Travelers’ profit surges while premiums inch up

Travelers reported a nearly 50% jump in profit for the third quarter, driven by lower catastrophe losses and higher investment income, but premium growth slowed as some lines saw decreases, led by large-account property insurance.

The insurer, viewed as a bellwether for the sector, reported $1.89 billion in net income for the quarter, a 49.8% increase over the same period last year.

Pre-tax catastrophe losses for the quarter, mainly from tornadoes and hail-related damage in the central United States, were $402 million for the quarter, compared with $939 million in the same period last year.

The insurer’s combined ratio improved to 87.3% for the quarter, compared with 93.2% in last year’s third quarter.

Net investment income rose 14.3% to $1.03 billion.

Net written premiums rose to $11.47 billion, a 1.4% increase compared to the same period last year.

Its business insurance segment reported $5.68 billion in net written premiums, a 2.9% increase over the 2024 period. However, within the segment, its national property business reported $841 million in premiums for the quarter, down 6.1%.

“The declining premium volume in property continues to be a large-account dynamic. In fact, we grew property in both middle market and small commercial,” Travelers Chairman and CEO Alan Schnitzer said on a call with analysts Thursday.

Travelers will maintain underwriting discipline on property business, he said.

Renewal premiums rose 7% across the business insurance segment, said Greg Toczydlowski, president of business insurance.

“Price increases remain broad-based as we achieved higher prices on more than three-quarters of our middle-market accounts,” he said.

Travelers’ bond and specialty insurance segment reported net written premiums of $1.08 billion, up less than 1%. Within the segment, domestic management liability and surety premiums edged down to $613 million and $342 million, respectively, though international business grew.

Travelers’ share price was down nearly 3% in a broadly falling market at Thursday’s close.