TRAVELERS COMPANIES, INC.
For the period ended Sep 30, 2026. Filed Oct 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.
Sep 30, 2026 · Filed Oct 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 2026-06-30; filed 2026-07-17.
0000086312-26-000145
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-16.
0000086312-26-000181
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 297 previous paragraphs and 295 current paragraphs.
159 unchanged; 86 reworded; 49 added; 52 removed; 0 previous and 1 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 (49)
Current report
2026 Third Quarter Consolidated Results of Operations
Current report
•Catastrophe losses of $538 million ($424 million after-tax)
Current report
•Net favorable prior year reserve development of $234 million ($185 million after-tax)
Current report
•Combined ratio of 86.8%
Current report
•Net investment income of $1.10 billion ($908 million after-tax)
Current report
•Net realized investment losses of $34 million ($30 million after-tax)
Current report
•Total assets of $142.09 billion
Current report
•Shareholders’ equity of $29.00 billion
Current report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
(1) PCS event 52, which was $5 million as of June 30, 2026, exceeded the Company’s threshold for a significant catastrophe ($100 million) as of September 30, 2026.
Current report
The combined ratio of 86.8% in the third quarter of 2026 was 0.5 points lower than the combined ratio of 87.3% in the same period of 2025. The loss and loss adjustment expense ratio of 57.9% in the third quarter of 2026 was 0.8 points lower than the loss and loss adjustment expense ratio of 58.7% in the same period of 2025. The underwriting expense ratio of 28.9% in the third quarter of 2026 was 0.3 points higher than the underwriting expense ratio of 28.6% in the same period of 2025.
Current report
The combined ratio of 86.3% in the first nine months of 2026 was 6.9 points lower than the combined ratio of 93.2% in the same period of 2025. The loss and loss adjustment expense ratio of 57.3% for the first nine months of 2026 was 7.4 points lower than the loss and loss adjustment expense ratio of 64.7% in the same period of 2025. The underwriting expense ratio of 29.0% for the first nine months of 2026 was 0.5 points higher than the underwriting expense ratio of 28.5% in the same period of 2025.
Current report
Catastrophe losses in the first nine months of 2026 and 2025 accounted for 5.6 points and 11.0 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2026 and 2025 provided 3.8 points and 2.2 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2026 was 0.1 points higher than the 2025 ratio on the same basis.
Current report
Segment income in the third quarter of 2026 was $1.04 billion, $129 million or 14% higher than segment income of $907 million in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) net favorable prior year reserve development of $41 million compared to net unfavorable prior year reserve development of $125 million in the same period of 2025 and (ii) higher net investment income, partially offset by (iii) lower underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”) and (iv) higher catastrophe losses. Catastrophe losses in the third quarters of 2026 and 2025 were $157 million and $139 million, respectively. Income tax expense in the third 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 nine months of 2026 was $3.07 billion, $670 million or 28% higher than segment income of $2.40 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 nine months of 2026 and 2025 was $522 million and $28 million, respectively. Catastrophe losses in the first nine months of 2026 and 2025 were $774 million and $1.02 billion, respectively. The lower underlying underwriting margins primarily reflected the impact of higher general and administrative expenses. Income tax expense in the first nine 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 third quarter of 2026 were $3.64 billion, $24 million or 1% lower than in the same period of 2025, primarily reflecting the impacts of net favorable prior year reserve development compared to net unfavorable prior year reserve development in the same period of 2025, partially offset by loss cost trends.
Current report
Factors contributing to net prior year reserve development during the third quarters and first nine 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 third quarter of 2026 was $241 million, $30 million or 14% higher than the same period of 2025, primarily reflecting the impact of the $159 million increase in income before income taxes. Income tax expense in the first nine months of 2026 was $737 million, $170 million or 30% higher than in the same period of 2025, primarily reflecting the impact of the $840 million increase in income before income taxes.
Current report
The combined ratio of 90.9% in the third quarter of 2026 was 2.0 points lower than the combined ratio of 92.9% in the same period of 2025. The loss and loss adjustment expense ratio of 61.2% in the third quarter of 2026 was 2.1 points lower than the loss and loss adjustment expense ratio of 63.3% in the same period of 2025. The underwriting expense ratio of 29.7% in the third quarter of 2026 was 0.1 points higher than the underwriting expense ratio of 29.6% in the same period of 2025.
