The Travelers Companies Inc. (NYSE: TRV) reported strong third-quarter results, causing the stock to recover earlier losses and trade higher on Friday. The insurer beat analyst estimates for both earnings and revenue.
For the third quarter, adjusted earnings were $9.18 per share, surpassing the analyst consensus estimate of $7.42. Revenue came in at $12.41 billion, slightly down from the previous year but exceeding expectations of $11.38 billion. Core income increased 4% year over year to $1.95 billion, supported by favorable prior-year reserve development and investment income.
Travelers returned $1.8 billion to shareholders during the quarter, consisting of $1.5 billion in share repurchases and $261 million in dividends. Adjusted book value per share climbed 15% to $172.47, while operating cash flow reached $3.9 billion for the quarter and $8 billion year to date.
Despite an increase in catastrophe losses to $538 million before tax (driven by tornadoes and hailstorms in the central U.S.), the company’s combined ratio improved to 86.8% from 87.3%. Net written premiums remained flat at $11.5 billion, while net investment income increased 6% to $1.1 billion before tax.
Performance varied by segment. Business Insurance reported record third-quarter income of $1.04 billion, with net written premiums rising 4% to $5.9 billion. Bond & Specialty Insurance generated record income of $309 million, with net written premiums climbing 12% to $1.2 billion. Personal Insurance reported income of $706 million on $4.4 billion in net written premiums.
Looking ahead, Travelers forecasts after-tax fixed-income investment income of $875 million for the fourth quarter, bringing the 2026 total to $3.3 billion. The company expects this figure to exceed $3.6 billion in 2027. A cyber reinsurance agreement effective October 1 is expected to reduce net written premiums by $165 million in the fourth quarter and $230 million in 2027. The stock was trading at $387.76 at the time of publication, approaching its 52-week high of $398.69.
