Travellers has announced its financial results for the third quarter of 2026, reporting a net income of $1.917 billion, increasing from $1.888 billion in the same period last year, despite a year-on-year rise in catastrophe losses in the period.
Core income in the current quarter was $1.947 billion, compared to $1.867 billion in the prior year quarter. Its increase was primarily due to higher net favourable prior year reserve development – which was favourable for three segments and totaled $234 million pre-tax – and higher net investment income, partially offset by higher catastrophe losses.
Q3 2026’s net income was driven by higher core income, partially offset by net realised investment losses compared to net realised investment gains in the prior year quarter.
Net realized investment losses were $34 million pre-tax ($30 million after-tax), compared to net realized investment gains of $27 million pre-tax ($21 million after-tax) in the prior year quarter.
At 86.8%, the combined ratio improved 0.5 points due to higher net favourable prior year reserve development (1.9 points), partially offset by higher catastrophe losses (1.2 points) and a higher underlying combined ratio (0.2 points). The underlying combined ratio was robust at 84.1%.
Catastrophe losses were up in Q3 2026, Travelers reported an impact of $538 million, which increased from $302 million seen in the same period last year. According to the firm, Q3 2026 cat losses primarily resulted from severe wind and hail storms in multiple states.
Net written premiums of $11.48 billion increased slightly over the prior year quarter. Net written premiums in the prior year quarter included $240 million related to the Canadian operations which the Company divested in the first quarter of 2026.
Excluding the impact of the sale, net written premiums increased 2% over the prior year quarter, Travelers noted.
Year to date 2026, the re/insurer reported a $2.044 billion increase in net income, which reached $5.836 billion. This was driven by higher core income and net realised investment gains compared to net realized investment losses in the first nine months of 2025.
Core income of $5.803 billion increased $1.989 billion, primarily due to lower catastrophe losses, higher net favourable prior year reserve development and higher net investment income.
For the first nine months of 2026, favourable prior year reserve development reached $1.225 billion, an increase compared to the $715 million seen in the same period last year.
Net realised investment gains were $75 million pre-tax ($33 million after-tax), compared to net realised investment losses of $28 million pre-tax ($22 million after-tax) in the prior year period.
Net investment income of $3.176 billion pre-tax ($2.624 billion after-tax) increased 9%, driven by the same factors described above for the third quarter of 2026.
The combined ratio improved 6.9 points to 86.3%, due to lower catastrophe losses (5.4 points) and higher net favorable prior year reserve development (1.6 points), partially offset by a higher underlying combined ratio (0.1 points), which stood at 84.5%.
Natural catastrophe losses in the first nine months of 2026 were significantly down year-on-year, standing at $1.817 billion, from $3.595 billion in the same period in 2025.
Alan Schnitzer, Chairman and Chief Executive Officer, commented: “We are pleased to report excellent third quarter results. 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.”
Adding: “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.”
