TRAVELERS COMPANIES, INC.
For the period ended Jun 30, 2026. Filed Jul 17, 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.
Jun 30, 2026 · Filed Jul 17, 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 2026-03-31; filed 2026-04-16.
0000086312-26-000111
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-17.
0000086312-26-000145
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 266 previous paragraphs and 297 current paragraphs.
155 unchanged; 85 reworded; 54 added; 26 removed; 0 previous and 3 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 (54)
Current report
2026 Second Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $518 million ($410 million after-tax)
Current report
•Net favorable prior year reserve development of $578 million ($456 million after-tax)
Current report
•Combined ratio of 83.6%
Current report
•Net investment income of $1.07 billion ($883 million after-tax)
Current report
•Net realized investment gains of $60 million ($48 million after-tax)
Current report
•Total assets of $143.58 billion
Current report
•Shareholders’ equity of $33.12 billion
Current report
Factors contributing to net favorable prior year reserve development during the second quarters and first six months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Income tax expense in the second quarter of 2026 was $559 million, $187 million or 50% higher than in the same period of 2025, primarily reflecting the impact of the $886 million increase in income before income taxes in the second quarter of 2026. Income tax expense in the first six months of 2026 was $967 million, $522 million or 117% higher than in the same period of 2025, primarily reflecting the impact of the $2.54 billion increase in income before income taxes in the first six months of 2026.
Current report
The combined ratio of 83.6% in the second quarter of 2026 was 6.7 points lower than the combined ratio of 90.3% in the same period of 2025. The loss and loss adjustment expense ratio of 54.6% in the second quarter of 2026 was 7.1 points lower than the loss and loss adjustment expense ratio of 61.7% in the same period of 2025. The underwriting expense ratio of 29.0% in the second quarter of 2026 was 0.4 points higher than the underwriting expense ratio of 28.6% in the same period of 2025.
Current report
Catastrophe losses in the first six months of 2026 and 2025 accounted for 6.0 points and 14.8 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2026 and 2025 provided 4.6 points and 3.2 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2026 was comparable with the 2025 ratio on the same basis.
Current report
Gross and net written premiums in the second quarter of 2026 were both comparable with the same period of 2025. Gross and net written premiums in the second quarter of 2025 included $283 million and $273 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 2% over the same period of 2025.
Current report
Segment income in the second quarter of 2026 was $1.20 billion, $385 million or 47% higher than segment income of $813 million in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development, (ii) lower catastrophe losses and (iii) higher net investment income. Net favorable prior year reserve development in the second quarters of 2026 and 2025 was $319 million and $79 million, respectively. Catastrophe losses in the second quarters of 2026 and 2025 were $238 million and $368 million, respectively. Income tax expense in the second 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
Segment income in the first six months of 2026 was $2.04 billion, $541 million or 36% higher than segment income of $1.50 billion in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development, (ii) lower catastrophe losses and (iii) higher net investment income, partially offset by (iv) lower underlying underwriting margins. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $481 million and $153 million, respectively. Catastrophe losses in the first six months of 2026 and 2025 were $617 million and $877 million, respectively. The lower underlying underwriting margins primarily reflected the impacts of higher general and administrative expenses, partially offset by the benefit of earned pricing. Income tax expense in the first six months 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 second quarter of 2026 were $3.19 billion, $396 million or 11% lower than in the same period of 2025, primarily reflecting the impacts of (i) higher net favorable prior year reserve development, (ii) lower catastrophe losses, (iii) lower business volumes and (iv) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (v) loss cost trends.
Current report
Claims and claim adjustment expenses in the first six months of 2026 were $6.72 billion, $570 million or 8% lower than in the same period of 2025, primarily reflecting the impacts of (i) higher net favorable prior year reserve development, (ii) lower catastrophe losses, (iii) lower business volumes and (iv) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (v) loss cost trends.
Current report
Factors contributing to net favorable prior year reserve development during the second quarters and first six months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
Income tax expense in the second quarter of 2026 was $300 million, $103 million or 52% higher than the same period of 2025, primarily reflecting the impact of the $488 million increase in income before income taxes. Income tax expense in the first six months of 2026 was $496 million, $140 million or 39% higher than in the same period of 2025, primarily reflecting the impact of the $681 million increase in income before income taxes.