Current report
Catastrophe losses in the third quarters of 2026 and 2025 accounted for 2.7 points and 2.4 points, respectively, of the combined ratio. Net favorable prior year reserve development in the third quarter of 2026 provided 0.7 points of benefit to the combined ratio. Net unfavorable prior year reserve development in the third quarter of 2025 accounted for 2.2 points of the combined ratio. The underlying combined ratio in the third quarter of 2026 was 0.6 points higher than the 2025 ratio on the same basis.
Current report
The combined ratio of 90.5% in the first nine months of 2026 was 3.7 points lower than the combined ratio of 94.2% in the same period of 2025. The loss and loss adjustment expense ratio of 60.3% in the first nine months of 2026 was 4.3 points lower than the loss and loss adjustment expense ratio of 64.6% in the same period of 2025. The underwriting expense ratio of 30.2% for the first nine months of 2026 was 0.6 points higher than the underwriting expense ratio of 29.6% in the same period of 2025.
Current report
Gross written premiums in the third quarter of 2026 were comparable with the same period of 2025. Net written premiums in the third quarter of 2026 increased by 3% over the same period of 2025. Gross and net written premiums in the third quarter of 2025 included $75 million and $59 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 1% and 4%, respectively, over the same period of 2025.
Current report
Gross and net written premiums in the first nine months of 2026 increased by 1% and 3%, respectively, over the same period of 2025. Gross and net written premiums in the first nine months of 2025 included $235 million and $205 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 2% and 4%, respectively, over the same period of 2025.
Current report
International. Net written premiums of $393 million and $1.31 billion in the third quarter and first nine months of 2026 decreased by 4% and 11%, respectively, from the same periods of 2025. Net written premiums in the third quarter and first nine months of 2025 included $59 million and $205 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, net written premiums in the third quarter and first nine months of 2026 increased by 12% and 3%, respectively, over the same periods of 2025.
Current report
Segment income in the third quarter of 2026 was $309 million, $59 million or 24% higher than segment income of $250 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) higher net investment income and (iii) higher underlying underwriting margins. Net favorable prior year reserve development in the third quarters of 2026 and 2025 was $95 million and $43 million, respectively. Catastrophe losses in the third quarters of 2026 and 2025 were $1 million and $0 million, respectively. The higher underlying underwriting margins primarily reflected higher business volumes, partially offset by higher general and administrative expense . Income tax expense in the third 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 third quarter of 2026 were $425 million, $26 million or 6% lower than in the same period of 2025, primarily reflecting the impacts of higher net favorable prior year reserve development, partially offset by higher business volumes.
Current report
Claims and claim adjustment expenses in the first nine months of 2026 were $1.32 billion, $21 million or 2% higher than in the same period of 2025, primarily reflecting the impacts of (i) higher business volumes, (ii) a loss event in the international management liability business and (iii) loss cost trends, partially offset by (iv) higher net favorable prior year reserve development, (v) the Canadian operations which the Company divested in the first quarter of 2026 and (vi) lower catastrophe losses.
Current report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine 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 third quarter of 2026 was $69 million, $8 million or 13% higher than in the same period of 2025, primarily reflecting the impact of the $67 million increase in segment income before income taxes. Income tax expense in the first nine months of 2026 was $158 million, $22 million or 12% lower than in the same period of 2025, primarily reflecting a tax benefit related to the Canadian operations which the Company divested in the first quarter of 2026, partially offset by the impact of the $61 million increase in segment income before income taxes.
Current report
The combined ratio of 77.3% in the third quarter of 2026 was 4.3 points lower than the combined ratio of 81.6% in the same period of 2025. The loss and loss adjustment expense ratio of 38.2% in the third quarter of 2026 was 4.7 points lower than the loss and loss adjustment expense ratio of 42.9% in the same period of 2025. The underwriting expense ratio of 39.1% in the third quarter of 2026 was 0.4 points higher than the underwriting expense ratio of 38.7% in the same period of 2025.
Current report
The combined ratio of 81.0% in the first nine months of 2026 was 0.5 points lower than the combined ratio of 81.5% in the same period of 2025. The loss and loss adjustment expense ratio of 41.3% in the first nine months of 2026 was 0.9 points lower than the loss and loss adjustment expense ratio of 42.2% in the same period of 2025. The underwriting expense ratio of 39.7% in the first nine months of 2026 was 0.4 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 third quarter of 2026 increased by 14% and 12%, respectively, over the same period of 2025. Gross and net written premiums in the third quarter of 2025 included $15 million and $14 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 15% and 13%, respectively, over the same period of 2025.
