Second quarter 2026 net income at Travelers increased 46% to about $2.2 billion on lower catastrophe losses and favorable prior year reserve development.
Catastrophe losses for the quarter, mostly from severe storms, were $518 million compared with $927 million for Q2 2025. The second-quarter catastrophe losses were more than paid for by favorable reserve development of $578 million.
The Q2 combined ratio was 83.6, an improvement of 6.7 points over the result for Q2 2025.
At the halfway point of 2026, net income has doubled to about $3.9 billion and the combined ratio improved 10.2 points to 86.1.
Related: Travelers Builds Insurance-Specific LLM
Total underwriting income for Q2 was up $716 million to about $1.7 billion. The Q2 underwriting gain in Travelers’ business insurance segment more than doubled to $728 million. The segment’s combined ratio improved 6.8 points compared with the same period a year ago, to 86.8. Net premiums written grew 3% to about $6 billion.
Favorable reserve development on business insurance was $319 million in Q2 versus $79 million during the same time last year thanks to better than expected loss experience in workers’ compensation over multiple years and in commercial property for recent years, Travelers said.
At this time a year ago, Travelers held a 101.7 combined ratio for its personal insurance business after six months. This year, the combined ratio is 81.2 at the six-month mark and 79.5 for Q2.
NPW of about $4.3 billion decreased 8% quarter-over-quarter, but last year’s Q2 result included $178 million related to its Canadian operations, which were divested in Q1.
Related: Definity Financial Completes $2.4B Acquisition of Travelers’ Canadian Businesses
CEO Alan Schnitzer said Travelers has “solid retention in both auto and homeowners and higher new business in our homeowners business.”
Topics
Catastrophe
Profit Loss
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