Consolidated Results | Page Number |
Financial Highlights ............................................................................................................................................................................................................................................................................................................................ | 1 |
Reconciliation of Net Income to Core Income and Earnings per Share to Core Income per Share.................................................................................................................................................................................................... | 2 |
Statement of Income ........................................................................................................................................................................................................................................................................................................................... | 3 |
Net Income by Major Component and Combined Ratio..................................................................................................................................................................................................................................................................... | 4 |
Core Income ........................................................................................................................................................................................................................................................................................................................................ | 5 |
Selected Statistics - Property and Casualty Operations....................................................................................................................................................................................................................................................................... | 6 |
Written and Earned Premiums - Property and Casualty Operations ................................................................................................................................................................................................................................................... | 7 |
Business Insurance | |
Segment Income ................................................................................................................................................................................................................................................................................................................................. | 8 |
Segment Income by Major Component and Combined Ratio............................................................................................................................................................................................................................................................. | 9 |
Selected Statistics ................................................................................................................................................................................................................................................................................................................................ | 10 |
Net Written Premiums......................................................................................................................................................................................................................................................................................................................... | 11 |
Bond & Specialty Insurance | |
Segment Income .................................................................................................................................................................................................................................................................................................................................. | 12 |
Segment Income by Major Component and Combined Ratio............................................................................................................................................................................................................................................................. | 13 |
Selected Statistics ................................................................................................................................................................................................................................................................................................................................ | 14 |
Net Written Premiums......................................................................................................................................................................................................................................................................................................................... | 15 |
Personal Insurance | |
Segment Income (Loss)....................................................................................................................................................................................................................................................................................................................... | 16 |
Segment Income (Loss) by Major Component and Combined Ratio.................................................................................................................................................................................................................................................. | 17 |
Selected Statistics ................................................................................................................................................................................................................................................................................................................................ | 18 |
Net Written Premiums......................................................................................................................................................................................................................................................................................................................... | 19 |
Selected Statistics - Automobile.......................................................................................................................................................................................................................................................................................................... | 20 |
Selected Statistics - Homeowners and Other....................................................................................................................................................................................................................................................................................... | 21 |
Supplemental Detail | |
Interest Expense and Other.................................................................................................................................................................................................................................................................................................................. | 22 |
Consolidated Balance Sheet ................................................................................................................................................................................................................................................................................................................ | 23 |
Investment Portfolio ............................................................................................................................................................................................................................................................................................................................ | 24 |
Investment Portfolio - Fixed Maturities Data...................................................................................................................................................................................................................................................................................... | 25 |
Investment Income .............................................................................................................................................................................................................................................................................................................................. | 26 |
Net Realized Investment Gains (Losses) and Net Unrealized Investment Gains (Losses) included in Shareholders' Equity ........................................................................................................................................................... | 27 |
Reinsurance Recoverables................................................................................................................................................................................................................................................................................................................... | 28 |
Net Reserves for Losses and Loss Adjustment Expense..................................................................................................................................................................................................................................................................... | 29 |
Asbestos Reserves ............................................................................................................................................................................................................................................................................................................................... | 30 |
Capitalization....................................................................................................................................................................................................................................................................................................................................... | 31 |
Statutory Capital and Surplus to GAAP Shareholders' Equity Reconciliation................................................................................................................................................................................................................................... | 32 |
Statement of Cash Flows ..................................................................................................................................................................................................................................................................................................................... | 33 |
Statement of Cash Flows (continued).................................................................................................................................................................................................................................................................................................. | 34 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net income................................................................................................................................ | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Net income per share: | ||||||||
Basic.................................................................................................................................. | $ 1.73 | $ 6.63 | $ 8.37 | $ 11.24 | $ 7.89 | $ 10.41 | $ 8.35 | $ 18.28 |
Diluted............................................................................................................................... | $ 1.70 | $ 6.53 | $ 8.24 | $ 11.06 | $ 7.78 | $ 10.26 | $ 8.23 | $ 18.01 |
Core income.............................................................................................................................. | $ 443 | $ 1,504 | $ 1,867 | $ 2,511 | $ 1,696 | $ 2,160 | $ 1,947 | $ 3,856 |
Core income per share: | ||||||||
Basic.................................................................................................................................. | $ 1.94 | $ 6.61 | $ 8.27 | $ 11.31 | $ 7.82 | $ 10.19 | $ 8.54 | $ 17.99 |
Diluted............................................................................................................................... | $ 1.91 | $ 6.51 | $ 8.14 | $ 11.13 | $ 7.71 | $ 10.04 | $ 8.42 | $ 17.73 |
Return on equity........................................................................................................................ | 5.6 % | 20.9 % | 24.7 % | 31.0 % | 21.1 % | 27.1 % | 13.4 % 24.1 % | |
Core return on equity ................................................................................................................ | 5.6 % | 18.8 % | 22.6 % | 29.6 % | 19.7 % | 24.9 % | 12.3 % 22.3 % | |
Total assets, at period end......................................................................................................... | $135,977 | $138,873 | $143,678 | $143,708 | $142,309 | $143,580 | $138,873 | $143,580 |
Total equity, at period end ........................................................................................................ | $ 28,191 | $ 29,518 | $ 31,609 | $ 32,894 | $ 31,986 | $ 33,121 | $ 29,518 | $ 33,121 |
Book value per share, at period end.......................................................................................... | $ 124.43 | $ 131.11 | $ 141.72 | $ 151.21 | $ 150.42 | $ 158.81 | $ 131.11 | $ 158.81 |
Less: Net unrealized investment gains (losses), net of tax ....................................................... | (14.56) | (13.46) | (8.83) | (6.80) | (11.18) | (9.39) | (13.46) | (9.39) |
Adjusted book value per share, at period end........................................................................... | $ 138.99 | $ 144.57 | $ 150.55 | $ 158.01 | $ 161.60 | $ 168.20 | $ 144.57 | $ 168.20 |
Weighted average number of common shares outstanding (basic) .......................................... | 226.9 | 225.9 | 224.1 | 220.3 | 215.2 | 210.5 | 226.4 | 212.9 |
Weighted average number of common shares outstanding and common stock equivalents (diluted)..................................................................................................................................... | 230.4 | 229.3 | 227.5 | 224.0 | 218.4 | 213.6 | 229.7 | 216.0 |
Common shares outstanding at period end ............................................................................... | 226.6 | 225.1 | 223.0 | 217.5 | 212.6 | 208.6 | 225.1 | 208.6 |
Common stock dividends declared ........................................................................................... | $ 241 | $ 252 | $ 250 | $ 244 | $ 238 | $ 266 | $ 493 | $ 504 |
Common stock repurchased: | ||||||||
Under Board of Directors authorization | ||||||||
Shares........................................................................................................................... | 1.0 | 1.8 | 2.3 | 5.8 | 6.0 | 4.3 | 2.8 | 10.3 |
Cost .............................................................................................................................. | $ 250 | $ 500 | $ 625 | $ 1,650 | $ 1,800 | $ 1,300 | $ 750 | $ 3,100 |
Other | ||||||||
Shares........................................................................................................................... | 0.4 | 0.3 | - | - | 0.6 | - | 0.7 | 0.6 |
Cost .............................................................................................................................. | $ 108 | $ 57 | $ 3 | $ 3 | $ 185 | $ 11 | $ 165 | $ 196 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net income | ||||||||
Net income................................................................................................................................................ | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Net realized investment (gains) losses, after-tax................................................................................. | 48 | (5) | (21) | 15 | (15) | (48) | 43 (63) | |
Core income ................................................................................................................................... | $ 443 | $ 1,504 | $ 1,867 | $ 2,511 | $ 1,696 | $ 2,160 | $ 1,947 | $ 3,856 |
Basic | ||||||||
Net income per share ................................................................................................................................ | $ 1.73 | $ 6.63 | $ 8.37 | $ 11.24 | $ 7.89 | $ 10.41 | $ 8.35 | $ 18.28 |
Net realized investment (gains) losses, after-tax................................................................................. | 0.21 | (0.02) | (0.10) | 0.07 | (0.07) | (0.22) | 0.19 (0.29) | |
Core income per share .................................................................................................................... | $ 1.94 | $ 6.61 | $ 8.27 | $ 11.31 | $ 7.82 | $ 10.19 | $ 8.54 | $ 17.99 |
Diluted | ||||||||
Net income per share ................................................................................................................................ | $ 1.70 | $ 6.53 | $ 8.24 | $ 11.06 | $ 7.78 | $ 10.26 | $ 8.23 | $ 18.01 |
Net realized investment (gains) losses, after-tax................................................................................. | 0.21 | (0.02) | (0.10) | 0.07 | (0.07) | (0.22) | 0.19 (0.28) | |