Current report
Gross and net written premiums in the first nine months of 2026 increased by 12% and 11%, respectively, over the same period of 2025. Gross and net written premiums in the first nine months of 2025 included $42 million and $40 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 13% and 12%, respectively, over the same period of 2025.
Current report
Segment income in the third quarter of 2026 was $706 million, $101 million or 13% lower than segment income of $807 million in the same period of 2025. The decrease in segment income before income taxes was driven by the pre-tax impacts of higher catastrophe losses. Catastrophe losses in the third quarters of 2026 and 2025 were $380 million and $263 million, respectively. Net favorable prior year reserve development in the third quarters of 2026 and 2025 was $98 million and $104 million, respectively. Income tax expense in the third 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
Earned premiums in the third quarter of 2026 were $4.14 billion, $255 million or 6% lower than in the same period of 2025. Earned premiums in the first nine months of 2026 were $12.38 billion, $620 million or 5% lower than in the same period of 2025. Earned premiums in the third quarter and first nine months of 2025 included $168 million and $505 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026.
Current report
Claims and claim adjustment expenses in the third quarter of 2026 were $2.42 billion, $57 million or 2% lower than in the same period of 2025, primarily reflecting the impacts of (i) the Canadian operations which the Company divested in the first quarter of 2026, (ii) lower losses in the automobile product line and (iii) lower business volumes, partially offset by (iv) higher catastrophe losses, (v) loss cost trends and (vi) higher non-weather losses in the homeowners and other product line.
Current report
Factors contributing to net favorable prior year reserve development during the third quarters and first nine months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.
Current report
General and administrative expenses in the third quarter of 2026 were $432 million, $26 million or 6% lower than in the same period of 2025. General and administrative expenses in the first nine months of 2026 were $1.25 billion, $47 million or 4% lower than in the same period of 2025.
Current report
Income tax expense in the third quarter of 2026 was $173 million, $32 million or 16% lower than in the same period of 2025, primarily reflecting the impact of the $133 million decrease in segment income before income taxes. Income tax expense in the first nine months of 2026 was $564 million, $329 million or 140% higher than in the same period of 2025, primarily reflecting the impact of the $1.60 billion increase in segment income before income taxes.
Current report
The combined ratio of 83.5% in the third quarter of 2026 was 2.2 points higher than the combined ratio of 81.3% in the same period of 2025. The loss and loss adjustment expense ratio of 58.4% in the third quarter of 2026 was 2.0 points higher than the loss and loss adjustment expense ratio of 56.4% in the same period of 2025. The underwriting expense ratio of 25.1% in the third quarter of 2026 was 0.2 points higher than the underwriting expense ratio of 24.9% in the same period of 2025.
Showing the first 40 of 49 passages. Open the source sections for the rest.
Removed paragraphs (52)
Previous report
2026 Second Quarter Consolidated Results of Operations
Previous report
•Catastrophe losses of $518 million ($410 million after-tax)
Previous report
•Net favorable prior year reserve development of $578 million ($456 million after-tax)
Previous report
•Combined ratio of 83.6%
Previous report
•Net investment income of $1.07 billion ($883 million after-tax)
Previous report
•Net realized investment gains of $60 million ($48 million after-tax)
Previous report
•Total assets of $143.58 billion
Previous report
•Shareholders’ equity of $33.12 billion
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 report
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 report
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.
Previous 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.
Previous report
Claims and claim adjustment expenses in the second quarter of 2026 were $458 million, $40 million or 10% higher than in the same period of 2025, primarily reflecting the impacts of (i) a loss event in the international management liability business, (ii) higher business volumes, (iii) loss cost trends and (iv) lower net favorable prior year reserve development, partially offset by (v) the Canadian operations divested by the Company in the first quarter of 2026.
Previous report
Claims and claim adjustment expenses in the first six months of 2026 were $899 million, $47 million or 6% higher than in the same period of 2025, primarily reflecting the impacts of (i) loss cost trends, (ii) higher business volumes and (iii) lower net favorable prior year reserve development, partially offset by (iv) lower catastrophe losses and (v) 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 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.
