Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(in millions, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Revenues
Premiums	$	10,753	$	10,921	$	21,358	$	21,631
Net investment income	1,070		942		2,078		1,872
Fee income	126		124		247		243
Net realized investment gains (losses)	60		6		109		(55)
Other revenues	144		123		285		235
Total revenues	12,153		12,116		24,077		23,926
Claims and expenses
Claims and claim adjustment expenses	5,922		6,789		12,304		14,795
Amortization of deferred acquisition costs	1,786		1,802		3,552		3,580
General and administrative expenses	1,565		1,545		3,106		3,004
Interest expense	113		99		229		198
Total claims and expenses	9,386		10,235		19,191		21,577
Income before income taxes	2,767		1,881		4,886		2,349
Income tax expense	559		372		967		445
Net income	$	2,208	$	1,509	$	3,919	$	1,904
Net income per share
Basic	$	10.41	$	6.63	$	18.28	$	8.35
Diluted	$	10.26	$	6.53	$	18.01	$	8.23
Weighted average number of common shares outstanding
Basic	210.5		225.9		212.9		226.4
Diluted	213.6		229.3		216.0		229.7

Cash dividends declared per common share	$	1.25	$	1.10	$	2.35	$	2.15

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHE****NSIVE INCOME (Unaudited)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	2,208	$	1,509	$	3,919	$	1,904
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	531		341		(615)		777
Having credit losses recognized in the consolidated statement of income	(1)		—		(1)		1
Net changes in benefit plan assets and obligations	(2)		—		(10)		—
Net changes in unrealized foreign currency translation	(9)		228		318		289
Other comprehensive income (loss) before income taxes	519		569		(308)		1,067
Income tax expense (benefit)	109		86		(140)		185
Other comprehensive income (loss), net of taxes	410		483		(168)		882
Comprehensive income	$	2,618	$	1,992	$	3,751	$	2,786

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in millions)


	June 30, 2026		December 31, 2025
	(Unaudited)
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	—		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	—		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

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Common stock
Balance, beginning of period	$	26,092	$	25,584	$	25,910	$	25,452
Employee share-based compensation	34		87		129		136
Compensation amortization under share-based plans and other changes	60		57		147		140
Balance, end of period	26,186		25,728		26,186		25,728
Retained earnings
Balance, beginning of period	56,404		49,784		54,931		49,630


Net income	2,208		1,509		3,919		1,904
Dividends	(266)		(252)		(504)		(493)

Balance, end of period	58,346		51,041		58,346		51,041
Accumulated other comprehensive loss, net of tax
Balance, beginning of period	(3,078)		(4,568)		(2,500)		(4,967)


Other comprehensive income (loss)	410		483		(168)		882
Balance, end of period	(2,668)		(4,085)		(2,668)		(4,085)
Treasury stock, at cost
Balance, beginning of period	(47,432)		(42,609)		(45,447)		(42,251)
Treasury stock acquired — share repurchase authorizations	(1,300)		(500)		(3,100)		(750)
Net shares acquired related to employee share-based compensation plans	(11)		(57)		(196)		(165)
Balance, end of period	(48,743)		(43,166)		(48,743)		(43,166)
Total shareholders’ equity	$	33,121	$	29,518	$	33,121	$	29,518
Common shares outstanding
Balance, beginning of period	212.6		226.6		217.5		226.6
Treasury stock acquired — share repurchase authorizations	(4.3)		(1.8)		(10.3)		(2.8)
Net shares issued under employee share-based compensation plans	0.3		0.3		1.4		1.3
Balance, end of period	208.6		225.1		208.6		225.1

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

(in millions)


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities
Net income	$	3,919	$	1,904
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(109)		55
Depreciation and amortization	363		352
Deferred federal income tax benefit	(7)		(52)
Amortization of deferred acquisition costs	3,552		3,580
Equity in income from other investments	(98)		(95)
Premiums receivable	(1,395)		(897)
Reinsurance recoverables	(131)		(19)
Deferred acquisition costs	(3,749)		(3,739)
Claims and claim adjustment expense reserves	1,530		2,543
Unearned premium reserves	910		914
Other	(671)		(852)
Net cash provided by operating activities	4,114		3,694
Cash flows from investing activities
Proceeds from maturities of fixed maturities	5,977		5,872
Proceeds from sales of investments:
Fixed maturities	385		601
Equity securities	116		100
Real estate investments	17		—
Other investments	125		142
Purchases of investments:
Fixed maturities	(10,155)		(9,143)
Equity securities	(56)		(60)
Real estate investments	(22)		(13)
Other investments	(181)		(176)
Net sales of short-term securities	1,136		24
Securities transactions in the course of settlement	30		372

Proceeds from the divestiture of the Canadian business	2,384		—
Other	(256)		(243)
Net cash used in investing activities	(500)		(2,524)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorizations	(3,098)		(750)
Treasury stock acquired — net employee share-based compensation	(154)		(124)
Dividends paid to shareholders	(500)		(490)
Payment of debt	(200)		—

Issuance of common stock — employee share options	124		127
Net cash used in financing activities	(3,828)		(1,237)
Effect of exchange rate changes on cash and restricted cash	(7)		27
Net decrease in cash and restricted cash	(221)		(40)
Cash and restricted cash at beginning of year	842		699
Cash and restricted cash at end of period	$	621	$	659
Supplemental disclosure of cash flow information
Income taxes paid	$	1,112	$	562
Interest paid	$	230	$	197

The accompanying notes are an integral part of the consolidated financial statements.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Basis of Presentation

The interim consolidated financial statements include the accounts of The Travelers Companies, Inc. (together with its subsidiaries, the Company). These financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP) and are unaudited. In the opinion of the Company’s management, all adjustments necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. All material intercompany transactions and balances have been eliminated. The accompanying interim consolidated financial statements and related notes should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the Company’s 2025 Annual Report).

The preparation of the interim consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the interim consolidated financial statements and the reported amounts of revenues and claims and expenses during the reporting period. Actual results could differ from those estimates. To the extent that the Company changes its accounting for, or presentation of, items in the financial statements, the presentation of such amounts in prior periods is changed to conform to the current period presentation, if appropriate, and disclosed, if material.

