TRAVELERS COMPANIES, INC.
For the period ended Mar 31, 2026. Filed Apr 16, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 16, 2026
TRV$395.20-1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-16.
0000086312-25-000069
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-16.
0000086312-26-000111
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 290 previous paragraphs and 266 current paragraphs.
138 unchanged; 84 reworded; 42 added; 67 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
2026 First Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $761 million ($601 million after-tax)
Current report
•Net favorable prior year reserve development of $413 million ($325 million after-tax)
Current report
•Combined ratio of 88.6%
Current report
•Net investment income of $1.01 billion ($833 million after-tax)
Current report
•Net realized investment gains of $49 million ($15 million after-tax)
Current report
•Total assets of $142.31 billion
Current report
•Shareholders’ equity of $31.99 billion
Current report
Other net realized investment gains in the first quarter of 2026 were driven by net realized investment gains related to the Canadian operations divested by the Company in the first quarter of 2026, partially offset by net realized investment losses related to fixed maturity investments.
Current report
General and administrative expenses in the first quarter of 2026 were $1.54 billion, $82 million or 6% higher than in the same period of 2025, primarily reflecting normal quarter-to-quarter variability. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Current report
Interest expense in the first quarter of 2026 was $116 million, compared with $99 million in the same period of 2025.
Current report
Income tax expense in the first quarter of 2026 was $408 million, $335 million or 459% higher than in the same period of 2025, primarily reflecting the impact of the $1.65 billion increase in income before income taxes in the first quarter of 2026.
Current report
The combined ratio of 88.6% in the first quarter of 2026 was 13.9 points lower than the combined ratio of 102.5% in the same period of 2025. The loss and loss adjustment expense ratio of 59.6% in the first quarter of 2026 was 14.6 points lower than the loss and loss adjustment expense ratio of 74.2% in the same period of 2025. The underwriting expense ratio of 29.0% in the first quarter of 2026 was 0.7 points higher than the underwriting expense ratio of 28.3% in the same period of 2025. The Company expects the full year 2026 expense ratio to be approximately 28.5%.
Current report
Segment income in the first quarter of 2026 was $839 million, $156 million or 23% higher than segment income of $683 million in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) higher net favorable prior year reserve development and (iii) higher net investment income, partially offset by (iv) lower underlying underwriting margins. Catastrophe losses in the first quarters of 2026 and 2025 were $379 million and $509 million, respectively. Net favorable prior year reserve development in the first quarters of 2026 and 2025 was $162 million and $74 million, respectively. The lower underlying underwriting margins primarily reflected the impacts of (i) higher general and administrative expenses and (ii) lower business volumes, partially offset by (iii) the benefit of earned pricing. Income tax expense in the first quarter of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in segment income before income taxes.
Current report
Claims and claim adjustment expenses in the first quarter of 2026 were $3.53 billion, $174 million or 5% lower than in the same period of 2025, primarily reflecting the impacts of (i) lower catastrophe losses, (ii) lower business volumes, (iii) higher net favorable prior year reserve development and (iv) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (v) loss cost trends.
Current report
Amortization of deferred acquisition costs in the first quarter of 2026 was $938 million, $21 million or 2% higher than the same period of 2025, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in the first quarter of 2026 were $912 million, $65 million or 8% higher than in the same period of 2025, primarily reflecting normal quarter-to-quarter variability.
Current report
Income tax expense in the first quarter of 2026 was $196 million, $37 million or 23% higher than the same period of 2025, primarily reflecting the impact of the $193 million increase in income before income taxes.
Current report
The combined ratio of 93.8% in the first quarter of 2026 was 2.4 points lower than the combined ratio of 96.2% in the same period of 2025. The loss and loss adjustment expense ratio of 63.3% in the first quarter of 2026 was 3.5 points lower than the loss and loss adjustment expense ratio of 66.8% in the same period of 2025. The underwriting expense ratio of 30.5% in the first quarter of 2026 was 1.1 points higher than the underwriting expense ratio of 29.4% in the same period of 2025.
Current report
Catastrophe losses in the first quarters of 2026 and 2025 accounted for 6.9 points and 9.3 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2026 and 2025 provided 2.9 points and 1.3 points of benefit, respectively, of the combined ratio. The underlying combined ratio in the first quarter of 2026 was 1.6 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio.
Current report
International. Net written premiums of $417 million in the first quarter of 2026 decreased by 20% from the same period of 2025. Net written premiums in the first quarter of 2025 included $67 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums decreased by 9% from the same period of 2025.
Current report
Segment income in the first quarter of 2026 was $254 million, $34 million or 15% higher than segment income of $220 million in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower catastrophe losses and (ii) higher net investment income, partially offset by (iii) lower underlying underwriting margins. Catastrophe losses in the first quarters of 2026 and 2025 were $8 million and $19 million, respectively. Net favorable prior year reserve development in the first quarters of 2026 and 2025 was $65 million and $67 million, respectively. The lower underlying underwriting margins primarily reflected (i) higher general and administrative expenses and (ii) the impact of earned pricing, partially offset by (iii) higher business volumes. Income tax expense in the first quarter of 2026 was lower than in the same period of 2025, primarily reflecting a tax benefit related to the Canadian operations divested by the Company in the first quarter of 2026, partially offset by the impact of the increase in segment income before income taxes.
Current report
Claims and claim adjustment expenses in the first quarter of 2026 were $441 million, $7 million or 2% higher than in the same period of 2025, primarily reflecting the impacts of (i) loss cost trends and (ii) higher business volumes, partially offset by (iii) lower catastrophe losses and (iv) the Canadian operations divested by the Company in the first quarter of 2026.
Current report
Factors contributing to net favorable prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Amortization of deferred acquisition costs in the first quarter of 2026 was $194 million, $7 million or 4% higher than in the same period of 2025, generally consistent with the increase in earned premiums.
Current report
General and administrative expenses in the first quarter of 2026 were $219 million, $14 million or 7% higher than in the same period of 2025, primarily in support of business growth.