Previous report
Income tax expense in the second quarter of 2026 was $61 million, $1 million or 2% lower than in the same period of 2025, primarily reflecting the impact of the $11 million decrease in segment income before income taxes. Income tax expense in the first six months of 2026 was $89 million, $30 million or 25% 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 and the impact of the $6 million decrease in segment income before income taxes.
Previous report
The combined ratio of 82.8% in the second quarter of 2026 was 2.5 points higher than the combined ratio of 80.3% in the same period of 2025. The loss and loss adjustment expense ratio of 43.0% in the second quarter of 2026 was 2.5 points higher than the loss and loss adjustment expense ratio of 40.5% in the same period of 2025. The underwriting expense ratio of 39.8% in the second quarter of 2026 was comparable with the same period of 2025.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Claims and claim adjustment expenses in the second quarter of 2026 were $2.28 billion, $511 million or 18% 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, (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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Catastrophe losses in the second quarters of 2026 and 2025 accounted for 6.7 points and 12.7 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2026 and 2025 provided 4.5 points and 3.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the second quarter of 2026 was 2.0 points lower than the 2025 ratio on the same basis, primarily reflecting 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.
Showing the first 40 of 52 passages. Open the source sections for the rest.
Reworded paragraphs (86)
Previous wording
•Net income of $2.21 billion, or $10.41 per share basic and $10.26 per share diluted
Current wording
•Net income of $1.92 billion, or $9.20 per share basic and $9.04 per share diluted
Previous wording
•Net earned premiums of $10.75 billion
Current wording
•Net earned premiums of $11.10 billion
Previous wording
•Operating cash flows of $1.92 billion
Current wording
•Operating cash flows of $3.88 billion
Previous wording
2026 Second Quarter Consolidated Financial Condition
Current wording
2026 Third Quarter Consolidated Financial Condition
Previous wording
•Total investments of $103.18 billion; fixed maturities and short-term securities comprised 94% of total investments
Current wording
•Total investments of $100.59 billion; fixed maturities and short-term securities comprised 94% of total investments
Previous 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)
Current wording
•Total debt of $9.81 billion, resulting in a debt-to-total capital ratio of 25.3% (21.7% excluding net unrealized investment losses, net of tax)
Previous wording
•Total capital returned to shareholders of $1.58 billion, comprising $1.31 billion of share repurchases and $266 million of dividends
Current wording
•Total capital returned to shareholders of $1.77 billion, comprising $1.51 billion of share repurchases and $261 million of dividends
Previous wording
•Net unrealized investment losses of $2.48 billion ($1.96 billion after-tax)
Current wording
•Net unrealized investment losses of $8.05 billion ($6.35 billion after-tax)
Previous wording
•Book value per common share of $158.81
Current wording
•Book value per common share of $141.48
Previous wording
•Holding company liquidity of $2.51 billion
Current wording
•Holding company liquidity of $3.17 billion
Previous 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.
Current wording
Diluted net income per share of $9.04 in the third quarter of 2026 increased by 10% over diluted net income per share of $8.24 in the same period of 2025. Net income of $1.92 billion in the third quarter of 2026 increased by 2% over net income of $1.89 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 third quarter of 2026 primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development and (ii) higher net investment income, partially offset by (iii) higher catastrophe losses and (iv) net realized investment losses compared to net realized gains in the same period of 2025. Catastrophe losses in the third quarters of 2026 and 2025 were $538 million and $402 million, respectively. Net favorable prior year reserve development in the third quarters of 2026 and 2025 was $234 million and $22 million, respectively. Income tax expense in the third quarter of 2026 was lower than in the same period of 2025.
Previous wording
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 wording
Diluted net income per share of $27.05 in the first nine months of 2026 increased by 64% over diluted net income per share of $16.45 in the same period of 2025. Net income of $5.84 billion in the first nine months of 2026 increased by 54% over net income of $3.79 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. Catastrophe losses in the first nine months of 2026 and 2025 were $1.82 billion and $3.60 billion, respectively. Net favorable prior year reserve development in the first nine months of 2026 and 2025 was $1.23 billion and $715 million, respectively. Income tax expense in the first nine months 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 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.
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 nine months ended September 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 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.