Core income per share .................................................................................................................... | $ 1.91 | $ 6.51 | $ 8.14 | $ 11.13 | $ 7.71 | $ 10.04 | $ 8.42 | $ 17.73 |
Basic and Diluted | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net income, as reported............................................................................................................................ | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Participating share-based awards - allocated net income......................................................................... | (3) | (11) | (13) | (19) | (12) | (15) | (14) (28) | |
Net income available to common shareholders - basic and diluted ......................................................... | $ 392 | $ 1,498 | $ 1,875 | $ 2,477 | $ 1,699 | $ 2,193 | $ 1,890 | $ 3,891 |
Core income, as reported.......................................................................................................................... | $ 443 | $ 1,504 | $ 1,867 | $ 2,511 | $ 1,696 | $ 2,160 | $ 1,947 | $ 3,856 |
Participating share-based awards - allocated core income....................................................................... | (3) | (11) | (14) | (18) | (12) | (15) | (14) (27) | |
Core income available to common shareholders - basic and diluted ....................................................... | $ 440 | $ 1,493 | $ 1,853 | $ 2,493 | $ 1,684 | $ 2,145 | $ 1,933 | $ 3,829 |
Common Shares | ||||||||
Basic | ||||||||
Weighted average shares outstanding ...................................................................................................... | 226.9 | 225.9 | 224.1 | 220.3 | 215.2 | 210.5 | 226.4 | 212.9 |
Diluted | ||||||||
Weighted average shares outstanding ...................................................................................................... | 226.9 | 225.9 | 224.1 | 220.3 | 215.2 | 210.5 | 226.4 | 212.9 |
Weighted average effect of dilutive securities - stock options and performance shares.......................... | 3.5 | 3.4 | 3.4 | 3.7 | 3.2 | 3.1 | 3.3 | 3.1 |
Diluted weighted average shares outstanding .......................................................................................... | 230.4 | 229.3 | 227.5 | 224.0 | 218.4 | 213.6 | 229.7 | 216.0 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||||
Premiums..................................................................................................................................................... | $10,710 | $10,921 | $11,135 | $11,148 | $10,605 | $10,753 | $21,631 | $21,358 |
Net investment income ................................................................................................................................ | 930 | 942 | 1,033 | 1,054 | 1,008 | 1,070 | 1,872 | 2,078 |
Fee income................................................................................................................................................... | 119 | 124 | 127 | 125 | 121 | 126 | 243 | 247 |
Net realized investment gains (losses)......................................................................................................... | (61) | 6 | 27 | (20) | 49 | 60 | (55) | 109 |
Other revenues............................................................................................................................................. | 112 | 123 | 148 | 125 | 141 | 144 | 235 | 285 |
Total revenues...................................................................................................................................... | 11,810 | 12,116 | 12,470 | 12,432 | 11,924 | 12,153 | 23,926 | 24,077 |
Claims and expenses | ||||||||
Claims and claim adjustment expenses ....................................................................................................... | 8,006 | 6,789 | 6,594 | 5,832 | 6,382 | 5,922 | 14,795 | 12,304 |
Amortization of deferred acquisition costs.................................................................................................. | 1,778 | 1,802 | 1,849 | 1,837 | 1,766 | 1,786 | 3,580 | 3,552 |
General and administrative expenses .......................................................................................................... | 1,459 | 1,545 | 1,572 | 1,544 | 1,541 | 1,565 | 3,004 | 3,106 |
Interest expense ........................................................................................................................................... | 99 | 99 | 111 | 116 | 116 | 113 | 198 | 229 |
Total claims and expenses ................................................................................................................... | 11,342 | 10,235 | 10,126 | 9,329 | 9,805 | 9,386 | 21,577 | 19,191 |
Income before income taxes........................................................................................................................ | 468 | 1,881 | 2,344 | 3,103 | 2,119 | 2,767 | 2,349 | 4,886 |
Income tax expense ..................................................................................................................................... | 73 | 372 | 456 | 607 | 408 | 559 | 445 | 967 |
Net income................................................................................................................................................... | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Other statistics | ||||||||
Effective tax rate on net investment income ............................................................................................... | 17.9 % | 17.9 % | 17.8 % | 17.7 % | 17.4 % | 17.4 % | 17.9 % 17.4 % | |
Net investment income (after-tax)............................................................................................................... | $ 763 | $ 774 | $ 850 | $ 867 | $ 833 | $ 883 | $ 1,537 | $ 1,716 |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 2,266 | $ 927 | $ 402 | $ 95 | $ 761 | $ 518 | $ 3,193 | $ 1,279 |
After-tax.................................................................................................................................................... | $ 1,790 | $ 732 | $ 318 | $ 75 | $ 601 | $ 410 | $ 2,522 | $ 1,011 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 378 | $ 315 | $ 22 | $ 321 | $ 413 | $ 578 | $ 693 | $ 991 |
After-tax.................................................................................................................................................... | $ 297 | $ 249 | $ 16 | $ 253 | $ 325 | $ 456 | $ 546 | $ 781 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Underwriting gain (loss).............................................................................................................................. | $ (239) | $ 808 | $ 1,099 | $ 1,729 | $ 955 | $ 1,365 | $ 569 | $ 2,320 |
Net investment income ................................................................................................................................ | 763 | 774 | 850 | 867 | 833 | 883 | 1,537 | 1,716 |
Other income (expense), including interest expense................................................................................... | (81) | (78) | (82) | (85) | (92) | (88) | (159) | (180) |
Core income ................................................................................................................................................ | 443 | 1,504 | 1,867 | 2,511 | 1,696 | 2,160 | 1,947 | 3,856 |
Net realized investment gains (losses)......................................................................................................... | (48) | 5 | 21 | (15) | 15 | 48 | (43) 63 | |
Net income.................................................................................................................................................. | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Combined ratio (1) (2) | ||||||||
Loss and loss adjustment expense ratio....................................................................................................... | 74.2 % | 61.7 % | 58.7 % | 51.8 % | 59.6 % | 54.6 % | 67.9 % 57.1 % | |
Underwriting expense ratio ......................................................................................................................... | 28.3 % | 28.6 % | 28.6 % | 28.4 % | 29.0 % | 29.0 % | 28.4 % 29.0 % | |
Combined ratio .................................................................................................................................... | 102.5 % | 90.3 % | 87.3 % | 80.2 % | 88.6 % | 83.6 % | 96.3 % 86.1 % | |
Impact on combined ratio: | ||||||||
Net favorable prior year reserve development ......................................................................................... | (3.5)% | (2.9)% | (0.2)% | (2.9)% | (3.9)% | (5.4)% | (3.2)% (4.6)% | |
Catastrophes, net of reinsurance............................................................................................................... | 21.2 % | 8.5 % | 3.6 % | 0.9 % | 7.2 % | 4.9 % | 14.8 % 6.0 % | |
Underlying combined ratio.................................................................................................................. | 84.8 % | 84.7 % | 83.9 % | 82.2 % | 85.3 % | 84.1 % | 84.7 % 84.7 % | |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Billing and policy fees and other................................................................................................................. | $ 28 | $ 29 | $ 28 | $ 28 | $ 25 | $ 22 | $ 57 | $ 47 |
Fee income: | ||||||||
Loss and loss adjustment expenses........................................................................................................... | $ 45 | $ 45 | $ 48 | $ 48 | $ 48 | $ 49 | $ 90 | $ 97 |
Underwriting expenses ............................................................................................................................. | 74 | 79 | 79 | 77 | 73 | 77 | 153 | 150 |
Total fee income .................................................................................................................................. | $ 119 | $ 124 | $ 127 | $ 125 | $ 121 | $ 126 | $ 243 | $ 247 |
Non-insurance general and administrative expenses................................................................................... | $ 109 | $ 113 | $ 131 | $ 110 | $ 136 | $ 132 | $ 222 | $ 268 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||||
Premiums..................................................................................................................................................... | $10,710 | $10,921 | $11,135 | $11,148 | $10,605 | $10,753 | $21,631 | $21,358 |
Net investment income ................................................................................................................................ | 930 | 942 | 1,033 | 1,054 | 1,008 | 1,070 | 1,872 | 2,078 |
Fee income................................................................................................................................................... | 119 | 124 | 127 | 125 | 121 | 126 | 243 | 247 |
Other revenues............................................................................................................................................. | 112 | 123 | 148 | 125 | 141 | 144 | 235 | 285 |
Total revenues..................................................................................................................................... | 11,871 | 12,110 | 12,443 | 12,452 | 11,875 | 12,093 | 23,981 | 23,968 |
Claims and expenses | ||||||||
Claims and claim adjustment expenses ....................................................................................................... | 8,006 | 6,789 | 6,594 | 5,832 | 6,382 | 5,922 | 14,795 | 12,304 |
Amortization of deferred acquisition costs.................................................................................................. | 1,778 | 1,802 | 1,849 | 1,837 | 1,766 | 1,786 | 3,580 | 3,552 |
General and administrative expenses .......................................................................................................... | 1,459 | 1,545 | 1,572 | 1,544 | 1,541 | 1,565 | 3,004 | 3,106 |
Interest expense ........................................................................................................................................... | 99 | 99 | 111 | 116 | 116 | 113 | 198 | 229 |
Total claims and expenses .................................................................................................................. | 11,342 | 10,235 | 10,126 | 9,329 | 9,805 | 9,386 | 21,577 | 19,191 |
Core income before income taxes ............................................................................................................... | 529 | 1,875 | 2,317 | 3,123 | 2,070 | 2,707 | 2,404 | 4,777 |
Income tax expense ..................................................................................................................................... | 86 | 371 | 450 | 612 | 374 | 547 | 457 | 921 |
Core income ................................................................................................................................................ | $ 443 | $ 1,504 | $ 1,867 | $ 2,511 | $ 1,696 | $ 2,160 | $ 1,947 | $ 3,856 |
Other statistics | ||||||||
Effective tax rate on net investment income ............................................................................................... | 17.9 % | 17.9 % | 17.8 % | 17.7 % | 17.4 % | 17.4 % | 17.9 % 17.4 % | |
Net investment income (after-tax)............................................................................................................... | $ 763 | $ 774 | $ 850 | $ 867 | $ 833 | $ 883 | $ 1,537 | $ 1,716 |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 2,266 | $ 927 | $ 402 | $ 95 | $ 761 | $ 518 | $ 3,193 | $ 1,279 |
After-tax.................................................................................................................................................... | $ 1,790 | $ 732 | $ 318 | $ 75 | $ 601 | $ 410 | $ 2,522 | $ 1,011 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 378 | $ 315 | $ 22 | $ 321 | $ 413 | $ 578 | $ 693 | $ 991 |
After-tax.................................................................................................................................................... | $ 297 | $ 249 | $ 16 | $ 253 | $ 325 | $ 456 | $ 546 | $ 781 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Statutory underwriting | ||||||||
Gross written premiums............................................................................................................................... | $ 11,890 | $ 12,225 | $ 12,292 | $ 11,296 | $ 11,750 | $ 12,201 | $ 24,115 | $ 23,951 |
Net written premiums .................................................................................................................................. | $ 10,515 | $ 11,516 | $ 11,472 | $ 10,856 | $ 10,323 | $ 11,525 | $ 22,031 | $ 21,848 |
Net earned premiums................................................................................................................................... | $ 10,710 | $ 10,897 | $ 11,133 | $ 11,146 | $ 10,593 | $ 10,749 | $ 21,607 | $ 21,342 |
Losses and loss adjustment expenses .......................................................................................................... | 7,947 | 6,731 | 6,537 | 5,768 | 6,310 | 5,867 | 14,678 | 12,177 |
Underwriting expenses ................................................................................................................................ | 3,098 | 3,260 | 3,239 | 3,114 | 3,400 | 3,271 | 6,358 | 6,671 |
Statutory underwriting gain (loss) ............................................................................................................. | (335) | 906 | 1,357 | 2,264 | 883 | 1,611 | 571 | 2,494 |
Policyholder dividends ................................................................................................................................ | 13 | 10 | 12 | 10 | 12 | 8 | 23 | 20 |
Statutory underwriting gain (loss) after policyholder dividends................................................................. | $ (348) | $ 896 | $ 1,345 | $ 2,254 | $ 871 | $ 1,603 | $ 548 | $ 2,474 |
Other statutory statistics | ||||||||
Reserves for losses and loss adjustment expenses....................................................................................... | $ 58,091 | $ 59,072 | $ 59,620 | $ 59,747 | $ 59,215 | $ 59,435 | $ 59,072 | $ 59,435 |
Increase (decrease) in reserves .................................................................................................................... | $ 1,765 | $ 981 | $ 548 | $ 127 | $ (532) | $ 220 | $ 2,746 $ (312) | |
Statutory capital and surplus........................................................................................................................ | $ 27,785 | $ 28,364 | $ 29,965 | $ 31,064 | $ 31,063 | $ 31,433 | $ 28,364 | $ 31,433 |
Net written premiums/surplus (1)................................................................................................................ | 1.57:1 | 1.55:1 | 1.48:1 | 1.43:1 | 1.42:1 | 1.41:1 | 1.55:1 1.41:1 | |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Written premiums | ||||||||
Gross............................................................................................................................................................ | $ 11,890 | $ 12,251 | $ 12,293 | $ 11,296 | $ 11,765 | $ 12,205 | $ 24,141 | $ 23,970 |
Ceded........................................................................................................................................................... | (1,375) | (708) | (820) | (440) | (1,427) | (676) | (2,083) (2,103) | |
Net ............................................................................................................................................................ | $ 10,515 | $ 11,543 | $ 11,473 | $ 10,856 | $ 10,338 | $ 11,529 | $ 22,058 | $ 21,867 |