Current report
The combined ratio of 86.8% in the second quarter of 2026 was 6.8 points lower than the combined ratio of 93.6% in the same period of 2025. The loss and loss adjustment expense ratio of 56.5% in the second quarter of 2026 was 7.2 points lower than the loss and loss adjustment expense ratio of 63.7% in the same period of 2025. The underwriting expense ratio of 30.3% in the second quarter of 2026 was 0.4 points higher than the underwriting expense ratio of 29.9% in the same period of 2025.
Current report
Catastrophe losses in the second quarters of 2026 and 2025 accounted for 4.3 points and 6.7 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2026 and 2025 provided 5.7 points and 1.4 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the second quarter of 2026 was 0.1 points lower than the 2025 ratio on the same basis.
Current report
The combined ratio of 90.2% in the first six months of 2026 was 4.7 points lower than the combined ratio of 94.9% in the same period of 2025. The loss and loss adjustment expense ratio of 59.8% in the first six months of 2026 was 5.5 points lower than the loss and loss adjustment expense ratio of 65.3% in the same period of 2025. The underwriting expense ratio of 30.4% for the first six months of 2026 was 0.8 points higher than the underwriting expense ratio of 29.6% in the same period of 2025.
Current report
Catastrophe losses in the first six months of 2026 and 2025 accounted for 5.6 points and 8.0 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2026 and 2025 provided 4.4 points and 1.4 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2026 was 0.7 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio.
Current report
Segment income in the second quarter of 2026 was $234 million, $10 million or 4% lower than segment income of $244 million in the same period of 2025. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower underlying underwriting margins and (ii) lower net favorable prior year reserve development, partially offset by (iii) higher net investment income. Net favorable prior year reserve development in the second quarters of 2026 and 2025 was $75 million and $81 million, respectively. Catastrophe losses in the second quarters of 2026 and 2025 were $4 million and $5 million, respectively. The lower underlying underwriting margins primarily reflected a loss event in the international management liability business. Income tax expense in the second quarter of 2026 was lower than in the same period of 2025, primarily reflecting the impact of the decrease in segment income before income taxes.
Current report
Factors contributing to net favorable prior year reserve development during the second quarters and first six months 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 second quarter of 2026 was $204 million, $9 million or 5% higher than in the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $398 million, $16 million or 4% higher than in the same period of 2025. The increases in both periods of 2026 were generally consistent with the increases in earned premiums.
Current report
General and administrative expenses in the second quarter of 2026 were $218 million, $4 million or 2% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $437 million, $18 million or 4% higher than in the same period of 2025. The increases in both periods of 2026 were primarily in support of business growth.
Current report
Net favorable prior year reserve development in the second quarters of 2026 and 2025 provided 7.2 points and 8.0 points of benefit, respectively, to the combined ratio. Catastrophe losses in the second quarters of 2026 and 2025 accounted for 0.4 and 0.5 points of the combined ratio. The underlying combined ratio in the second quarter of 2026 was 1.8 points higher than the 2025 ratio on the same basis, primarily reflecting a loss event in the international management liability business.
Current report
The combined ratio of 83.0% in the first six months of 2026 was 1.6 points higher than the combined ratio of 81.4% in the same period of 2025. The loss and loss adjustment expense ratio of 43.0% in the first six months of 2026 was 1.2 points higher than the loss and loss adjustment expense ratio of 41.8% in the same period of 2025. The underwriting expense ratio of 40.0% in the first six months of 2026 was 0.4 points higher than the underwriting expense ratio of 39.6% in the same period of 2025.
Current report
Gross and net written premiums in the second quarter of 2026 both increased by 14% over the same period of 2025. Gross and net written premiums in the second quarter of 2025 both included $16 million 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 16% over the same period of 2025.
Current report
Gross and net written premiums in the first six months of 2026 both increased by 11% over the same period of 2025. Gross and net written premiums in the first six months of 2025 included $27 million and $26 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 12% over the same period of 2025.