Current report
Income tax expense in the first quarter of 2026 was $28 million, $29 million or 51% lower than in the same period of 2025, primarily reflecting a tax benefit related to the Canadian operations divested by the Company in the first quarter of 2026, partially offset by the impact of the $5 million increase in segment income before income taxes.
Current report
The combined ratio of 83.3% in the first quarter of 2026 was 0.8 points higher than the combined ratio of 82.5% in the same period of 2025. The loss and loss adjustment expense ratio of 43.0% in the first quarter of 2026 was 0.2 points lower than the loss and loss adjustment expense ratio of 43.2% in the same period of 2025. The underwriting expense ratio of 40.3% in the first quarter of 2026 was 1.0 points higher than the underwriting expense ratio of 39.3% in the same period of 2025.
Current report
Gross and net written premiums in the first quarter of 2026 both increased by 7% over the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $11 million and $10 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both increased by 8% over the same period of 2025.
Current report
International. Net written premiums of $113 million in the first quarter of 2026 were comparable with the same period of 2025. Net written premiums in the first quarter of 2025 included $10 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased by 10% over the same period of 2025.
Current report
Earned premiums in the first quarter of 2026 were $4.09 billion, $156 million or 4% lower than in the same period of 2025. Earned premiums in the first quarter of 2025 included $165 million related to the Canadian operations divested by the Company in the first quarter of 2026.
Current report
Claims and claim adjustment expenses in the first quarter of 2026 were $2.41 billion, $1.46 billion or 38% lower than in the same period of 2025, primarily reflecting the impacts of (i) lower catastrophe losses and (ii) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (iii) loss cost trends and (iv) lower net favorable prior year reserve development.
Current report
Factors contributing to net favorable prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Amortization of deferred acquisition costs in the first quarter of 2026 was $634 million, $40 million or 6% lower than in the same period of 2025, generally consistent with the decrease in earned premiums.
Current report
General and administrative expenses in the first quarter of 2026 were $397 million, $1 million higher than in the same period of 2025.
Current report
Income Tax Expense (Benefit)
Current report
Income tax expense in the first quarter of 2026 was $178 million, compared with an income tax benefit of $106 million in the same period of 2025, primarily reflecting the impact of the $1.36 billion increase in segment income before income taxes.
Current report
The combined ratio of 82.9% in the first quarter of 2026 was 32.3 points lower than the combined ratio of 115.2% in the same period of 2025. The loss and loss adjustment expense ratio of 58.8% in the first quarter of 2026 was 32.2 points lower than the loss and loss adjustment expense ratio of 91.0% in the same period of 2025. The underwriting expense ratio of 24.1% in the first quarter of 2026 was 0.1 points lower than the underwriting expense ratio of 24.2% in the same period of 2025.
Current report
Catastrophe losses in the first quarters of 2026 and 2025 accounted for 9.1 points and 40.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2026 and 2025 provided 4.5 points and 5.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first quarter of 2026 was 1.6 points lower than the 2025 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing in the homeowners and other product line, (ii) lower non-catastrophe weather-related losses in the homeowners and other product line and (iii) lower losses in the automobile product line, partially offset by (iv) the impact of earned pricing in the automobile product line.
Current report
Gross and net written premiums in the first quarter of 2026 decreased by 7% and 9%, respectively, from the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $150 million and $146 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums decreased by 3% and 5%, respectively, from the same period of 2025.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (67)
Previous report
2025 Third Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $402 million ($318 million after-tax)
Previous report
•Net favorable prior year reserve development of $22 million ($16 million after-tax)
Previous report
•Combined ratio of 87.3%
Previous report
•Net investment income of $1.03 billion ($850 million after-tax)
Previous report
•Net realized investment gains of $27 million ($21 million after-tax)
Previous report
•Total assets of $143.68 billion
Previous report
•Shareholders’ equity of $31.61 billion
Previous report
Claims and claim adjustment expenses in the first nine months of 2025 were $21.39 billion, $364 million or 2% higher than in the same period of 2024, driven by (i) higher catastrophe losses in Personal Insurance and Business Insurance, partially offset by lower catastrophe losses in Bond & Specialty Insurance, (ii) loss cost trends in all three segments and (iii) higher business volumes in Business Insurance and Bond & Specialty Insurance, partially offset by (iv) higher net favorable prior year reserve development in all three segments and (v) lower losses in Personal Insurance. Catastrophe losses in the first nine months of 2025 included the third quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first six months of 2025. Catastrophe losses in the first nine months of 2024 included the third quarter events described above, as well as numerous severe wind and hail storms in multiple states in the first six months of 2024.
Previous report
(1) PCS events 39 and 43, which were $93 million and $75 million, respectively, as of June 30, 2025, both exceeded the Company’s threshold for a significant catastrophe ($100 million) as of September 30, 2025.
Previous report
General and administrative expenses in the third quarter of 2025 were $1.57 billion, $112 million or 8% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $4.58 billion, $232 million or 5% higher than in the same period of 2024. The increases in both periods of 2025 primarily reflected the impact of costs associated with higher business volumes. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Previous report
Interest expense in the third quarter and first nine months of 2025 was $111 million and $309 million, respectively, compared with $98 million and $294 million, respectively, in the same periods of 2024.
Previous report
Income tax expense in the third quarter of 2025 was $456 million, $156 million or 52% higher than in the same period of 2024, primarily reflecting the impact of the $784 million increase in income before income taxes in the third quarter of 2025. Income tax expense in the first nine months of 2025 was $901 million, $232 million or 35% higher than in the same period of 2024, primarily reflecting the impact of the $1.11 billion increase in income before income taxes in the first nine months of 2025.
