Travelers shares rise after Q2 earnings crush estimates on lower catastrophe losses
Published: 11:01 17 Jul 2026 EDT
Travelers Companies Inc (NYSE:TRV) shares rose more than 8% on Friday after the insurer reported second-quarter earnings that significantly exceeded Wall Street expectations, helped by lower catastrophe losses, higher investment income and strong underwriting performance.
The company posted adjusted core earnings of $10.04 per diluted share for the quarter ended June 30, comfortably ahead of the consensus estimate of about $5.39.
Revenue came in at $12.15 billion, broadly in line with analyst expectations.
Net income increased to $2.21 billion, or $10.26 per diluted share, from $1.51 billion, or $6.53 per diluted share, a year earlier. Core income rose to $2.16 billion from $1.50 billion in the prior-year quarter.
Travelers reported a consolidated combined ratio of 83.6%, improving from 90.3% a year earlier and substantially better than analysts had anticipated. The result reflected lower catastrophe losses, which fell to $518 million pre-tax from $927 million a year ago, as well as higher favorable prior-year reserve development and stronger underlying underwriting results.
Net investment income increased 14% year over year to $883 million after tax.
Net written premiums were $11.53 billion, essentially unchanged from the prior-year period, while total revenue edged up to $12.15 billion from $12.12 billion.
During the quarter, Travelers returned $1.58 billion of capital to shareholders, including $1.31 billion through share repurchases.
Travelers CEO Alan Schnitzer said the company delivered strong underwriting and investment performance across its businesses.
"We are pleased to report excellent second quarter results with very strong underwriting performance across all three segments and a terrific result from our investment portfolio," Schnitzer said in a statement.
He added that the company's underwriting income benefited from continued strong underlying profitability and favorable reserve development, while its investment portfolio generated a 14% increase in after-tax net investment income.