On May 27, 2025, the Company entered into an agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. The assets and liabilities of the Canadian personal insurance business and the majority of its Canadian commercial insurance business were classified as held for sale in the consolidated balance sheet as of December 31, 2025. The Company retained its surety business in Canada. The sale closed on January 2, 2026.

The major classes of assets and liabilities classified as held for sale were as follows:


	December 31, 2025
Assets
Fixed maturities, available for sale, at fair value	$	3,243
Premiums receivable	263
Reinsurance recoverables	285
Goodwill	208
Remaining assets held for sale	551
Total assets held for sale	$	4,550
Liabilities
Claims and claim adjustment expense reserves	$	1,909
Unearned premium reserves	514
Remaining liabilities held for sale	119
Total liabilities held for sale	$	2,542

Accounting Standards Not Yet Adopted

In September 2025, the Financial Accounting Standards Board (FASB) issued updated guidance on the accounting for internal-use software costs. The updated guidance removes all references to software development project stages so that the guidance is neutral to different software development methods and allows for the application of iterative software development methods such as agile. The updated guidance requires that an entity capitalize software costs when both: 1) management has authorized and committed to the funding of the software project, and 2) it is probable that the project will be completed, and the software will be used to perform its intended function. Additionally, the updated guidance clarifies that internal and external training costs and maintenance costs must be expensed as incurred.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES, Continued

The updated guidance is effective for the quarter ended March 31, 2028, and can be applied on a prospective, modified, or retrospective transition approach. Early adoption is permitted. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity.

In May 2026, the FASB issued updated guidance on the accounting for environmental credits and environmental credit obligations. Under the updated guidance, an entity is required to recognize an environmental credit as an asset when it is probable that the environmental credit will be: 1) used to settle an environmental credit obligation, 2) transferred in an exchange transaction, or 3) used in a nonreciprocal transfer. The costs to obtain all other environmental credits are expensed when incurred (for example, environmental credits acquired to satisfy a voluntary net zero emission initiative). The updated guidance is effective for the quarter ending March 31, 2028, and is applied on a retrospective basis with a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the annual period of adoption. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity.

2. SEGMENT INFORMATION

Nature of Operations

The Company’s results are reported in the following three business segments — Business Insurance, Bond & Specialty Insurance and Personal Insurance. These segments reflect the manner in which the Company’s businesses are currently managed and represent an aggregation of products and services based on the type of customer, how the business is marketed and the manner in which risks are underwritten. For more information regarding the Company’s nature of operations, see the “Nature of Operations*”* section of note 1 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

The following tables summarize the components of the Company’s revenues, income and total assets by reportable business segments.


(for the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Premiums	$	5,551	$	1,056	$	4,146	$	10,753
Net investment income	762		113		195		1,070
Fee income	117		—		9		126
Other revenues	113		6		25		144
Total segment revenues (1)	6,543		1,175		4,375		12,093
Claims and claim adjustment expenses	3,188		458		2,276		5,922
Amortization of deferred acquisition costs	945		204		637		1,786
General and administrative expenses	912		218		422		1,552
Income tax expense	300		61		213		574
Segment income (1)	$	1,198	$	234	$	827	$	2,259

2025
Premiums	$	5,545	$	1,021	$	4,355	$	10,921
Net investment income	662		107		173		942
Fee income	111		—		13		124
Other revenues	95		5		23		123
Total segment revenues (1)	6,413		1,133		4,564		12,110
Claims and claim adjustment expenses	3,584		418		2,787		6,789
Amortization of deferred acquisition costs	944		195		663		1,802
General and administrative expenses	875		214		444		1,533
Income tax expense	197		62		136		395
Segment income (1)	$	813	$	244	$	534	$	1,591

(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in “interest expense and other.” Segment income for reportable business segments excludes the after-tax impact of net realized investment gains (losses) and income (loss) from “interest expense and other.”

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(for the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Premiums	$	11,044	$	2,074	$	8,240	$	21,358
Net investment income	1,470		226		382		2,078
Fee income	228		—		19		247
Other revenues	217		11		57		285
Total segment revenues (1)	12,959		2,311		8,698		23,968
Claims and claim adjustment expenses	6,719		899		4,686		12,304
Amortization of deferred acquisition costs	1,883		398		1,271		3,552
General and administrative expenses	1,824		437		819		3,080
Income tax expense	496		89		391		976
Segment income (1)	$	2,037	$	488	$	1,531	$	4,056

2025
Premiums	$	11,010	$	2,016	$	8,605	$	21,631
Net investment income	1,318		209		345		1,872
Fee income	219		—		24		243
Other revenues	177		11		47		235
Total segment revenues (1)	12,724		2,236		9,021		23,981
Claims and claim adjustment expenses	7,289		852		6,654		14,795
Amortization of deferred acquisition costs	1,861		382		1,337		3,580
General and administrative expenses	1,722		419		840		2,981
Income tax expense	356		119		30		505
Segment income (1)	$	1,496	$	464	$	160	$	2,120

Prior year reserve development and catastrophe losses by reportable business segments were as follows:


(for the three months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Net favorable prior year reserve development	$	319	$	75	$	184	$	578
Catastrophe losses	$	238	$	4	$	276	$	518
2025
Net favorable prior year reserve development	$	79	$	81	$	155	$	315
Catastrophe losses	$	368	$	5	$	554	$	927

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(for the six months ended June 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Net favorable prior year reserve development	$	481	$	140	$	370	$	991
Catastrophe losses	$	617	$	12	$	650	$	1,279
2025
Net favorable prior year reserve development	$	153	$	148	$	392	$	693
Catastrophe losses	$	877	$	24	$	2,292	$	3,193

The following tables present the Company’s amortization and depreciation expense by reportable business segment (excluding the amortization of deferred acquisition costs, which is disclosed separately in the table above with segment income by reportable business segment).