Previous report
The combined ratio of 87.3% in the third quarter of 2025 was 5.9 points lower than the combined ratio of 93.2% in the same period of 2024. The loss and loss adjustment expense ratio of 58.7% in the third quarter of 2025 was 6.1 points lower than the loss and loss adjustment expense ratio of 64.8% in the same period of 2024. The underwriting expense ratio of 28.6% in the third quarter of 2025 was 0.2 points higher than the underwriting expense ratio of 28.4% in the same period of 2024.
Previous report
The combined ratio of 93.2% in the first nine months of 2025 was 2.5 points lower than the combined ratio of 95.7% in the same period of 2024. The loss and loss adjustment expense ratio of 64.7% for the first nine months of 2025 was 2.4 points lower than the loss and loss adjustment expense ratio of 67.1% in the same period of 2024. The underwriting expense ratio of 28.5% for the first nine months of 2025 was 0.1 points lower than the underwriting expense ratio of 28.6% in the same period of 2024.
Previous report
Catastrophe losses in the first nine months of 2025 and 2024 accounted for 11.0 points and 10.2 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2025 and 2024 provided 2.2 points and 1.5 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2025 was 2.6 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing and (ii) lower losses in Personal Insurance.
Previous report
Segment income in the third quarter of 2025 was $907 million, $209 million or 30% higher than segment income of $698 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower catastrophe losses and (ii) higher net investment income, partially offset by (iii) higher net unfavorable prior year reserve development. Catastrophe losses in the third quarters of 2025 and 2024 were $139 million and $340 million, respectively. Net unfavorable prior year reserve development in the third quarters of 2025 and 2024 was $125 million and $91 million, respectively. Income tax expense in the third quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous report
Segment income in the first nine months of 2025 was $2.40 billion, $285 million or 13% higher than segment income of $2.12 billion in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net investment income and (iii) net favorable prior year reserve development of $28 million compared to net unfavorable prior year reserve development of $57 million in the same period of 2024, partially offset by (iv) higher catastrophe losses. Catastrophe losses in the first nine months of 2025 and 2024 were $1.02 billion and $938 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing and (ii) higher business volumes, partially offset by (iii) higher general and administrative expenses. Income tax expense in the first nine months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous report
Claims and claim adjustment expenses in the third quarter of 2025 were $3.67 billion, $31 million or 1% lower than in the same period of 2024, primarily reflecting the impacts of (i) lower catastrophe losses, partially offset by (ii) higher business volumes, (iii) loss cost trends and (iv) higher net unfavorable prior year reserve development.
Previous report
Claims and claim adjustment expenses in the first nine months of 2025 were $10.96 billion, $456 million or 4% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher business volumes, (ii) loss cost trends and (iii) higher catastrophe losses, partially offset by (iv) net favorable prior year reserve development compared to net unfavorable prior year reserve development in the same period of 2024.
Previous report
Amortization of deferred acquisition costs in the third quarter of 2025 was $973 million, $43 million or 5% higher than the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $2.83 billion, $179 million or 7% higher than the same period of 2024. The increases in both periods of 2025 were generally consistent with the increases in earned premiums.
Previous report
General and administrative expenses in the third quarter of 2025 were $894 million, $68 million or 8% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $2.62 billion, $137 million or 6% higher than in the same period of 2024. The increases in both periods of 2025 were primarily in support of business growth.
Previous report
Income tax expense in the third quarter of 2025 was $211 million, $49 million or 30% higher than the same period of 2024, primarily reflecting the impact of the $258 million increase in income before income taxes. Income tax expense in the first nine months of 2025 was $567 million, $76 million or 15% higher than in the same period of 2024, primarily reflecting the impact of the $361 million increase in income before income taxes.
Previous report
The combined ratio of 92.9% in the third quarter of 2025 was 2.9 points lower than the combined ratio of 95.8% in the same period of 2024. The loss and loss adjustment expense ratio of 63.3% in the third quarter of 2025 was 3.3 points lower than the loss and loss adjustment expense ratio of 66.6% in the same period of 2024. The underwriting expense ratio of 29.6% in the third quarter of 2025 was 0.4 points higher than the underwriting expense ratio of 29.2% in the same period of 2024.
Previous report
Catastrophe losses in the third quarters of 2025 and 2024 accounted for 2.4 points and 6.2 points, respectively, of the combined ratio. Net unfavorable prior year reserve development in the third quarters of 2025 and 2024 accounted for 2.2 points and 1.7 points, respectively, of the combined ratio. The underlying combined ratio in the third quarter of 2025 was 0.4 points higher than the 2024 ratio on the same basis, primarily reflecting a higher expense ratio.
Previous report
The combined ratio of 94.2% in the first nine months of 2025 was 0.9 points lower than the combined ratio of 95.1% in the same period of 2024. The loss and loss adjustment expense ratio of 64.6% in the first nine months of 2025 was 0.9 points lower than the loss and loss adjustment expense ratio of 65.5% in the same period of 2024. The underwriting expense ratio of 29.6% for the first nine months of 2025 was comparable with the underwriting expense ratio in the same period of 2024.
Previous report
Catastrophe losses in the first nine months of 2025 and 2024 accounted for 6.1 points and 5.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2025 provided 0.2 points of benefit to the combined ratio. Net unfavorable prior year reserve development in the first nine months of 2024 accounted for 0.4 points of the combined ratio. The underlying combined ratio in the first nine months of 2025 was 0.5 points lower than the 2024 ratio on the same basis, primarily reflecting the impact of the benefit of earned pricing.
Previous report
International. Net written premiums of $409 million in the third quarter of 2025 decreased by 7% from the same period of 2024. Net written premiums of $1.47 billion in the first nine months of 2025 increased by 1% over the same period of 2024.
