Travelers Q3 2026 core income up 4% to $1.947bn as renewal pricing cools

Travelers reported third-quarter 2026 core income of $1.947 billion on Friday, up 4% from a year earlier, with diluted earnings per share of $9.18 against $8.14. Net income was $1.917 billion.

The average renewal rate increase across Travelers' domestic business insurance book, excluding National Accounts, was 0.9%, according to the earnings presentation. A year earlier the same figure was 4.3%, and in the first quarter of 2025 it was 6.4%. It has fallen every quarter since at least early 2025. Insurance Business America characterized the quarter as record investment income offsetting cooling commercial pricing.

Renewal premium change slowed to 4.1% from 6.8%. Pure rate added less than a point, leaving exposure measures such as higher payrolls and insured values to keep premiums moving. Commercial property premiums fell about 4% to $926 million, while general liability rose roughly 6% and commercial auto about 9%. Chief executive Alan Schnitzer said renewal premium change outside property was 7.0%.

Business Insurance, the largest of Travelers' three segments, lifted net written premiums 3% to $5.868 billion, or 4% excluding the Canadian business sold to Definity Financial at the start of the year. Middle Market grew premiums 7% to $3.448 billion and new business 10% to $431 million, but its renewal rate change shrank to 2.6% from 6.2%. In small commercial Select Accounts, rate fell to 2.7%.

Retention held at 86% and new business rose 4% to a third-quarter record of $699 million. Business Insurance's underlying combined ratio crept up to 88.9% from 88.3%. Chief financial officer Dan Fry told analysts the half-point move had no single cause and "could have easily moved a half a point the other way."

The combined ratio improved half a point to 86.8%, while the underlying combined ratio, which strips out catastrophes and reserve releases, edged up to 84.1% from 83.9%. Core return on equity was 22.1% for the quarter and 24.1% over 12 months, against the mid-teens target the insurer sets for itself. Per-share growth outpaced earnings growth largely because the diluted share count fell 7% after heavy buybacks. Schnitzer called it "another in a run of successful quarters." Shares were up about 0.6% at $386.18 in mid-morning trading, according to Benzinga market data cited in the report.