Earned premiums | ||||||||
Gross............................................................................................................................................................ | $ 11,487 | $ 11,749 | $ 11,964 | $ 11,952 | $ 11,438 | $ 11,632 | $ 23,236 | $ 23,070 |
Ceded........................................................................................................................................................... | (777) | (828) | (829) | (804) | (833) | (879) | (1,605) (1,712) | |
Net ............................................................................................................................................................ | $ 10,710 | $ 10,921 | $ 11,135 | $ 11,148 | $ 10,605 | $ 10,753 | $ 21,631 | $ 21,358 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||||
Premiums..................................................................................................................................................... | $ 5,465 | $ 5,545 | $ 5,700 | $ 5,702 | $ 5,493 | $ 5,551 | $11,010 | $11,044 |
Net investment income ................................................................................................................................ | 656 | 662 | 727 | 737 | 708 | 762 | 1,318 | 1,470 |
Fee income................................................................................................................................................... | 108 | 111 | 114 | 112 | 111 | 117 | 219 | 228 |
Other revenues............................................................................................................................................. | 82 | 95 | 111 | 91 | 104 | 113 | 177 | 217 |
Total revenues..................................................................................................................................... | 6,311 | 6,413 | 6,652 | 6,642 | 6,416 | 6,543 | 12,724 | 12,959 |
Claims and expenses | ||||||||
Claims and claim adjustment expenses ....................................................................................................... | 3,705 | 3,584 | 3,667 | 3,198 | 3,531 | 3,188 | 7,289 | 6,719 |
Amortization of deferred acquisition costs.................................................................................................. | 917 | 944 | 973 | 962 | 938 | 945 | 1,861 | 1,883 |
General and administrative expenses .......................................................................................................... | 847 | 875 | 894 | 866 | 912 | 912 | 1,722 | 1,824 |
Total claims and expenses .................................................................................................................. | 5,469 | 5,403 | 5,534 | 5,026 | 5,381 | 5,045 | 10,872 | 10,426 |
Segment income before income taxes ......................................................................................................... | 842 | 1,010 | 1,118 | 1,616 | 1,035 | 1,498 | 1,852 | 2,533 |
Income tax expense ..................................................................................................................................... | 159 | 197 | 211 | 324 | 196 | 300 | 356 | 496 |
Segment income ......................................................................................................................................... | $ 683 | $ 813 | $ 907 | $ 1,292 | $ 839 | $ 1,198 | $ 1,496 | $ 2,037 |
Other statistics | ||||||||
Effective tax rate on net investment income ............................................................................................... | 17.8 % | 17.7 % | 17.7 % | 17.5 % | 17.3 % | 17.4 % | 17.8 % 17.3 % | |
Net investment income (after-tax)............................................................................................................... | $ 539 | $ 545 | $ 598 | $ 607 | $ 586 | $ 629 | $ 1,084 | $ 1,215 |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 509 | $ 368 | $ 139 | $ 57 | $ 379 | $ 238 | $ 877 | $ 617 |
After-tax.................................................................................................................................................... | $ 402 | $ 291 | $ 110 | $ 44 | $ 299 | $ 188 | $ 693 | $ 487 |
Prior year reserve development - favorable (unfavorable): | ||||||||
Pre-tax....................................................................................................................................................... | $ 74 | $ 79 | $ (125) | $ 205 | $ 162 | $ 319 | $ 153 | $ 481 |
After-tax.................................................................................................................................................... | $ 58 | $ 62 | $ (99) | $ 162 | $ 127 | $ 252 | $ 120 | $ 379 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Underwriting gain........................................................................................................................................ | $ 157 | $ 274 | $ 318 | $ 690 | $ 261 | $ 572 | $ 431 | $ 833 |
Net investment income ................................................................................................................................ | 539 | 545 | 598 | 607 | 586 | 629 | 1,084 | 1,215 |
Other income (expense)............................................................................................................................... | (13) | (6) | (9) | (5) | (8) | (3) | (19) | (11) |
Segment income ......................................................................................................................................... | $ 683 | $ 813 | $ 907 | $ 1,292 | $ 839 | $ 1,198 | $ 1,496 | $ 2,037 |
Combined ratio (1) (2) | ||||||||
Loss and loss adjustment expense ratio....................................................................................................... | 66.8 % | 63.7 % | 63.3 % | 55.1 % | 63.3 % | 56.5 % | 65.3 % 59.8 % | |
Underwriting expense ratio ......................................................................................................................... | 29.4 % | 29.9 % | 29.6 % | 29.3 % | 30.5 % | 30.3 % | 29.6 % 30.4 % | |
Combined ratio .................................................................................................................................... | 96.2 % | 93.6 % | 92.9 % | 84.4 % | 93.8 % | 86.8 % | 94.9 % 90.2 % | |
Impact on combined ratio: | ||||||||
Net (favorable) unfavorable prior year reserve development................................................................... | (1.3)% | (1.4)% | 2.2 % | (3.6)% | (2.9)% | (5.7)% | (1.4)% (4.4)% | |
Catastrophes, net of reinsurance............................................................................................................... | 9.3 % | 6.7 % | 2.4 % | 1.0 % | 6.9 % | 4.3 % | 8.0 % 5.6 % | |
Underlying combined ratio.................................................................................................................. | 88.2 % | 88.3 % | 88.3 % | 87.0 % | 89.8 % | 88.2 % | 88.3 % 89.0 % | |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Billing and policy fees and other................................................................................................................. | $ 4 | $ 5 | $ 4 | $ 4 | $ 4 | $ 3 | $ 9 | $ 7 |
Fee income: | ||||||||
Loss and loss adjustment expenses......................................................................................................... | $ 45 | $ 45 | $ 48 | $ 48 | $ 48 | $ 49 | $ 90 | $ 97 |
Underwriting expenses ........................................................................................................................... | 63 | 66 | 66 | 64 | 63 | 68 | 129 | 131 |
Total fee income .................................................................................................................................. | $ 108 | $ 111 | $ 114 | $ 112 | $ 111 | $ 117 | $ 219 | $ 228 |
Non-insurance general and administrative expenses................................................................................... | $ 91 | $ 93 | $ 112 | $ 89 | $ 107 | $ 105 | $ 184 | $ 212 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Statutory underwriting | ||||||||
Gross written premiums............................................................................................................................... | $ 6,740 | $ 6,359 | $ 6,284 | $ 5,840 | $ 6,791 | $ 6,527 | $ 13,099 | $ 13,318 |
Net written premiums .................................................................................................................................. | $ 5,698 | $ 5,765 | $ 5,674 | $ 5,514 | $ 5,771 | $ 5,980 | $ 11,463 | $ 11,751 |
Net earned premiums................................................................................................................................... | $ 5,465 | $ 5,521 | $ 5,698 | $ 5,700 | $ 5,481 | $ 5,547 | $ 10,986 | $ 11,028 |
Losses and loss adjustment expenses .......................................................................................................... | 3,650 | 3,530 | 3,614 | 3,138 | 3,463 | 3,138 | 7,180 | 6,601 |
Underwriting expenses ................................................................................................................................ | 1,700 | 1,704 | 1,654 | 1,615 | 1,787 | 1,742 | 3,404 | 3,529 |
Statutory underwriting gain......................................................................................................................... | 115 | 287 | 430 | 947 | 231 | 667 | 402 | 898 |
Policyholder dividends ................................................................................................................................ | 9 | 5 | 9 | 5 | 8 | 4 | 14 | 12 |
Statutory underwriting gain after policyholder dividends........................................................................... | $ 106 | $ 282 | $ 421 | $ 942 | $ 223 | $ 663 | $ 388 | $ 886 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net written premiums by market Domestic | ||||||||
Select Accounts ........................................................................................................................................ | $ 976 | $ 1,004 | $ 920 | $ 930 | $ 1,006 | $ 1,040 | $ 1,980 | $ 2,046 |
Middle Market .......................................................................................................................................... | 3,166 | 3,034 | 3,232 | 3,109 | 3,329 | 3,235 | 6,200 | 6,564 |
National Accounts .................................................................................................................................... | 312 | 329 | 273 | 348 | 343 | 344 | 641 | 687 |
National Property and Other..................................................................................................................... | 720 | 885 | 841 | 666 | 691 | 866 | 1,605 | 1,557 |
Total Domestic .................................................................................................................................... | 5,174 | 5,252 | 5,266 | 5,053 | 5,369 | 5,485 | 10,426 | 10,854 |
International................................................................................................................................................. | 524 | 540 | 409 | 461 | 417 | 499 | 1,064 | 916 |
Total................................................................................................................................................ | $ 5,698 | $ 5,792 | $ 5,675 | $ 5,514 | $ 5,786 | $ 5,984 | $ 11,490 | $ 11,770 |
Net written premiums by product line | ||||||||
Domestic | ||||||||
Workers' compensation............................................................................................................................ | $ 950 | $ 821 | $ 792 | $ 786 | $ 980 | $ 835 | $ 1,771 | $ 1,815 |
Commercial automobile ........................................................................................................................... | 1,030 | 1,019 | 1,030 | 1,017 | 1,106 | 1,106 | 2,049 | 2,212 |
Commercial property................................................................................................................................ | 873 | 1,051 | 961 | 820 | 821 | 1,042 | 1,924 | 1,863 |
General liability ........................................................................................................................................ | 753 | 878 | 998 | 967 | 847 | 964 | 1,631 | 1,811 |
Commercial multi-peril ............................................................................................................................ | 1,532 | 1,486 | 1,447 | 1,461 | 1,580 | 1,537 | 3,018 | 3,117 |
Other ......................................................................................................................................................... | 36 | (3) | 38 | 2 | 35 | 1 | 33 | 36 |
Total Domestic .................................................................................................................................... | 5,174 | 5,252 | 5,266 | 5,053 | 5,369 | 5,485 | 10,426 | 10,854 |
International................................................................................................................................................. | 524 | 540 | 409 | 461 | 417 | 499 | 1,064 | 916 |
Total................................................................................................................................................ | $ 5,698 | $ 5,792 | $ 5,675 | $ 5,514 | $ 5,786 | $ 5,984 | $ 11,490 | $ 11,770 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||||
Premiums..................................................................................................................................................... | $ 995 | $ 1,021 | $ 1,042 | $ 1,049 | $ 1,018 | $ 1,056 | $ 2,016 | $ 2,074 |
Net investment income ................................................................................................................................ | 102 | 107 | 116 | 120 | 113 | 113 | 209 | 226 |
Other revenues............................................................................................................................................. | 6 | 5 | 8 | 8 | 5 | 6 | 11 | 11 |
Total revenues...................................................................................................................................... | 1,103 | 1,133 | 1,166 | 1,177 | 1,136 | 1,175 | 2,236 | 2,311 |
Claims and expenses | ||||||||
Claims and claim adjustment expenses ....................................................................................................... | 434 | 418 | 451 | 461 | 441 | 458 | 852 | 899 |
Amortization of deferred acquisition costs.................................................................................................. | 187 | 195 | 197 | 199 | 194 | 204 | 382 | 398 |
General and administrative expenses .......................................................................................................... | 205 | 214 | 207 | 217 | 219 | 218 | 419 | 437 |
Total claims and expenses ................................................................................................................... | 826 | 827 | 855 | 877 | 854 | 880 | 1,653 | 1,734 |
Segment income before income taxes ......................................................................................................... | 277 | 306 | 311 | 300 | 282 | 295 | 583 | 577 |
Income tax expense ..................................................................................................................................... | 57 | 62 | 61 | 64 | 28 | 61 | 119 | 89 |
Segment income .......................................................................................................................................... | $ 220 | $ 244 | $ 250 | $ 236 | $ 254 | $ 234 | $ 464 | $ 488 |
Other statistics | ||||||||
Effective tax rate on net investment income ............................................................................................... | 18.4 % | 18.5 % | 17.7 % | 18.4 % | 18.5 % | 18.4 % | 18.5 % 18.4 % | |
Net investment income (after-tax)............................................................................................................... | $ 83 | $ 88 | $ 95 | $ 98 | $ 92 | $ 93 | $ 171 | $ 185 |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 19 | $ 5 | $ - | $ 1 | $ 8 | $ 4 | $ 24 | $ 12 |
After-tax.................................................................................................................................................... | $ 15 | $ 4 | $ - | $ 1 | $ 7 | $ 3 | $ 19 | $ 10 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 67 | $ 81 | $ 43 | $ 30 | $ 65 | $ 75 | $ 148 | $ 140 |
After-tax.................................................................................................................................................... | $ 52 | $ 65 | $ 33 | $ 24 | $ 51 | $ 59 | $ 117 | $ 110 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Underwriting gain ....................................................................................................................................... | $ 133 | $ 154 | $ 150 | $ 132 | $ 159 | $ 138 | $ 287 | $ 297 |
Net investment income ............................................................................................................................... | 83 | 88 | 95 | 98 | 92 | 93 | 171 | 185 |
Other income............................................................................................................................................... | 4 | 2 | 5 | 6 | 3 | 3 | 6 | 6 |
Segment income......................................................................................................................................... | $ 220 | $ 244 | $ 250 | $ 236 | $ 254 | $ 234 | $ 464 | $ 488 |