Current report
Segment income in the second quarter of 2026 was $827 million, $293 million or 55% higher than segment income of $534 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, (iii) higher net favorable prior year reserve development and (iv) higher net investment income. Catastrophe losses in the second quarters of 2026 and 2025 were $276 million and $554 million, respectively. Net favorable prior year reserve development in the second quarters of 2026 and 2025 was $184 million and $155 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) lower losses in the automobile product line and (ii) lower non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iii) higher non-weather losses in the homeowners and other product line. Income tax expense in the second 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
Earned premiums in the second quarter of 2026 were $4.15 billion, $209 million or 5% lower than in the same period of 2025. Earned premiums in the first six months of 2026 were $8.24 billion, $365 million or 4% lower than in the same period of 2025. Earned premiums in the second quarter and first six months of 2025 included $172 million and $337 million, respectively, 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 six months of 2026 were $4.69 billion, $1.97 billion or 30% lower than in the same period of 2025, primarily reflecting the impacts of (i) lower catastrophe losses, (ii) lower losses in the automobile product line and (iii) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (iv) loss cost trends and (v) lower net favorable prior year reserve development.
Current report
Factors contributing to net favorable prior year reserve development during the second quarters and first six months 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 second quarter of 2026 was $637 million, $26 million or 4% lower than in the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $1.27 billion, $66 million or 5% lower than in the same period of 2025. The decreases in both periods of 2026 were generally consistent with the decreases in earned premiums.
Current report
General and administrative expenses in the second quarter of 2026 were $422 million, $22 million or 5% lower than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $819 million, $21 million or 3% lower than in the same period of 2025.
Current report
Income tax expense in the second quarter of 2026 was $213 million, $77 million or 57% higher than in the same period of 2025, primarily reflecting the impact of the $370 million increase in segment income before income taxes. Income tax expense in the first six months of 2026 was $391 million, $361 million higher than in the same period of 2025, primarily reflecting the impact of the $1.73 billion increase in segment income before income taxes.
Current report
The combined ratio of 79.5% in the second quarter of 2026 was 8.9 points lower than the combined ratio of 88.4% in the same period of 2025. The loss and loss adjustment expense ratio of 54.9% in the second quarter of 2026 was 9.1 points lower than the loss and loss adjustment expense ratio of 64.0% in the same period of 2025. The underwriting expense ratio of 24.6% in the second quarter of 2026 was 0.2 points higher than the underwriting expense ratio of 24.4% in the same period of 2025.
Current report
The combined ratio of 81.2% in the first six months of 2026 was 20.5 points lower than the combined ratio of 101.7% in the same period of 2025. The loss and loss adjustment expense ratio of 56.9% in the first six months of 2026 was 20.5 points lower than the loss and loss adjustment expense ratio of 77.4% in the same period of 2025. The underwriting expense ratio of 24.3% in the first six months of 2026 was comparable with the same period of 2025.
Showing the first 40 of 54 passages. Open the source sections for the rest.
Removed paragraphs (26)
Previous report
2026 First Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $761 million ($601 million after-tax)
Previous report
•Net favorable prior year reserve development of $413 million ($325 million after-tax)
Previous report
•Combined ratio of 88.6%
Previous report
•Net investment income of $1.01 billion ($833 million after-tax)
Previous report
•Net realized investment gains of $49 million ($15 million after-tax)
Previous report
•Total assets of $142.31 billion
Previous report
•Shareholders’ equity of $31.99 billion
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Income Tax Expense (Benefit)
Previous 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.
Previous 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.
Reworded paragraphs (85)
Previous wording
•Net income of $1.71 billion, or $7.89 per share basic and $7.78 per share diluted
Current wording
•Net income of $2.21 billion, or $10.41 per share basic and $10.26 per share diluted
Previous wording
•Net earned premiums of $10.61 billion
Current wording
•Net earned premiums of $10.75 billion
Previous wording
•Operating cash flows of $2.20 billion
Current wording
•Operating cash flows of $1.92 billion
Previous wording
2026 First Quarter Consolidated Financial Condition
Current wording
2026 Second Quarter Consolidated Financial Condition
Previous wording
•Total investments of $102.98 billion; fixed maturities and short-term securities comprised 95% of total investments
Current wording
•Total investments of $103.18 billion; fixed maturities and short-term securities comprised 94% of total investments
Previous 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)
Current wording
•Total debt of $9.07 billion, resulting in a debt-to-total capital ratio of 21.5% (20.5% excluding net unrealized investment losses, net of tax)
Previous wording
•Total capital returned to shareholders of $2.22 billion, comprising $1.99 billion of share repurchases and $238 million of dividends
Current wording
•Total capital returned to shareholders of $1.58 billion, comprising $1.31 billion of share repurchases and $266 million of dividends
Previous wording
•Net unrealized investment losses of $3.01 billion ($2.38 billion after-tax)
Current wording
•Net unrealized investment losses of $2.48 billion ($1.96 billion after-tax)
Previous wording
•Book value per common share of $150.42
Current wording
•Book value per common share of $158.81
Previous wording
•Holding company liquidity of $2.38 billion
Current wording
•Holding company liquidity of $2.51 billion
Previous 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.