(for the three months ended June 30, in millions)	2026		2025
Business Insurance	$	101	$	100
Bond & Specialty Insurance	24		18
Personal Insurance	43		45
Total	$	168	$	163


(for the six months ended June 30, in millions)	2026		2025
Business Insurance	$	215	$	213
Bond & Specialty Insurance	51		41
Personal Insurance	93		95
Total	$	359	$	349

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

Business Segment Reconciliations


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	846	$	841	$	1,677	$	1,664
Commercial automobile	1,053		968		2,077		1,910
Commercial property	910		960		1,817		1,897
General liability	886		862		1,776		1,723
Commercial multi-peril	1,496		1,435		2,961		2,835
Other	17		17		34		36
Total Domestic	5,208		5,083		10,342		10,065
International	343		462		702		945
Total Business Insurance	5,551		5,545		11,044		11,010
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	406		367		791		725
General liability	463		459		918		911
Other	60		59		119		117
Total Domestic	929		885		1,828		1,753
International	127		136		246		263
Total Bond & Specialty Insurance	1,056		1,021		2,074		2,016
Personal Insurance:
Domestic:
Automobile	1,897		1,980		3,789		3,944
Homeowners and Other	2,249		2,203		4,451		4,324
Total Domestic	4,146		4,183		8,240		8,268
International	—		172		—		337
Total Personal Insurance	4,146		4,355		8,240		8,605
Total earned premiums	10,753		10,921		21,358		21,631
Net investment income	1,070		942		2,078		1,872
Fee income	126		124		247		243
Other revenues	144		123		285		235
Total segment revenues	12,093		12,110		23,968		23,981

Net realized investment gains (losses)	60		6		109		(55)
Total revenues	$	12,153	$	12,116	$	24,077	$	23,926
Income reconciliation, net of tax
Total segment income	$	2,259	$	1,591	$	4,056	$	2,120
Interest Expense and Other (1)	(99)		(87)		(200)		(173)
Core income	2,160		1,504		3,856		1,947
Net realized investment gains (losses)	48		5		63		(43)

Net income	$	2,208	$	1,509	$	3,919	$	1,904

(1)The primary component of Interest Expense and Other was after-tax interest expense of $89 million and $78 million for the three months ended June 30, 2026 and 2025, respectively, and $181 million and $156 million for the six months ended June 30, 2026 and 2025, respectively.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(in millions)	June 30, 2026		December 31, 2025
Asset reconciliation
Business Insurance	$	106,841	$	106,084
Bond & Specialty Insurance	14,326		13,676
Personal Insurance	21,244		22,787
Total assets by reportable segment	142,411		142,547
Other assets (1)	1,169		1,161
Total consolidated assets	$	143,580	$	143,708

(1)The primary components of other assets as of both June 30, 2026 and December 31, 2025 were the over-funded benefit plan assets related to the Company’s qualified domestic pension plan and other intangible assets.

3. INVESTMENTS

Fixed Maturities

The amortized cost and fair value of investments in fixed maturities classified as available for sale were as follows:


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(as of June 30, 2026, in millions)			Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,380	$	—	$	1	$	100	$	3,281
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	22,923		—		182		1,095		22,010
Revenue	10,252		—		79		515		9,816
State general obligation	808		—		5		25		788
Pre-refunded	444		—		2		3		443
Total obligations of U.S. states, municipalities and political subdivisions	34,427		—		268		1,638		33,057
Debt securities issued by foreign governments	399		—		1		3		397
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,647		—		145		173		12,619
Corporate and all other bonds	44,548		2		185		1,163		43,568
Total	$	95,401	$	2	$	600	$	3,077	$	92,922

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued


	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized				Fair Value
(as of December 31, 2025, in millions)			Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,927	$	—	$	11	$	81	$	3,857
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	21,724		—		161		1,096		20,789
Revenue	9,810		—		58		543		9,325
State general obligation	871		—		6		29		848
Pre-refunded	414		—		4		2		416
Total obligations of U.S. states, municipalities and political subdivisions	32,819		—		229		1,670		31,378
Debt securities issued by foreign governments	313		—		2		3		312
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,094		—		268		130		13,232
Corporate and all other bonds	41,564		3		458		965		41,054
Total (1)	$	91,717	$	3	$	968	$	2,849	$	89,833

(1)Excludes fixed maturities classified as held for sale of $3,221 million of amortized cost and $3,243 million of fair value as of December 31, 2025.

Pre-refunded bonds of $443 million and $416 million as of June 30, 2026 and December 31, 2025, respectively, were bonds for which U.S. states or municipalities have established irrevocable trusts that are almost exclusively comprised of U.S. Treasury securities and obligations of U.S. government and government agencies and authorities. These trusts were created to fund the payment of principal and interest due under the bonds.

Proceeds from the sales of fixed maturities classified as available for sale were $385 million and $601 million during the six months ended June 30, 2026 and 2025, respectively. Gross gains of $1 million and $3 million and gross losses of $30 million and $26 million were realized on those sales during the six months ended June 30, 2026 and 2025, respectively. Included in net realized investment gains (losses) for the six months ended June 30, 2026 and 2025 were $14 million and $23 million, respectively, of losses resulting from the early redemption of fixed maturities by the issuer prior to the bonds’ maturity date.

Equity Securities

The cost and fair value of investments in equity securities were as follows:



(as of June 30, 2026, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	379	$	243	$	3	$	619
Non-redeemable preferred stock	31		2		—		33
Total	$	410	$	245	$	3	$	652


(as of December 31, 2025, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	419	$	177	$	12	$	584
Non-redeemable preferred stock	38		1		5		34
Total (1)	$	457	$	178	$	17	$	618

(1)Excludes equity securities classified as held for sale of $69 million of cost and $104 million of fair value as of December 31, 2025.

For the six months ended June 30, 2026 and 2025, the Company recognized $76 million and $1 million of net gains on equity securities still held as of June 30, 2026 and 2025, respectively.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

Unrealized Investment Losses

The following tables summarize, for all fixed maturities classified as available for sale in an unrealized loss position as of June 30, 2026 and December 31, 2025, the aggregate fair value and gross unrealized loss by the length of time those securities have been continuously in an unrealized loss position. The fair value amounts reported in the tables are estimates that are prepared using the process described in note 4 herein and in note 4 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report. The Company also relies upon estimates of several factors in its review and evaluation of individual investments, using the process described in note 1 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report to determine whether a credit loss impairment exists.