Previous report
Segment income in the third quarter of 2025 was $250 million, $28 million or 13% higher than segment income of $222 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net investment income, (ii) higher net favorable prior year reserve development, (iii) higher underlying underwriting margins and (iv) lower catastrophe losses. Net favorable prior year reserve development in the third quarters of 2025 and 2024 was $43 million and $36 million, respectively. Catastrophe losses in the third quarters of 2025 and 2024 were $0 million and $4 million, respectively. The higher underlying underwriting margins primarily reflected higher business volumes, partially offset by the impact of earned pricing. Income tax expense in the third quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous report
Segment income in the first nine months of 2025 was $714 million, $127 million or 22% higher than segment income of $587 million in the same period of 2024. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development, (ii) higher net investment income and (iii) lower catastrophe losses, partially offset by (iv) lower underlying underwriting margins. Net favorable prior year reserve development in the first nine months of 2025 and 2024 was $191 million and $84 million, respectively. Catastrophe losses in the first nine months of 2025 and 2024 were $24 million and $49 million, respectively. The lower underlying underwriting margins primarily reflected (i) the impact of earned pricing and (ii) higher general and administrative expenses, partially offset by (iii) higher business volumes. Income tax expense in the first nine months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Previous report
Claims and claim adjustment expenses in the third quarter of 2025 were $451 million, $10 million or 2% higher than in the same period of 2024, primarily reflecting the impacts of (i) higher business volumes and (ii) loss cost trends, partially offset by (iii) higher net favorable prior year reserve development and (iv) lower catastrophe losses.
Previous report
Claims and claim adjustment expenses in the first nine months of 2025 were $1.30 billion, $39 million or 3% lower than in the same period of 2024, primarily reflecting the impacts of (i) higher net favorable prior year reserve development and (ii) lower catastrophe losses, partially offset by (iii) higher business volumes and (iv) loss cost trends.
Previous report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine months of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous report
Amortization of deferred acquisition costs in the third quarter of 2025 was $197 million, $3 million or 2% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $579 million, $20 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 were generally consistent with the increases in earned premiums.
Previous report
General and administrative expenses in the third quarter of 2025 were $207 million, $4 million or 2% higher than in the same period of 2024. General and administrative expenses in the first nine months of 2025 were $626 million, $11 million or 2% higher than in the same period of 2024.
Previous report
Income tax expense in the third quarter of 2025 was $61 million, $4 million or 7% higher than in the same period of 2024, primarily reflecting the impact of the $32 million increase in segment income before income taxes. Income tax expense in the first nine months of 2025 was $180 million, $34 million or 23% higher than in the same period of 2024, primarily reflecting the impact of the $161 million increase in segment income before income taxes.
Previous report
The combined ratio of 81.6% in the third quarter of 2025 was 0.9 points lower than the combined ratio of 82.5% in the same period of 2024. The loss and loss adjustment expense ratio of 42.9% in the third quarter of 2025 was 0.5 points lower than the loss and loss adjustment expense ratio of 43.4% in the same period of 2024. The underwriting expense ratio of 38.7% in the third quarter of 2025 was 0.4 points lower than the underwriting expense ratio of 39.1% in the same period of 2024.
Previous report
Net favorable prior year reserve development in the third quarters of 2025 and 2024 provided 4.2 points and 3.5 points of benefit, respectively, to the combined ratio. Catastrophe losses in the third quarter of 2025 had no impact on the combined ratio. Catastrophe losses in the third quarter of 2024 accounted for 0.4 points of the combined ratio. The underlying combined ratio in the third quarter of 2025 was 0.2 points higher than the 2024 ratio on the same basis.
Previous report
The combined ratio of 81.5% in the first nine months of 2025 was 3.4 points lower than the combined ratio of 84.9% in the same period of 2024. The loss and loss adjustment expense ratio of 42.2% in the first nine months of 2025 was 3.0 points lower than the loss and loss adjustment expense ratio of 45.2% in the same period of 2024. The underwriting expense ratio of 39.3% in the first nine months of 2025 was 0.4 points lower than the underwriting expense ratio of 39.7% in the same period of 2024.
Previous report
Gross written premiums in the third quarter of 2025 were comparable with the same period of 2024. Net written premiums in the third quarter of 2025 increased by 1% over the same period of 2024. Gross and net written premiums in the first nine months of 2025 increased by 3% and 4%, respectively, over the same period of 2024.
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Reworded paragraphs (84)
Previous wording
•Net income of $1.89 billion, or $8.37 per share basic and $8.24 per share diluted
Current wording
•Net income of $1.71 billion, or $7.89 per share basic and $7.78 per share diluted
Previous wording
•Net earned premiums of $11.14 billion
Current wording
•Net earned premiums of $10.61 billion
Previous wording
•Operating cash flows of $4.23 billion
Current wording
•Operating cash flows of $2.20 billion
Previous wording
2025 Third Quarter Consolidated Financial Condition
Current wording
2026 First Quarter Consolidated Financial Condition
Previous wording
•Total investments of $103.68 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $102.98 billion; fixed maturities and short-term securities comprised 95% of total investments
Previous wording
•Total debt of $9.27 billion, resulting in a debt-to-total capital ratio of 22.7% (21.6% excluding net unrealized investment losses, net of tax)
Current wording
•Total debt of $9.27 billion, resulting in a debt-to-total capital ratio of 22.5% (21.2% excluding net unrealized investment losses, net of tax)
Previous wording
•Total capital returned to shareholders of $878 million, comprising $628 million of share repurchases and $250 million of dividends
Current wording
•Total capital returned to shareholders of $2.22 billion, comprising $1.99 billion of share repurchases and $238 million of dividends
Previous wording
•Net unrealized investment losses of $2.48 billion ($1.97 billion after-tax)
Current wording
•Net unrealized investment losses of $3.01 billion ($2.38 billion after-tax)
Previous wording
•Book value per common share of $141.72
Current wording
•Book value per common share of $150.42
Previous wording
•Holding company liquidity of $2.84 billion
Current wording
•Holding company liquidity of $2.38 billion
Previous wording
Diluted net income per share of $16.45 in the first nine months of 2025 increased by 31% over diluted net income per share of $12.51 in the same period of 2024. Net income of $3.79 billion in the first nine months of 2025 increased by 30% over net income of $2.92 billion in the same period of 2024. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes primarily reflected the pre-tax impacts of (i) higher underlying underwriting margins, (ii) higher net investment income and (iii) higher net favorable prior year reserve development, partially offset by (iv) higher catastrophe losses and (v) net realized investment losses compared to net realized investment gains in the same period of 2024. Catastrophe losses in the first nine months of 2025 and 2024 were $3.60 billion and $3.16 billion, respectively. Net favorable prior year reserve development in the first nine months of 2025 and 2024 was $715 million and $447 million, respectively. The higher underlying underwriting margins in the first nine months of 2025 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the first nine months of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in income before income taxes.
