The Travelers Companies, Inc. reported a significant increase in net income for the second quarter of 2026, reaching $2.208 billion, an increase of $699 million from $1.509 billion in the same period last year, mainly due to improvements in core income and realized net investment income.
The company’s core revenue for the second quarter of 2026 was $2.16 billion, an increase of $656 million from the same period last year.
Travelers attributed this to lower catastrophe losses, higher net favorable reserve development in the prior year, higher net investment income and higher underlying underwriting earnings.
By business unit, commercial insurance achieved after-tax income of US$1.198 billion in the second quarter of 2026, an increase of US$385 million compared with the same period in 2025.
Personal insurance also recorded significant growth, with after-tax revenue increasing by $293 million year-on-year to $827 million.
Meanwhile, Bond & Specialty Insurance reported after-tax income of $234 million, down $10 million from the second quarter of 2025.
As mentioned above, the insurer also reported significant improvement in underwriting earnings in the second quarter of 2026, rising to $1.738 billion, an increase of $716 million from $1.022 billion in the same period in 2025.
This performance was reportedly driven by net favorable reserve development of $578 million in the prior year, compared with $315 million in the second quarter of 2025.
In addition, catastrophe losses, net of reinsurance, fell sharply from $927 million in the second quarter of last year to $518 million in the second quarter of 2026.
Net investment income also contributed positively to Travelers’ second quarter 2026 results, increasing by $128 million to $1.07 billion.
Travelers’ combined ratio improved 6.7 percentage points to 83.6% in the second quarter of 2026, compared with 90.3% in the second quarter of 2025, reflecting stronger underwriting results.
In terms of revenue premium size, total net written premiums were relatively flat at $11.529 billion in the second quarter of 2026, compared with $11.543 billion in the second quarter of 2025.
Among the above-mentioned market segments, commercial insurance net written premiums increased 3% to $5.984 billion, and bond and specialty insurance increased 14% to $1.237 billion.
These gains were partially offset by an 8% decline in personal lines net written premiums, which fell to $4.308 billion in the second quarter of 2026.
Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, commented: “We are pleased to report excellent second quarter results, with strong underwriting performance in all three segments and outstanding performance across our portfolio.
“These results, combined with our exceptionally strong balance sheet, enabled us to return more than $1.5 billion of excess capital to shareholders during the quarter, including $1.3 billion in share repurchases.
“Our strong first-half results reflect enduring fundamentals, the discipline with which we manage our balance sheet and the successful execution of our winning strategy.
“The scale of our earnings and cash flows allows us to invest in differentiating technologies, including artificial intelligence, that differentiate us and further enhance the competitive advantage that drives these results. With this strength, we remain confident in Travelers’ prospects.”
