Travelers : First Quarter 2026 Statistical Supplement

Published: 2026-04-16 07:02:11 ET TRV

Published on 04/16/2026 at 07:02 am EDT

Consolidated Results

Page Number

Financial Highlights ............................................................................................................................................................................................................................................................................................................................

Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share....................................................................................................................................................................................................

Statement of Income ...........................................................................................................................................................................................................................................................................................................................

Net Income by Major Component and Combined Ratio.....................................................................................................................................................................................................................................................................

Core Income ........................................................................................................................................................................................................................................................................................................................................

Selected Statistics - Property and Casualty Operations.......................................................................................................................................................................................................................................................................

Written and Earned Premiums - Property and Casualty Operations ...................................................................................................................................................................................................................................................

Business Insurance

Segment Income .................................................................................................................................................................................................................................................................................................................................

Segment Income by Major Component and Combined Ratio.............................................................................................................................................................................................................................................................

Selected Statistics ................................................................................................................................................................................................................................................................................................................................

Net Written Premiums.........................................................................................................................................................................................................................................................................................................................

Bond & Specialty Insurance

Personal Insurance

Segment Income (Loss).......................................................................................................................................................................................................................................................................................................................

Segment Income (Loss) by Major Component and Combined Ratio..................................................................................................................................................................................................................................................

Selected Statistics - Automobile..........................................................................................................................................................................................................................................................................................................

Selected Statistics - Homeowners and Other.......................................................................................................................................................................................................................................................................................

Supplemental Detail

Interest Expense and Other..................................................................................................................................................................................................................................................................................................................

Consolidated Balance Sheet ................................................................................................................................................................................................................................................................................................................

Investment Portfolio ............................................................................................................................................................................................................................................................................................................................

Investment Portfolio - Fixed Maturities Data......................................................................................................................................................................................................................................................................................

Investment Income ..............................................................................................................................................................................................................................................................................................................................

Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity ...........................................................................................................................................................

Reinsurance Recoverables...................................................................................................................................................................................................................................................................................................................

Net Reserves for Losses and Loss Adjustment Expense.....................................................................................................................................................................................................................................................................

Asbestos Reserves ...............................................................................................................................................................................................................................................................................................................................

Capitalization.......................................................................................................................................................................................................................................................................................................................................

Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation...................................................................................................................................................................................................................................

Statement of Cash Flows .....................................................................................................................................................................................................................................................................................................................

Statement of Cash Flows (continued)..................................................................................................................................................................................................................................................................................................

Glossary of Financial Measures and Description of Reportable Business Segments......................................................................................................................................................................................................................

35-36

The information included in the Financial Supplement is unaudited. This document should be read in conjunction with the Company's Form 10-Q which will be filed with the Securities and Exchange Commission.

($ and shares in millions, except for per share data)

1Q2025

2Q2025 3Q2025

4Q2025

1Q2026

Net income................................................................................................................................................................................................

$ 395

$ 1,509 $ 1,888

$ 2,496

$ 1,711

Net income per share:

Basic..................................................................................................................................................................................................

$ 1.73

$ 6.63 $ 8.37

$ 11.24

$ 7.89

Diluted...............................................................................................................................................................................................

$ 1.70

$ 6.53 $ 8.24

$ 11.06

$ 7.78

Core income..............................................................................................................................................................................................

$ 443

$ 1,504 $ 1,867

$ 2,511

$ 1,696

Core income per share:

Basic..................................................................................................................................................................................................

$ 1.94

$ 6.61 $ 8.27

$ 11.31

$ 7.82

Diluted...............................................................................................................................................................................................

$ 1.91

$ 6.51 $ 8.14

$ 11.13

$ 7.71

Return on equity........................................................................................................................................................................................

5.6 %

20.9 % 24.7 %

31.0 %

21.1 %

Core return on equity ................................................................................................................................................................................

5.6 %

18.8 % 22.6 %

29.6 %

19.7 %

Total assets, at period end.........................................................................................................................................................................

$135,977

$138,873 $143,678

$143,708

$142,309

Total equity, at period end ........................................................................................................................................................................

$ 28,191

$ 29,518 $ 31,609

$ 32,894

$ 31,986

Book value per share, at period end..........................................................................................................................................................

$ 124.43

$ 131.11 $ 141.72

$ 151.21

$ 150.42

Less: Net unrealized investment gains (losses), net of tax .......................................................................................................................

(14.56)

(13.46) (8.83)

(6.80)

(11.18)

Adjusted book value per share, at period end...........................................................................................................................................

$ 138.99

$ 144.57 $ 150.55

$ 158.01

$ 161.60

Weighted average number of common shares outstanding (basic) ..........................................................................................................

226.9

225.9 224.1

220.3

215.2

Weighted average number of common shares outstanding and common stock equivalents (diluted).....................................................

230.4

229.3 227.5

224.0

218.4

Common shares outstanding at period end ...............................................................................................................................................

226.6

225.1 223.0

217.5

212.6

Common stock dividends declared ...........................................................................................................................................................

$ 241

$ 252 $ 250

$ 244

$ 238

Common stock repurchased:

Under Board of Directors authorization

Shares...........................................................................................................................................................................................

1.0

1.8 2.3

5.8

6.0

Cost ..............................................................................................................................................................................................

$ 250

$ 500 $ 625

$ 1,650

$ 1,800

Other

Shares...........................................................................................................................................................................................

0.4

0.3 -

0.6

Cost ..............................................................................................................................................................................................

$ 108

$ 57 $ 3

$ 3

$ 185

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ and shares in millions, except earnings per share)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Net income

$ 395

$ 1,509

$ 1,888

$ 2,496

$ 1,711

Net realized investment (gains) losses, after-tax..........................................................................................................................................

(5)

(21)

(15)

Core income ............................................................................................................................................................................................

$ 443

$ 1,504

$ 1,867

$ 2,511

$ 1,696

Basic

Net income per share .........................................................................................................................................................................................

$ 1.73

$ 6.63

$ 8.37

$ 11.24

$ 7.89

Net realized investment (gains) losses, after-tax..........................................................................................................................................

0.21

(0.02)

(0.10)

0.07

(0.07)

Core income per share .............................................................................................................................................................................

$ 1.94

$ 6.61

$ 8.27

$ 11.31

$ 7.82

Diluted

$ 1.70

$ 6.53

$ 8.24

$ 11.06

$ 7.78

Net realized investment (gains) losses, after-tax..........................................................................................................................................

0.21

(0.02)

(0.10)

0.07

(0.07)

Core income per share .............................................................................................................................................................................

$ 1.91

$ 6.51

$ 8.14

$ 11.13

$ 7.71

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

$ 395

$ 1,509

$ 1,888

$ 2,496

$ 1,711

(3)

(11)

(13)

(19)

(12)

$ 392

$ 1,498

$ 1,875

$ 2,477

$ 1,699

$ 443

$ 1,504

$ 1,867

$ 2,511

$ 1,696

(3)

(11)

(14)

(18)

(12)

$ 440

$ 1,493

$ 1,853

$ 2,493

$ 1,684

226.9

225.9

224.1

220.3

215.2

226.9

225.9

224.1

220.3

215.2

3.5

3.4

3.7

3.2

230.4

229.3

227.5

224.0

218.4

Net income, as reported.....................................................................................................................................................................................

Participating share-based awards - allocated net income ..................................................................................................................................

Net income available to common shareholders - basic and diluted ..................................................................................................................

Core income, as reported...................................................................................................................................................................................

Participating share-based awards - allocated core income ................................................................................................................................

Core income available to common shareholders - basic and diluted ................................................................................................................

Weighted average shares outstanding................................................................................................................................................................

Weighted average effect of dilutive securities - stock options and performance shares................................................................................... Diluted weighted average shares outstanding ...................................................................................................................................................