Combined ratio (1) | ||||||||
Loss and loss adjustment expense ratio ...................................................................................................... | 43.2 % | 40.5 % | 42.9 % | 43.5 % | 43.0 % | 43.0 % | 41.8 % 43.0 % | |
Underwriting expense ratio......................................................................................................................... | 39.3 % | 39.8 % | 38.7 % | 39.5 % | 40.3 % | 39.8 % | 39.6 % 40.0 % | |
Combined ratio.................................................................................................................................... | 82.5 % | 80.3 % | 81.6 % | 83.0 % | 83.3 % | 82.8 % | 81.4 % 83.0 % | |
Impact on combined ratio: | ||||||||
Net favorable prior year reserve development......................................................................................... | (6.7)% | (8.0)% | (4.2)% | (2.8)% | (6.4)% | (7.2)% | (7.3)% (6.8)% | |
Catastrophes, net of reinsurance .............................................................................................................. | 1.9 % | 0.5 % | - % | 0.1 % | 0.8 % | 0.4 % | 1.2 % 0.6 % | |
Underlying combined ratio ................................................................................................................. | 87.3 % | 87.8 % | 85.8 % | 85.7 % | 88.9 % | 89.6 % | 87.5 % 89.2 % | |
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 | 2Q2026 | YTD YTD 2Q2025 2Q2026 |
Billing and policy fees and other ................................................................................................................ | $ - | $ - | $ 1 | $ - | $ - | $ 1 | $ - $ 1 |
Non-insurance general and administrative expenses .................................................................................. | $ 1 | $ 2 | $ 1 | $ 2 | $ 2 | $ 2 | $ 3 $ 4 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Statutory underwriting | ||||||||
Gross written premiums............................................................................................................................... | $ 1,129 | $ 1,166 | $ 1,160 | $ 1,192 | $ 1,211 | $ 1,333 | $ 2,295 | $ 2,544 |
Net written premiums .................................................................................................................................. | $ 999 | $ 1,085 | $ 1,080 | $ 1,098 | $ 1,066 | $ 1,237 | $ 2,084 | $ 2,303 |
Net earned premiums................................................................................................................................... | $ 995 | $ 1,021 | $ 1,042 | $ 1,049 | $ 1,018 | $ 1,056 | $ 2,016 | $ 2,074 |
Losses and loss adjustment expenses .......................................................................................................... | 430 | 414 | 447 | 457 | 437 | 453 | 844 | 890 |
Underwriting expenses ................................................................................................................................ | 422 | 434 | 424 | 433 | 676 | 469 | 856 | 1,145 |
Statutory underwriting gain (loss)............................................................................................................... | 143 | 173 | 171 | 159 | (95) | 134 | 316 | 39 |
Policyholder dividends ................................................................................................................................ | 4 | 5 | 3 | 5 | 4 | 4 | 9 | 8 |
Statutory underwriting gain (loss) after policyholder dividends................................................................. | $ 139 | $ 168 | $ 168 | $ 154 | $ (99) | $ 130 | $ 307 | $ 31 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net written premiums by market Domestic | ||||||||
Management Liability............................................................................................................................... | $ 553 | $ 589 | $ 613 | $ 571 | $ 572 | $ 611 | $ 1,142 | $ 1,183 |
Surety........................................................................................................................................................ | 333 | 342 | 342 | 337 | 381 | 480 | 675 | 861 |
Total Domestic .................................................................................................................................... | 886 | 931 | 955 | 908 | 953 | 1,091 | 1,817 | 2,044 |
International................................................................................................................................................. | 113 | 154 | 125 | 190 | 113 | 146 | 267 | 259 |
Total................................................................................................................................................ | $ 999 | $ 1,085 | $ 1,080 | $ 1,098 | $ 1,066 | $ 1,237 | $ 2,084 | $ 2,303 |
Net written premiums by product line | ||||||||
Domestic | ||||||||
Fidelity and surety .................................................................................................................................... | $ 394 | $ 400 | $ 407 | $ 395 | $ 447 | $ 536 | $ 794 | $ 983 |
General liability ........................................................................................................................................ | 440 | 469 | 475 | 458 | 455 | 491 | 909 | 946 |
Other ......................................................................................................................................................... | 52 | 62 | 73 | 55 | 51 | 64 | 114 | 115 |
Total Domestic .................................................................................................................................... | 886 | 931 | 955 | 908 | 953 | 1,091 | 1,817 | 2,044 |
International................................................................................................................................................. | 113 | 154 | 125 | 190 | 113 | 146 | 267 | 259 |
Total................................................................................................................................................ | $ 999 | $ 1,085 | $ 1,080 | $ 1,098 | $ 1,066 | $ 1,237 | $ 2,084 | $ 2,303 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||||
Premiums..................................................................................................................................................... | $ 4,250 | $ 4,355 | $ 4,393 | $ 4,397 | $ 4,094 | $ 4,146 | $ 8,605 | $ 8,240 |
Net investment income ................................................................................................................................ | 172 | 173 | 190 | 197 | 187 | 195 | 345 | 382 |
Fee income................................................................................................................................................... | 11 | 13 | 13 | 13 | 10 | 9 | 24 | 19 |
Other revenues............................................................................................................................................. | 24 | 23 | 29 | 26 | 32 | 25 | 47 | 57 |
Total revenues...................................................................................................................................... | 4,457 | 4,564 | 4,625 | 4,633 | 4,323 | 4,375 | 9,021 | 8,698 |
Claims and expenses | ||||||||
Claims and claim adjustment expenses ....................................................................................................... | 3,867 | 2,787 | 2,476 | 2,173 | 2,410 | 2,276 | 6,654 | 4,686 |
Amortization of deferred acquisition costs.................................................................................................. | 674 | 663 | 679 | 676 | 634 | 637 | 1,337 | 1,271 |
General and administrative expenses .......................................................................................................... | 396 | 444 | 458 | 448 | 397 | 422 | 840 | 819 |
Total claims and expenses ................................................................................................................... | 4,937 | 3,894 | 3,613 | 3,297 | 3,441 | 3,335 | 8,831 | 6,776 |
Segment income (loss) before income taxes ............................................................................................... | (480) | 670 | 1,012 | 1,336 | 882 | 1,040 | 190 | 1,922 |
Income tax expense (benefit)....................................................................................................................... | (106) | 136 | 205 | 250 | 178 | 213 | 30 | 391 |
Segment income (loss)................................................................................................................................. | $ (374) | $ 534 | $ 807 | $ 1,086 | $ 704 | $ 827 | $ 160 | $ 1,531 |
Other statistics | ||||||||
Effective tax rate on net investment income ............................................................................................... | 18.1 % | 18.0 % | 18.0 % | 17.7 % | 17.1 % | 17.1 % | 18.0 % 17.1 % | |
Net investment income (after-tax)............................................................................................................... | $ 141 | $ 141 | $ 157 | $ 162 | $ 155 | $ 161 | $ 282 | $ 316 |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 1,738 | $ 554 | $ 263 | $ 37 | $ 374 | $ 276 | $ 2,292 | $ 650 |
After-tax.................................................................................................................................................... | $ 1,373 | $ 437 | $ 208 | $ 30 | $ 295 | $ 219 | $ 1,810 | $ 514 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 237 | $ 155 | $ 104 | $ 86 | $ 186 | $ 184 | $ 392 | $ 370 |
After-tax.................................................................................................................................................... | $ 187 | $ 122 | $ 82 | $ 67 | $ 147 | $ 145 | $ 309 | $ 292 |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Underwriting gain (loss).............................................................................................................................. | $ (529) | $ 380 | $ 631 | $ 907 | $ 535 | $ 655 | $ (149) | $ 1,190 |
Net investment income ................................................................................................................................ | 141 | 141 | 157 | 162 | 155 | 161 | 282 | 316 |
Other income ............................................................................................................................................... | 14 | 13 | 19 | 17 | 14 | 11 | 27 | 25 |
Segment income (loss) ............................................................................................................................... | $ (374) | $ 534 | $ 807 | $ 1,086 | $ 704 | $ 827 | $ 160 | $ 1,531 |
Combined ratio (1) | ||||||||
Loss and loss adjustment expense ratio....................................................................................................... | 91.0 % | 64.0 % | 56.4 % | 49.4 % | 58.8 % | 54.9 % | 77.4 % 56.9 % | |
Underwriting expense ratio ......................................................................................................................... | 24.2 % | 24.4 % | 24.9 % | 24.6 % | 24.1 % | 24.6 % | 24.3 % 24.3 % | |
Combined ratio .................................................................................................................................... | 115.2 % | 88.4 % | 81.3 % | 74.0 % | 82.9 % | 79.5 % | 101.7 % 81.2 % | |
Impact on combined ratio: | ||||||||
Net favorable prior year reserve development .................................................................................... | (5.6)% | (3.6)% | (2.4)% | (1.9)% | (4.5)% | (4.5)% | (4.5)% (4.5)% | |
Catastrophes, net of reinsurance.......................................................................................................... | 40.9 % | 12.7 % | 6.0 % | 0.8 % | 9.1 % | 6.7 % | 26.6 % 7.9 % | |
Underlying combined ratio............................................................................................................. | 79.9 % | 79.3 % | 77.7 % | 75.1 % | 78.3 % | 77.3 % | 79.6 % 77.8 % | |
Billing and policy fees and other, which are a component of other revenues, and fee income are allocated as a reduction of underwriting expenses 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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Billing and policy fees and other................................................................................................................. | $ 24 | $ 24 | $ 23 | $ 24 | $ 21 | $ 18 | $ 48 | $ 39 |
Fee income................................................................................................................................................... | $ 11 | $ 13 | $ 13 | $ 13 | $ 10 | $ 9 | $ 24 | $ 19 |
Non-insurance general and administrative expenses................................................................................... | $ 6 | $ 6 | $ 5 | $ 6 | $ 14 | $ 12 | $ 12 | $ 26 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD YTD 2Q2025 2Q2026 |
Statutory underwriting | |||||||
Gross written premiums............................................................................................................................... | $ 4,021 | $ 4,700 | $ 4,848 | $ 4,264 | $ 3,748 | $ 4,341 | $ 8,721 $ 8,089 |
Net written premiums .................................................................................................................................. | $ 3,818 | $ 4,666 | $ 4,718 | $ 4,244 | $ 3,486 | $ 4,308 | $ 8,484 $ 7,794 |
Net earned premiums................................................................................................................................... | $ 4,250 | $ 4,355 | $ 4,393 | $ 4,397 | $ 4,094 | $ 4,146 | $ 8,605 $ 8,240 |
Losses and loss adjustment expenses .......................................................................................................... | 3,867 | 2,787 | 2,476 | 2,173 | 2,410 | 2,276 | 6,654 4,686 |
Underwriting expenses ................................................................................................................................ | 976 | 1,122 | 1,161 | 1,066 | 937 | 1,060 | 2,098 1,997 |
Statutory underwriting gain (loss)............................................................................................................... | $ (593) | $ 446 | $ 756 | $ 1,158 | $ 747 | $ 810 | $ (147) $ 1,557 |
Policies in force (in thousands) | |||||||
Automobile ............................................................................................................................................... | 3,118 | 3,083 | 3,050 | 3,025 | 2,819 | 2,801 | 3,083 2,801 |
Homeowners and Other............................................................................................................................ | 5,980 | 5,882 | 5,768 | 5,679 | 5,449 | 5,411 | 5,882 5,411 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net written premiums by product line Domestic | ||||||||
Automobile .......................................................................................................................................... | $ 1,859 | $ 1,968 | $ 2,062 | $ 1,856 | $ 1,756 | $ 1,858 | $ 3,827 | $ 3,614 |
Homeowners and Other....................................................................................................................... | 1,813 | 2,520 | 2,489 | 2,229 | 1,730 | 2,450 | 4,333 | 4,180 |
Total Domestic ............................................................................................................................ | 3,672 | 4,488 | 4,551 | 4,085 | 3,486 | 4,308 | 8,160 | 7,794 |
International................................................................................................................................................. | 146 | 178 | 167 | 159 | - | - | 324 | - |
Total........................................................................................................................................ | $ 3,818 | $ 4,666 | $ 4,718 | $ 4,244 | $ 3,486 | $ 4,308 | $ 8,484 | $ 7,794 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Statutory underwriting | ||||||||
Gross written premiums............................................................................................................................... | $ 1,967 | $ 2,083 | $ 2,177 | $ 1,967 | $ 1,767 | $ 1,861 | $ 4,050 | $ 3,628 |
Net written premiums .................................................................................................................................. | $ 1,955 | $ 2,074 | $ 2,165 | $ 1,956 | $ 1,756 | $ 1,858 | $ 4,029 | $ 3,614 |
Net earned premiums................................................................................................................................... | $ 2,071 | $ 2,091 | $ 2,091 | $ 2,075 | $ 1,892 | $ 1,897 | $ 4,162 | $ 3,789 |
Losses and loss adjustment expenses .......................................................................................................... | 1,270 | 1,320 | 1,300 | 1,393 | 1,145 | 1,137 | 2,590 | 2,282 |
Underwriting expenses ................................................................................................................................ | 444 | 477 | 495 | 458 | 415 | 442 | 921 | 857 |
Statutory underwriting gain......................................................................................................................... | $ 357 | $ 294 | $ 296 | $ 224 | $ 332 | $ 318 | $ 651 | $ 650 |
Other statistics | ||||||||
Combined ratio (1): | ||||||||
Loss and loss adjustment expense ratio....................................................................................................... | 61.3 % | 63.1 % | 62.1 % | 67.1 % | 60.6 % | 59.9 % | 62.2 % 60.2 % | |
Underwriting expense ratio ......................................................................................................................... | 22.1 % | 22.2 % | 22.8 % | 22.3 % | 22.3 % | 22.9 % | 22.1 % 22.6 % | |
