Travelers : Second Quarter 2026 Statistical Supplement

About this update from The Travelers Companies, Inc.

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 Adjustments to net and core income and weighted average shares for net and core income EPS calculations: 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. S ee 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 Fixed Maturities Quality Characteristics (2) June 30, 2026 December 31, 2025 (1) 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 ..............................................................................................................................

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