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Revenues

Premiums..............................................................................................................................................................................................................

$10,710

$10,921

$11,135

$11,148

$10,605

Net investment income .........................................................................................................................................................................................

930

942

1,033

1,054

1,008

Fee income............................................................................................................................................................................................................

119

124

127

125

121

Net realized investment gains (losses)..................................................................................................................................................................

(61)

(20)

Other revenues......................................................................................................................................................................................................

112

123

148

125

141

Total revenues...............................................................................................................................................................................................

11,810

12,116

12,470

12,432

11,924

Claims and expenses

Claims and claim adjustment expenses ................................................................................................................................................................

8,006

6,789

6,594

5,832

6,382

Amortization of deferred acquisition costs...........................................................................................................................................................

1,778

1,802

1,849

1,837

1,766

General and administrative expenses ...................................................................................................................................................................

1,459

1,545

1,572

1,544

1,541

Interest expense ....................................................................................................................................................................................................

111

116

Total claims and expenses ............................................................................................................................................................................

11,342

10,235

10,126

9,329

9,805

Income before income taxes.................................................................................................................................................................................

468

1,881

2,344

3,103

2,119

Income tax expense ..............................................................................................................................................................................................

372

456

607

408

$ 395

$ 1,509

$ 1,888

$ 2,496

$ 1,711

Other statistics

Effective tax rate on net investment income ........................................................................................................................................................

17.9 %

17.8 %

17.7 %

17.4 %

Net investment income (after-tax)........................................................................................................................................................................

$ 763

$ 774

$ 850

$ 867

$ 833

Catastrophes, net of reinsurance:

Pre-tax................................................................................................................................................................................................................

$ 2,266

$ 927

$ 402

$ 95

$ 761

After-tax.............................................................................................................................................................................................................

$ 1,790

$ 732

$ 318

$ 75

$ 601

Prior year reserve development - favorable:

$ 378

$ 315

$ 22

$ 321

$ 413

$ 297

$ 249

$ 16

$ 253

$ 325

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions, net of tax)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Underwriting gain (loss).......................................................................................................................................................................................

$ (239)

$ 808

$ 1,099

$ 1,729

$ 955

763

774

850

867

833

Other income (expense), including interest expense............................................................................................................................................

(81)

(78)

(82)

(85)

(92)

Core income .........................................................................................................................................................................................................

443

1,504

1,867

2,511

1,696

(48)

(15)

$ 395

$ 1,509

$ 1,888

$ 2,496

$ 1,711

Combined ratio (1) (2)

Loss and loss adjustment expense ratio................................................................................................................................................................

74.2 %

61.7 %

58.7 %

51.8 %

59.6 %

Underwriting expense ratio ..................................................................................................................................................................................

28.3 %

28.6 %

28.4 %

29.0 %

Combined ratio .............................................................................................................................................................................................

102.5 %

90.3 %

87.3 %

80.2 %

88.6 %

Impact on combined ratio:

Net favorable prior year reserve development ..................................................................................................................................................

(3.5)%

(2.9)%

(0.2)%

(2.9)%

(3.9)%

Catastrophes, net of reinsurance........................................................................................................................................................................

21.2 %

8.5 %

3.6 %

0.9 %

7.2 %

Underlying combined ratio...........................................................................................................................................................................

84.8 %

84.7 %

83.9 %

82.2 %

85.3 %

Before policyholder dividends.

Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses. In addition, fee income is allocated as a reduction of losses and loss adjustment expenses and underwriting expenses. These allocations are to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Billing and policy fees and other..........................................................................................................................................................................

$ 28

$ 29

$ 28

$ 25

Fee income:

Loss and loss adjustment expenses....................................................................................................................................................................

$ 45

$ 48

Underwriting expenses ......................................................................................................................................................................................

Total fee income ...........................................................................................................................................................................................

$ 119

$ 124

$ 127

$ 125

$ 121

Non-insurance general and administrative expenses............................................................................................................................................

$ 109

$ 113

$ 131

$ 110

$ 136

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Revenues

$10,710

$10,921

$11,135

$11,148

$10,605

930

942

1,033

1,054

1,008

119

124

127

125

121

112

123

148

125

141

11,871

12,110

12,443

12,452

11,875

Claims and expenses

Claims and claim adjustment expenses ................................................................................................................................................................

8,006

6,789

6,594

5,832

6,382

Amortization of deferred acquisition costs...........................................................................................................................................................

1,778

1,802

1,849

1,837

1,766

General and administrative expenses ...................................................................................................................................................................

1,459

1,545

1,572

1,544

1,541

111

116

Total claims and expenses ...........................................................................................................................................................................

11,342

10,235

10,126

9,329

9,805

Core income before income taxes ........................................................................................................................................................................

529

1,875

2,317

3,123

2,070

371

450

612

374

Core income .........................................................................................................................................................................................................

$ 443

$ 1,504

$ 1,867

$ 2,511

$ 1,696

Other statistics

Effective tax rate on net investment income ........................................................................................................................................................

17.9 %

17.8 %

17.7 %

17.4 %

$ 763

$ 774

$ 850

$ 867

$ 833

Catastrophes, net of reinsurance:

$ 2,266

$ 927

$ 402

$ 95

$ 761

$ 1,790

$ 732

$ 318

$ 75

$ 601

Prior year reserve development - favorable:

$ 378

$ 315

$ 22

$ 321

$ 413

$ 297

$ 249

$ 16

$ 253

$ 325

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory underwriting

Gross written premiums........................................................................................................................................................................................

$ 11,890

$ 12,225

$ 12,292

$ 11,296

$ 11,750

Net written premiums ...........................................................................................................................................................................................

$ 10,515

$ 11,516

$ 11,472

$ 10,856

$ 10,323

Net earned premiums............................................................................................................................................................................................

$ 10,710

$ 10,897

$ 11,133

$ 11,146

$ 10,593

Losses and loss adjustment expenses ...................................................................................................................................................................

7,947

6,731

6,537

5,768

6,310

3,098

3,260

3,239

3,114

3,400

Statutory underwriting gain (loss) ......................................................................................................................................................................

(335)

906

1,357

2,264

883

Policyholder dividends .........................................................................................................................................................................................

Statutory underwriting gain (loss) after policyholder dividends..........................................................................................................................

$ (348)

$ 896

$ 1,345

$ 2,254

$ 871

Other statutory statistics

Reserves for losses and loss adjustment expenses................................................................................................................................................

$ 58,091

$ 59,072

$ 59,620

$ 59,747

$ 59,215

Increase (decrease) in reserves .............................................................................................................................................................................

$ 1,765

$ 981

$ 548

$ 127

$ (532)

Statutory capital and surplus.................................................................................................................................................................................

$ 27,785

$ 28,364

$ 29,965

$ 31,064

$ 31,063

Net written premiums/surplus (1).........................................................................................................................................................................

1.57:1

1.55:1

1.48:1

1.43:1

1.42:1

Based on 12 months of rolling net written premiums.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Written premiums

Gross.....................................................................................................................................................................................................................

$ 11,890

$ 12,251

$ 12,293

$ 11,296

$ 11,765

Ceded....................................................................................................................................................................................................................

(1,375)

(708)

(820)

(440)

(1,427)

Net .....................................................................................................................................................................................................................

$ 10,515

$ 11,543

$ 11,473

$ 10,856

$ 10,338

Earned premiums

$ 11,487

$ 11,749

$ 11,964

$ 11,952

$ 11,438

(777)

(828)

(829)

(804)

(833)

$ 10,710

$ 10,921

$ 11,135

$ 11,148

$ 10,605

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Revenues

$ 5,465

$ 5,545

$ 5,700

$ 5,702

$ 5,493

656

662

727

737

708

108

111

114

112

111

104

6,311

6,413

6,652

6,642

6,416

Claims and expenses

Claims and claim adjustment expenses ................................................................................................................................................................

