The Travelers Companies, Inc. (TRV)

The Travelers Companies reported third-quarter 2026 net income of $1.917 billion on 16 October, against $1.888 billion a year earlier 1. Core income, which leaves out gains and losses from selling investments, rose to $1.947 billion from $1.867 billion 1.

The combined ratio, claims and costs measured against premiums earned, improved to 86.8 percent from 87.3 percent 1. Storms cost more: catastrophe losses were $538 million before tax against $402 million, mostly from wind and hail in several states 12.

Two things held profit up: $234 million of favorable development, meaning reserves for older claims proved larger than needed, and record investment income of $1.098 billion before tax 1. That favorable figure came after a $295 million addition to asbestos reserves 1.

Premiums were flat at $11.480 billion because the year-earlier quarter held $240 million from the Canadian businesses sold to Definity Financial on 2 January 2026 13. Excluding the sale, premiums grew 2 percent 1.

The open questions are lawsuits and interest rates: chief executive Alan Schnitzer said the drivers of liability losses "remain active" 16. Higher rates also lifted unrealized losses on the bond portfolio to $6.352 billion after tax, which cut book value per share to $141.48 1.

Travelers traces its roots to 1853 3. The present company formed on 1 April 2004, when Travelers Property Casualty Corp. merged with a subsidiary of The St. Paul Companies, which became The St. Paul Travelers Companies 8. Early in 2007 it said it would rename itself The Travelers Companies and list as TRV 8.

In 2017 wildfires in California and hurricanes Harvey, Irma and Maria pushed catastrophe losses to $1.95 billion, and net income was $2.06 billion 7. That August it bought Simply Business, a British provider of small business insurance, for about $464 million 7.

In 2020 the pandemic cut car claims because people drove fewer miles, while a Midwest derecho, wildfires and hurricanes raised catastrophe losses to $1.61 billion 6. Net income still rose 3 percent to $2.70 billion 6.

Net income fell 22 percent to $2.84 billion in 2022, as investment income dropped and car and home claims cost more 5. The bond portfolio swung to $4.90 billion of unrealized losses after tax, and shareholders' equity fell to $21.56 billion 5. Underlying margins in 2021 had been helped by the pandemic, the report noted 5.

Storms kept 2023 lean, with catastrophe losses of $2.99 billion 4. In 2024 net income rose 67 percent to $5.00 billion on better underwriting margins and investment income, despite $3.34 billion of catastrophe losses led by Hurricane Helene 4. On 2 January 2024 it had completed the purchase of Corvus, a cyber insurance underwriting agency 4.

In 2025 net income reached $6.29 billion on $43.91 billion of earned premiums 3. That came despite $3.69 billion of catastrophe losses, mostly from the January 2025 California wildfires 3. The annual report credits higher underwriting margins in all three segments, more investment income and more favorable reserve development 3.

Higher interest rates fed the investment side: income from investments was $3.96 billion before tax in 2025 against $2.92 billion in 2023 3. Over those years the average pre-tax yield climbed from 3.2 percent to 3.8 percent 3.

It returned $4.18 billion to shareholders in 2025, $3.20 billion in buybacks and $987 million in dividends 3. Fewer shares is why earnings per share grew 28 percent while net income grew 26 percent, the annual report says 3.

In May 2025 it agreed to sell its Canadian personal business and most of its Canadian commercial business to Definity for about US$2.4 billion, keeping its Canadian surety arm 9. Schnitzer called Definity "a natural long-term owner" for the business 9.

What it sells, in short

Travelers sells property and casualty insurance, cover for damage to things and for legal liability, to businesses, public bodies and households, mostly in the United States 3. It earned $43.91 billion in premiums in 2025 and had about 34,000 employees at year end 3. California, Texas and New York were its largest states by premiums written 3.

Business Insurance

Business Insurance covers firms from small shops to large companies: workers' compensation, commercial cars and trucks, property, general liability and package policies 3. It wrote $22.68 billion of net premiums in 2025, and Middle Market, firms of 50 to 1,000 employees, brought in $12.54 billion of it 3.

In the third quarter of 2026 the segment earned $1.036 billion after tax, with a combined ratio of 90.9 percent 1. Renewal prices rose 4.1 percent and retention, the share of business that renewed, was 86 percent 1.

The segment also holds Simply Business in Britain and writes at Lloyd's of London through Syndicate 5000, which it funds in full 3. Under a reinsurance deal renewed for 2026, it takes 20 percent of the subject premiums of Pelagos, formerly Fidelis 2.

Bond and Specialty Insurance

This segment sells surety bonds, a promise to pay or finish the job if a contractor defaults, plus directors' and officers' liability, cyber and professional cover 3. It wrote $4.26 billion of net premiums in 2025 3. Travelers calls itself the largest surety writer in North America 9.

In the third quarter of 2026 its premiums grew 12 percent to $1.209 billion, surety premiums by 21 percent, and its combined ratio was 77.3 percent 1. It also owns 49.5 percent of Junto, a leader in Brazilian surety 3.

