Travelers Third-Quarter Premiums Unexpectedly Rise as Catastrophe Losses Mount

11:06 AM EDT, 10/16/2026 (MT Newswires) -- Travelers' (TRV) third-quarter earnings and net written premiums unexpectedly increased year over year, although the property and casualty insurer incurred higher catastrophe losses. The company on Friday reported core income of $9.18 a share for the September quarter, up from $8.14 the year before, defying the consensus on FactSet that called for a decrease to $7.39. The result partly benefited from higher net investment income, the firm said. Catastrophe losses rose to $538 million in the quarter from $402 million in the prior-year period, consisting mainly of tornadoes and hailstorms in the central US, Chief Financial Officer Dan Frey said during an earnings call, according to a FactSet transcript. Net written premiums ticked up to $11.48 billion from $11.47 billion, versus the Street's view for a decline to $11.36 billion. Overall revenue edged down to $12.41 billion from $12.47 billion on a yearly basis. The stock slipped 0.1% in Friday trade, but has gained 32% year-to-date. Net written premiums in the personal insurance business fell 7% to $4.4 billion, with last year's figure including $167 million related to the company's Canadian operations that it divested in the first quarter. Business insurance premiums improved 3% to $5.87 billion, while bond and specialty insurance gained 12%. "We once again delivered excellent financial results on a consolidated basis and in each of our three segments," Frey said on the call. "Both the quarter and the trailing 12 months reflect excellent underwriting results coupled with strong investment income." Travelers' combined ratio, which indicates an underwriting profit if maintained under 100%, moved to 86.8% from 87.3% a year earlier. For the ongoing quarter, Travelers expects after-tax net investment income from fixed-income investments, including short-term securities, of about $875 million, up "slightly" from its previous guidance, Frey said. The company projects the metric to total about $3.3 billion in 2026 and exceed $3.6 billion in 2027. Earlier in the week, insurer Progressive (PGR) reported a 4% annual increase in its third-quarter net written premiums. Allstate (ALL) and American International Group (AIG) are expected to release their latest quarterly results next month. In a client note sent on Monday, Oppenheimer raised its third-quarter EPS estimates for all P&C carriers and brokers under its coverage, including Travelers, by about 9% at the median driven by lower catastrophe loss estimates. Price: 385.27, Change: +1.38, Percent Change: +0.36