3,705

3,584

3,667

3,198

3,531

Amortization of deferred acquisition costs...........................................................................................................................................................

917

944

973

962

938

General and administrative expenses ...................................................................................................................................................................

847

875

894

866

912

Total claims and expenses ...........................................................................................................................................................................

5,469

5,403

5,534

5,026

5,381

Segment income before income taxes ..................................................................................................................................................................

842

1,010

1,118

1,616

1,035

159

197

211

324

196

Segment income ..................................................................................................................................................................................................

$ 683

$ 813

$ 907

$ 1,292

$ 839

Other statistics

Effective tax rate on net investment income ........................................................................................................................................................

17.8 %

17.7 %

17.5 %

17.3 %

$ 539

$ 545

$ 598

$ 607

$ 586

Catastrophes, net of reinsurance:

$ 509

$ 368

$ 139

$ 57

$ 379

$ 402

$ 291

$ 110

$ 44

$ 299

Prior year reserve development - favorable (unfavorable):

$ 74

$ 79

$ (125)

$ 205

$ 162

$ 58

$ 62

$ (99)

$ 162

$ 127

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions, net of tax)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Underwriting gain.................................................................................................................................................................................................

$ 157

$ 274

$ 318

$ 690

$ 261

539

545

598

607

586

Other income (expense)........................................................................................................................................................................................

(13)

(6)

(9)

(5)

(8)

$ 683

$ 813

$ 907

$ 1,292

$ 839

Combined ratio (1) (2)

Loss and loss adjustment expense ratio................................................................................................................................................................

66.8 %

63.7 %

63.3 %

55.1 %

63.3 %

29.4 %

29.9 %

29.6 %

29.3 %

30.5 %

96.2 %

93.6 %

92.9 %

84.4 %

93.8 %

Impact on combined ratio:

Net (favorable) unfavorable prior year reserve development............................................................................................................................

(1.3)%

(1.4)%

2.2 %

(3.6)%

(2.9)%

9.3 %

6.7 %

2.4 %

1.0 %

6.9 %

Underlying combined ratio...........................................................................................................................................................................

88.2 %

88.3 %

87.0 %

89.8 %

Before policyholder dividends.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

$ 4

$ 5

$ 4

Fee income:

Loss and loss adjustment expenses..................................................................................................................................................................

$ 45

$ 48

$ 108

$ 111

$ 114

$ 112

$ 111

Non-insurance general and administrative expenses............................................................................................................................................

$ 91

$ 93

$ 112

$ 89

$ 107

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory underwriting

$ 6,740

$ 6,359

$ 6,284

$ 5,840

$ 6,791

$ 5,698

$ 5,765

$ 5,674

$ 5,514

$ 5,771

$ 5,465

$ 5,521

$ 5,698

$ 5,700

$ 5,481

Losses and loss adjustment expenses ...................................................................................................................................................................

3,650

3,530

3,614

3,138

3,463

1,700

1,704

1,654

1,615

1,787

Statutory underwriting gain..................................................................................................................................................................................

115

287

430

947

231

Statutory underwriting gain after policyholder dividends....................................................................................................................................

$ 106

$ 282

$ 421

$ 942

$ 223

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Net written premiums by market

Domestic

Select Accounts .................................................................................................................................................................................................

$ 976

$ 1,004

$ 920

$ 930

$ 1,006

Middle Market ...................................................................................................................................................................................................

3,166

3,034

3,232

3,109

3,329

National Accounts .............................................................................................................................................................................................

312

329

273

348

343

National Property and Other..............................................................................................................................................................................

720

885

841

666

691

Total Domestic .............................................................................................................................................................................................

5,174

5,252

5,266

5,053

5,369

International..........................................................................................................................................................................................................

524

540

409

461

417

Total.........................................................................................................................................................................................................

$ 5,698

$ 5,792

$ 5,675

$ 5,514

$ 5,786

Net written premiums by product line

Domestic

Workers' compensation.....................................................................................................................................................................................

$ 950

$ 821

$ 792

$ 786

$ 980

Commercial automobile ....................................................................................................................................................................................

1,030

1,019

1,030

1,017

1,106

Commercial property.........................................................................................................................................................................................

873

1,051

961

820

821

General liability .................................................................................................................................................................................................

753

878

998

967

847

Commercial multi-peril .....................................................................................................................................................................................

1,532

1,486

1,447

1,461

1,580

Other ..................................................................................................................................................................................................................

(3)

5,174

5,252

5,266

5,053

5,369

524

540

409

461

417

$ 5,698

$ 5,792

$ 5,675

$ 5,514

$ 5,786

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Revenues

$ 995

$ 1,021

$ 1,042

$ 1,049

$ 1,018

102

107

116

120

113

1,103

1,133

1,166

1,177

1,136

Claims and expenses

Claims and claim adjustment expenses ................................................................................................................................................................

434

418

451

461

441

Amortization of deferred acquisition costs...........................................................................................................................................................

187

195

197

199

194

General and administrative expenses ...................................................................................................................................................................

205

214

207

217

219

Total claims and expenses ............................................................................................................................................................................

826

827

855

877

854

Segment income before income taxes ..................................................................................................................................................................

277

306

311

300

282

$ 220

$ 244

$ 250

$ 236

$ 254

Other statistics

Effective tax rate on net investment income ........................................................................................................................................................

18.4 %

18.5 %

17.7 %

18.4 %

18.5 %

$ 83

$ 88

$ 95

$ 98

$ 92

Catastrophes, net of reinsurance:

$ 19

$ 5

$ -

$ 1

$ 8

$ 15

$ 4

$ -

$ 1

$ 7

Prior year reserve development - favorable:

$ 67

$ 81

$ 43

$ 30

$ 65

$ 52

$ 65

$ 33

$ 24

$ 51

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions, net of tax)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Underwriting gain ................................................................................................................................................................................................

$ 133

$ 154

$ 150

$ 132

$ 159

Other income........................................................................................................................................................................................................

Segment income..................................................................................................................................................................................................

$ 220

$ 244

$ 250

$ 236

$ 254

Combined ratio (1)

Loss and loss adjustment expense ratio ...............................................................................................................................................................

43.2 %

40.5 %

42.9 %

43.5 %

43.0 %

Underwriting expense ratio..................................................................................................................................................................................

39.3 %

39.8 %

38.7 %

39.5 %

40.3 %

Combined ratio.............................................................................................................................................................................................

82.5 %

80.3 %

81.6 %

83.0 %

83.3 %

Impact on combined ratio:

Net favorable prior year reserve development..................................................................................................................................................

(6.7)%

(8.0)%

(4.2)%

(2.8)%

(6.4)%

Catastrophes, net of reinsurance .......................................................................................................................................................................

1.9 %

0.5 %

- %

0.1 %

0.8 %

Underlying combined ratio ..........................................................................................................................................................................

87.3 %

87.8 %

85.8 %

85.7 %

88.9 %

Billing and policy fees and other, which are a component of other revenues, are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

Billing and policy fees and other .........................................................................................................................................................................

$ -

$ - $ 1 $ -

$ -

Non-insurance general and administrative expenses ...........................................................................................................................................

$ 1

$ 2 $ 1 $ 2

$ 2

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory underwriting

$ 1,129

$ 1,166

$ 1,160

$ 1,192

$ 1,211

$ 999

$ 1,085

$ 1,080

$ 1,098

$ 1,066

$ 995

$ 1,021

$ 1,042

$ 1,049

$ 1,018

Losses and loss adjustment expenses ...................................................................................................................................................................