Current wording
Diluted net income per share of $10.26 in the second quarter of 2026 increased by 57% over diluted net income per share of $6.53 in the same period of 2025. Net income of $2.21 billion in the second quarter of 2026 increased by 46% over net income of $1.51 billion 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 second quarter of 2026 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) higher net favorable prior year reserve development, (iii) higher net investment income, (iv) higher net realized investment gains and (v) higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”). Catastrophe losses in the second quarters of 2026 and 2025 were $518 million and $927 million, respectively. Net favorable prior year reserve development in the second quarters of 2026 and 2025 was $578 million and $315 million, respectively. The higher underlying underwriting margins in the second quarter of 2026 were driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Income tax expense in the second 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 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.
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 and six months ended June 30, 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 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.
Current wording
Earned premiums in the second quarter of 2026 were $10.75 billion, $168 million or 2% lower than in the same period of 2025. Earned premiums in the second quarter of 2025 included $266 million related to the Canadian operations divested by the Company in the first quarter of 2026. Earned premiums in the first six months of 2026 were $21.36 billion, $273 million or 1% lower than in the same period of 2025. Earned premiums in the first six months of 2025 included $524 million related to the Canadian operations divested by the Company in the first quarter of 2026. In Business Insurance, earned premiums in the second quarter and first six months of 2026 were comparable with the same periods of 2025. In Bond & Specialty Insurance, earned premiums in the second quarter and first six months of 2026 both increased by 3% over the same periods of 2025. In Personal Insurance, earned premiums in the second quarter and first six months of 2026 decreased by 5% and 4%, respectively, from the same periods 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 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.
Current wording
Net investment income in the second quarter of 2026 was $1.07 billion, $128 million or 14% higher than in the same period of 2025. Net investment income in the first six months of 2026 was $2.08 billion, $206 million or 11% higher than in the same period of 2025. Net investment income from fixed maturity investments in the second quarter and first six months of 2026 was $930 million and $1.83 billion, respectively, $97 million and $184 million higher, respectively, than in the same periods of 2025. The increases in both periods 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 second quarter of 2026 was $53 million, $2 million lower than in the same period of 2025, driven by lower short-term average yields. Net investment income from short-term securities in the first six months of 2026 was $128 million, $16 million higher than in the same period of 2025, driven by 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 $100 million and $147 million, respectively, in the second quarter and first six months of 2026, $33 million and $4 million higher, respectively, than in the same period of 2025. The increases in both periods of 2026 primarily reflected higher 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 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.
Current wording
Fee income in the second quarter of 2026 was $126 million, $2 million higher than in the same period of 2025. Fee income in the first six months of 2026 was $247 million, $4 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 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.
Current wording
Net realized investment gains on equity securities still held of $81 million and $76 million in the second quarter and first six months of 2026, respectively, 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 $23 million in the second quarter 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 $1 million in the first six months of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets, largely offset by a net unfavorable change in fair value on an individual security held in the Company’s portfolio.
Previous wording
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 wording
Other net realized investment gains in the first six months 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.
Previous 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.
Current wording
Other revenues in the second quarter of 2026 were $144 million, $21 million higher than in the same period of 2025. Other revenues in the first six months of 2026 were $285 million, $50 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 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.
Current wording
Claims and claim adjustment expenses in the first six months of 2026 were $12.30 billion, $2.49 billion or 17% 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 six months of 2025 included $362 million related to the Canadian operations divested by the Company in the first quarter of 2026. Catastrophe losses in the first six months of 2026 included the second quarter events described above, as well as severe wind and hail storms and winter storms in multiple states in the first three months of 2026. Catastrophe losses in the first six months of 2025 included the second quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first three months of 2025. 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
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.