Combined ratio .................................................................................................................................... | 83.4 % | 85.3 % | 84.9 % | 89.4 % | 82.9 % | 82.8 % | 84.3 % 82.8 % | |
Impact on combined ratio: | ||||||||
Net favorable prior year reserve development .................................................................................... | (6.0)% | (5.0)% | (4.3)% | (3.0)% | (6.3)% | (4.5)% | (5.5)% (5.4)% | |
Catastrophes, net of reinsurance.......................................................................................................... | 1.9 % | 1.3 % | 0.9 % | 0.2 % | 0.9 % | 1.5 % | 1.6 % 1.1 % | |
Underlying combined ratio............................................................................................................. | 87.5 % | 89.0 % | 88.3 % | 92.2 % | 88.3 % | 85.8 % | 88.2 % 87.1 % | |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 39 | $ 27 | $ 19 | $ 4 | $ 15 | $ 29 | $ 66 | $ 44 |
After-tax.................................................................................................................................................... | $ 30 | $ 22 | $ 15 | $ 3 | $ 12 | $ 23 | $ 52 | $ 35 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 125 | $ 104 | $ 89 | $ 61 | $ 120 | $ 85 | $ 229 | $ 205 |
After-tax.................................................................................................................................................... | $ 98 | $ 83 | $ 70 | $ 47 | $ 95 | $ 67 | $ 181 | $ 162 |
Policies in force (in thousands) ................................................................................................................... | 3,118 | 3,083 | 3,050 | 3,025 | 2,819 | 2,801 | ||
Change from prior year quarter ................................................................................................................... | (2.9)% | (3.1)% | (3.4)% | (4.0)% | (9.6)% | (9.1)% | ||
Change from prior quarter ........................................................................................................................... | (1.0)% | (1.1)% | (1.1)% | (0.8)% | (6.8)% | (0.6)% | ||
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Billing and policy fees and other................................................................................................................. | $ 14 | $ 15 | $ 14 | $ 14 | $ 13 | $ 12 | $ 29 | $ 25 |
Fee income................................................................................................................................................... | $ 6 | $ 6 | $ 7 | $ 7 | $ 5 | $ 4 | $ 12 | $ 9 |
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Statutory underwriting | ||||||||
Gross written premiums............................................................................................................................... | $ 2,054 | $ 2,617 | $ 2,671 | $ 2,297 | $ 1,981 | $ 2,480 | $ 4,671 | $ 4,461 |
Net written premiums .................................................................................................................................. | $ 1,863 | $ 2,592 | $ 2,553 | $ 2,288 | $ 1,730 | $ 2,450 | $ 4,455 | $ 4,180 |
Net earned premiums................................................................................................................................... | $ 2,179 | $ 2,264 | $ 2,302 | $ 2,322 | $ 2,202 | $ 2,249 | $ 4,443 | $ 4,451 |
Losses and loss adjustment expenses .......................................................................................................... | 2,597 | 1,467 | 1,176 | 780 | 1,265 | 1,139 | 4,064 | 2,404 |
Underwriting expenses ................................................................................................................................ | 532 | 645 | 666 | 608 | 522 | 618 | 1,177 | 1,140 |
Statutory underwriting gain (loss)............................................................................................................... | $ (950) | $ 152 | $ 460 | $ 934 | $ 415 | $ 492 | $ (798) | $ 907 |
Other statistics | ||||||||
Combined ratio (1): | ||||||||
Loss and loss adjustment expense ratio....................................................................................................... | 119.2 % | 64.8 % | 51.1 % | 33.6 % | 57.4 % | 50.7 % | 91.5 % 54.0 % | |
Underwriting expense ratio ......................................................................................................................... | 26.3 % | 26.5 % | 26.9 % | 26.7 % | 25.6 % | 26.0 % | 26.4 % 25.8 % | |
Combined ratio .................................................................................................................................... | 145.5 % | 91.3 % | 78.0 % | 60.3 % | 83.0 % | 76.7 % | 117.9 % 79.8 % | |
Impact on combined ratio: | ||||||||
Net favorable prior year reserve development .................................................................................... | (5.1)% | (2.2)% | (0.7)% | (1.1)% | (3.0)% | (4.4)% | (3.6)% (3.7)% | |
Catastrophes, net of reinsurance.......................................................................................................... | 78.0 % | 23.2 % | 10.7 % | 1.5 % | 16.3 % | 11.0 % | 50.1 % 13.6 % | |
Underlying combined ratio............................................................................................................. | 72.6 % | 70.3 % | 68.0 % | 59.9 % | 69.7 % | 70.1 % | 71.4 % 69.9 % | |
Catastrophes, net of reinsurance: | ||||||||
Pre-tax....................................................................................................................................................... | $ 1,699 | $ 527 | $ 244 | $ 33 | $ 359 | $ 247 | $ 2,226 | $ 606 |
After-tax.................................................................................................................................................... | $ 1,343 | $ 415 | $ 193 | $ 27 | $ 283 | $ 196 | $ 1,758 | $ 479 |
Prior year reserve development - favorable: | ||||||||
Pre-tax....................................................................................................................................................... | $ 112 | $ 51 | $ 15 | $ 25 | $ 66 | $ 99 | $ 163 | $ 165 |
After-tax.................................................................................................................................................... | $ 89 | $ 39 | $ 12 | $ 20 | $ 52 | $ 78 | $ 128 | $ 130 |
Policies in force (in thousands) ................................................................................................................... | 5,980 | 5,882 | 5,768 | 5,679 | 5,449 | 5,411 | ||
Change from prior year quarter ................................................................................................................... | (4.1)% | (4.6)% | (5.5)% | (6.3)% | (8.9)% | (8.0)% | ||
Change from prior quarter ........................................................................................................................... | (1.3)% | (1.6)% | (1.9)% | (1.5)% | (4.1)% | (0.7)% | ||
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Billing and policy fees and other................................................................................................................. | $ 10 | $ 9 | $ 9 | $ 10 | $ 8 | $ 6 | $ 19 | $ 14 |
Fee income................................................................................................................................................... | $ 5 | $ 7 | $ 6 | $ 6 | $ 5 | $ 5 | $ 12 | $ 10 |
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 4Q2025 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Revenues | ||||||
Other revenues............................................................................................................................................. | $ - | $ - | $ - $ - $ - | $ - | $ - | $ - |
Claims and expenses | ||||||
Interest expense ........................................................................................................................................... | 99 | 99 | 111 116 116 | 113 | 198 | 229 |
General and administrative expenses .......................................................................................................... | 11 | 12 | 13 13 13 | 13 | 23 | 26 |
Total claims and expenses ........................................................................................................................ | 110 | 111 | 124 129 129 | 126 | 221 | 255 |
Loss before income tax benefit.................................................................................................................... | (110) | (111) | (124) (129) (129) | (126) | (221) (255) | |
Income tax benefit ....................................................................................................................................... | (24) | (24) | (27) (26) (28) | (27) | (48) (55) | |
Loss.............................................................................................................................................................. | $ (86) | $ (87) | $ (97) $ (103) $ (101) | $ (99) | $ (173) $ (200) | |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ and shares in millions) | June 30, 2026 | December 31, 2025 |
Assets | ||
Fixed maturities, available for sale, at fair value (amortized cost $95,401 and $91,717; allowance for expected credit losses of $2 and $3) ..................................... | $ 92,922 | $ 89,833 |
Equity securities, at fair value (cost $410 and $457).............................................................................................................................................................................. | 652 | 618 |
Real estate investments........................................................................................................................................................................................................................... | 884 | 900 |
Short-term securities ............................................................................................................................................................................................................................... | 4,579 | 5,716 |
Other investments ................................................................................................................................................................................................................................... | 4,142 | 4,115 |
Total investments................................................................................................................................................................................................................................. | 103,179 | 101,182 |
Cash (including restricted cash of $139 and $132)................................................................................................................................................................................. | 621 | 842 |
Investment income accrued..................................................................................................................................................................................................................... | 911 | 877 |
Premiums receivable (net of allowance for expected credit losses of $61 and $58) .............................................................................................................................. | 12,382 | 10,992 |
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $142 and $129) ............................................................................................. | 8,009 | 7,886 |
Ceded unearned premiums...................................................................................................................................................................................................................... | 1,674 | 1,283 |
Deferred acquisition costs....................................................................................................................................................................................................................... | 3,713 | 3,518 |
Deferred taxes ......................................................................................................................................................................................................................................... | 1,041 | 887 |
Contractholder receivables (net of allowance for expected credit losses of $13 and $16)..................................................................................................................... | 3,076 | 3,010 |
Goodwill ................................................................................................................................................................................................................................................. | 4,060 | 4,066 |
Other intangible assets ............................................................................................................................................................................................................................ | 325 | 336 |
Other assets ............................................................................................................................................................................................................................................. | 4,589 | 4,279 |
Assets held for sale (1)............................................................................................................................................................................................................................ | - | 4,550 |
Total assets.......................................................................................................................................................................................................................................... | $ 143,580 | $ 143,708 |
Liabilities | ||
Claims and claim adjustment expense reserves...................................................................................................................................................................................... | $ 67,226 | $ 65,737 |
Unearned premium reserves ................................................................................................................................................................................................................... | 23,327 | 22,431 |
Contractholder payables.......................................................................................................................................................................................................................... | 3,089 | 3,026 |
Payables for reinsurance premiums ........................................................................................................................................................................................................ | 1,016 | 529 |
Debt......................................................................................................................................................................................................................................................... | 9,068 | 9,267 |
Other liabilities........................................................................................................................................................................................................................................ | 6,733 | 7,282 |
Liabilities held for sale (1)...................................................................................................................................................................................................................... | - | 2,542 |
Total liabilities.................................................................................................................................................................................................................................... | 110,459 | 110,814 |
Shareholders' equity | ||
Common stock (1,750.0 shares authorized; 208.6 and 217.5 shares issued and outstanding) ............................................................................................................... | 26,186 | 25,910 |
Retained earnings.................................................................................................................................................................................................................................... | 58,346 | 54,931 |
Accumulated other comprehensive loss.................................................................................................................................................................................................. | (2,668) | (2,500) |
Treasury stock, at cost (586.8 and 575.9 shares).................................................................................................................................................................................... | (48,743) | (45,447) |
Total shareholders' equity ................................................................................................................................................................................................................ | 33,121 | 32,894 |
Total liabilities and shareholders' equity ........................................................................................................................................................................................ | $ 143,580 | $ 143,708 |
Amounts relate to the Canadian operations divested by the Company in the first quarter of 2026.
