Travelers Insurance reported continued solid underwriting and historic investment income for the third quarter along with higher catastrophe losses.
“It was another in a run of successful quarters, with very strong underwriting performance across all three segments and a record result from our investment portfolio,” commented Alan Schnitzer, chairman and chief executive officer.
Highlights for the quarter included:
- Net income was essentially flat, coming in at $1.917 billion, compared to $1.888 billion in Q3 2025.
- The consolidated combined ratio for the quarter improved 0.5 points to an efficient 8%.
- Catastrophe losses grew to $538 million pre-tax, up significantly from $402 million in the prior-year period, due to severe wind and hail storms in multiple states.
- Net written premiums remained stood steady at $11.480 billion for the quarter, a rise of about 2%.
- Net Investment Income hit a historic quarterly record of $1.098 billion pre-tax, expanding by 6%.
“Our strong underwriting and investment results through the first nine months of the year reflect the strength of our franchise. We are well positioned to finish the year strong. That momentum, and the advances we are making on our innovation agenda, give us real confidence heading into 2027 and beyond,” said Schnitzer.
Segment Results
The $11.480 billion in net written premiums for the quarter was due to what CEO Schnitzer called “disciplined marketplace execution” across all three of its segments.
The Business Insurance segment grew in every line other than property, delivering new business of $699 million, a third quarter record. Net written premiums for the segment grew to $5.868 billion, representing an increase of 4% on an adjusted basis when factoring out the impact of the Canadian divestiture. Business policy renewal retention held firm at 86%. The business combined ratio was 88.9%.
Personal Insurance net written premium totaled $4.403 billion, a decline of 7%; however, the drop was only 3% when factoring the sale of $167 million related to Canadian operations. Retention of both automobile and homeowners was stable and the combined ratio (83.5%) improved despite natural catastrophe losses from due to severe wind and hail events.
Bond & Specialty Insurance led all segments in net premium growth with a jump of 12% to $1.209 billion. The company said growth was heavily driven by the surety business, where premiums surged 21%. Management Liability also improved with renewal premium climbing to 3.8% along with an 18% jump in new business and an 89% retention rate.
For the nine months, the insurers reported net income is up about $2 billion to $5.836 billion. There has been a substantial improvement of 6.9 points in the underlying combined ratio, which is at 86.3%, as catastrophe losses are lower than they were earlier in the year.
Topics
Profit Loss
Underwriting
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