The Travelers Companies, Inc. reported better-than-expected second quarter 2026 results on Friday, as lower catastrophe losses, stronger underwriting performance, and higher investment income boosted earnings. Core income increased 44% year over year to $2.160 billion, with core earnings per share of $10.04 beating the analyst consensus estimate of $5.38. Revenue rose to $12.153 billion, topping expectations of $11.346 billion. Following the announcement, the stock jumped over 8% to a new 52-week high.

Key Q2 2026 Financial Highlights

The following table summarizes consolidated performance for the quarter and year-to-date period ended June 30, 2026:

Core income increased primarily due to lower catastrophe losses, higher net favorable prior year reserve development, higher net investment income, and a higher underlying underwriting gain. Net realized investment gains in the quarter were $60 million pre-tax ($48 million after-tax), compared to $6 million pre-tax ($5 million after-tax) in the prior year quarter. Net investment income increased 14% to $883 million after-tax, driven by the long-term fixed income portfolio benefiting from a higher yield and growth in average invested assets.

Underwriting Performance and Investment Income

Underlying underwriting income was $1.678 billion pre-tax for the quarter, reflecting excellent profitability across all three segments. Catastrophe losses totaled $518 million pre-tax, significantly lower than $927 million pre-tax in the prior year quarter. Net favorable prior year reserve development across all three segments totaled $578 million pre-tax.

Chairman and CEO Alan Schnitzer commented: "Core income for the quarter was $2.2 billion, or $10.04 per diluted share. Core return on equity for the quarter was 24.9%, bringing core return on equity over the last four quarters to 24.2%. Second quarter underwriting income of $1.7 billion pre-tax benefited from continued strong levels of underlying underwriting income and net favorable prior year development."

Segment Performance

The table below presents net written premiums by segment for the quarter:

Business Insurance segment income was $1.198 billion after-tax, an increase of $385 million. The combined ratio improved 6.8 points to 86.8%, with the underlying combined ratio at an excellent 88.2%. Net written premiums grew 5% excluding the impact of the Canadian business divested in Q1 2026, with Middle Market up 7% and Select Accounts up 4%. New business was a record $805 million, up 8%.

Bond & Specialty Insurance segment income was $234 million after-tax. Net written premiums grew 14% to $1.237 billion, or 16% excluding the Canadian divestiture. The Surety business grew net written premiums by 40%, reflecting success with large projects.

Personal Insurance segment income was $827 million after-tax, an increase of $293 million. The combined ratio improved 8.9 points to 79.5%, driven by lower catastrophe losses and an improvement in the underlying combined ratio to 77.3%.

Year-to-Date Results and Balance Sheet

For the six months ended June 30, 2026, net income was $3.919 billion ($18.01 per diluted share), compared to $1.904 billion ($8.23 per diluted share) in the prior year period. Core income for the first half was $3.856 billion ($17.73 per diluted share), up 98% year-over-year.

The Company repurchased 4.3 million shares during the quarter at an average price of $304.06 per share for a total cost of $1.311 billion. Total capital returned to shareholders in the quarter was $1.577 billion. At June 30, 2026, the Company had $3.915 billion of capacity remaining under its share repurchase authorizations. The Board of Directors declared a regular quarterly dividend of $1.25 per share, payable September 30, 2026.

Analyst Reactions

Following the earnings announcement, analysts revised their price targets. B of A Securities analyst Joshua Shanker maintained the stock with an Underperform rating and raised the price target from $283 to $307. Evercore ISI Group analyst David Motemaden maintained the stock with an In-Line rating and raised the price target from $329 to $338.

During the earnings call, CEO Alan Schnitzer stated Travelers will not loosen underwriting standards or cut prices to boost growth. He said competing on price is "a fool's errand" because it leads to lower margins without meaningful growth, adding that the company will continue investing in its franchise and competitive advantages to drive profitable growth.

Travelers Companies, Fifth Third Bancorp, and several other major corporations are scheduled to release their quarterly earnings results on July 17, 2026. Analysts have provided estimates for key financial metrics, including earnings per share and revenue, offering insight into the expected performance of these firms before the official reports are made public.

Travelers Companies is estimated to report quarterly earnings at $4.94 per share on revenue of $11.23 billion. South Plains Financial is projected to report quarterly earnings at $0.92 per share on revenue of $63.56 million. Fifth Third Bancorp is expected to report quarterly earnings at $0.88 per share on revenue of $3.25 billion.

Truist Financial is estimated to report quarterly earnings at $1.08 per share on revenue of $5.23 billion. Autoliv is estimated to report quarterly earnings at $2.43 per share on revenue of $2.76 billion. Regions Financial is estimated to report quarterly earnings at $0.63 per share on revenue of $1.95 billion.

Earnings Estimates