Travelers $TRV Companies reported second-quarter net income of $2.21 billion, or $10.26 per diluted share, up 46% from $1.51 billion, or $6.53 per diluted share, in the same period a year earlier.
The insurer's net income rose to $2.21 billion in the second quarter, driven by a sharp drop in storm-related losses and a 14% gain in investment income
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Travelers $TRV Companies reported second-quarter net income of $2.21 billion, or $10.26 per diluted share, up 46% from $1.51 billion, or $6.53 per diluted share, in the same period a year earlier.
Core income, which excludes realized investment gains and losses, rose 44% to $2.16 billion, or $10.04 per diluted share, from $1.50 billion, or $6.51 per diluted share, a year ago. The company said the increase was driven by lower catastrophe losses, higher net favorable prior year reserve development, higher net investment income, and a stronger underlying underwriting result.
On a pre-tax basis, catastrophe losses dropped to $518 million from $927 million in the second quarter of 2025. The losses in the current quarter primarily resulted from severe wind and hail storms across multiple states, the company said.
Net investment income rose 14% to $1.07 billion on a pre-tax basis, or $883 million after tax, driven by the long-term fixed income portfolio benefiting from a higher yield and growth in average invested assets, the company said.
The consolidated combined ratio improved to 83.6% from 90.3% a year earlier, with catastrophe losses accounting for 4.9 percentage points of that ratio compared with 8.5 points in the prior year quarter. The underlying combined ratio, which excludes catastrophe losses and prior year reserve development, edged down to 84.1% from 84.7% in the prior year quarter.
Net written premiums totaled $11.53 billion, essentially unchanged from $11.54 billion in the year-ago period. Excluding the impact of the Canadian operations the company divested in the first quarter of 2026, premiums grew 2%, the company said.
Among Travelers' three business segments, Personal Insurance posted segment income of $827 million, up from $534 million a year ago, as catastrophe losses in that segment fell to $276 million from $554 million. Business Insurance segment income rose to $1.20 billion from $813 million, while Bond & Specialty Insurance segment income declined to $234 million from $244 million.
Travelers returned $1.58 billion of capital to shareholders during the quarter, including $1.31 billion in share repurchases. The board declared a quarterly dividend of $1.25 per share, payable September 30, 2026, the company said.
"The scale of our earnings and cash flow enable us to invest in differentiating technology, including AI... we remain highly confident in the outlook for Travelers," Chairman and Chief Executive Officer Alan Schnitzer said in a statement.
Travelers shares are up more than 16% in 2026.
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