Current wording
Diluted net income per share of $7.78 in the first quarter of 2026 increased by 358% over diluted net income per share of $1.70 in the same period of 2025. Net income of $1.71 billion in the first quarter of 2026 increased by 333% over net income of $395 million in the same period of 2025. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes in the first quarter of 2026 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) net realized investment gains compared to net realized investment losses in the same period of 2025, (iii) higher net investment income and (iv) higher net favorable prior year reserve development, partially offset by (v) lower underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”). Catastrophe losses in the first quarters of 2026 and 2025 were $761 million and $2.27 billion, respectively. Net favorable prior year reserve development in the first quarters of 2026 and 2025 was $413 million and $378 million, respectively. The lower underlying underwriting margins in the first quarter of 2026 were driven by Business Insurance and Bond & Specialty Insurance, partially offset by Personal Insurance. Income tax expense in the first quarter of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in income before income taxes.
Previous wording
The Company has insurance operations in Canada, the United Kingdom, the Republic of Ireland and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil through a joint venture. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months and nine months ended September 30, 2025 and 2024, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income for the periods reported.
Current wording
The Company has insurance operations in the United Kingdom, the Republic of Ireland, Canada and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil through a joint venture. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months ended March 31, 2026 and 2025, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income for the periods reported.
Previous wording
Earned premiums in the third quarter of 2025 were $11.14 billion, $431 million or 4% higher than in the same period of 2024. Earned premiums in the first nine months of 2025 were $32.77 billion, $1.69 billion or 5% higher than in the same period of 2024. In Business Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 4% and 6%, respectively, over the same periods of 2024. In Bond & Specialty Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 3% and 4%, respectively, over the same periods of 2024. In Personal Insurance, earned premiums in the third quarter and first nine months of 2025 increased by 4% and 5%, respectively, over the same periods of 2024. Factors contributing to the changes in earned premiums in each segment are discussed in more detail in the segment discussions that follow.
Current wording
Earned premiums in the first quarter of 2026 were $10.61 billion, $105 million or 1% lower than in the same period of 2025. Earned premiums in the first quarter of 2025 included $258 million related to the Canadian operations divested by the Company in the first quarter of 2026. In Business Insurance, earned premiums in the first quarter of 2026 increased by 1% over the same period of 2025. In Bond & Specialty Insurance, earned premiums in the first quarter of 2026 increased by 2% over the same period of 2025. In Personal Insurance, earned premiums in the first quarter of 2026 decreased by 4% from the same period of 2025. Factors contributing to the changes in earned premiums in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Net investment income in the third quarter of 2025 was $1.03 billion, $129 million or 14% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $2.91 billion, $270 million or 10% higher than in the same period of 2024. Net investment income from fixed maturity investments in the third quarter and first nine months of 2025 was $874 million and $2.52 billion, respectively, $125 million and $369 million higher, respectively, than in the same periods of 2024. The increases in both periods of 2025 primarily resulted from a higher average level of fixed maturity investments and higher long-term average yields. Net investment income from short-term securities in the third quarter and first nine months of 2025 was $73 million and $185 million, respectively, $4 million and $32 million lower, respectively, than in the same periods of 2024. The decreases in both periods of 2025 primarily resulted from lower short-term average yields, partially offset by a higher average level of short-term securities. The Company’s remaining investment portfolios had net investment income of $101 million in the third quarter of 2025, $11 million higher than in the same period of 2024, primarily reflecting higher private equity partnership returns. The Company’s remaining investment portfolios had net investment income of $244 million in the first nine months of 2025, $62 million lower than in the same period of 2024, primarily reflecting lower private equity partnership returns. Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.
Current wording
Net investment income in the first quarter of 2026 was $1.01 billion, $78 million or 8% higher than in the same period of 2025. Net investment income from fixed maturity investments in the first quarter of 2026 was $899 million, $87 million higher than in the same period of 2025. The increase in the first quarter of 2026 primarily resulted from higher long-term average yields and a higher average level of fixed maturity investments. Net investment income from short-term securities in the first quarter of 2026 was $75 million, $18 million higher than in the same period of 2025. The increase in the first quarter of 2026 primarily resulted from a higher average level of short-term securities, partially offset by lower short-term average yields. The Company’s remaining investment portfolios had net investment income of $47 million in the first quarter of 2026, $29 million lower than in the same period of 2025, primarily reflecting lower private equity partnership returns. Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.
Previous wording
Fee income in the third quarter of 2025 was $127 million, $6 million higher than in the same period of 2024. Fee income in the first nine months of 2025 was $370 million, $25 million higher than in the same period of 2024. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.
Current wording
Fee income in the first quarter of 2026 was $121 million, $2 million higher than in the same period of 2025. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.
Previous wording
Net realized investment gains on equity securities still held of $40 million and $41 million, respectively, in the third quarter and first nine months of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets. Net realized investment gains on equity securities still held of $51 million and $102 million, respectively, in the third quarter and first nine months of 2024 were driven by the impact of changes in fair value attributable to favorable equity markets.
Current wording
Net realized investment losses on equity securities still held of $5 million and $22 million in the first quarters of 2026 and 2025, respectively, were driven by the impact of changes in fair value attributable to unfavorable equity markets.