Current wording
The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months and six months ended June 30, 2026 and 2025, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and six months ended June 30, 2026 and 2025 for significant catastrophes that occurred in 2025 and 2024, and the estimate of ultimate losses for those catastrophes at June 30, 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 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.
Current wording
Amortization of deferred acquisition costs in the second quarter of 2026 was $1.79 billion, $16 million or 1% lower than in the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $3.55 billion, $28 million or 1% lower than in the same period of 2025. The decreases in both periods were generally consistent with the decreases in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Previous wording
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 wording
General and administrative expenses in the second quarter of 2026 were $1.57 billion, $20 million or 1% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $3.11 billion, $102 million or 3% higher than in the same period of 2025. The increases in both periods of 2026 primarily reflected normal quarter-to-quarter variability. General and administrative expenses are discussed in more detail in the segment discussions that follow.
Previous wording
Interest expense in the first quarter of 2026 was $116 million, compared with $99 million in the same period of 2025.
Current wording
Interest expense in the second quarter and first six months of 2026 was $113 million and $229 million, respectively, compared with $99 million and $198 million, respectively, in the same periods of 2025.
Previous 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.
Current wording
The Company’s effective tax rate was 20% in both the second quarters of 2026 and 2025. The Company’s effective tax rate was 20% and 19% in the first six months 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 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.
Current wording
Catastrophe losses in the second quarters of 2026 and 2025 accounted for 4.9 points and 8.5 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2026 and 2025 provided 5.4 points and 2.9 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the second quarter of 2026 was 0.6 points lower than the 2025 ratio on the same basis, primarily reflecting the impact of lower losses in Personal Insurance.
Previous wording
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 wording
The combined ratio of 86.1% in the first six months of 2026 was 10.2 points lower than the combined ratio of 96.3% in the same period of 2025. The loss and loss adjustment expense ratio of 57.1% for the first six months of 2026 was 10.8 points lower than the loss and loss adjustment expense ratio of 67.9% in the same period of 2025. The underwriting expense ratio of 29.0% for the first six months of 2026 was 0.6 points higher than the underwriting expense ratio of 28.4% in the same period of 2025. The Company expects the full year 2026 expense ratio to be approximately 28.5%.
Previous 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.
Current wording
Gross and net written premiums in the first six months of 2026 both decreased by 1% from the same period of 2025. Gross and net written premiums in the first six months of 2025 included $521 million and $496 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 1% over the same period of 2025.
Previous 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.
Current wording
Earned premiums in the second quarter of 2026 were $5.55 billion, $6 million higher than in the same period of 2025. Earned premiums in the first six months of 2026 were $11.04 billion, $34 million higher than in the same period of 2025. The increases in both periods of 2026 primarily reflected the increase in net written premiums over the preceding twelve months. Earned premiums in the second quarter and first six months of 2025 included $80 million and $159 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026.
Previous 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.
Current wording
Net investment income in the second quarter of 2026 was $762 million, $100 million or 15% higher than in the same period of 2025. Net investment income in the first six months of 2026 was $1.47 billion, $152 million or 12% 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 increases in the Company’s consolidated net investment income in the second quarter and first six months of 2026 compared with the same periods 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 first quarter of 2026 was $111 million, $3 million or 3% higher than in the same period of 2025.
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 second quarter of 2026 was $117 million, $6 million or 5% higher than in the same period of 2025. Fee income in the first six months of 2026 was $228 million, $9 million or 4% higher than in the same period of 2025.
Previous 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.
Current wording
Other revenues in the second quarter of 2026 were $113 million, $18 million higher than in the same period of 2025. Other revenues in the first six months of 2026 were $217 million, $40 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
General and administrative expenses in the first quarter of 2026 were $397 million, $1 million higher than in the same period of 2025.
Current wording
Amortization of deferred acquisition costs in the second quarter of 2026 was $945 million, $1 million higher than the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $1.88 billion, $22 million or 1% higher than the same period of 2025. The increases in both periods of 2026 were generally consistent with the increases in earned premiums.