430

414

447

457

437

422

434

424

433

676

Statutory underwriting gain (loss)........................................................................................................................................................................

143

173

171

159

(95)

Statutory underwriting gain (loss) after policyholder dividends..........................................................................................................................

$ 139

$ 168

$ 154

$ (99)

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Net written premiums by market

Domestic

Management Liability........................................................................................................................................................................................

$ 553

$ 589

$ 613

$ 571

$ 572

Surety.................................................................................................................................................................................................................

333

342

337

381

886

931

955

908

953

113

154

125

190

113

$ 999

$ 1,085

$ 1,080

$ 1,098

$ 1,066

Net written premiums by product line

Domestic

Fidelity and surety .............................................................................................................................................................................................

$ 394

$ 400

$ 407

$ 395

$ 447

440

469

475

458

455

886

931

955

908

953

113

154

125

190

113

$ 999

$ 1,085

$ 1,080

$ 1,098

$ 1,066

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Revenues

$ 4,250

$ 4,355

$ 4,393

$ 4,397

$ 4,094

172

173

190

197

187

4,457

4,564

4,625

4,633

4,323

Claims and expenses

Claims and claim adjustment expenses ................................................................................................................................................................

3,867

2,787

2,476

2,173

2,410

Amortization of deferred acquisition costs...........................................................................................................................................................

674

663

679

676

634

General and administrative expenses ...................................................................................................................................................................

396

444

458

448

397

Total claims and expenses ............................................................................................................................................................................

4,937

3,894

3,613

3,297

3,441

Segment income (loss) before income taxes ........................................................................................................................................................

(480)

670

1,012

1,336

882

Income tax expense (benefit)................................................................................................................................................................................

(106)

136

205

250

178

Segment income (loss)..........................................................................................................................................................................................

$ (374)

$ 534

$ 807

$ 1,086

$ 704

Other statistics

Effective tax rate on net investment income ........................................................................................................................................................

18.1 %

18.0 %

17.7 %

17.1 %

$ 141

$ 157

$ 162

$ 155

Catastrophes, net of reinsurance:

$ 1,738

$ 554

$ 263

$ 37

$ 374

$ 1,373

$ 437

$ 208

$ 30

$ 295

Prior year reserve development - favorable:

$ 237

$ 155

$ 104

$ 86

$ 186

$ 187

$ 122

$ 82

$ 67

$ 147

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions, net of tax)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

$ (529)

$ 380

$ 631

$ 907

$ 535

141

157

162

155

Other income ........................................................................................................................................................................................................

Segment income (loss) ........................................................................................................................................................................................

$ (374)

$ 534

$ 807

$ 1,086

$ 704

Combined ratio (1)

Loss and loss adjustment expense ratio................................................................................................................................................................

91.0 %

64.0 %

56.4 %

49.4 %

58.8 %

24.2 %

24.4 %

24.9 %

24.6 %

24.1 %

115.2 %

88.4 %

81.3 %

74.0 %

82.9 %

Impact on combined ratio:

Net favorable prior year reserve development .............................................................................................................................................

(5.6)%

(3.6)%

(2.4)%

(1.9)%

(4.5)%

Catastrophes, net of reinsurance...................................................................................................................................................................

40.9 %

12.7 %

6.0 %

0.8 %

9.1 %

Underlying combined ratio......................................................................................................................................................................

79.9 %

79.3 %

77.7 %

75.1 %

78.3 %

Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses to conform the calculation of the combined ratio with statutory accounting. Additionally, general and administrative expenses include non-insurance expenses that are excluded from underwriting expenses, and accordingly, are excluded in calculating the combined ratio. See following:

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

$ 24

$ 24 $ 23 $ 24

$ 21

$ 11

$ 13 $ 13 $ 13

$ 10

Non-insurance general and administrative expenses............................................................................................................................................

$ 6

$ 6 $ 5 $ 6

$ 14

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

Statutory underwriting

Losses and loss adjustment expenses ...................................................................................................................................................................

Statutory underwriting gain (loss)........................................................................................................................................................................

Policies in force (in thousands) Automobile ........................................................................................................................................................................................................

Homeowners and Other.....................................................................................................................................................................................

$ 4,021

$ 3,818

$ 4,250

3,867

976

$ 4,700 $ 4,848 $ 4,264

$ 4,666 $ 4,718 $ 4,244

$ 4,355 $ 4,393 $ 4,397

2,787 2,476 2,173

1,122 1,161 1,066

$ 3,748

$ 3,486

$ 4,094

2,410

937

$ (593)

$ 446 $ 756 $ 1,158

$ 747

3,118

5,980

3,083 3,050 3,025

5,882 5,768 5,679

2,819

5,449

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

Net written premiums by product line

Domestic

Automobile ...................................................................................................................................................................................................

Homeowners and Other................................................................................................................................................................................

Total Domestic .....................................................................................................................................................................................

Total.................................................................................................................................................................................................

$ 1,859

1,813

$ 1,968 $ 2,062 $ 1,856

2,520 2,489 2,229

$ 1,756

1,730

3,672

146

4,488 4,551 4,085

178 167 159

3,486

$ 3,818

$ 4,666 $ 4,718 $ 4,244

$ 3,486

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory underwriting

$ 1,967

$ 2,083

$ 2,177

$ 1,967

$ 1,767

$ 1,955

$ 2,074

$ 2,165

$ 1,956

$ 1,756

$ 2,071

$ 2,091

$ 2,075

$ 1,892

Losses and loss adjustment expenses ...................................................................................................................................................................

1,270

1,320

1,300

1,393

1,145

444

477

495

458

415

$ 357

$ 294

$ 296

$ 224

$ 332

Other statistics

Combined ratio (1):

Loss and loss adjustment expense ratio................................................................................................................................................................

61.3 %

63.1 %

62.1 %

67.1 %

60.6 %

22.1 %

22.2 %

22.8 %

22.3 %

83.4 %

85.3 %

84.9 %

89.4 %

82.9 %

Impact on combined ratio:

Net favorable prior year reserve development .............................................................................................................................................

(6.0)%

(5.0)%

(4.3)%

(3.0)%

(6.3)%

Catastrophes, net of reinsurance...................................................................................................................................................................

1.9 %

1.3 %

0.9 %

0.2 %

0.9 %

Underlying combined ratio......................................................................................................................................................................

87.5 %

89.0 %

88.3 %

92.2 %

88.3 %

Catastrophes, net of reinsurance:

$ 39

$ 27

$ 19

$ 4

$ 15

$ 30

$ 22

$ 15

$ 3

$ 12

Prior year reserve development - favorable:

$ 125

$ 104

$ 89

$ 61

$ 120

$ 98

$ 83

$ 70

$ 47

$ 95

Policies in force (in thousands) ............................................................................................................................................................................

3,118

3,083

3,050

3,025

2,819

Change from prior year quarter ............................................................................................................................................................................

(2.9)%

(3.1)%

(3.4)%

(4.0)%

(9.6)%

Change from prior quarter ....................................................................................................................................................................................

(1.0)%

(1.1)%

(0.8)%

(6.8)%

Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

$ 14

$ 15 $ 14 $ 14

$ 13

$ 6

$ 6 $ 7 $ 7

$ 5

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory underwriting

$ 2,054

$ 2,617

$ 2,671

$ 2,297

$ 1,981

$ 1,863

$ 2,592

$ 2,553

$ 2,288

$ 1,730

$ 2,179

$ 2,264

$ 2,302

$ 2,322

$ 2,202

Losses and loss adjustment expenses ...................................................................................................................................................................

2,597

1,467

1,176

780

1,265

532

645

666

608

522

Statutory underwriting gain (loss)........................................................................................................................................................................