Current wording
Earned premiums in the third quarter of 2026 were $11.10 billion, $32 million lower than in the same period of 2025. Earned premiums in the third quarter of 2025 included $259 million related to the Canadian operations which the Company divested in the first quarter of 2026. Earned premiums in the first nine months of 2026 were $32.46 billion, $305 million or 1% lower than in the same period of 2025. Earned premiums in the first nine months of 2025 included $783 million related to the Canadian operations which the Company divested in the first quarter of 2026. In Business Insurance, earned premiums in the third quarter and first nine months of 2026 increased by 3% and 1%, respectively, over the same periods of 2025. In Bond & Specialty Insurance, earned premiums in the third quarter and first nine months of 2026 increased by 6% and 4%, respectively, over the same periods of 2025. In Personal Insurance, earned premiums in the third quarter and first nine months of 2026 decreased by 6% and 5%, 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 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.
Current wording
Net investment income in the third quarter of 2026 was $1.10 billion, $65 million or 6% higher than in the same period of 2025. Net investment income in the first nine months of 2026 was $3.18 billion, $271 million or 9% higher than in the same period of 2025. Net investment income from fixed maturity investments in the third quarter and first nine months of 2026 was $955 million and $2.78 billion, respectively, $81 million and $265 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 third quarter of 2026 was $59 million, $14 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 nine months of 2026 was $187 million, $2 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 $97 million in the third quarter of 2026, $4 million lower, than in the same period of 2025. The Company’s remaining investment portfolios had net investment income of $244 million in the first nine months of 2026, comparable with the same period of 2025. 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 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.
Current wording
Fee income in the third quarter of 2026 was $123 million, $4 million lower than in the same period of 2025. Fee income in the first nine months of 2026 was $370 million, comparable with 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 $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.
Current wording
Net realized investment losses on equity securities still held of $16 million in the third quarter of 2026 were driven by the impact of changes in fair value attributable to unfavorable equity markets. Net realized investment gains on equity securities still held of $60 million in the first nine months of 2026 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 $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.
Previous 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.
Current wording
Other net realized investment gains in the first nine months of 2026 were driven by net realized investment gains related to the Canadian operations which the Company divested in the first quarter of 2026, partially offset by net realized investment losses related to fixed maturity investments.
Previous 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.
Current wording
Other revenues in the third quarter of 2026 were $122 million, $26 million lower than in the same period of 2025. Other revenues in the first nine months of 2026 were $407 million, $24 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 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 wording
Claims and claim adjustment expenses in the third quarter of 2026 were $6.49 billion, $107 million or 2% lower than in the same period of 2025, driven by all three segments. Claims and claim adjustment expenses in the third quarter of 2025 included $149 million related to the Canadian operations which the Company divested in the first quarter of 2026. Catastrophe losses in the third quarters of both 2026 and 2025 primarily resulted from severe wind and hail storms in multiple states.
Previous 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.
Current wording
Claims and claim adjustment expenses in the first nine months of 2026 were $18.79 billion, $2.60 billion or 12% 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 nine months of 2025 included $511 million related to the Canadian operations which the Company divested in the first quarter of 2026. Catastrophe losses in the first nine months of 2026 included the third quarter events described above, as well as severe wind and hail storms and winter storms in multiple states in the first six months of 2026. 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. 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 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.
Current 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, 2026 and 2025, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and nine months ended September 30, 2026 and 2025 for significant catastrophes that occurred in 2025 and 2024, and the estimate of ultimate losses for those catastrophes at September 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 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.
Current wording
Amortization of deferred acquisition costs in the third quarter of 2026 was $1.86 billion, $7 million higher than in the same period of 2025. Amortization of deferred acquisition costs in the first nine months of 2026 was $5.41 billion, $21 million lower than in the same period of 2025. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.
Previous 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.
Current wording
General and administrative expenses in the third quarter of 2026 were $1.58 billion, $10 million or 1% higher than in the same period of 2025. General and administrative expenses in the first nine months of 2026 were $4.69 billion, $112 million or 2% 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 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.
Current wording
Interest expense in the third quarter and first nine months of 2026 was $118 million and $347 million, respectively, compared with $111 million and $309 million, respectively, in the same periods of 2025.
Previous wording
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 wording
Income tax expense in the third quarter of 2026 was $452 million, $4 million or 1% lower than in the same period of 2025. Income tax expense in the first nine months of 2026 was $1.42 billion, $518 million or 57% higher than in the same period of 2025, primarily reflecting the impact of the $2.56 billion increase in income before income taxes in the first nine months of 2026.
