Travelers increased third-quarter net income to 1.917 billion dollars even as catastrophe losses rose to 538 million dollars. Investment income and favourable changes in reserves for earlier claims supported earnings. The insurer’s overall combined ratio improved, while the underlying measure moved slightly higher. Executives also reported growth in new homeowners business as the company selectively offered insurance capacity.
Economics & Markets··Morning
Profit rises alongside storm costs
Travelers, a property and casualty insurer, increased third-quarter 2026 net income to 1.917 billion dollars from 1.888 billion dollars a year earlier. Catastrophe losses net of reinsurance rose to 538 million dollars from 402 million dollars. The company attributed those losses mainly to severe wind and hail storms across several states in its October 16 results.[1], [2]
Core income, which excludes selected investment items, increased to 1.947 billion dollars from 1.867 billion dollars. Reported diluted earnings per share rose to 9.04 dollars from 8.24 dollars. The weighted average diluted share count declined to 210.6 million from 227.5 million, while core earnings per share reached 9.18 dollars against the preceding year’s 8.14 dollars.[1]
Investment income and earlier claims support results
Net investment income reached 1.098 billion dollars before tax and 908 million dollars after tax. Travelers attributed the increase to its long-term fixed-income portfolio, supported by higher yields and growth in average invested assets. Favourable changes in reserves for previous years’ claims reached 234 million dollars, compared with 22 million dollars a year earlier.[1]
The consolidated combined ratio improved to 86.8 per cent from 87.3 per cent. This ratio compares claims and expenses with premiums earned; a result below 100 per cent indicates underwriting profit before investment income. Excluding catastrophe losses and prior-year reserve changes, the underlying combined ratio instead edged higher, to 84.1 per cent from 83.9 per cent.[1], [2]
Premiums reflect the Canadian divestment
Net written premiums were approximately flat at 11.480 billion dollars. The year-earlier figure included 240 million dollars from Canadian operations sold in the first quarter of 2026. Excluding that disposal, premiums increased 2 per cent. Business Insurance premiums were 5.868 billion dollars, Bond & Specialty Insurance premiums 1.209 billion dollars and Personal Insurance premiums 4.403 billion dollars.[1]
Executives said homeowners new-business premiums increased annually as Travelers selectively offered property-insurance capacity. Management described business-insurance pricing as stable, with price increases moderating in some property and liability lines. During the quarter, the company returned 1.769 billion dollars to shareholders through dividends and buybacks, including 1.508 billion dollars of share repurchases.[1], [2]