Personal Insurance: cars and homes

Personal Insurance sells car and home cover, plus boats, jewelry, umbrella liability and weddings, mainly through independent agents 3. It wrote $17.45 billion of net premiums in 2025, 44.4 percent from cars and 51.9 percent from homes and other 3. It had about 8.4 million policies in force in the United States 3.

Since 1995 it has written part of the homeowners business of GEICO's agency affiliate 3. In the third quarter of 2026 the segment earned $706 million, down from $807 million, as catastrophe losses of $380 million added 9.2 points to its combined ratio 1.

Car premiums fell 8 percent as pricing moderated after strong profits, while home premiums rose 1 percent 116.

Rivals

By the NAIC's figures for 2024, Travelers was the sixth largest property and casualty group in the United States, with 3.97 percent of direct premiums 17. State Farm, Progressive, Berkshire Hathaway, Allstate and Liberty Mutual were larger 17.

In homes and cars it competes with direct writers that sell without agents, and agents compare its quotes with rating software 3. In commercial lines it competes with national and regional insurers and with self-insurance and captives 3.

Claims, offices and people

Claims Services has about 12,300 employees, 15 claim centers and 57 smaller offices in 42 states 3. It keeps its own catastrophe team to limit reliance on outside adjusters 3.

It leases its New York head office and about 155 field and claim offices, and owns six buildings in Hartford, Connecticut 3. It also owns buildings in Windsor, Norcross, St. Paul and Omaha 3.

Alan Schnitzer has been chief executive since December 2015 and chairman since August 2017 3. Daniel Frey is finance chief, and Gregory Toczydlowski, Jeffrey Klenk and Michael Klein run the three segments 3.

His total pay for 2025 was $26,983,859, against $132,067 for the median employee, the proxy says 11. On 5 August 2026 the board grew from eight to nine members with Anthony Jabbour, a former chief executive of Dun & Bradstreet 13.

Problems on file

Asbestos claims still cost money: the annual reviews added $295 million to reserves in 2026 and $277 million in 2025, as mesothelioma lawsuits stayed high 2. Net asbestos reserves were $1.44 billion at 30 September 2026 2.

Schnitzer said lawsuit activity keeps pushing up liability losses in general liability, umbrella and commercial auto 16. For claimants without lawyers the company built a digital tool, and more than 80 percent of those offered it engaged with it in a pilot 16.

At the May 2026 meeting a shareholder proposal for a report on climate-related pricing and coverage got 24,894,789 votes for and 143,415,990 against 12.

The umbrella, in words

The parent is a holding company whose insurers sit under Travelers Property Casualty Corp. and Travelers Insurance Group Holdings 103. Its listed subsidiaries include The Travelers Indemnity Company, St. Paul Fire and Marine Insurance Company and Northland Insurance Company 10.

It owns Simply Business, the Corvus cyber agency and Constitution State Services, which handles claims and risk services for other firms for a fee 103. It owns 49.5 percent of Junto in Brazil and holds a minority investment in Pelagos 32.

Long Point Re IV, a Bermuda company it does not own, sold catastrophe bonds that gave it up to $575 million of storm cover through 24 May 2026 3.

It has one class of common stock, listed on the New York Stock Exchange 3. The proxy lists four holders above 5 percent: Vanguard at 10.43 percent, BlackRock at 8.10 percent, State Street at 7.44 percent and FMR at 7.09 percent 11. Each figure comes from the holder's Schedule 13G 11.

The quarterly report says the company expects about $875 million after tax of fixed income investment income in the fourth quarter of 2026 2. It expects the same in the first quarter of 2027, growing to about $965 million in the fourth quarter of 2027 2.

The company says that expectation could move with interest rates and market disruptions 2. Finance chief Daniel Frey said new bonds bought in the third quarter yielded about 120 basis points more than the portfolio's average 16.

From 1 October 2026 it gives reinsurers a larger share of its cyber business, which cuts net written premiums by about $165 million in the fourth quarter and $230 million in 2027 2. The company expects a de minimis effect on income 2.

Frey said the expense ratio should come in a little below 29 percent for 2026 and about the same for 2027 16. The company expects retention to stay strong and the market for new business to stay competitive into 2027 2.

Schnitzer said on the call that he reiterates the durability of underlying underwriting income 16. Frey added that 2027 could come in a little higher, a little lower or flat 16.

The board added $5.0 billion of buyback capacity on 21 January 2026, and $2.415 billion remained at 30 September 21. When it agreed the Canadian sale, the company said it expected to use about US$0.7 billion of the proceeds for extra buybacks in 2026 9.

The next dividend, $1.25 a share, is payable on 31 December 2026 to holders of record on 10 December 1.

In July 2026 it sold $750 million of 4.950 percent notes due 2031 14. In May it replaced its $1.0 billion credit line with a $1.2 billion five-year facility 15.

Its main catastrophe treaty runs through 31 December 2026, and most of its reinsurance programs renew on 1 January or 1 July 32. Any change in their cost or terms takes effect after those dates 2.