Travelers Q3 2026 earnings: core EPS $9.18 as underwriting and investment income stay strong

Travelers posted another strong underwriting quarter and a record investment-income print, lifting core earnings even as catastrophe losses ran higher than a year ago.

The New York-based insurer reported net income of $1.917 billion, or $9.04 per diluted share, for the quarter ended Sept. 30, 2026, compared with $1.888 billion, or $8.24, a year earlier, according to its earnings release Friday. Core income was $1.947 billion, or $9.18 per diluted share, versus $1.867 billion, or $8.14. Return on equity was 24.7% and core return on equity was 22.1%.

Underwriting income was $1.432 billion pre-tax, with underlying underwriting income of $1.736 billion pre-tax. The consolidated combined ratio improved to 86.8% from 87.3% a year earlier, and the underlying combined ratio was 84.1%. Net favorable prior-year reserve development across all three segments totaled $234 million pre-tax. Core income rose primarily on higher favorable development and higher net investment income, partly offset by higher catastrophe losses, the company said in the release.

Net written premiums were $11.480 billion, essentially flat with the year-ago quarter. Business Insurance generated $5.9 billion of net written premiums, up 4% adjusting for the sale of Canadian businesses. Bond & Specialty Insurance grew net written premiums 12% to $1.2 billion, and Personal Insurance wrote $4.4 billion.

Record net investment income of $1.098 billion pre-tax ($908 million after-tax) rose 6% from a year earlier. Travelers returned $1.769 billion of capital to shareholders in the quarter, including $1.508 billion of share repurchases. Book value per share was $141.48 at Sept. 30; adjusted book value per share was $172.47.

Chairman and CEO Alan Schnitzer called the quarter "excellent" in the release, pointing to "very strong underwriting performance across all three segments and a record result from our investment portfolio."

By the numbers

• Diluted EPS: $9.04; core EPS: $9.18
• Net income: $1.917 billion; core income: $1.947 billion
• Combined ratio: 86.8%; underlying combined ratio: 84.1%
• Net written premiums: $11.480 billion
• Net investment income: $1.098 billion pre-tax
• Capital returned: $1.769 billion, including $1.508 billion of buybacks

Sources

1. The Travelers Companies, Inc., Form 8-K (Items 2.02, 9.01), filed Oct. 16, 2026, accession 0000086312-26-000180
2. The Travelers Companies, Inc., earnings press release (Exhibit 99.1), Oct. 16, 2026

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