(at carrying value, $ in millions) | June 30, Pre-tax Book 2026 Yield (1) | December 31, Pre-tax Book 2025 (2) Yield (1) | |
Investment portfolio | |||
Taxable fixed maturities ............................................................................................................................................................ | $ 64,394 4.19 % | $ 63,051 4.11 % | |
Tax-exempt fixed maturities...................................................................................................................................................... | 28,528 3.39 % | 26,782 3.29 % | |
Total fixed maturities ........................................................................................................................................................... | 92,922 3.94 % | 89,833 3.86 % | |
Non-redeemable preferred stocks .............................................................................................................................................. | 33 1.89 % | 35 1.64 % | |
Common stocks.......................................................................................................................................................................... | 619 | 583 | |
Total equity securities........................................................................................................................................................... | 652 | 618 | |
Real estate investments............................................................................................................................................................ | 884 | 900 | |
Short-term securities ............................................................................................................................................................... | 4,579 3.80 % | 5,716 3.86 % | |
Private equities........................................................................................................................................................................... | 2,752 | 2,749 | |
Hedge funds ............................................................................................................................................................................... | 206 | 212 | |
Real estate partnerships.............................................................................................................................................................. | 824 | 832 | |
Other investments ...................................................................................................................................................................... | 360 | 322 | |
Total other investments ........................................................................................................................................................ | 4,142 | 4,115 | |
Total investments ............................................................................................................................................................. | $ 103,179 | $ 101,182 | |
Net unrealized investment gains (losses), net of tax, included in shareholders' equity..................................................... | $ (1,960) | $ (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) | June 30, 2026 | December 31, 2025 (1) |
Fixed maturities | ||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies......................................................... | $ 3,281 | $ 3,857 |
Obligations of U.S. states and political subdivisions: | ||
Pre-refunded............................................................................................................................................................................. | 443 | 416 |
All other ................................................................................................................................................................................... | 32,614 | 30,962 |
Total.................................................................................................................................................................................... | 33,057 | 31,378 |
Debt securities issued by foreign governments .......................................................................................................................... | 397 | 312 |
Mortgage-backed securities - principally obligations of U.S. Government agencies................................................................. | 12,619 | 13,232 |
Corporate and all other bonds..................................................................................................................................................... | 43,568 | 41,054 |
Total fixed maturities............................................................................................................................................................... | $ 92,922 | $ 89,833 |
Quality Ratings | Amount | % of Total | Amount | % of Total |
Aaa .............................................................................................................................................................................................. | $ 25,838 27.8 % | $ 24,898 27.7 % | ||
Aa................................................................................................................................................................................................ | 33,117 | 35.7 | 33,027 | 36.7 |
A.................................................................................................................................................................................................. | 21,202 | 22.8 | 19,660 | 21.9 |
Baa .............................................................................................................................................................................................. | 11,737 | 12.6 | 11,198 | 12.5 |
Total investment grade............................................................................................................................................................. | 91,894 | 98.9 | 88,783 | 98.8 |
Ba ................................................................................................................................................................................................ | 803 | 0.9 | 812 | 1.0 |
B.................................................................................................................................................................................................. | 196 | 0.2 | 205 | 0.2 |
Caa and lower ............................................................................................................................................................................. | 29 | - | 33 | - |
Total below investment grade.................................................................................................................................................. | 1,028 | 1.1 | 1,050 | 1.2 |
Total fixed maturities.................................................................................................................................................................. | $ 92,922 100.0 % | $ 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..................................................................................................... | 5.0 | 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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Gross investment income | ||||||||
Fixed maturities ........................................................................................................................................... | $ 812 | $ 833 | $ 874 | $ 914 | $ 899 | $ 930 | $ 1,645 | $ 1,829 |
Short-term securities.................................................................................................................................... | 57 | 55 | 73 | 68 | 75 | 53 | 112 | 128 |
Other ............................................................................................................................................................ | 76 | 67 | 101 | 82 | 47 | 100 | 143 | 147 |
945 | 955 | 1,048 | 1,064 | 1,021 | 1,083 | 1,900 | 2,104 | |
Investment expenses.................................................................................................................................... | 15 | 13 | 15 | 10 | 13 | 13 | 28 | 26 |
Net investment income, pre-tax................................................................................................................... | 930 | 942 | 1,033 | 1,054 | 1,008 | 1,070 | 1,872 | 2,078 |
Income taxes................................................................................................................................................ | 167 | 168 | 183 | 187 | 175 | 187 | 335 | 362 |
Net investment income, after-tax................................................................................................................. | $ 763 | $ 774 | $ 850 | $ 867 | $ 833 | $ 883 | $ 1,537 | $ 1,716 |
Effective tax rate.......................................................................................................................................... | 17.9 % | 17.9 % | 17.8 % | 17.7 % | 17.4 % | 17.4 % | 17.9 % 17.4 % | |
Average invested assets (1) (2).................................................................................................................... | $101,000 | $102,173 | $105,655 | $107,932 | $106,666 | $107,067 | $101,634 | $106,843 |
Average yield pre-tax (1)............................................................................................................................. | 3.7 % | 3.7 % | 3.9 % | 3.9 % | 3.8 % | 4.0 % | 3.7 % 3.9 % | |
Average yield after-tax ................................................................................................................................ | 3.0 % | 3.0 % | 3.2 % | 3.2 % | 3.1 % | 3.3 % | 3.0 % 3.2 % | |
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Net realized investment gains (losses) | |||||||
Fixed maturities...................................................................................................... | $ (31) | $ (17) | $ (2) $ (19) | $ (22) | $ (32) | $ (48) $ (54) | |
Equity securities .................................................................................................... | (22) | 20 | 39 8 | 1 | 91 | (2) | 92 |
Other (1)................................................................................................................. | (8) | 3 | (10) (9) | 70 | 1 | (5) | 71 |
Realized investment gains (losses) before tax........................................................ | (61) | 6 | 27 (20) | 49 | 60 | (55) | 109 |
Related taxes .......................................................................................................... | (13) | 1 | 6 (5) | 34 | 12 | (12) 46 | |
Net realized investment gains (losses) ................................................................... | $ (48) | $ 5 | $ 21 $ (15) | $ 15 | $ 48 | $ (43) | $ 63 |
Gross investment gains........................................................................................... | $ 4 | $ 41 | $ 45 $ 13 | $ 277 | $ 101 | $ 45 | $ 378 |
Gross investment losses before impairments ......................................................... | (63) | (35) | (18) (33) | (225) | (32) | (98) (257) | |
Net investment gains (losses) before impairments................................................. | (59) | 6 | 27 (20) | 52 | 69 | (53) | 121 |
Net impairment (charges) recoveries ..................................................................... | (2) | - | - - | (3) | (9) | (2) (12) | |
Net realized investment gains (losses) before tax .................................................. | (61) | 6 | 27 (20) | 49 | 60 | (55) | 109 |
Related taxes .......................................................................................................... | (13) | 1 | 6 (5) | 34 | 12 | (12) 46 | |
Net realized investment gains (losses) ................................................................... | $ (48) | $ 5 | $ 21 $ (15) | $ 15 | $ 48 | $ (43) | $ 63 |
March 31, | June 30, | September 30, December 31, | March 31, | June 30, | |||
($ in millions) | 2025 | 2025 | 2025 2025 | 2026 | 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) | $ (2,477) | ||
Other ...................................................................................................................... | (1) | 2 | (3) (3) | (5) | (1) | ||
Unrealized investment gains (losses) before tax.................................................... | (4,172) | (3,831) | (2,484) (1,862) | (3,008) | (2,478) | ||
Related taxes ......................................................................................................... | (873) | (800) | (514) (384) | (630) | (518) | ||
Balance, end of period............................................................................................ | $ (3,299) | $ (3,031) | $ (1,970) $ (1,478) | $ (2,378) | $ (1,960) | ||
(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) | June 30, 2026 | December 31, 2025 |
Gross reinsurance recoverables on paid and unpaid claims and claim adjustment expenses (1)................................................................................................................................................................................ | $ 4,417 | $ 4,352 |
Gross structured settlements (2).................................................................................................................................................................................................................................................................................. | 2,279 | 2,469 |
Mandatory pools and associations (3) ........................................................................................................................................................................................................................................................................ | 1,455 | 1,485 |
Gross reinsurance recoverables (4)....................................................................................................................................................................................................................................................................... | 8,151 | 8,306 |
Allowance for estimated uncollectible reinsurance (5)............................................................................................................................................................................................................................................... | (142) | (135) |
Less amounts classified as held for sale...................................................................................................................................................................................................................................................................... | - | 285 |
Net reinsurance recoverables ........................................................................................................................................................................................................................................................................ | $ 8,009 | $ 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
June 30, 2026
Swiss Re Group A+ second highest of 16 ratings
$ 650
Berkshire Hathaway A++ highest of 16 ratings
423
Munich Re Group A+ second highest of 16 ratings
326
Sompo Group A+ second highest of 16 ratings
267
Fairfax Financial Group A+ second highest of 16 ratings
241
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
June 30, 2026
Fidelity & Guaranty Life Group A third highest of 16 ratings
$ 624
Genworth Financial Group B- eighth highest of 16 ratings
310
Symetra Financial Corporation A third highest of 16 ratings
170
Brighthouse Financial, Inc A third highest of 16 ratings
156
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 June 30, 2026, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance, $6.03 billion, or 90%, were rated by A.M. Best Company. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 95% were rated A- or better. The remaining 10% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to voluntary pools and 4% were balances from other companies not rated by A.M. Best Company. Certain of the Company's reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.