Previous wording
Other revenues in the third quarter of 2025 were $148 million, $28 million higher than in the same period of 2024. Other revenues in the first nine months of 2025 were $383 million, $46 million higher than in the same period of 2024. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Current wording
Other revenues in the first quarter of 2026 were $141 million, $29 million higher than in the same period of 2025. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Previous wording
Claims and claim adjustment expenses in the third quarter of 2025 were $6.59 billion, $402 million or 6% lower than in the same period of 2024, driven by (i) lower catastrophe losses in all three segments and (ii) lower losses in Personal Insurance, partially offset by (iii) loss cost trends in all three segments, (iv) lower net favorable prior year reserve development and (v) higher business volumes in Business Insurance and Bond & Specialty Insurance. Catastrophe losses in the third quarter of 2025 primarily resulted from severe wind and hail storms in multiple states. Catastrophe losses in the third quarter of 2024 primarily resulted from Hurricane Helene and severe wind and hail storms in multiple states.
Current wording
Claims and claim adjustment expenses in the first quarter of 2026 were $6.38 billion, $1.62 billion or 20% lower than in the same period of 2025, driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Claims and claim adjustment expenses in the first quarter of 2025 included $182 million related to the Canadian operations divested by the Company in the first quarter of 2026. Catastrophe losses in the first quarter of 2026 primarily resulted from severe wind and hail storms and winter storms in multiple states. Catastrophe losses in the first quarter of 2025 primarily resulted from the January 2025 wildfires and severe wind and hail storms in multiple states. Factors contributing to the changes in claims and claim adjustment expenses in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current wording
Factors contributing to net prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months and nine months ended September 30, 2025 and 2024, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and nine months ended September 30, 2025 and 2024 for significant catastrophes that occurred in 2024 and 2023, and the estimate of ultimate losses for those catastrophes at September 30, 2025 and December 31, 2024. For purposes of the table, a significant catastrophe is an event for which the Company estimates its ultimate losses will be $100 million or more after reinsurance and before taxes. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level and for 2025 ranged from $20 million to $30 million of losses before reinsurance and taxes. For the Company’s definition of a catastrophe, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations— Consolidated Overview” in the Company’s 2024 Annual Report.
Current wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months ended March 31, 2026 and 2025, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months ended March 31, 2026 and 2025 for significant catastrophes that occurred in 2025 and 2024, and the estimate of ultimate losses for those catastrophes at March 31, 2026 and December 31, 2025. For purposes of the table, a significant catastrophe is an event for which the Company estimates its ultimate losses will be $100 million or more after reinsurance and before taxes. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level and for 2026 ranged from $20 million to $30 million of losses before reinsurance and taxes. For the Company’s definition of a catastrophe, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations— Consolidated Overview” in the Company’s 2025 Annual Report.
Previous wording
Amortization of deferred acquisition costs in the third quarter of 2025 was $1.85 billion, $59 million or 3% higher than in the same period of 2024. Amortization of deferred acquisition costs in the first nine months of 2025 was $5.43 billion, $263 million or 5% higher than in the same period of 2024. The increases in both periods were generally consistent with the increases in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Current wording
Amortization of deferred acquisition costs in the first quarter of 2026 was $1.77 billion, $12 million or 1% lower than in the same period of 2025. The decrease was generally consistent with the decrease in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Previous wording
The Company’s effective tax rate was 19% in both the third quarters of 2025 and 2024. The Company’s effective tax rate was 19% in both the first nine months of 2025 and 2024. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.
Current wording
The Company’s effective tax rate was 19% and 16% in the first quarters of 2026 and 2025, respectively. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.
Previous wording
Catastrophe losses in the third quarters of 2025 and 2024 accounted for 3.6 points and 8.8 points, respectively, of the combined ratio. Net favorable prior year reserve development in the third quarters of 2025 and 2024 provided 0.2 points and 1.2 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the third quarter of 2025 was 1.7 points lower than the 2024 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing and (ii) lower losses in Personal Insurance.
Current wording
Catastrophe losses in the first quarters of 2026 and 2025 accounted for 7.2 points and 21.2 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2026 and 2025 provided 3.9 points and 3.5 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the first quarter of 2026 was 0.5 points higher than the 2025 ratio on the same basis, primarily reflecting the impacts of a higher expense ratio in Business Insurance and Bond & Specialty Insurance, partially offset by lower losses in Personal Insurance.
Previous wording
Gross and net written premiums in the third quarter of 2025 both increased by 1% over the same period of 2024. Gross and net written premiums in the first nine months of 2025 both increased by 3% over the same period of 2024. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.
Current wording
Gross and net written premiums in the first quarter of 2026 decreased by 1% and 2%, respectively, from the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $238 million and $223 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross written premiums increased by 1% over the same period of 2025 and net written premiums increased slightly over the same period of 2025. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.
Previous wording
Earned premiums in the third quarter of 2025 were $5.70 billion, $226 million or 4% higher than in the same period of 2024. Earned premiums in the first nine months of 2025 were $16.71 billion, $908 million or 6% higher than in the same period of 2024. The increases in both periods of 2025 primarily reflected the increase in net written premiums over the preceding twelve months.
Current wording
Earned premiums in the first quarter of 2026 were $5.49 billion, $28 million or 1% higher than in the same period of 2025, primarily reflecting the increase in net written premiums over the preceding twelve months. Earned premiums in the first quarter of 2025 included $79 million related to the Canadian operations divested by the Company in the first quarter of 2026.
Previous wording
Net investment income in the third quarter of 2025 was $190 million, $29 million or 18% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $535 million, $68 million or 15% higher than in the same period of 2024. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increases in the Company’s consolidated net investment income in the third quarter and first nine months of 2025 compared with the same periods of 2024. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in the first quarter of 2026 was $708 million, $52 million or 8% higher than in the same period of 2025. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increase in the Company’s consolidated net investment income in the first quarter of 2026 compared with the same period of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Previous wording
National Accounts is the primary source of fee income due to revenue from its large deductible policies and service businesses, which include risk management, claims administration, loss control and risk management information services provided to third parties, as well as policy issuance and claims management services to workers’ compensation residual market pools. Fee income in the third quarter of 2025 was $114 million, $5 million or 5% higher than in the same period of 2024. Fee income in the first nine months of 2025 was $333 million, $18 million or 6% higher than in the same period of 2024.
