Travelers’ net profit rose 46% to about $2.2 billion in the second quarter of 2026, driven by lower catastrophe losses and good reserves development in the prior year.
Catastrophe losses during the quarter, primarily from severe storms, were $518 million, compared with $927 million in the second quarter of 2025. Catastrophe losses in the second quarter were more than offset by favorable reserve development of $578 million.
The combined ratio for the second quarter was 83.6, an increase of 6.7 percentage points from the second quarter 2025 result.
Net income doubled to about $3.9 billion by mid-2026, and the combined ratio improved 10.2 percentage points to 86.1.
Related: Travelers establishes LL.M. in insurance
Total underwriting revenue increased $716 million in the second quarter to approximately $1.7 billion. Second-quarter underwriting earnings in Travelers’ commercial insurance segment more than doubled to $728 million. The unit’s combined ratio increased 6.8 percentage points from the same period last year to 86.8. Net written premiums increased 3% to approximately $6 billion.
Travelers said reserves for commercial insurance rose to $319 million in the second quarter, compared with $79 million in the year-earlier period, due to better-than-expected loss experience in workers’ compensation over the years and commercial real estate in recent years.
This time a year ago, six months later, Travelers’ personal lines business had a combined ratio of 101.7. The combined ratio for the six months this year was 81.2, and the combined ratio for the second quarter was 79.5.
Net profit was about $4.3 billion, down 8% sequentially, but last year’s second-quarter results included $178 million related to its Canadian business, which was divested in the first quarter.
Related: Definity Financial Completes $2.4B Acquisition of Travelers’ Canadian Business
CEO Alan Schnitzer said Travelers “has solid retention rates in both auto and homeowners, and is generating additional new business in our homeowners business.”
theme
catastrophic loss of profits
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