Travelers Companies, Inc. (NYSE:TRV) shares fell Thursday after the insurer reported first-quarter 2026 results.
Earnings Details
Revenue rose 1% year over year to $11.92 billion, topping analyst estimates of $10.63 billion. Adjusted earnings per share came in at $7.71, ahead of the Street’s $7.08 estimate.
Core income surged 283% to $1.70 billion, driven by higher net investment income and lower catastrophe losses.
Net realized investment gains totaled $49 million pre-tax ($15 million after tax), compared with losses of $61 million pre-tax ($48 million after tax) a year earlier.
Net investment income increased 8% to $1.008 billion pre-tax, supported by higher average invested assets and improved yields in the long-term fixed-income portfolio.
Net written premiums declined 2% to $10.34 billion. Net written premiums in the prior year quarter included $223 million related to the Canadian operations divested by the company in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased slightly over the prior year quarter.
The combined ratio improved by 13.9 points to 88.6%, reflecting lower catastrophe losses and modest favorable prior-year reserve development.
Adjusted book value per share, excluding net unrealized investment losses, rose 2% from year-end 2025 to $161.60.
Segment Performance
In Business Insurance, net written premiums rose 2% to $5.79 billion, led by growth in Select Accounts and Middle Market lines. Renewal premium change was 5.8%, while retention increased to 86%.
Bond & Specialty Insurance reported net written premiums of $1.1 billion, up 7%, supported by growth in management liability renewals. Retention stood at 87%.
Personal Insurance net written premiums fell 9% to $3.5 billion, reflecting declines across businesses.
Capital Return
The company repurchased 6 million shares for $1.8 billion during the quarter. As of March 31, it had $5.215 billion remaining under its share repurchase authorization.
Travelers also raised its quarterly dividend 14% to $1.25 per share, payable June 30, 2026, to shareholders of record as of June 10.
Management Commentary
Chairman and Chief Executive Officer Alan Schnitzer said the company is “off to an excellent start for 2026,” citing consistent growth, strong returns and disciplined risk management across market conditions.
TRV Price Action: Travelers Companies shares were down 0.59% at $297.57 at the time of publication on Thursday, according to Benzinga Pro data.
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