The Company reports its reinsurance recoverables net of an allowance for estimated uncollectible reinsurance. The allowance is based upon the Company's ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing, disputes, applicable coverage defenses and other relevant factors. For structured settlements, the allowance is also based upon the Company's ongoing review of life insurers' creditworthiness and estimated amounts of coverage that would be available from state guaranty funds if a life insurer defaults. A probability-of-default methodology which reflects current and forecasted economic conditions is used to estimate the amount of uncollectible reinsurance due to credit-related factors and the estimate is reported in an allowance for estimated uncollectible reinsurance. The allowance also includes estimated uncollectible amounts related to dispute risk with reinsurers.
($ in millions)
1Q2025
2Q2025
3Q2025
4Q2025
1Q2026
2Q2026
YTD
2Q2025
YTD
2Q2026
Statutory Reserves for Losses and Loss Adjustment Expenses
Business Insurance
Beginning of period..........................................................................................................................................................
$ 42,909
$ 43,742
$ 44,477
$ 45,148
$ 45,383
$ 45,599
$ 42,909
$ 45,383
Incurred ............................................................................................................................................................................
3,650
3,530
3,614
3,138
3,463
3,138
7,180
6,601
Paid...................................................................................................................................................................................
(2,847)
(2,890)
(2,915)
(2,912)
(2,635)
(2,973)
(5,737) (5,608)
Foreign exchange and other (1)........................................................................................................................................
30
95
(28)
9
(612)
(4)
125 (616)
End of period....................................................................................................................................................................
$ 43,742
$ 44,477
$ 45,148
$ 45,383
$ 45,599
$ 45,760
$ 44,477
$ 45,760
Bond & Specialty Insurance
Beginning of period..........................................................................................................................................................
$ 4,938
$ 5,072
$ 5,249
$ 5,304
$ 5,367
$ 5,331
$ 4,938
$ 5,367
Incurred ............................................................................................................................................................................
430
414
447
457
437
453
844
890
Paid...................................................................................................................................................................................
(325)
(307)
(372)
(396)
(336)
(334)
(632) (670)
Foreign exchange and other (1)........................................................................................................................................
29
70
(20)
2
(137)
(2)
99 (139)
End of period....................................................................................................................................................................
$ 5,072
$ 5,249
$ 5,304
$ 5,367
$ 5,331
$ 5,448
$ 5,249
$ 5,448
Personal Insurance
Beginning of period..........................................................................................................................................................
$ 8,479
$ 9,277
$ 9,346
$ 9,168
$ 8,997
$ 8,285
$ 8,479
$ 8,997
Incurred ............................................................................................................................................................................
3,867
2,787
2,476
2,173
2,410
2,276
6,654
4,686
Paid...................................................................................................................................................................................
(3,069)
(2,767)
(2,635)
(2,357)
(2,213)
(2,334)
(5,836) (4,547)
Foreign exchange and other (1)........................................................................................................................................
-
49
(19)
13
(909)
-
49 (909)
End of period....................................................................................................................................................................
$ 9,277
$ 9,346
$ 9,168
$ 8,997
$ 8,285
$ 8,227
$ 9,346
$ 8,227
Total
Beginning of period..........................................................................................................................................................
$ 56,326
$ 58,091
$ 59,072
$ 59,620
$ 59,747
$ 59,215
$ 56,326
$ 59,747
Incurred ............................................................................................................................................................................
7,947
6,731
6,537
5,768
6,310
5,867
14,678
12,177
Paid...................................................................................................................................................................................
(6,241)
(5,964)
(5,922)
(5,665)
(5,184)
(5,641)
(12,205) (10,825)
Foreign exchange and other (1)........................................................................................................................................
59
214
(67)
24
(1,658)
(6)
273 (1,664)
End of period....................................................................................................................................................................
$ 58,091
$ 59,072
$ 59,620
$ 59,747
$ 59,215
$ 59,435
$ 59,072
$ 59,435
Prior Year Reserve Development: Unfavorable (Favorable)
Business Insurance
Asbestos ........................................................................................................................................................................
$ -
$ -
$ 277
$ -
$ -
$ -
$ -
$ -
All other ........................................................................................................................................................................
(74)
(79)
(152)
(205)
(162)
(319)
(153) (481)
Total Business Insurance (2)...................................................................................................................................
(74)
(79)
125
(205)
(162)
(319)
(153) (481)
Bond & Specialty Insurance..........................................................................................................................................
(67)
(81)
(43)
(30)
(65)
(75)
(148) (140)
Personal Insurance.........................................................................................................................................................
(237)
(155)
(104)
(86)
(186)
(184)
(392) (370)
Total........................................................................................................................................................................
$ (378)
$ (315)
$ (22)
$ (321)
$ (413)
$ (578)
$ (693) $ (991)
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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Asbestos reserves Beginning reserves: | |||||||
Gross ............................................................................................................................................................................. | $ 1,708 | $ 1,636 | $ 1,555 $ 1,798 | $ 1,700 | $ 1,623 | $ 1,708 | $ 1,700 |
Ceded ............................................................................................................................................................................ | (370) | (357) | (318) (352) | (345) | (330) | (370) (345) | |
Net................................................................................................................................................................................. | 1,338 | 1,279 | 1,237 1,446 | 1,355 | 1,293 | 1,338 | 1,355 |
Incurred losses and loss expenses: | |||||||
Gross ............................................................................................................................................................................. | - | - | 327 - | - | - | - | - |
Ceded ............................................................................................................................................................................ | - | - | (50) - | - | - | - | - |
Paid loss and loss expenses: | |||||||
Gross ............................................................................................................................................................................. | 72 | 83 | 84 98 | 77 | 98 | 155 | 175 |
Ceded ............................................................................................................................................................................ | (13) | (39) | (16) (8) | (15) | (20) | (52) (35) | |
Foreign exchange and other: | |||||||
Gross ............................................................................................................................................................................. | - | 2 | - - | - | - | 2 | - |
Ceded ............................................................................................................................................................................ | - | - | - (1) | - | - | - | - |
Ending reserves: | |||||||
Gross ............................................................................................................................................................................. | 1,636 | 1,555 | 1,798 1,700 | 1,623 | 1,525 | 1,555 | 1,525 |
Ceded ............................................................................................................................................................................ | (357) | (318) | (352) (345) | (330) | (310) | (318) (310) | |
Net................................................................................................................................................................................. | $ 1,279 | $ 1,237 | $ 1,446 $ 1,355 | $ 1,293 | $ 1,215 | $ 1,237 | $ 1,215 |
See Glossary of Financial Measures and Description of Reportable Business Segments on pages 35 and 36.
($ in millions) | June 30, 2026 | December 31, 2025 |
Debt Short-term debt | ||
Commercial paper................................................................................................................................................................................................................................ | $ 100 | $ 100 |
7.75% Senior notes due April 15, 2026 ............................................................................................................................................................................................... | - | 200 |
Total short-term debt....................................................................................................................................................................................................................... | 100 | 300 |
Long-term debt | ||
7.625% Junior subordinated debentures due December 15, 2027 ....................................................................................................................................................... | 125 | 125 |
6.375% Senior notes due March 15, 2033 (1) ..................................................................................................................................................................................... | 500 | 500 |
5.05% Senior notes due July 24, 2035 (1) ........................................................................................................................................................................................... | 500 | 500 |
6.75% Senior notes due June 20, 2036 (1)........................................................................................................................................................................................... | 400 | 400 |
6.25% Senior notes due June 15, 2037 (1)........................................................................................................................................................................................... | 800 | 800 |
5.35% Senior notes due November 1, 2040 (1)................................................................................................................................................................................... | 750 | 750 |
4.60% Senior notes due August 1, 2043 (1) ........................................................................................................................................................................................ | 500 | 500 |
4.30% Senior notes due August 25, 2045 (1) ...................................................................................................................................................................................... | 400 | 400 |
8.50% Junior subordinated debentures due December 15, 2045 ......................................................................................................................................................... | 56 | 56 |
3.75% Senior notes due May 15, 2046 (1)........................................................................................................................................................................................... | 500 | 500 |
8.312% Junior subordinated debentures due July 1, 2046................................................................................................................................................................... | 73 | 73 |
4.00% Senior notes due May 30, 2047 (1)........................................................................................................................................................................................... | 700 | 700 |
4.05% Senior notes due March 7, 2048 (1) ......................................................................................................................................................................................... | 500 | 500 |
4.10% Senior notes due March 4, 2049 (1) ......................................................................................................................................................................................... | 500 | 500 |
2.55% Senior notes due April 27, 2050 (1) ......................................................................................................................................................................................... | 500 | 500 |
3.05% Senior notes due June 8, 2051 (1)............................................................................................................................................................................................. | 750 | 750 |
5.45% Senior notes due May 25, 2053 (1)........................................................................................................................................................................................... | 750 | 750 |
5.70% Senior notes due July 24, 2055 (1) ........................................................................................................................................................................................... | 750 | 750 |
Total long-term debt ....................................................................................................................................................................................................................... | 9,054 | 9,054 |
Unamortized fair value adjustment...................................................................................................................................................................................................... | 30 | 31 |
Unamortized debt issuance costs ......................................................................................................................................................................................................... | (116) | (118) |
8,968 | 8,967 | |
Total debt....................................................................................................................................................................................................................................... | 9,068 | 9,267 |
Common equity (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity).................................................................. | 35,081 | 34,372 |
Total capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity)........................................................................ | $ 44,149 | $ 43,639 |
Total debt to capital (excluding net unrealized investment gains (losses), net of tax, included in shareholders' equity)........................................................... | 20.5 % | 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) | June 30, 2026 (1) | December 31, 2025 |
Statutory capital and surplus............................................................................................................................................................................................................... | $ 31,433 | $ 31,064 |
GAAP adjustments ............................................................................................................................................................................................................................... | ||
Goodwill and intangible assets ............................................................................................................................................................................................................ | 3,429 | 3,640 |
Investments .......................................................................................................................................................................................................................................... | (1,872) | (1,238) |
Noninsurance companies ..................................................................................................................................................................................................................... | (4,581) | (4,876) |