	Less than 12 months				12 months or longer				Total
(as of June 30, 2026, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	1,636	$	21	$	1,136	$	79	$	2,772	$	100
Obligations of U.S. states, municipalities and political subdivisions	5,578		58		13,281		1,580		18,859		1,638
Debt securities issued by foreign governments	149		1		52		2		201		3
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	3,297		36		1,273		137		4,570		173
Corporate and all other bonds	14,060		167		14,842		996		28,902		1,163
Total	$	24,720	$	283	$	30,584	$	2,794	$	55,304	$	3,077


	Less than 12 months				12 months or longer				Total
(as of December 31, 2025, in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	611	$	5	$	1,684	$	76	$	2,295	$	81
Obligations of U.S. states, municipalities and political subdivisions	2,234		28		16,428		1,642		18,662		1,670
Debt securities issued by foreign governments	34		—		75		3		109		3
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	437		2		1,835		128		2,272		130
Corporate and all other bonds	2,351		13		17,428		952		19,779		965
Total	$	5,667	$	48	$	37,450	$	2,801	$	43,117	$	2,849

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

The following tables summarize, for all fixed maturities reported at fair value for which fair value was less than 80% of amortized cost as of June 30, 2026 and December 31, 2025, the gross unrealized investment loss by length of time those securities have continuously been in an unrealized loss position of greater than 20% of amortized cost.


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(as of June 30, 2026, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	2		205		3		337		547
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—		—		—
Corporate and all other bonds	2		—		—		—		2
Total	$	4	$	205	$	3	$	337	$	549


	Period For Which Fair Value is Less Than 80% of Amortized Cost
(as of December 31, 2025, in millions)	3 months or less		Greater than 3 months, 6 months or less		Greater than 6 months, 12 months or less		Greater than 12 months		Total
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	—	$	—	$	—	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	18		—		10		550		578
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—		—		—
Corporate and all other bonds	1		—		4		—		5
Total	$	19	$	—	$	14	$	550	$	583

Increases in the applicable interest rates resulted in the gross unrealized investment losses disclosed in the tables above; however, the net unrealized loss is considered temporary in nature as the decrease in value is not due to credit impairments and there is no impact on expected contractual cash flows from fixed maturities.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

Impairment Charges

The following tables present changes in the allowance for expected credit losses on fixed maturities classified as available for sale for the category of Corporate and All Other Bonds (no other categories of fixed maturities currently have an allowance for expected credit losses).


	Fixed Maturities
	Corporate and All Other Bonds
	As of and For the Three Months Ended
(in millions)	June 30, 2026		June 30, 2025

Balance, beginning of period	$	3	$	4
Additions for expected credit losses on securities where no credit losses were previously recognized	—		—
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—		—
Reductions due to sales/defaults of credit-impaired securities	(1)		—
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—		—
Balance, end of period	$	2	$	4


	Fixed Maturities
	Corporate and All Other Bonds
	As of and For the Six Months Ended
(in millions)	June 30, 2026		June 30, 2025

Balance, beginning of period	$	3		$	2
Additions for expected credit losses on securities where no credit losses were previously recognized	—			2
Additions (reductions) for expected credit losses on securities where credit losses were previously recognized	—			—
Reductions due to sales/defaults of credit-impaired securities	(1)			—
Reductions for impairments of securities which the Company intends to sell or more likely than not will be required to sell	—			—
Balance, end of period	$	2		$	4

Total net impairment charges, including credit impairments, reported in net realized investment gains (losses) in the consolidated statement of income were $7 million and $0 million for the three months ended June 30, 2026 and 2025, respectively, and $11 million and $2 million for the six months ended June 30, 2026 and 2025, respectively. Credit losses related to the fixed maturity portfolio for both the three and six months ended June 30, 2026 and 2025 represented less than 1% of the fixed maturity portfolio on a pre-tax basis and less than 1% of shareholders’ equity on an after-tax basis.

Other Investments

Included in other investments are private equity, hedge fund and real estate partnerships that are accounted for under the equity method of accounting and typically report their financial statement information to the Company one month to three months following the end of the reporting period. Accordingly, net investment income from these other investments is generally reflected in the Company’s financial statements on a quarter lag basis.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

Level 1 - Unadjusted quoted market prices for identical assets or liabilities in active markets that the Company has the ability to access.
Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data.
Level 3 - Valuations based on models where significant inputs are not observable. The unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use.

Valuation of Investments Reported at Fair Value in Financial Statements

The Company utilized a pricing service to estimate fair value measurements for approximately 99% of its fixed maturities as of both June 30, 2026 and December 31, 2025.

While the vast majority of the Company’s fixed maturities are included in Level 2, the Company holds a number of corporate bonds which are not valued by the pricing service and estimates the fair value of these bonds using either another internal pricing matrix, a present value income approach or a broker quote (collectively, the other methodologies). The other methodologies include some unobservable inputs that are significant to the valuation. Due to the limited amount of observable market information available in the estimation of fair value, the Company includes the fair value estimates for bonds that are valued using the other methodologies in Level 3.

For certain investments in non-public common and preferred equity securities, the fair value estimate is determined either internally or by an external fund manager based on the impact of recent observable transactions on the investment, recent filings, operating results, balance sheet stability, growth and other business and market sector fundamentals. Due to the significant unobservable inputs in these valuations, the Company included the fair value estimate of $30 million and $32 million for these investments as of June 30, 2026 and December 31, 2025, respectively, in the amounts disclosed in Level 3.

For more information regarding the valuation of the Company’s fixed maturities, equity securities and other investments, see note 4 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report.