Previous wording
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 wording
General and administrative expenses in the second quarter of 2026 were $912 million, $37 million or 4% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $1.82 billion, $102 million or 6% higher than in the same period of 2025. The increases in both periods of 2026 primarily reflected normal quarter-to-quarter variability.
Previous 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.
Current wording
Gross and net written premiums in the second quarter of 2026 increased by 2% and 3%, respectively, over the same period of 2025. Gross and net written premiums in the second quarter of 2025 included $83 million and $79 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 4% and 5%, respectively, over the same period of 2025.
Previous wording
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.
Current wording
Gross and net written premiums in the first six months of 2026 both increased by 2% over the same period of 2025. Gross and net written premiums in the first six months of 2025 included $160 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 increased by 3% and 4%, respectively, over the same period of 2025.
Previous 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.
Current wording
Select Accounts. Net written premiums of $1.04 billion and $2.05 billion in the second quarter and first six months of 2026, respectively, increased by 4% and 3%, respectively, over the same periods of 2025. Retention rates remained strong in the second quarter and first six months of 2026 and increased over the same periods of 2025. Renewal premium changes in the second quarter and first six months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the second quarter and first six months of 2026 increased slightly over the same periods of 2025.
Previous 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.
Current wording
Middle Market. Net written premiums of $3.24 billion and $6.56 billion in the second quarter and first six months of 2026, respectively, increased by 7% and 6%, respectively, over the same periods of 2025. Retention rates remained strong in the second quarter and first six months of 2026 and were comparable with the same periods of 2025. Renewal premium changes in the second quarter and first six months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the second quarter and first six months of 2026 increased over the same periods of 2025.
Previous 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.
Current wording
National Accounts. Net written premiums of $344 million and $687 million in the second quarter and first six months of 2026, respectively, increased by 5% and 7%, respectively, over the same periods of 2025. Retention rates remained strong in the second quarter of 2026 and increased over the same period of 2025. Retention rates remained strong in the first six months of 2026 and were comparable with the same period of 2025. Renewal premium changes in the second quarter and first six months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the second quarter and first six months of 2026 decreased from the same periods of 2025.
Previous 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.
Current wording
National Property and Other. Net written premiums of $866 million and $1.56 billion in the second quarter and first six months of 2026 decreased by 2% and 3%, respectively, from the same periods of 2025. Retention rates remained strong in the second quarter and first six months of 2026 and increased over the same periods of 2025. Renewal premium changes in the second quarter and first six months of 2026 were lower than the same periods of 2025. New business premiums in the second quarter and first six months of 2026 decreased from the same periods of 2025.
Previous wording
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 wording
International. Net written premiums of $499 million and $916 million in the second quarter and first six months of 2026 decreased by 8% and 14%, respectively, from the same periods of 2025. Net written premiums in the second quarter and first six months of 2025 included $79 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, net written premiums in the second quarter of 2026 increased by 8% over the same period of 2025, and net written premiums in the first six months of 2026 were comparable with the same period of 2025.
Showing the first 40 of 85 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Diluted net income per share of $18.01 in the first six months of 2026 increased by 119% over diluted net income per share of $8.23 in the same period of 2025. Net income of $3.92 billion in the first six months of 2026 increased by 106% over net income of $1.90 billion 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 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) higher net favorable prior year reserve development, (iii) higher net investment income and (iv) net realized investment gains compared to net realized investment losses in the same period of 2025, partially offset by (v) lower underlying underwriting margins. Catastrophe losses in the first six months of 2026 and 2025 were $1.28 billion and $3.19 billion, respectively. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $991 million and $693 million, respectively. The lower underlying underwriting margins in the first six months of 2026 were driven by Business Insurance and Bond & Specialty Insurance, partially offset by Personal Insurance. Income tax expense in the first six months of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in income before income taxes.
Current report — wording carried from elsewhere
Claims and claim adjustment expenses in the second quarter of 2026 were $5.92 billion, $867 million or 13% 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 second quarter of 2025 included $180 million related to the Canadian operations divested by the Company in the first quarter of 2026. Catastrophe losses in the second quarters of both 2026 and 2025 primarily resulted from severe wind and hail storms in multiple states.
Current report — wording carried from elsewhere
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.