$ (950)

$ 152

$ 460

$ 934

$ 415

Other statistics

Combined ratio (1):

Loss and loss adjustment expense ratio................................................................................................................................................................

119.2 %

64.8 %

51.1 %

33.6 %

57.4 %

26.3 %

26.5 %

26.9 %

26.7 %

25.6 %

145.5 %

91.3 %

78.0 %

60.3 %

83.0 %

Impact on combined ratio:

Net favorable prior year reserve development .............................................................................................................................................

(5.1)%

(2.2)%

(0.7)%

(1.1)%

(3.0)%

Catastrophes, net of reinsurance...................................................................................................................................................................

78.0 %

23.2 %

10.7 %

1.5 %

16.3 %

Underlying combined ratio......................................................................................................................................................................

72.6 %

70.3 %

68.0 %

59.9 %

69.7 %

Catastrophes, net of reinsurance:

$ 1,699

$ 527

$ 244

$ 33

$ 359

$ 1,343

$ 415

$ 193

$ 27

$ 283

Prior year reserve development - favorable:

$ 112

$ 51

$ 15

$ 25

$ 66

$ 89

$ 39

$ 12

$ 20

$ 52

5,980

5,882

5,768

5,679

5,449

(4.1)%

(4.6)%

(5.5)%

(6.3)%

(8.9)%

(1.3)%

(1.6)%

(1.9)%

(1.5)%

(4.1)%

Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses.

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

$ 10

$ 9 $ 9 $ 10

$ 8

$ 5

$ 7 $ 6 $ 6

$ 5

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

Revenues

$ -

$ - $ - $ -

$ -

Claims and expenses

99 111 116

116

General and administrative expenses ...................................................................................................................................................................

12 13 13

Total claims and expenses .................................................................................................................................................................................

110

111 124 129

129

Loss before income tax benefit.............................................................................................................................................................................

(110)

(111) (124) (129)

(129)

Income tax benefit ................................................................................................................................................................................................

(24)

(24) (27) (26)

(28)

Loss.......................................................................................................................................................................................................................

$ (86)

$ (87) $ (97) $ (103)

$ (101)

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ and shares in millions)

March 31,

2026

December 31,

2025

Assets

Fixed maturities, available for sale, at fair value (amortized cost $93,742 and $91,717; allowance for expected credit losses of $3 and $3) .....................................

$ 90,736

$ 89,833

Equity securities, at fair value (cost $428 and $457)..............................................................................................................................................................................

591

618

Real estate investments...........................................................................................................................................................................................................................

899

900

Short-term securities ...............................................................................................................................................................................................................................

6,660

5,716

Other investments ...................................................................................................................................................................................................................................

4,092

4,115

Total investments.................................................................................................................................................................................................................................

102,978

101,182

Cash (including restricted cash of $134 and $132).................................................................................................................................................................................

615

842

Investment income accrued.....................................................................................................................................................................................................................

801

877

Premiums receivable (net of allowance for expected credit losses of $60 and $58) ..............................................................................................................................

11,423

10,992

Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $130 and $129) .............................................................................................

7,988

7,886

Ceded unearned premiums......................................................................................................................................................................................................................

1,877

1,283

Deferred acquisition costs.......................................................................................................................................................................................................................

3,587

3,518

Deferred taxes .........................................................................................................................................................................................................................................

1,101

887

Contractholder receivables (net of allowance for expected credit losses of $14 and $16).....................................................................................................................

3,051

3,010

Goodwill .................................................................................................................................................................................................................................................

4,060

4,066

Other intangible assets ............................................................................................................................................................................................................................

331

336

Other assets .............................................................................................................................................................................................................................................

4,497

4,279

Assets held for sale (1)............................................................................................................................................................................................................................

4,550

Total assets..........................................................................................................................................................................................................................................

$ 142,309

$ 143,708

Liabilities

Claims and claim adjustment expense reserves......................................................................................................................................................................................

$ 66,912

$ 65,737

Unearned premium reserves ...................................................................................................................................................................................................................

22,772

22,431

Contractholder payables..........................................................................................................................................................................................................................

3,065

3,026

Payables for reinsurance premiums ........................................................................................................................................................................................................

1,123

529

Debt.........................................................................................................................................................................................................................................................

9,268

9,267

Other liabilities........................................................................................................................................................................................................................................

7,183

7,282

Liabilities held for sale (1)......................................................................................................................................................................................................................

2,542

Total liabilities....................................................................................................................................................................................................................................

110,323

110,814

Shareholders' equity

Common stock (1,750.0 shares authorized; 212.6 and 217.5 shares issued and outstanding) ...............................................................................................................

26,092

25,910

Retained earnings....................................................................................................................................................................................................................................

56,404

54,931

Accumulated other comprehensive loss..................................................................................................................................................................................................

(3,078)

(2,500)

Treasury stock, at cost (582.5 and 575.9 shares)....................................................................................................................................................................................

(47,432)

(45,447)

Total shareholders' equity ................................................................................................................................................................................................................

31,986

32,894

Total liabilities and shareholders' equity ........................................................................................................................................................................................

$ 142,309

$ 143,708

Amounts relate to the Canadian operations divested by the Company in the first quarter of 2026.

(at carrying value, $ in millions)

March 31, Pre-tax Book 2026 Yield (1)

December 31, Pre-tax Book 2025 (2) Yield (1)

Investment portfolio

Taxable fixed maturities ............................................................................................................................................................

$ 63,394 4.16 %

$ 63,051 4.11 %

Tax-exempt fixed maturities......................................................................................................................................................

27,342 3.35 %

26,782 3.29 %

Total fixed maturities ...........................................................................................................................................................

90,736 3.91 %

89,833 3.86 %

Non-redeemable preferred stocks ..............................................................................................................................................

33 2.01 %

35 1.64 %

Common stocks..........................................................................................................................................................................

558

583

Total equity securities...........................................................................................................................................................

591

618

Real estate investments............................................................................................................................................................

899

900

Short-term securities ...............................................................................................................................................................

6,660 3.78 %

5,716 3.86 %

Private equities...........................................................................................................................................................................

2,732

2,749

Hedge funds ...............................................................................................................................................................................

208

212

Real estate partnerships..............................................................................................................................................................

821

832

Other investments ......................................................................................................................................................................

331

322

Total other investments ........................................................................................................................................................

4,092

4,115

Total investments .............................................................................................................................................................

$ 102,978

$ 101,182

Net unrealized investment gains (losses), net of tax, included in shareholders' equity.....................................................

$ (2,378)

$ (1,478)

Yields are provided for those investments with an embedded book yield.

Excludes $3,347 million of total investments classified as held for sale.

(at carrying value, $ in millions)

March 31,

2026

December 31,

2025 (1)

Fixed maturities

U.S. Treasury securities and obligations of U.S. Government corporations and agencies.........................................................

$ 3,383

$ 3,857

Obligations of U.S. states and political subdivisions:

Pre-refunded.............................................................................................................................................................................

369

416

All other ...................................................................................................................................................................................

31,611

30,962

Total....................................................................................................................................................................................

31,980

31,378

Debt securities issued by foreign governments ..........................................................................................................................

358

312

Mortgage-backed securities - principally obligations of U.S. Government agencies.................................................................

12,848

13,232

Corporate and all other bonds.....................................................................................................................................................

42,167

41,054

Total fixed maturities...............................................................................................................................................................

$ 90,736

$ 89,833

Quality Ratings

March 31, 2026

December 31, 2025 (1)

Amount

% of Total

Amount

% of Total

Aaa ..............................................................................................................................................................................................

$ 25,220 27.8 %

$ 24,898 27.7 %

Aa................................................................................................................................................................................................

32,538

35.9

33,027

36.7

A..................................................................................................................................................................................................