Deferred acquisition costs.................................................................................................................................................................................................................... | 3,568 | 3,478 |
Deferred federal income tax................................................................................................................................................................................................................. | (240) | (446) |
Current federal income tax................................................................................................................................................................................................................... | (6) | (6) |
Reinsurance recoverables..................................................................................................................................................................................................................... | 156 | 41 |
Furniture, equipment & software......................................................................................................................................................................................................... | 923 | 948 |
Agents balances ................................................................................................................................................................................................................................... | 229 | 182 |
Other .................................................................................................................................................................................................................................................... | 82 | 107 |
Total GAAP adjustments..................................................................................................................................................................................................................... | 1,688 | 1,830 |
GAAP shareholders' equity ................................................................................................................................................................................................................. | $ 33,121 | $ 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 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Cash flows from operating activities | ||||||||
Net income................................................................................................................................................... | $ 395 | $ 1,509 | $ 1,888 | $ 2,496 | $ 1,711 | $ 2,208 | $ 1,904 | $ 3,919 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Net realized investment (gains) losses...................................................................................................... | 61 | (6) | (27) | 20 | (49) | (60) | 55 (109) | |
Depreciation and amortization.................................................................................................................. | 188 | 164 | 166 | 162 | 193 | 170 | 352 | 363 |
Deferred federal income tax expense (benefit)......................................................................................... | 31 | (83) | 320 | (58) | 51 | (58) | (52) (7) | |
Amortization of deferred acquisition costs............................................................................................... | 1,778 | 1,802 | 1,849 | 1,837 | 1,766 | 1,786 | 3,580 | 3,552 |
Equity in income from other investments................................................................................................. | (53) | (42) | (74) | (57) | (23) | (75) | (95) (98) | |
Premiums receivable................................................................................................................................. | (459) | (438) | 412 | 370 | (434) | (961) | (897) (1,395) | |
Reinsurance recoverables ......................................................................................................................... | (97) | 78 | (250) | 132 | (108) | (23) | (19) (131) | |
Deferred acquisition costs ........................................................................................................................ | (1,822) | (1,917) | (1,877) | (1,757) | (1,837) | (1,912) | (3,739) (3,749) | |
Claims and claim adjustment expense reserves........................................................................................ | 1,818 | 725 | 845 | (88) | 1,211 | 319 | 2,543 | 1,530 |
Unearned premium reserves ..................................................................................................................... | 419 | 495 | 331 | (661) | 351 | 559 | 914 | 910 |
Other ......................................................................................................................................................... | (899) | 47 | 644 | 289 | (634) | (37) | (852) (671) | |
Net cash provided by operating activities........................................................................................ | 1,360 | 2,334 | 4,227 | 2,685 | 2,198 | 1,916 | 3,694 | 4,114 |
Cash flows from investing activities | ||||||||
Proceeds from maturities of fixed maturities .............................................................................................. | 2,801 | 3,071 | 2,886 | 2,902 | 3,014 | 2,963 | 5,872 | 5,977 |
Proceeds from sales of investments: | ||||||||
Fixed maturities ........................................................................................................................................ | 253 | 348 | 178 | 53 | 251 | 134 | 601 | 385 |
Equity securities ....................................................................................................................................... | 68 | 32 | 31 | 29 | 52 | 64 | 100 | 116 |
Real estate investments............................................................................................................................. | - | - | - | - | - | 17 | - | 17 |
Other investments..................................................................................................................................... | 63 | 79 | 68 | 111 | 60 | 65 | 142 | 125 |
Purchases of investments: | ||||||||
Fixed maturities ........................................................................................................................................ | (4,296) | (4,847) | (5,376) | (4,252) | (5,356) | (4,799) | (9,143) (10,155) | |
Equity securities ....................................................................................................................................... | (25) | (35) | (34) | (32) | (25) | (31) | (60) (56) | |
Real estate investments............................................................................................................................. | (7) | (6) | (10) | (25) | (12) | (10) | (13) (22) | |
Other investments..................................................................................................................................... | (96) | (80) | (86) | (84) | (69) | (112) | (176) (181) | |
Net sales (purchases) of short-term securities ............................................................................................. | 239 | (215) | (2,051) | 1,082 | (945) | 2,081 | 24 | 1,136 |
Securities transactions in the course of settlement ...................................................................................... | 308 | 64 | (4) | (224) | 430 | (400) | 372 | 30 |
Proceeds from the divestiture of the Canadian business ............................................................................. | - | - | - | - | 2,384 | - | - | 2,384 |
Other ............................................................................................................................................................ | (116) | (127) | (155) | (135) | (119) | (137) | (243) (256) | |
Net cash used in investing activities ................................................................................................. | (808) | (1,716) | (4,553) | (575) | (335) | (165) | (2,524) (500) | |
($ in millions) | 1Q2025 | 2Q2025 | 3Q2025 | 4Q2025 | 1Q2026 | 2Q2026 | YTD 2Q2025 | YTD 2Q2026 |
Cash flows from financing activities | ||||||||
Treasury stock acquired - share repurchase authorizations......................................................................... | (250) | (500) | (619) | (1,635) | (1,785) | (1,313) | (750) (3,098) | |
Treasury stock acquired - net employee share-based compensation........................................................... | (102) | (22) | (1) | (2) | (149) | (5) | (124) (154) | |
Dividends paid to shareholders.................................................................................................................... | (240) | (250) | (247) | (242) | (237) | (263) | (490) (500) | |
Payment of debt........................................................................................................................................... | - | - | - | - | - | (200) | - (200) | |
Issuance of debt ........................................................................................................................................... | - | - | 1,233 | - | - | - | - | - |
Issuance of common stock - employee share options.................................................................................. | 57 | 70 | 36 | 51 | 86 | 38 | 127 | 124 |
Net cash provided by (used in) financing activities ............................................................................. | (535) | (702) | 402 | (1,828) | (2,085) | (1,743) | (1,237) (3,828) | |
Effect of exchange rate changes on cash and restricted cash ...................................................................... | 8 | 19 | (6) | 2 | (5) | (2) | 27 (7) | |
Net increase (decrease) in cash and restricted cash..................................................................................... | 25 | (65) | 70 | 284 | (227) | 6 | (40) (221) | |
Cash and restricted cash at beginning of period.......................................................................................... | 699 | 724 | 659 | 729 | 842 | 615 | 699 | 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 | $ 621 | $ 659 | $ 621 |
Supplemental disclosure of cash flow information | ||||||||
Income taxes paid ........................................................................................................................................ | $ 24 | $ 538 | $ 194 | $ 518 | $ 12 | $ 1,100 | $ 562 | $ 1,112 |
Interest paid ................................................................................................................................................. | $ 61 | $ 136 | $ 60 | $ 136 | $ 94 | $ 136 | $ 197 | $ 230 |
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.
Core income (loss) is consolidated net income (loss) excluding the after-tax impact of net realized investment gains (losses), discontinued operations, the effect of a change in tax laws and tax rates at enactment, and cumulative effect of changes in accounting principles when applicable. Segment income (loss) is determined in the same manner as core income (loss) on a segment basis. Management uses segment income (loss) to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core income (loss) when analyzing the results and trends of insurance companies. Core income (loss) per share is core income (loss) on a per common share basis. Average shareholders' equity is (a) the sum of total shareholders' equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Adjusted shareholders' equity is shareholders' equity excluding net realized investment gains (losses), net of tax, net unrealized investment gains (losses), net of tax, included in shareholders' equity for the periods presented and the effect of a change in tax laws and tax rates at enactment (excluding the portion related to net unrealized investment gains (losses)). Adjusted average shareholders' equity is (a) the sum of total adjusted shareholders' equity at the beginning and end of each of the quarters for the period presented divided by (b) the number of quarters in the period presented times two. Reconciliation of Shareholders' Equity to Adjusted Shareholders' EquityAs of
($ in millions) | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 |
Shareholders' equity..................................................................................................................................................................................................... | $ 28,191 | $ 29,518 | $ 31,609 | $ 32,894 | $ 31,986 | $ 33,121 |
Adjustments: | ||||||
Net unrealized investment (gains) losses, net of tax, included in shareholders' equity................................................................................... | 3,299 | 3,031 | 1,970 | 1,478 | 2,378 | 1,960 |
Net realized investment (gains) losses, net of tax ................................................................................................................................................. | 48 | 43 | 22 | 37 | (15) | (63) |
Adjusted shareholders' equity................................................................................................................................................................................... | $ 31,538 | $ 32,592 | $ 33,601 | $ 34,409 | $ 34,349 | $ 35,018 |
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.
Net favorable (unfavorable) prior year loss reserve development is the increase or decrease in incurred claims and claim adjustment expenses as a result of the re-estimation of claims and claim adjustment expense reserves at successive valuation dates for a given group of claims, which may be related to one or more prior years. In the opinion of the Company's management, a discussion of loss reserve development is meaningful to users of the financial statements as it allows them to assess the impact between prior and current year development on incurred claims and claim adjustment expenses, net and core income (loss), and changes in claims and claim adjustment expense reserve levels from period to period.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.
Gross written premiums reflect the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the insurance contract. Net written premiums reflect gross written premiums less premiums ceded to reinsurers. Book value per share is total common shareholders' equity divided by the number of common shares outstanding. Adjusted book value per share is total common shareholders' equity excluding net unrealized investment gains and losses, net of tax, included in shareholders' equity, divided by the number of common shares outstanding. In the opinion of the Company's management, adjusted book value per share is useful in an analysis of a property casualty company's book value per share as it removes the effect of changing prices on invested assets, (i.e., net unrealized investment gains (losses), net of tax) which do not have an equivalent impact on unpaid claims and claim adjustment expense reserves. Total capital is the sum of total shareholders' equity and debt. Debt-to-capital ratio excluding net unrealized gain (loss) on investments, net of tax, included in shareholders' equity is the ratio of debt to total capital excluding net unrealized investment gains and losses, net of tax, included in shareholders' equity. In the opinion of the Company's management, the debt to capital ratio is useful in an analysis of the Company's financial leverage. Statutory capital and surplus represents the excess of an insurance company's admitted assets over its liabilities, including loss reserves, as determined in accordance with statutory accounting practices. Travelers has organized its businesses into the following reportable business segments: Business Insurance - Business Insurance offers a broad array of property and casualty insurance products and services to its customers, primarily in the United States, as well as in the United Kingdom, the Republic of Ireland and throughout other parts of the world, including as a corporate member of Lloyd's. Business Insurance is organized as follows: Select Accounts; Middle Market including Commercial Accounts, Construction, Technology & Life Sciences, Public Sector Services, Energy, Excess Casualty, Inland Marine, Ocean Marine, and Boiler & Machinery; National Accounts; National Property and Other including National Property, Northland Transportation, Agribusiness, Northfield and National Programs; and International, including Global Services and a 20% quota-share reinsurance agreement with subsidiaries of Fidelis Insurance Holdings Limited. Business Insurance also includes Simply Business, a leading provider of small business insurance policies primarily in the United Kingdom, and Business Insurance Other, which primarily comprises the Company's asbestos and environmental liabilities and other runoff operations, including certain assumed reinsurance arrangements. Bond & Specialty Insurance - Bond & Specialty Insurance offers surety, fidelity, management liability, professional liability, and other property and casualty coverages and related risk management services to its customers, primarily in the United States, and certain surety and/or specialty insurance products in Canada, the United Kingdom, the Republic of Ireland and Brazil (through a joint venture as described below), in each case utilizing various degrees of financially-based underwriting approaches. The range of coverages includes performance, payment and commercial surety bonds for construction and general commercial enterprises; management liability coverages including directors' and officers' liability, employment practices liability, fidelity liability, fiduciary liability and cyber risk for public corporations, private companies, not-for-profit organizations and financial institutions; professional liability coverage for a variety of professionals including, among others, lawyers and design professionals; in the United States only, property, workers' compensation, auto and general liability for financial institutions; and transactional liability coverages to public and private companies.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.
Personal Insurance - Personal Insurance offers a broad range of property and casualty insurance products and services in the United States covering individuals' personal risks. The primary products of automobile and homeowners insurance are complemented by a broad suite of related coverages.