Travelers Companies Inc. (NYSE:TRV) reported better-than-expected second-quarter results on Friday, as lower catastrophe losses, stronger underwriting performance and higher investment income boosted earnings.
Following the announcement, the stock jumped over 8%.
Adjusted earnings came in at $10.04 per share, well above the analyst consensus estimate of $5.38. Revenue rose to $12.15 billion, topping expectations of $11.35 billion, according to Benzinga Pro.
Lower Catastrophe Losses Drive Profit Growth
Core income increased 44% year over year to $2.16 billion, driven by lower catastrophe losses, stronger favorable prior-year reserve development, higher net investment income and improved underlying underwriting performance.
Net realized investment gains totaled $60 million pre-tax ($48 million after tax), compared with $6 million pre-tax ($5 million after tax) a year earlier.
Net investment income increased 14% to $1.07 billion pre-tax, supported by higher average invested assets and improved yields on the company’s long-term fixed-income portfolio.
Net written premiums were flat year over year at $11.5 billion.
The combined ratio improved 6.7 percentage points to 83.6%, reflecting lower catastrophe losses and stronger favorable prior-year reserve development.
Adjusted book value per share, excluding net unrealized investment losses, increased 6% from the end of 2025 to $168.20.
Business Insurance Leads Premium Growth
Business Insurance generated $5.98 billion in net written premiums, up 3% from a year earlier, driven by growth in the domestic business. Renewal premium change was 4.8%, while the retention rate remained strong at 86%.
Bond & Specialty Insurance reported 14% growth in net written premiums to $1.2 billion.
Personal Insurance net written premiums declined 8% to $4.3 billion, although retention remained strong across both Auto and Homeowners businesses.
Travelers Returns Capital to Shareholders
During the quarter, Travelers repurchased 4.3 million shares for $1.3 billion. As of June 30, the company had $3.92 billion remaining under its share repurchase authorization.
The company also declared a regular quarterly dividend of $1.25 per share, payable on Sept. 30 to shareholders of record on Sept. 10, 2026.
During the earnings call, CEO Alan Schnitzer said Travelers will not loosen underwriting standards or cut prices to boost growth. He said competing on price is “a fool’s errand” because it leads to lower margins without meaningful growth, adding that the company will continue investing in its franchise and competitive advantages to drive profitable growth.
TRV Price Action: Travelers Companies shares were up 8.45% at $366.36 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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