20,512

22.6

19,660

21.9

Baa ..............................................................................................................................................................................................

11,420

12.5

11,198

12.5

Total investment grade.............................................................................................................................................................

89,690

98.8

88,783

98.8

Ba ................................................................................................................................................................................................

839

1.0

812

1.0

B..................................................................................................................................................................................................

182

0.2

205

0.2

Caa and lower .............................................................................................................................................................................

Total below investment grade..................................................................................................................................................

1,046

1.2

1,050

1.2

Total fixed maturities..................................................................................................................................................................

$ 90,736 100.0 %

$ 89,833 100.0 %

Average weighted quality ...........................................................................................................................................................

Aa3, AA-

Aa2, AA

Weighted average duration of fixed maturities and short-term securities, net of securities lending activities and net receivables and payables on investment sales and purchases.....................................................................................................

4.9

4.7

Excludes $3,243 million of fixed maturities classified as held for sale.

Rated using external rating agencies or by Travelers when a public rating does not exist. Below investment grade assets refer to securities rated "Ba" or below.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Gross investment income

Fixed maturities ....................................................................................................................................................................................................

$ 812

$ 833

$ 874

$ 914

$ 899

Short-term securities.............................................................................................................................................................................................

101

945

955

1,048

1,064

1,021

Investment expenses.............................................................................................................................................................................................

Net investment income, pre-tax............................................................................................................................................................................

930

942

1,033

1,054

1,008

Income taxes.........................................................................................................................................................................................................

167

168

183

187

175

Net investment income, after-tax..........................................................................................................................................................................

$ 763

$ 774

$ 850

$ 867

$ 833

Effective tax rate...................................................................................................................................................................................................

17.9 %

17.8 %

17.7 %

17.4 %

Average invested assets (1) (2).............................................................................................................................................................................

$101,000

$102,173

$105,655

$107,932

$106,666

Average yield pre-tax (1)......................................................................................................................................................................................

3.7 %

3.9 %

3.8 %

Average yield after-tax .........................................................................................................................................................................................

3.0 %

3.2 %

3.1 %

Excludes net unrealized investment gains (losses), and is adjusted for cash, receivables for investment sales, payables on investment purchases and accrued investment income.

Includes $3,347 million of invested assets classified as held for sale as of December 31, 2025.

($ in millions)

1Q2025

2Q2025 3Q2025 4Q2025

1Q2026

Net realized investment gains (losses)

Fixed maturities.............................................................................................................................................................................

$ (31)

$ (17) $ (2) $ (19)

$ (22)

Equity securities ...........................................................................................................................................................................

(22)

20 39 8

Other (1)........................................................................................................................................................................................

(8)

3 (10) (9)

Realized investment gains (losses) before tax...............................................................................................................................

(61)

6 27 (20)

Related taxes .................................................................................................................................................................................

(13)

1 6 (5)

Net realized investment gains (losses) ..........................................................................................................................................

$ (48)

$ 5 $ 21 $ (15)

$ 15

Gross investment gains..................................................................................................................................................................

$ 4

$ 41 $ 45 $ 13

$ 277

Gross investment losses before impairments ................................................................................................................................

(63)

(35) (18) (33)

(225)

Net investment gains (losses) before impairments........................................................................................................................

(59)

6 27 (20)

Net impairment (charges) recoveries ............................................................................................................................................

(2)

- - -

(3)

Net realized investment gains (losses) before tax .........................................................................................................................

(61)

6 27 (20)

Related taxes .................................................................................................................................................................................

(13)

1 6 (5)

Net realized investment gains (losses) ..........................................................................................................................................

$ (48)

$ 5 $ 21 $ (15)

$ 15

($ in millions)

March 31,

2025

June 30, September 30, December 31,

2025 2025 2025

March 31,

2026

Net unrealized investment gains (losses), net of tax, included in shareholders' equity, by asset type

Fixed maturities.............................................................................................................................................................................

$ (4,171)

$ (3,833) $ (2,481) $ (1,859)

$ (3,003)

Other .............................................................................................................................................................................................

(1)

2 (3) (3)

(5)

Unrealized investment gains (losses) before tax...........................................................................................................................

(4,172)

(3,831) (2,484) (1,862)

(3,008)

Related taxes ................................................................................................................................................................................

(873)

(800) (514) (384)

(630)

Balance, end of period...................................................................................................................................................................

$ (3,299)

$ (3,031) $ (1,970) $ (1,478)

$ (2,378)

(1) Other net realized investment gains in the first quarter of 2026 were driven by net realized investment gains related to the Canadian operations divested by the Company in the first quarter of 2026.

($ in millions)

March 31, 2026

December 31, 2025

Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)................................................................................................................................................................................

$ 4,364

$ 4,352

Gross structured settlements (2)..................................................................................................................................................................................................................................................................................

2,279

2,469

Mandatory pools and associations (3) ........................................................................................................................................................................................................................................................................

1,475

1,485

Gross reinsurance recoverables (4).......................................................................................................................................................................................................................................................................

8,118

8,306

Allowance for estimated uncollectible reinsurance (5)...............................................................................................................................................................................................................................................

(130)

(135)

Less amounts classified as held for sale......................................................................................................................................................................................................................................................................

285

Net reinsurance recoverables ........................................................................................................................................................................................................................................................................

$ 7,988

$ 7,886

The Company's top five reinsurer groups, including retroactive reinsurance, included in gross reinsurance recoverables is as follows:

Reinsurer A.M. Best Rating of Group's Predominant Reinsurer

March 31, 2026

Swiss Re Group A+ second highest of 16 ratings

$ 658

Berkshire Hathaway A++ highest of 16 ratings

411

Munich Re Group A+ second highest of 16 ratings

363

Sompo Group A+ second highest of 16 ratings

236

Fairfax Financial Group A+ second highest of 16 ratings

220

The gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses represent the current and estimated future amounts due from reinsurers on known and incurred but not reported claims. The ceded reserves are estimated in a manner consistent with the underlying direct and assumed reserves. Although this total comprises recoverables due from nearly one thousand different reinsurance entities, over half is attributable to 10 reinsurer groups.

Included in reinsurance recoverables are certain amounts related to structured settlements, which comprise annuities purchased from various life insurance companies to settle certain personal physical injury claims, of which workers' compensation claims comprise a significant portion. In cases where the Company did not receive a release from the claimant, the amounts due from the life insurance company related to the structured settlement are included in both the claims and claim adjustment expense reserves and reinsurance recoverables in the Company's consolidated balance sheet, as the Company retains the liability to pay the claimant in the event that the life insurance company fails to make the required annuity payments. The Company would be required to make such payments, to the extent the purchased annuities are not covered by state guaranty associations.

The Company's top five groups included in gross structured settlements is as follows:

Group A.M. Best Rating of Group's Predominant Insurer

March 31, 2026

Fidelity & Guaranty Life Group A third highest of 16 ratings

$ 628

Genworth Financial Group B- eighth highest of 16 ratings

312

Symetra Financial Corporation A third highest of 16 ratings

160

Brighthouse Financial, Inc A third highest of 16 ratings

158

John Hancock Group A+ second highest of 16 ratings

152

The mandatory pools and associations represent various involuntary assigned risk pools that the Company is required to participate in. These pools principally involve workers' compensation and automobile insurance, which provide various insurance coverages to insureds that otherwise are unable to purchase coverage in the open market. The costs of these mandatory pools in most states are usually charged back to the participating members in proportion to voluntary writings of related business in that state. In the event that a member of the pool becomes insolvent, the remaining members assume an additional pro rata share of the pool's liabilities.