Fair Value Hierarchy

The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS, Continued


(as of June 30, 2026, in millions)	Total		Level 1		Level 2		Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,281	$	3,281	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	33,057		—		33,057		—
Debt securities issued by foreign governments	397		—		397		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,619		—		12,619		—
Corporate and all other bonds	43,568		1		43,497		70
Total fixed maturities	92,922		3,282		89,570		70
Equity securities
Common stock	619		611		—		8
Non-redeemable preferred stock	33		8		3		22
Total equity securities	652		619		3		30
Other investments	9		9		—		—
Total	$	93,583	$	3,910	$	89,573	$	100


(as of December 31, 2025, in millions)	Total		Level 1		Level 2		Level 3
Invested assets:
Fixed maturities
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,857	$	3,857	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	31,378		—		31,378		—
Debt securities issued by foreign governments	312		—		312		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,232		—		13,232		—
Corporate and all other bonds	41,054		25		40,698		331
Total fixed maturities	89,833		3,882		85,620		331
Equity securities
Common stock	584		576		—		8
Non-redeemable preferred stock	34		7		3		24
Total equity securities	618		583		3		32
Other investments	9		9		—		—
Assets held for sale	3,347		104		3,243		—
Total	$	93,807	$	4,578	$	88,866	$	363

There was no significant activity in Level 3 of the hierarchy during the six months ended June 30, 2026.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS, Continued

Financial Instruments Disclosed, But Not Carried, At Fair Value

The following tables present the carrying value and fair value of the Company’s financial assets and financial liabilities disclosed, but not carried, at fair value, and the level within the fair value hierarchy at which such assets and liabilities are categorized.


(as of June 30, 2026, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	4,579	$	4,579	$	823	$	3,706	$	50
Financial liabilities
Debt	$	8,968	$	8,214	$	—	$	8,214	$	—
Commercial paper	100		100		—		100		—


(as of December 31, 2025, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	5,716	$	5,716	$	1,398	$	4,267	$	51
Financial liabilities
Debt	$	9,167	$	8,538	$	—	$	8,538	$	—
Commercial paper	100		100		—		100		—

The Company had no material assets or liabilities that were measured at fair value on a non-recurring basis during the six months ended June 30, 2026 or the year ended December 31, 2025.

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES

Premiums Receivable

The following tables present the balances of premiums receivable, net of the allowance for expected credit losses, as of June 30, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and six months ended June 30, 2026 and 2025.


	As of and For the Three Months Ended June 30, 2026				As of and For the Three Months Ended June 30, 2025
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	11,423	$	60	$	11,575	$	58

Current period change for expected credit losses			18				19
Write-offs of uncollectible premiums receivable			17				16

Balance, end of period	$	12,382	$	61	$	12,042	$	61

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES, Continued


	As of and For the Six Months Ended June 30, 2026				As of and For the Six Months Ended June 30, 2025
(in millions)	Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Premiums Receivable, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	10,992	$	58	$	11,110	$	58

Current period change for expected credit losses			36				35
Write-offs of uncollectible premiums receivable			33				32
Balance, end of period	$	12,382	$	61	$	12,042	$	61

Reinsurance Recoverables

The following tables present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, as of June 30, 2026 and 2025, and the changes in the allowance for estimated uncollectible reinsurance for the three and six months ended June 30, 2026 and 2025.


	As of and For the Three Months Ended June 30, 2026				As of and For the Three Months Ended June 30, 2025
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance

Balance, beginning of period	$	7,988	$	130	$	8,105	$	128


Current period change for estimated uncollectible reinsurance			12				(1)
Write-offs of uncollectible reinsurance recoverables			—				—

Balance, end of period	$	8,009	$	142	$	8,059	$	127


	As of and For the Six Months Ended June 30, 2026				As of and For the Six Months Ended June 30, 2025
(in millions)	Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance		Reinsurance Recoverables, Net of Allowance for Estimated Uncollectible Reinsurance		Allowance for Estimated Uncollectible Reinsurance

Balance, beginning of period	$	7,886	$	129	$	8,000	$	119


Current period change for estimated uncollectible reinsurance			13				8
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,009	$	142	$	8,059	$	127

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES, Continued

Of the total reinsurance recoverables as of June 30, 2026, $6.03 billion, or 90%, were rated by A.M. Best Company, after deducting mandatory pools and associations and before allowances for estimated uncollectible reinsurance. The Company utilizes updated A.M. Best credit ratings on a quarterly basis when determining the allowance. Of the total rated by A.M. Best Company, 95% were rated A- or better. The remaining 10% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 4% were balances from other companies not rated by A.M. Best Company. Certain of the Company’s reinsurance recoverables are collateralized by letters of credit, funds held or trust agreements.

Contractholder Receivables

The following tables present the balances of contractholder receivables, net of the allowance for expected credit losses, as of June 30, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and six months ended June 30, 2026 and 2025.


	As of and For the Three Months Ended June 30, 2026				As of and For the Three Months Ended June 30, 2025
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	3,051	$	14	$	3,193	$	17

Current period change for expected credit losses			(1)				—
Write-offs of uncollectible contractholder receivables			—				—

Balance, end of period	$	3,076	$	13	$	3,095	$	17


	As of and For the Six Months Ended June 30, 2026				As of and For the Six Months Ended June 30, 2025
(in millions)	Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses		Contractholder Receivables, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses

Balance, beginning of period	$	3,010	$	16	$	3,171	$	18

Current period change for expected credit losses			(3)				(1)
Write-offs of uncollectible contractholder receivables			—				—

Balance, end of period	$	3,076	$	13	$	3,095	$	17

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following table presents the carrying amount of the Company’s goodwill by segment. Business Insurance and Bond & Specialty Insurance include goodwill associated with the Company’s international business which is subject to the impact of changes in foreign currency exchange rates.


(in millions)	June 30, 2026		December 31, 2025
Business Insurance	$	2,551	$	2,601
Bond & Specialty Insurance	837		838
Personal Insurance	646		809
Other	26		26
Less amounts classified as held for sale	—		208
Total	$	4,060	$	4,066

Other Intangible Assets

The following tables present a summary of the Company’s other intangible assets by major asset class.


(as of June 30, 2026, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	184	$	100	$	84
Contract-based	201		196		5
Marketing-related	18		7		11
Total subject to amortization	403		303		100
Not subject to amortization	225		—		225
Total	$	628	$	303	$	325


(as of December 31, 2025, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	186	$	93	$	93
Contract-based	204		198		6
Marketing-related	18		6		12
Total subject to amortization	408		297		111
Not subject to amortization	226		—		226
Less amounts classified as held for sale	5		4		1
Total	$	629	$	293	$	336

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

7. INSURANCE CLAIM RESERVES

Claims and claim adjustment expense reserves were as follows:


(in millions)	June 30, 2026		December 31, 2025
Property-casualty	$	67,222	$	67,643
Accident and health	4		3
Less amounts classified as held for sale	—		1,909
Total	$	67,226	$	65,737

The following table presents a reconciliation of beginning and ending property casualty reserve balances for claims and claim adjustment expenses.