Previous 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.
Current wording
The Company’s effective tax rate was 19% in the third quarters of both 2026 and 2025. The Company’s effective tax rate was 20% and 19% in the first nine 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 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.
Current wording
Catastrophe losses in the third quarters of 2026 and 2025 accounted for 4.8 points and 3.6 points, respectively, of the combined ratio. Net favorable prior year reserve development in the third quarters of 2026 and 2025 provided 2.1 points and 0.2 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 2026 was 0.2 points higher than the 2025 ratio on the same basis.
Previous wording
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 wording
Gross written premiums in the third quarter of 2026 decreased by 2% from the same period of 2025. Net written premiums in the third quarter of 2026 increased slightly over the same period of 2025. Gross and net written premiums in the third quarter of 2025 included $269 million and $240 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross written premiums were comparable with the same period of 2025 and net written premiums increased by 2% over the same period of 2025.
Previous 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.
Current wording
Gross and net written premiums in the first nine months of 2026 both decreased by 1% from the same period of 2025. Gross and net written premiums in the first nine months of 2025 included $790 million and $736 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 1% and 2%, respectively, over the same period of 2025.
Previous 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.
Current wording
Earned premiums in the third quarter of 2026 were $5.86 billion, $162 million or 3% higher than in the same period of 2025. Earned premiums in the first nine months of 2026 were $16.91 billion, $196 million or 1% 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 third quarter and first nine months of 2025 included $77 million and $236 million, respectively, related to the Canadian operations which the Company divested in the first quarter of 2026.
Previous 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.
Current wording
Net investment income in the third quarter of 2026 was $766 million, $39 million or 5% higher than in the same period of 2025. Net investment income in the first nine months of 2026 was $2.24 billion, $191 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 increases in the Company’s consolidated net investment income in the third quarter and first nine 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 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.
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 third quarter of 2026 was $118 million, $4 million or 4% higher than in the same period of 2025. Fee income in the first nine months of 2026 was $346 million, $13 million or 4% higher than in the same period of 2025.
Previous 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.
Current wording
Other revenues in the third quarter of 2026 were $94 million, $17 million lower than in the same period of 2025. Other revenues in the first nine months of 2026 were $311 million, $23 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
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 wording
Claims and claim adjustment expenses in the first nine months of 2026 were $10.36 billion, $594 million or 5% 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 and (iii) the Canadian operations which the Company divested in the first quarter of 2026, partially offset by (iv) loss cost trends.
Previous 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.
Current wording
Amortization of deferred acquisition costs in the third quarter of 2026 was $1.00 billion, $28 million or 3% higher than the same period of 2025. Amortization of deferred acquisition costs in the first nine months of 2026 was $2.88 billion, $50 million or 2% 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 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.
Current wording
General and administrative expenses in the third quarter of 2026 were $919 million, $25 million or 3% higher than in the same period of 2025. General and administrative expenses in the first nine months of 2026 were $2.74 billion, $127 million or 5% higher than in the same period of 2025. The increases in both periods of 2026 primarily reflected normal quarter-to-quarter variability.
Previous wording
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 wording
Catastrophe losses in the first nine months of 2026 and 2025 accounted for 4.6 points and 6.1 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first nine months of 2026 and 2025 provided 3.1 points and 0.2 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first nine months of 2026 was 0.7 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio.
Previous 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.
Current wording
Select Accounts. Net written premiums of $932 million and $2.98 billion in the third quarter and first nine months of 2026, respectively, increased by 1% and 3%, respectively, over the same periods of 2025. Retention rates remained strong in the third quarter and first nine months of 2026 and increased over the same periods of 2025. Renewal premium changes in the third quarter and first nine months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the third quarter and first nine months of 2026 increased slightly over the same periods of 2025.
Previous 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.
Current wording
Middle Market. Net written premiums of $3.45 billion and $10.01 billion in the third quarter and first nine months of 2026, respectively, increased by 7% and 6%, respectively, over the same periods of 2025. Retention rates remained strong in the third quarter and first nine months of 2026 and increased over the same periods of 2025. Renewal premium changes in the third quarter and first nine months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the third quarter and first nine months of 2026 increased over the same periods of 2025.
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Current report — wording carried from elsewhere
Equity securities, which include common and non-redeemable preferred stocks, are reported at fair value with changes in fair value recognized in net income.