Of the total reinsurance recoverables at March 31, 2026, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $5.97 billion, or 90%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 94% were rated A- or better. The remaining 10% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to voluntary pools and 4% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company's ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company's ongoing review of life insurers' creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Statutory Reserves for Losses and Loss Adjustment Expenses Business Insurance

Beginning of period..........................................................................................................................................................................................................................

Incurred ............................................................................................................................................................................................................................................

Paid...................................................................................................................................................................................................................................................

Foreign exchange and other (1)........................................................................................................................................................................................................

End of period....................................................................................................................................................................................................................................

Bond & Specialty Insurance

Personal Insurance

Total

Prior Year Reserve Development: Unfavorable (Favorable) Business Insurance

Asbestos ........................................................................................................................................................................................................................................

All other ........................................................................................................................................................................................................................................

Total Business Insurance (2) ...................................................................................................................................................................................................

Bond & Specialty Insurance..........................................................................................................................................................................................................

Personal Insurance.........................................................................................................................................................................................................................

$ 42,909

3,650

(2,847)

$ 43,742

3,530

(2,890)

$ 44,477

3,614

(2,915)

(28)

$ 45,148

3,138

(2,912)

$ 45,383

3,463

(2,635)

(612)

$ 43,742

$ 44,477

$ 45,148

$ 45,383

$ 45,599

$ 4,938

430

(325)

$ 5,072

414

(307)

$ 5,249

447

(372)

(20)

$ 5,304

457

(396)

$ 5,367

437

(336)

(137)

$ 5,072

$ 5,249

$ 5,304

$ 5,367

$ 5,331

$ 8,479

3,867

(3,069)

$ 9,277

2,787

(2,767)

$ 9,346

2,476

(2,635)

(19)

$ 9,168

2,173

(2,357)

$ 8,997

2,410

(2,213)

(909)

$ 9,277

$ 9,346

$ 9,168

$ 8,997

$ 8,285

$ 56,326

7,947

(6,241)

$ 58,091

6,731

(5,964)

214

$ 59,072

6,537

(5,922)

(67)

$ 59,620

5,768

(5,665)

$ 59,747

6,310

(5,184)

(1,658)

$ 58,091

$ 59,072

$ 59,620

$ 59,747

$ 59,215

$ -

(74)

$ -

(79)

$ 277

(152)

$ -

(205)

$ -

(162)

(74)

(67)

(237)

(79)

(81)

(155)

125

(43)

(104)

(205)

(30)

(86)

(162)

(65)

(186)

$ (378)

$ (315)

$ (22)

$ (321)

$ (413)

The amount for 1Q2026 includes the impact of net reserves disposed of related to the Canadian operations divested by the Company in the first quarter of 2026.

Excludes accretion of discount.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Asbestos reserves

Beginning reserves:

Gross .............................................................................................................................................................................................................................................

$ 1,708

$ 1,636

$ 1,555

$ 1,798

$ 1,700

Ceded ............................................................................................................................................................................................................................................

(370)

(357)

(318)

(352)

(345)

Net.................................................................................................................................................................................................................................................

1,338

1,279

1,237

1,446

1,355

Incurred losses and loss expenses:

Gross .............................................................................................................................................................................................................................................

327

Ceded ............................................................................................................................................................................................................................................

(50)

Paid loss and loss expenses:

Gross .............................................................................................................................................................................................................................................

Ceded ............................................................................................................................................................................................................................................

(13)

(39)

(16)

(8)

(15)

Foreign exchange and other:

Gross .............................................................................................................................................................................................................................................

Ceded ............................................................................................................................................................................................................................................

(1)

Ending reserves:

Gross .............................................................................................................................................................................................................................................

1,636

1,555

1,798

1,700

1,623

Ceded ............................................................................................................................................................................................................................................

(357)

(318)

(352)

(345)

(330)

Net.................................................................................................................................................................................................................................................

$ 1,279

$ 1,237

$ 1,446

$ 1,355

$ 1,293

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

March 31,

2026

December 31,

2025

Debt

Short-term debt

Commercial paper................................................................................................................................................................................................................................

$ 100

7.75% Senior notes due April 15, 2026 ...............................................................................................................................................................................................

200

Total short-term debt.......................................................................................................................................................................................................................

300

Long-term debt

7.625% Junior subordinated debentures due December 15, 2027 .......................................................................................................................................................

125

6.375% Senior notes due March 15, 2033 (1) .....................................................................................................................................................................................

500

5.05% Senior notes due July 24, 2035 (1) ...........................................................................................................................................................................................

500

6.75% Senior notes due June 20, 2036 (1)...........................................................................................................................................................................................

400

6.25% Senior notes due June 15, 2037 (1)...........................................................................................................................................................................................

800

5.35% Senior notes due November 1, 2040 (1)...................................................................................................................................................................................

750

4.60% Senior notes due August 1, 2043 (1) ........................................................................................................................................................................................

500

4.30% Senior notes due August 25, 2045 (1) ......................................................................................................................................................................................

400

8.50% Junior subordinated debentures due December 15, 2045 .........................................................................................................................................................

3.75% Senior notes due May 15, 2046 (1)...........................................................................................................................................................................................

500

8.312% Junior subordinated debentures due July 1, 2046...................................................................................................................................................................

4.00% Senior notes due May 30, 2047 (1)...........................................................................................................................................................................................

700

4.05% Senior notes due March 7, 2048 (1) .........................................................................................................................................................................................

500

4.10% Senior notes due March 4, 2049 (1) .........................................................................................................................................................................................

500

2.55% Senior notes due April 27, 2050 (1) .........................................................................................................................................................................................

500

3.05% Senior notes due June 8, 2051 (1).............................................................................................................................................................................................

750

5.45% Senior notes due May 25, 2053 (1)...........................................................................................................................................................................................

750

5.70% Senior notes due July 24, 2055 (1) ...........................................................................................................................................................................................

750

Total long-term debt .......................................................................................................................................................................................................................

9,054

Unamortized fair value adjustment......................................................................................................................................................................................................

Unamortized debt issuance costs .........................................................................................................................................................................................................

(117)

(118)

8,968

8,967

Total debt.......................................................................................................................................................................................................................................

9,268

9,267

Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity)..................................................................

34,364

34,372

Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity)........................................................................

$ 43,632

$ 43,639

Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity)...........................................................

21.2 %

(1) Redeemable anytime with "make-whole" premium.

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

March 31,

2026 (1)

December 31,

2025

$ 31,063

$ 31,064

GAAP adjustments ...............................................................................................................................................................................................................................

Goodwill and intangible assets ............................................................................................................................................................................................................

3,430

3,640

Investments ..........................................................................................................................................................................................................................................

(2,291)

(1,238)

Noninsurance companies .....................................................................................................................................................................................................................

(4,907)

(4,876)

3,449

3,478

Deferred federal income tax.................................................................................................................................................................................................................

(111)

(446)

Current federal income tax...................................................................................................................................................................................................................

(7)

(6)

Reinsurance recoverables.....................................................................................................................................................................................................................

160

Furniture, equipment & software.........................................................................................................................................................................................................

877

948

Agents balances ...................................................................................................................................................................................................................................

224

182

107

Total GAAP adjustments.....................................................................................................................................................................................................................

923

1,830

GAAP shareholders' equity .................................................................................................................................................................................................................

$ 31,986

$ 32,894

(1) Estimated and Preliminary

See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Cash flows from operating activities

Adjustments to reconcile net income to net cash provided by operating activities:

Net realized investment (gains) losses...............................................................................................................................................................

Depreciation and amortization...........................................................................................................................................................................

Deferred federal income tax expense (benefit)..................................................................................................................................................

Amortization of deferred acquisition costs........................................................................................................................................................

Equity in income from other investments..........................................................................................................................................................

Premiums receivable..........................................................................................................................................................................................

Reinsurance recoverables ..................................................................................................................................................................................