	Six Months Ended June 30,
(in millions)	2026		2025
Claims and claim adjustment expense reserves at beginning of year	$	67,643	$	64,088
Less reinsurance recoverables on unpaid losses	7,797		7,669

Net reserves at beginning of year	59,846		56,419
Estimated claims and claim adjustment expenses for claims arising in the current year	13,192		15,392
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years	(939)		(650)
Total increases	12,253		14,742
Claims and claim adjustment expense payments for claims arising in:
Current year	3,501		4,504
Prior years	7,487		7,763
Total payments	10,988		12,267
Net reserves disposed of related to the divestiture of the Canadian business	(1,627)		—
Unrealized foreign exchange (gain) loss	(37)		272
Net reserves at end of period	59,447		59,166
Plus reinsurance recoverables on unpaid losses	7,775		7,771
Claims and claim adjustment expense reserves at end of period	$	67,222	$	66,937

Gross claims and claim adjustment expense reserves as of June 30, 2026 increased by $1.49 billion over December 31, 2025, primarily reflecting the impacts of (i) catastrophe losses in the first six months of 2026 and (ii) loss cost trends for the current accident year, partially offset by (iii) claim payments made during the first six months of 2026 and (iv) net favorable prior year reserve development.

Prior Year Reserve Development

The following disclosures regarding reserve development are on a “net of reinsurance” basis.

For the six months ended June 30, 2026 and 2025, estimated claims and claim adjustment expenses incurred included $939 million and $650 million, respectively, of net favorable development for claims arising in prior years, including $991 million and $693 million, respectively, of net favorable prior year reserve development, and $21 million and $22 million, respectively, of accretion of discount.

Business Insurance. Net favorable prior year reserve development in the second quarter of 2026 totaled $319 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years and in the commercial property product line for recent accident years. Net favorable prior year reserve development in the second quarter of 2025 totaled $79 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by an addition to reserves related to run-off operations.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

7. INSURANCE CLAIM RESERVES, Continued

Net favorable prior year reserve development in the first six months of 2026 totaled $481 million, primarily driven by better than expected loss experience in the workers’ compensation and commercial property product lines for multiple accident years. Net favorable prior year reserve development in the first six months of 2025 totaled $153 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years, partially offset by an addition to reserves related to run-off operations.

Bond & Specialty Insurance. Net favorable prior year reserve development in the second quarter of 2026 totaled $75 million, primarily driven by better than expected loss experience in the general liability product line for management liability coverages for multiple accident years and in the fidelity and surety product line for recent accident years. Net favorable prior year reserve development in the first six months of 2026 totaled $140 million, primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years and in the general liability product line for management liability coverages for multiple accident years. Net favorable prior year reserve development in the second quarter and first six months of 2025 totaled $81 million and $148 million, respectively, primarily driven by better than expected loss experience in the fidelity and surety product line for recent accident years.

Personal Insurance. Net favorable prior year reserve development in the second quarter of 2026 totaled $184 million, primarily driven by better than expected loss experience in both the homeowners and other and automobile product lines for recent accident years. Net favorable prior year reserve development in the first six months of 2026 totaled $370 million, primarily driven by better than expected loss experience in both the automobile and homeowners and other product lines for recent accident years. Net favorable prior year reserve development in the second quarter and first six months of 2025 totaled $155 million and $392 million, respectively, primarily driven by better than expected loss experience in both the automobile and homeowners and other product lines for recent accident years.

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three and six months ended June 30, 2026.


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit Losses Recognized in the Consolidated Statement of Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)

Balance, March 31, 2026	$	(2,564)	$	186	$	(156)	$	(544)	$	(3,078)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	394		(1)		—		(7)		386
Amounts reclassified from AOCI, net of tax	25		—		(1)		—		24
Net OCI, current period	419		(1)		(1)		(7)		410
Balance, June 30, 2026	$	(2,145)	$	185	$	(157)	$	(551)	$	(2,668)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Continued


	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No Credit Losses Recognized in the Consolidated Statement of Income		Having Credit Losses Recognized in the Consolidated Statement of Income		Net Benefit Plan Assets and Obligations Recognized in Shareholders’ Equity		Net Unrealized Foreign Currency Translation		Total Accumulated Other Comprehensive Income (Loss)
Balance, December 31, 2025	$	(1,664)	$	186	$	(150)	$	(872)	$	(2,500)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(508)		(1)		—		(35)		(544)
Amounts reclassified from AOCI, net of tax	27		—		(7)		356		376
Net OCI, current period	(481)		(1)		(7)		321		(168)
Balance, June 30, 2026	$	(2,145)	$	185	$	(157)	$	(551)	$	(2,668)

The following table presents the pre-tax components of the Company’s other comprehensive income (loss) and the related income tax expense (benefit).


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	$	531	$	341	$	(615)	$	777
Income tax expense (benefit)	112		73		(134)		169
Net of taxes	419		268		(481)		608
Having credit losses recognized in the consolidated statement of income	(1)		—		(1)		1
Income tax expense (benefit)	—		—		—		—
Net of taxes	(1)		—		(1)		1
Net changes in benefit plan assets and obligations	(2)		—		(10)		—
Income tax expense (benefit)	(1)		—		(3)		—
Net of taxes	(1)		—		(7)		—
Net changes in unrealized foreign currency translation	(9)		228		318		289
Income tax expense (benefit)	(2)		13		(3)		16
Net of taxes	(7)		215		321		273
Total other comprehensive income (loss)	519		569		(308)		1,067
Total income tax expense (benefit)	109		86		(140)		185
Total other comprehensive income (loss), net of taxes	$	410	$	483	$	(168)	$	882

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

8. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Continued

The following table presents the pre-tax and related income tax (expense) benefit components of the amounts reclassified from the Company’s AOCI to the Company’s consolidated statement of income.


