounts classified as held for sale at end of period
—
—
—
171
—
Cash and restricted cash at end of period
$
724
$
659
$
729
$
842
$
615
Supplemental disclosure of cash flow information
Income taxes paid
$
24
$
538
$
194
$
518
$
12
Interest paid
$
61
$
136
$
60
$
136
$
94
34
The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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.
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.
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.
Average shareholders’ equity is (a) the sum of total 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. Adjusted shareholders’ equity is shareholders’ equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders’ equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)). 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.
Reconciliation of Shareholders’ Equity to Adjusted Shareholders’ Equity
As of
($ in millions)
March 31, 2025
June 30, 2025
September 30, 2025
December 31, 2025
March 31, 2026
Shareholders’ equity
$
28,191
$
29,518
$
31,609
$
32,894
$
31,986
Adjustments:
Net unrealized investment (gains) losses, net of tax, included in shareholders’ equity
3,299
3,031
1,970
1,478
2,378
Net realized investment (gains) losses, net of tax
48
43
22
37
(15)
Adjusted shareholders’ equity
$
31,538
$
32,592
$
33,601
$
34,409
$
34,349
Return on equity is the ratio of annualized net income (loss) to average shareholders’ equity for the periods presented. Core return on equity is the ratio of annualized core income (loss) 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.
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.
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 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 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.
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The Travelers Companies, Inc.
Glossary of Financial Measures and Description of Reportable Business Segments
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 financial supplement, 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 financial supplement 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 financial supplement 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 financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums. Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.
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.
Other companies’ method of computing similarly titled measures may not be comparable to the Company’s method of computing these ratios.
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.
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.
Total capital is the sum of total shareholders’ equity and debt. Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders’ equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, 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.
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.
Travelers has organized its businesses 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. Business Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited.
Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company’s asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements.
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, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors’ and officers’ liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers’ compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.
Bond & Specialty Insurance’s surety business in Brazil is conducted through Junto Holding Brasil S.A. (Junto). The Company owns 49.5% of Junto, a market leader in surety coverages in Brazil. This joint venture investment is accounted for using the equity method and is included in “other investments” on the consolidated balance sheet.
Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services in the United States covering individuals’ personal risks. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.
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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | 0 | 0 |
| Buybacks share repurchase, buyback program | 1 | — | 0 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Share repurchase activity
“Common stock repurchased: Under Board of Directors authorization Shares 6.0 Cost $1,800”
Theme · Catastrophe losses impact
“Catastrophes, net of reinsurance: Pre-tax $761 After-tax $601”
Theme · Favorable prior year reserve development
“Prior year reserve development - favorable: Pre-tax $413 After-tax $325”
Theme · Net written premiums decline
“Net written premiums $10,323”
Theme · Underlying profitability
“Underlying combined ratio 85.3%”
Source: SEC EDGAR · public domain · Highlights by Palanor