Current wording
National Accounts is the primary source of fee income due to revenue from its large deductible policies and service businesses, which include risk management, claims administration, loss control and risk management information services provided to third parties, as well as policy issuance and claims management services to workers’ compensation residual market pools. Fee income in the first quarter of 2026 was $111 million, $3 million or 3% higher than in the same period of 2025.
Previous wording
Other revenues in the third quarter of 2025 were $111 million, $22 million higher than in the same period of 2024. Other revenues in the first nine months of 2025 were $288 million, $45 million higher than in the same period of 2024. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.
Current wording
Other revenues in the first quarter of 2026 were $104 million, $22 million higher than in the same period of 2025. Other revenues include revenues from Simply Business, premium installment charges and other policyholder service charges.
Previous wording
Factors contributing to net prior year reserve development during the third quarters and first nine months of 2025 and 2024 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current wording
Factors contributing to net prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Previous wording
Gross written premiums in the third quarter and first nine months of 2025 increased by 2% and 4%, respectively, over the same periods of 2024. Net written premiums in the third quarter of 2025 increased by 3% over the same period of 2024. Net written premiums in the first nine months of 2025 increased by 3% over the same period of 2024, as growth in gross written premiums was partially offset by higher ceded written premiums driven by changes in the casualty reinsurance program.
Current wording
Gross and net written premiums in the first quarter of 2026 increased by 1% and 2%, respectively, over the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $77 million and $67 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 2% and 3%, respectively, over the same period of 2025.
Previous wording
Select Accounts. Net written premiums of $920 million and $2.90 billion in the third quarter and first nine months of 2025, respectively, increased by 4% and 2%, respectively, over the same periods of 2024. Retention rates remained strong in the third quarter of 2025 but decreased slightly from the same period of 2024. Retention rates remained strong in the first nine months of 2025 but decreased from the same period of 2024. Renewal premium changes in the third quarter of 2025 remained positive but were lower than the same period of 2024. Renewal premium changes in the first nine months of 2025 remained positive but were slightly lower than the same period of 2024. New business premiums in the third quarter and first nine months of 2025 increased over the same periods of 2024.
Current wording
Select Accounts. Net written premiums of $1.01 billion in the first quarter of 2026 increased by 3% over the same period of 2025. Retention rates remained strong in the first quarter of 2026 and increased over the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than the same period of 2025. New business premiums in the first quarter of 2026 decreased slightly from the same period of 2025.
Previous wording
Middle Market. Net written premiums of $3.23 billion and $9.43 billion in the third quarter and first nine months of 2025, respectively, increased by 7% and 5%, respectively, over the same periods of 2024. Net written premiums in the first nine months of 2025 were reduced by the impact of higher ceded written premiums driven by changes in the casualty reinsurance program. Retention rates remained strong in the third quarter of 2025 but decreased from the same period of 2024. Retention rates remained strong in the first nine months of 2025 and were comparable with the same period of 2024. Renewal premium changes in the third quarter and first nine months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the third quarter and first nine months of 2025 increased over the same periods of 2024.
Current wording
Middle Market. Net written premiums of $3.33 billion in the first quarter of 2026 increased by 5% over the same period of 2025. Retention rates remained strong in the first quarter of 2026 and were comparable with the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than the same period of 2025. New business premiums in the first quarter of 2026 increased over the same period of 2025.
Previous wording
National Accounts. Net written premiums of $273 million and $914 million in the third quarter and first nine months of 2025, respectively, increased by 3% and 1%, respectively, over the same periods of 2024. Retention rates remained strong in the third quarter of 2025 and increased over the same period of 2024. Retention rates remained strong in the first nine months of 2025 but decreased slightly from the same period of 2024. Renewal premium changes in the third quarter and first nine months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the third quarter and first nine months of 2025 decreased from the same periods of 2024.
Current wording
National Accounts. Net written premiums of $343 million in the first quarter of 2026 increased by 10% over the same period of 2025. Retention rates remained strong in the first quarter of 2026 and were comparable with the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than the same period of 2025. New business premiums in the first quarter of 2026 decreased from the same period of 2025.
Previous wording
National Property and Other. Net written premiums of $841 million in the third quarter of 2025 decreased by 6% from the same period of 2024. Net written premiums of $2.45 billion in the first nine months of 2025 were comparable with the same period of 2024. Retention rates remained strong in the third quarter and first nine months of 2025 and increased over the same periods of 2024. Renewal premium changes in the third quarter and first nine months of 2025 remained positive but were lower than the same periods of 2024. New business premiums in the third quarter and first nine months of 2025 decreased from the same periods of 2024.
Current wording
National Property and Other. Net written premiums of $691 million in the first quarter of 2026 decreased by 4% from the same period of 2025. Retention rates remained strong in the first quarter of 2026 and were comparable with the same period of 2025. Renewal premium changes in the first quarter of 2026 were lower than the same period of 2025. New business premiums in the first quarter of 2026 increased over the same period of 2025.
Previous wording
Earned premiums in the third quarter of 2025 were $1.04 billion, $33 million or 3% higher than in the same period of 2024. Earned premiums in the first nine months of 2025 were $3.06 billion, $116 million or 4% higher than in the same period of 2024. The increases in both periods of 2025 primarily reflected increases in net written premiums in prior quarters, including the impact of longer duration surety bonds and multi-year management liability policies.
Current wording
Earned premiums in the first quarter of 2026 were $1.02 billion, $23 million or 2% higher than in the same period of 2025, primarily reflecting increases in net written premiums in prior quarters, including the impact of longer duration surety bonds and multi-year management liability policies. Earned premiums in the first quarter of 2025 included $14 million related to the Canadian operations divested by the Company in the first quarter of 2026.