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Reclassification adjustments related to unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income (1) (2)	$	31	$	17	$	38	$	48
Income tax benefit (3)	6		4		11		10
Net of taxes	25		13		27		38
Having credit losses recognized in the consolidated statement of income (1)	—		—		—		—
Income tax benefit (3)	—		—		—		—
Net of taxes	—		—		—		—
Reclassification adjustment related to benefit plan assets and obligations:
Claims and claim adjustment expenses (benefit) (4)	(1)		—		(2)		—
General and administrative expenses (benefit) (4)	(1)		—		(2)		—
Other (2)	—		—		(4)		—
Total	(2)		—		(8)		—
Income tax expense (3)	(1)		—		(1)		—
Net of taxes	(1)		—		(7)		—
Reclassification adjustment related to foreign currency translation (1) (2)	—		—		356		—
Income tax benefit (3)	—		—		—		—
Net of taxes	—		—		356		—
Total reclassifications	29		17		386		48
Total income tax benefit	5		4		10		10
Total reclassifications, net of taxes	$	24	$	13	$	376	$	38

(1)(Increases) decreases in net realized investment gains (losses) on the consolidated statement of income.

(2)(Increases) decreases in net realized investment gains (losses) on the consolidated statement of income related to accumulated other comprehensive income (loss), net of taxes, includes the following related to the Canadian operations divested by the Company in the first quarter of 2026: a $(16) million reclassification adjustment related to unrealized gains (losses) on investment securities, a $(4) million reclassification adjustment related to benefit plan assets and obligations and a $356 million reclassification adjustment related to foreign currency translation.

(3)(Increases) decreases in income tax expense on the consolidated statement of income.

(4)Increases (decreases) in respective expenses on the consolidated statement of income.

9. DEBT

Credit Agreement. On May 15, 2026, the Company entered into a five-year $1.2 billion revolving credit agreement with a syndicate of financial institutions, replacing its existing five-year $1.0 billion revolving credit agreement, which was terminated on May 15, 2026. Pursuant to the credit agreement covenants, the Company must maintain an excess of consolidated net worth, defined as shareholders’ equity determined in accordance with GAAP (excluding accumulated other comprehensive income (loss)) plus (a) trust preferred securities (not to exceed 15% of total capital) and (b) mandatorily convertible securities (combined with trust preferred securities, not to exceed 25% of total capital), over goodwill and other intangible assets. The minimum consolidated net worth requirement is fixed during the term of the credit agreement at an amount equal to $17.8 billion (57.5% of the Company’s net worth as defined above as of March 31, 2026). In addition, the credit agreement contains other customary restrictive covenants as well as certain customary events of default, including with respect to a change

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

9. DEBT, Continued

of control, which would occur upon the acquisition of 35% or more of the Company’s voting stock or certain changes in the composition of the Company’s Board of Directors. As of June 30, 2026, the Company was in compliance with these covenants. Generally, the cost of borrowing under this agreement will range from the Secured Overnight Financing Rate (SOFR) plus 75 basis points to SOFR plus 137.5 basis points, depending on the Company’s credit ratings. As of June 30, 2026, the cost of borrowing would have been SOFR plus 100 basis points, had there been any amounts outstanding under the credit agreement.

Debt Repayment. On April 15, 2026, the Company’s $200 million, 7.75% senior notes matured and were fully paid.

10. COMMON SHARE REPURCHASES

During the three and six months ended June 30, 2026, the Company repurchased 4.3 million and 10.3 million common shares, respectively, under its share repurchase authorizations for total cost of $1.30 billion and $3.10 billion, respectively. The average cost per share repurchased during the three and six months ended June 30, 2026 was $304.05 and $301.86, respectively. In addition, the Company acquired 35,692 and 0.6 million shares for a total cost of $11 million and $196 million during the three and six months ended June 30, 2026, respectively, that were not part of the publicly announced share repurchase authorizations. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock unit awards and performance share awards, and shares used by employees to cover the exercise price, as well as the related payroll withholding taxes, with respect to certain stock options that were exercised. Included in the cost of treasury stock acquired pursuant to common share repurchases is the 1% excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022. As of June 30, 2026, the Company had $3.92 billion of capacity remaining under its share repurchase authorizations.

11. EARNINGS PER SHARE

The following is a reconciliation of the income and share data used in the basic and diluted earnings per share computations for the periods presented.


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	2026		2025		2026		2025
Basic and Diluted
Net income, as reported	$	2,208	$	1,509	$	3,919	$	1,904
Participating share-based awards — allocated income	(15)		(11)		(28)		(14)
Net income available to common shareholders — basic and diluted	$	2,193	$	1,498	$	3,891	$	1,890
Common Shares
Basic
Weighted average shares outstanding	210.5		225.9		212.9		226.4
Diluted
Weighted average shares outstanding	210.5		225.9		212.9		226.4
Weighted average effects of dilutive securities — stock options and performance shares	3.1		3.4		3.1		3.3
Total	213.6		229.3		216.0		229.7
Net Income per Common Share
Basic	$	10.41	$	6.63	$	18.28	$	8.35
Diluted	$	10.26	$	6.53	$	18.01	$	8.23

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

12. SHARE-BASED INCENTIVE COMPENSATION

The following information relates to fully vested stock option awards as of June 30, 2026.


Stock Options	Number	Weighted Average Exercise Price		Weighted Average Contractual Life Remaining	Aggregate Intrinsic Value ($ in millions)
Vested at end of period (1)	5,278,503	$	175.52	5.5 years	$	816
Exercisable at end of period	4,021,929	$	153.61	4.5 years	$	710

(1)Represents awards for which the requisite service has been rendered, including those that are retirement eligible.

The total compensation cost for all share-based incentive compensation awards recognized in earnings was $61 million and $57 million for the three months ended June 30, 2026 and 2025, respectively, and $148 million and $140 million for the six months ended June 30, 2026 and 2025, respectively. The related tax benefits recognized in the consolidated statement of income were $11 million and $9 million for the three months ended June 30, 2026 and 2025, respectively, and $24 million and $22 million for the six months ended June 30, 2026 and 2025, respectively.

The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards as of June 30, 2026 was $367 million, which is expected to be recognized over a weighted-average period of 2.0 years.