Deferred acquisition costs .................................................................................................................................................................................

Claims and claim adjustment expense reserves.................................................................................................................................................

Net cash provided by operating activities.................................................................................................................................................

Cash flows from investing activities

Proceeds from maturities of fixed maturities .......................................................................................................................................................

Proceeds from sales of investments:

Equity securities ................................................................................................................................................................................................

Other investments..............................................................................................................................................................................................

Purchases of investments:

Other investments..............................................................................................................................................................................................

Net sales (purchases) of short-term securities ......................................................................................................................................................

Securities transactions in the course of settlement ...............................................................................................................................................

Proceeds from the divestiture of the Canadian business ...................................................................................................................................... Other .....................................................................................................................................................................................................................

Net cash used in investing activities ..........................................................................................................................................................

$ 395

$ 1,509

$ 1,888

$ 2,496

$ 1,711

(6)

(27)

(49)

188

164

166

162

193

(83)

320

(58)

1,778

1,802

1,849

1,837

1,766

(53)

(42)

(74)

(57)

(23)

(459)

(438)

412

370

(434)

(97)

(250)

132

(108)

(1,822)

(1,917)

(1,877)

(1,757)

(1,837)

1,818

725

845

(88)

1,211

419

495

331

(661)

351

(899)

644

289

(634)

1,360

2,334

4,227

2,685

2,198

2,801

3,071

2,886

2,902

3,014

253

348

178

251

111

(4,296)

(4,847)

(5,376)

(4,252)

(5,356)

(25)

(35)

(34)

(32)

(25)

(7)

(6)

(10)

(25)

(12)

(96)

(80)

(86)

(84)

(69)

239

(215)

(2,051)

1,082

(945)

308

(4)

(224)

430

2,384

(116)

(127)

(155)

(135)

(119)

(808)

(1,716)

(4,553)

(575)

(335)

($ in millions)

1Q2025

2Q2025

3Q2025

4Q2025

1Q2026

Cash flows from financing activities

Treasury stock acquired - share repurchase authorizations..................................................................................................................................

(250)

(500)

(619)

(1,635)

(1,785)

Treasury stock acquired - net employee share-based compensation....................................................................................................................

(102)

(22)

(1)

(2)

(149)

Dividends paid to shareholders.............................................................................................................................................................................

(240)

(250)

(247)

(242)

(237)

Issuance of debt ....................................................................................................................................................................................................

1,233

Issuance of common stock - employee share options...........................................................................................................................................

Net cash provided by (used in) financing activities ......................................................................................................................................

(535)

(702)

402

(1,828)

(2,085)

Effect of exchange rate changes on cash and restricted cash ...............................................................................................................................

(6)

(5)

Net increase (decrease) in cash and restricted cash..............................................................................................................................................

(65)

284

(227)

Cash and restricted cash at beginning of period...................................................................................................................................................

699

724

659

729

842

Less amounts classified as held for sale at end of period.....................................................................................................................................

171

Cash and restricted cash at end of period ........................................................................................................................................................

$ 724

$ 659

$ 729

$ 842

$ 615

Supplemental disclosure of cash flow information

Income taxes paid .................................................................................................................................................................................................

$ 24

$ 538

$ 194

$ 518

$ 12

Interest paid ..........................................................................................................................................................................................................

$ 61

$ 136

$ 60

$ 136

$ 94

The following measures are used by the Company's management to evaluate financial performance against historical results, to establish performance targets on a consolidated basis, and for other reasons as discussed below. In some cases, these measures are considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the consolidated financial statements or are not required to be disclosed in the notes to financial statements or, in some cases, include or exclude certain items not ordinarily included or excluded in the most comparable GAAP financial measure.

In the opinion of the Company's management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company's periodic results of operations and how management evaluates the Company's financial performance.

Some of these measures exclude net realized investment gains (losses), net of tax, and/or net unrealized investment gains (losses), net of tax, included in shareholders' equity, which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company's management.

Reconciliation of Shareholders' Equity to Adjusted Shareholders' Equity

As of

($ in millions)

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Shareholders' equity.............................................................................................................................................................................................................................................

$ 28,191

$ 29,518

$ 31,609

$ 32,894

$ 31,986

Adjustments:

Net unrealized investment (gains) losses, net of tax, included in shareholders' equity...........................................................................................................................

3,299

3,031

1,970

1,478

2,378

Net realized investment (gains) losses, net of tax .........................................................................................................................................................................................

(15)

Adjusted shareholders' equity...........................................................................................................................................................................................................................

$ 31,538

$ 32,592

$ 33,601

$ 34,409

$ 34,349

A catastrophe is a severe loss designated, or reasonably expected by the Company to be designated, a catastrophe by one or more industry recognized organizations that track and report on insured losses resulting from catastrophic events, such as Property Claim Services (PCS) for events in the United States and Canada. Catastrophes can be caused by various natural events, including, among others, hurricanes, tornadoes and other windstorms, earthquakes, hail, wildfires, severe winter weather, floods, tsunamis, volcanic eruptions and other naturally-occurring events, such as solar flares. Catastrophes can also be man-made, such as terrorist attacks and other intentionally destructive acts including those involving nuclear, biological, chemical and radiological events, cyber events, explosions and destruction of infrastructure. Each catastrophe has unique characteristics and catastrophes are not predictable as to timing or amount. Their effects are included in net and core income and claims and claim adjustment expense reserves upon occurrence. A catastrophe may result in the payment of reinsurance reinstatement premiums and assessments from various pools. The Company's threshold for disclosing catastrophes is primarily determined at the reportable segment level. If a threshold for one segment or a combination thereof is reached and the other segments have losses from the same event, losses from the event are identified as catastrophe losses in the segment results and for the consolidated results of the Company. Additionally, an aggregate threshold is applied for international business across all reportable segments. The threshold for 2026 ranges from $20 million to $30 million of losses before reinsurance and taxes.

Combined ratio For Statutory Accounting Practices (SAP), the combined ratio is the sum of the SAP loss and LAE ratio and the SAP underwriting expense ratio as defined in the statutory financial statements required by insurance regulators. The combined ratio, as used in this financial supplement, is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this financial supplement is based on net earned premiums. For SAP, the loss and LAE ratio is the ratio of incurred losses and loss adjustment expenses less certain administrative services fee income to net earned premiums as defined in the statutory financial statements required by insurance regulators. The loss and LAE ratio as used in this financial supplement is calculated in the same manner as the SAP ratio. For SAP, the underwriting expense ratio is the ratio of underwriting expenses incurred (including commissions paid), less certain administrative services fee income and billing and policy fees and other, to net written premiums as defined in the statutory financial statements required by insurance regulators. The underwriting expense ratio as used in this financial supplement, is the ratio of underwriting expenses (including the amortization of deferred acquisition costs), less certain administrative services fee income and billing and policy fees, to net earned premiums. Underlying combined ratio is the combined ratio adjusted to exclude the impact of prior year reserve development and catastrophes, net of reinsurance.

The combined ratio, loss and LAE ratio, and underwriting expense ratio are used as indicators of the Company's underwriting discipline, efficiency in acquiring and servicing its business and overall underwriting profitability. A combined ratio under 100% generally indicates an underwriting profit. A combined ratio over 100% generally indicates an underwriting loss.

Other companies' method of computing similarly titled measures may not be comparable to the Company's method of computing these ratios.

Bond & Specialty Insurance's surety business in Brazil is conducted through Junto Holding Brasil S.A. (Junto). The Company owns 49.5% of Junto, a market leader in surety coverages in Brazil. This joint venture investment is accounted for using the equity method and is included in "other investments" on the consolidated balance sheet.

Disclaimer

The Travelers Companies Inc. published this content on April 16, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 16, 2026 at 11:01 UTC.