Previous wording
Net investment income in the third quarter of 2025 was $116 million, $15 million or 15% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $325 million, $40 million or 14% higher than in the same period of 2024. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Revenues—Net Investment Income” section of “Consolidated Results of Operations” herein for a discussion of the factors contributing to the increases in the Company’s consolidated net investment income in the third quarter and first nine months of 2025 compared with the same periods of 2024. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in the first quarter of 2026 was $113 million, $11 million or 11% higher than in the same period of 2025. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Revenues—Net Investment Income” section of “Consolidated Results of Operations” herein for a discussion of the factors contributing to the increase in the Company’s consolidated net investment income in the first quarter of 2026 compared with the same period of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Previous wording
Net favorable prior year reserve development in the first nine months of 2025 and 2024 provided 6.2 points and 2.9 points of benefit, respectively, to the combined ratio. Catastrophe losses in the first nine months of 2025 and 2024 accounted for 0.8 points and 1.7 points, respectively, of the combined ratio. The underlying combined ratio in the first nine months of 2025 was 0.8 points higher than the 2024 ratio on the same basis, primarily reflecting the impact of earned pricing.
Current wording
Net favorable prior year reserve development in the first quarters of 2026 and 2025 provided 6.4 points and 6.7 points of benefit, respectively, to the combined ratio. Catastrophe losses in the first quarters of 2026 and 2025 accounted for 0.8 and 1.9 points of the combined ratio. The underlying combined ratio in the first quarter of 2026 was 1.6 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio.
Previous wording
Domestic. Net written premiums of $955 million in the third quarter of 2025 decreased by 1% from the same period of 2024. Net written premiums of $2.77 billion in the first nine months of 2025 increased by 2% over the same period of 2024. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the third quarter and first nine months of 2025 but decreased from the same periods of 2024. Renewal premium changes in the third quarter and first nine months of 2025 remained positive and were higher than in the same periods of 2024. New business premiums in the third quarter and first nine months of 2025 decreased from the same periods of 2024.
Current wording
Domestic. Net written premiums of $953 million in the first quarter of 2026 increased by 8% over the same period of 2025. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the first quarter of 2026 but decreased from the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than the same period of 2025. New business premiums in the first quarter of 2026 decreased from the same period of 2025.
Previous wording
Segment income in the third quarter of 2025 was $807 million, $423 million or 110% higher than segment income of $384 million in the same period of 2024. The increase in segment income before income taxes was driven by the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underlying underwriting margins and (iii) higher net investment income, partially offset by (iv) lower net favorable prior year reserve development. Catastrophe losses in the third quarters of 2025 and 2024 were $263 million and $595 million, respectively. Net favorable prior year reserve development in the third quarters of 2025 and 2024 was $104 million and $181 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) lower losses in the automobile product line, (ii) the benefit of earned pricing in the homeowners and other product line, (iii) higher business volumes and (iv) lower non-catastrophe weather-related losses in the homeowners and other product line. Income tax expense in the third quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in segment income before income taxes.
Current wording
Segment income in the first quarter of 2026 was $704 million, compared with a segment loss of $374 million in the same period of 2025. The increase in segment income before income taxes was driven by the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underlying underwriting margins and (iii) higher net investment income, partially offset by (iv) lower net favorable prior year reserve development. Catastrophe losses in the first quarters of 2026 and 2025 were $374 million and $1.74 billion, respectively. Net favorable prior year reserve development in the first quarters of 2026 and 2025 was $186 million and $237 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) the benefit of earned pricing in the homeowners and other product line, (ii) lower non-catastrophe weather-related losses in the homeowners and other product line and (iii) lower losses in the automobile product line, partially offset by (iv) the impact of earned pricing in the automobile product line. The segment recorded income tax expense in the first quarter of 2026 compared with an income tax benefit in the same period of 2025. The change primarily reflected the impact of the increase in segment income before income taxes.
Previous wording
Net investment income in the third quarter of 2025 was $727 million, $85 million or 13% higher than in the same period of 2024. Net investment income in the first nine months of 2025 was $2.05 billion, $162 million or 9% higher than in the same period of 2024. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increases in the Company’s consolidated net investment income in the third quarter and first nine months of 2025 compared with the same periods of 2024. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2024 Annual Report for a discussion of the Company’s net investment income allocation methodology.
Current wording
Net investment income in the first quarter of 2026 was $187 million, $15 million or 9% higher than in the same period of 2025. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the increase in the Company’s consolidated net investment income in the first quarter of 2026 compared with the same period of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.
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Current report — wording carried from elsewhere
Automobile net written premiums of $1.76 billion in the first quarter of 2026 decreased by 6% from the same period of 2025. Retention rates remained strong in the first quarter of 2026 and increased over the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than in the same period of 2025. New business premiums in the first quarter of 2026 increased over the same period of 2025.
Current report — wording carried from elsewhere
legal requirements, regulatory constraints, other investment opportunities (including mergers and acquisitions and related financings), market conditions, changes in tax laws and other factors.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Diluted net income per share of $8.24 in the third quarter of 2025 increased by 52% over diluted net income per share of $5.42 in the same period of 2024. Net income of $1.89 billion in the third quarter of 2025 increased by 50% over net income of $1.26 billion in the same period of 2024. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes in the third quarter of 2025 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”) and (iii) higher net investment income, partially offset by (iv) lower net favorable prior year reserve development and (v) lower net realized investment gains. Catastrophe losses in the third quarters of 2025 and 2024 were $402 million and $939 million, respectively. Net favorable prior year reserve development in the third quarters of 2025 and 2024 was $22 million and $126 million, respectively. Underlying underwriting margins in the third quarter of 2025 were higher in all three segments. Income tax expense in the third quarter of 2025 was higher than in the same period of 2024, primarily reflecting the impact of the increase in income before income taxes.