13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS

The following table summarizes the components of net periodic benefit cost (benefit) for the Company’s pension and postretirement benefit plans recognized in the consolidated statement of income for the three months ended June 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended June 30, in millions)	2026		2025		2026		2025
Net Periodic Benefit Cost (Benefit):
Service cost	$	30	$	29	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	43		44		—		—
Expected return on plan assets	(75)		(70)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		(1)		—
Net actuarial (gain) loss	1		3		(2)		(3)
Total non-service cost (benefit)	(31)		(23)		(3)		(3)
Net periodic benefit cost (benefit)	$	(1)	$	6	$	(3)	$	(3)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

13. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS, Continued

The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the three months ended June 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended June 30, in millions)	2026		2025		2026		2025
Service Cost:
Claims and claim adjustment expenses	$	12	$	11	$	—	$	—
General and administrative expenses	18		18		—		—
Total service cost	30		29		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(11)		(9)		(1)		(1)
General and administrative expenses	(20)		(14)		(2)		(2)
Total non-service cost (benefit)	(31)		(23)		(3)		(3)
Net periodic benefit cost (benefit)	$	(1)	$	6	$	(3)	$	(3)


	Pension Plans				Postretirement Benefit Plans
(for the six months ended June 30, in millions)	2026		2025		2026		2025
Net Periodic Benefit Cost (Benefit):
Service cost	$	60	$	57	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	85		88		1		1
Expected return on plan assets	(149)		(140)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		(1)		(1)
Net actuarial (gain) loss	2		7		(5)		(6)
Total non-service cost (benefit)	(62)		(45)		(5)		(6)
Net periodic benefit cost (benefit)	$	(2)	$	12	$	(5)	$	(6)

The following table indicates the line items in which the respective service cost and non-service cost (benefit) are presented in the consolidated statement of income for the six months ended June 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the six months ended June 30, in millions)	2026		2025		2026		2025
Service Cost:
Claims and claim adjustment expenses	$	23	$	22	$	—	$	—
General and administrative expenses	37		35		—		—
Total service cost	60		57		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(23)		(17)		(2)		(2)
General and administrative expenses	(39)		(28)		(3)		(4)
Total non-service cost (benefit)	(62)		(45)		(5)		(6)
Net periodic benefit cost (benefit)	$	(2)	$	12	$	(5)	$	(6)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

14. LEASES

The Company enters into lease agreements for real estate that is primarily used for office space in the ordinary course of business. These leases are accounted for as operating leases, whereby lease expense is recognized on a straight-line basis over the term of the lease, and a right-of-use asset and lease liability is recognized as part of other assets and other liabilities, respectively, in the consolidated balance sheet.

Most leases include an option to extend or renew the lease term. The exercise of the renewal option is at the Company’s discretion. The operating lease liability includes lease payments related to options to extend or renew the lease term if the Company is reasonably certain of exercising those options. The Company, in determining the present value of lease payments, utilizes either the rate implicit in the lease, if that rate is readily determinable, or the Company’s incremental secured borrowing rate commensurate with the term of the underlying lease.

Lease expense is included in general and administrative expenses in the consolidated statement of income. Additional information regarding the Company’s real estate operating leases is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(in millions)	2026			2025				2026			2025
Lease cost
Operating leases	$	14		$	16			$	29		$	32
Short-term leases (1)	1			—				2			1

Lease expense	15			16				31			33
Less: sublease income (2)	—			—				—			—
Net lease cost	$	15		$	16			$	31		$	33

Other information on operating leases

Cash payments to settle a lease liability reported in cash flows	$	18		$	18			$	36		$	36
Right-of-use assets obtained in exchange for new lease liabilities	$	3		$	9			$	11		$	16
Weighted average discount rate	4.18		%	3.94		%		4.18		%	3.94		%
Weighted average remaining lease term	5.4 years			5.5 years				5.4 years			5.5 years

(1)Leases with a term of twelve months or less are not recorded on the consolidated balance sheet.

(2)Sublease income consists of rent from third parties of office space and is recognized as part of other revenues in the consolidated statement of income.

15. CONTINGENCIES, COMMITMENTS AND GUARANTEES

Contingencies

The major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of its subsidiaries is a party or to which any of the Company’s properties is subject are described below.

Asbestos Claims and Litigation

In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos-related exposures that are the subject of related coverage litigation. The Company is defending asbestos-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and comprehensive resolution strategies to manage asbestos loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on future loss development for claims and litigation relating to asbestos claims. Any such development could be affected by future court decisions and interpretations, as well as future changes, if any, in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

15. CONTINGENCIES, COMMITMENTS AND GUARANTEES, Continued

claims and claim adjustment expenses may change. These additional liabilities or changes in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s results of operations in future periods.

Other Proceedings Not Arising Under Insurance Contracts or Reinsurance Agreements

The Company is involved in other lawsuits, including lawsuits alleging extra-contractual damages relating to insurance contracts or reinsurance agreements, that do not arise under insurance contracts or reinsurance agreements. The legal costs associated with such lawsuits are expensed in the period in which the costs are incurred. Based upon currently available information, the Company does not believe it is reasonably possible that any such lawsuit or related lawsuits would be material to the Company’s results of operations or would have a material adverse effect on the Company’s financial position or liquidity.

Other Commitments and Guarantees

Commitments

Unfunded Commitments — The Company has unfunded commitments to private equity limited partnerships, real estate partnerships and other parties. These commitments totaled $1.55 billion and $1.41 billion as of June 30, 2026 and December 31, 2025, respectively.

Guarantees

The maximum amount of the Company’s contingent obligation for indemnifications related to the sale of businesses that are quantifiable was $352 million as of June 30, 2026.

The maximum amount of the Company’s obligation related to the guarantee of certain insurance policy obligations of a former insurance subsidiary was $480 million as of June 30, 2026, all of which is indemnified by a third party. For more information regarding the Company’s guarantees, see note 17 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report.

16. NONCASH INVESTING AND FINANCING ACTIVITIES

The Company issued common stock during the six months ended June 30, 2026 and 2025 in connection with its stock compensation plan which resulted in noncash financing transactions totaling $42 million and $41 million, respectively, from the net share settlement of employee stock options. There were no other material noncash investing or financing activities during the six months ended June 30, 2026 and 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

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