Item 1. FINANCIAL STATEMENTS

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(in millions, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Revenues
Premiums	$	11,103	$	11,135	$	32,461	$	32,766
Net investment income	1,098		1,033		3,176		2,905
Fee income	123		127		370		370
Net realized investment gains (losses)	(34)		27		75		(28)
Other revenues	122		148		407		383
Total revenues	12,412		12,470		36,489		36,396
Claims and expenses
Claims and claim adjustment expenses	6,487		6,594		18,791		21,389
Amortization of deferred acquisition costs	1,856		1,849		5,408		5,429
General and administrative expenses	1,582		1,572		4,688		4,576
Interest expense	118		111		347		309
Total claims and expenses	10,043		10,126		29,234		31,703
Income before income taxes	2,369		2,344		7,255		4,693
Income tax expense	452		456		1,419		901
Net income	$	1,917	$	1,888	$	5,836	$	3,792
Net income per share
Basic	$	9.20	$	8.37	$	27.48	$	16.69
Diluted	$	9.04	$	8.24	$	27.05	$	16.45
Weighted average number of common shares outstanding
Basic	206.9		224.1		210.9		225.6
Diluted	210.6		227.5		214.2		228.9

Cash dividends declared per common share	$	1.25	$	1.10	$	3.60	$	3.25

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

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

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

(in millions)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$	1,917	$	1,888	$	5,836	$	3,792
Other comprehensive income (loss):
Changes in net unrealized gains (losses) on investment securities:
Having no credit losses recognized in the consolidated statement of income	(5,571)		1,347		(6,186)		2,124
Having credit losses recognized in the consolidated statement of income	—		—		(1)		1
Net changes in benefit plan assets and obligations	(1)		—		(11)		—
Net changes in unrealized foreign currency translation	(2)		(72)		316		217
Other comprehensive income (loss) before income taxes	(5,574)		1,275		(5,882)		2,342
Income tax expense (benefit)	(1,179)		284		(1,319)		469
Other comprehensive income (loss), net of taxes	(4,395)		991		(4,563)		1,873
Comprehensive income (loss)	$	(2,478)	$	2,879	$	1,273	$	5,665

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

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(in millions)


	September 30, 2026		December 31, 2025
	(Unaudited)
Assets
Fixed maturities, available for sale, at fair value (amortized cost $97,423 and $91,717; allowance for expected credit losses of $2 and $3)	$	89,372	$	89,833
Equity securities, at fair value (cost $414 and $457)	640		618
Real estate investments	883		900
Short-term securities	5,561		5,716
Other investments	4,132		4,115
Total investments	100,588		101,182
Cash (including restricted cash of $147 and $132)	766		842
Investment income accrued	860		877
Premiums receivable (net of allowance for expected credit losses of $69 and $58)	12,142		10,992
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $142 and $129)	8,078		7,886
Ceded unearned premiums	1,488		1,283
Deferred acquisition costs	3,763		3,518
Deferred taxes	2,268		887
Contractholder receivables (net of allowance for expected credit losses of $13 and $16)	3,041		3,010
Goodwill	4,060		4,066
Other intangible assets	326		336
Other assets	4,709		4,279
Assets held for sale	—		4,550
Total assets	$	142,089	$	143,708
Liabilities
Claims and claim adjustment expense reserves	$	68,130	$	65,737
Unearned premium reserves	23,525		22,431
Contractholder payables	3,054		3,026
Payables for reinsurance premiums	828		529
Debt	9,813		9,267
Other liabilities	7,744		7,282
Liabilities held for sale	—		2,542
Total liabilities	113,094		110,814
Shareholders’ equity
Common stock (1,750.0 shares authorized; 204.9 and 217.5 shares issued and outstanding)	26,307		25,910
Retained earnings	60,002		54,931
Accumulated other comprehensive loss	(7,063)		(2,500)
Treasury stock, at cost (590.8 and 575.9 shares)	(50,251)		(45,447)
Total shareholders’ equity	28,995		32,894
Total liabilities and shareholders’ equity	$	142,089	$	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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Common stock
Balance, beginning of period	$	26,186	$	25,728	$	25,910	$	25,452
Employee share-based compensation	59		30		188		166
Compensation amortization under share-based plans and other changes	62		59		209		199
Balance, end of period	26,307		25,817		26,307		25,817
Retained earnings
Balance, beginning of period	58,346		51,041		54,931		49,630


Net income	1,917		1,888		5,836		3,792
Dividends	(261)		(250)		(765)		(743)
Other	—		1		—		1
Balance, end of period	60,002		52,680		60,002		52,680
Accumulated other comprehensive loss, net of tax
Balance, beginning of period	(2,668)		(4,085)		(2,500)		(4,967)


Other comprehensive income (loss)	(4,395)		991		(4,563)		1,873
Balance, end of period	(7,063)		(3,094)		(7,063)		(3,094)
Treasury stock, at cost
Balance, beginning of period	(48,743)		(43,166)		(45,447)		(42,251)
Treasury stock acquired — share repurchase authorizations	(1,500)		(625)		(4,600)		(1,375)
Net shares acquired related to employee share-based compensation plans	(8)		(3)		(204)		(168)
Balance, end of period	(50,251)		(43,794)		(50,251)		(43,794)
Total shareholders’ equity	$	28,995	$	31,609	$	28,995	$	31,609
Common shares outstanding
Balance, beginning of period	208.6		225.1		217.5		226.6
Treasury stock acquired — share repurchase authorizations	(4.0)		(2.3)		(14.3)		(5.1)
Net shares issued under employee share-based compensation plans	0.3		0.2		1.7		1.5
Balance, end of period	204.9		223.0		204.9		223.0

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)


	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities
Net income	$	5,836	$	3,792
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(75)		28
Depreciation and amortization	537		518
Deferred federal income tax expense (benefit)	(66)		268
Amortization of deferred acquisition costs	5,408		5,429
Equity in income from other investments	(170)		(169)
Premiums receivable	(1,154)		(485)
Reinsurance recoverables	(199)		(269)
Deferred acquisition costs	(5,656)		(5,616)
Claims and claim adjustment expense reserves	2,433		3,388
Unearned premium reserves	1,108		1,245
Other	(10)		(208)
Net cash provided by operating activities	7,992		7,921
Cash flows from investing activities
Proceeds from maturities of fixed maturities	8,800		8,758
Proceeds from sales of investments:
Fixed maturities	917		779
Equity securities	134		131
Real estate investments	17		—
Other investments	203		210
Purchases of investments:
Fixed maturities	(15,541)		(14,519)
Equity securities	(77)		(94)
Real estate investments	(34)		(23)
Other investments	(270)		(262)
Net sales (purchases) of short-term securities	154		(2,027)
Securities transactions in the course of settlement	382		368

Proceeds from the divestiture of the Canadian business	2,388		—
Other	(386)		(398)
Net cash used in investing activities	(3,313)		(7,077)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorizations	(4,585)		(1,369)
Treasury stock acquired — net employee share-based compensation	(159)		(125)
Dividends paid to shareholders	(759)		(737)
Payment of debt	(200)		—
Issuance of debt	744		1,233
Issuance of common stock — employee share options	212		163
Net cash used in financing activities	(4,747)		(835)
Effect of exchange rate changes on cash and restricted cash	(8)		21
Net increase (decrease) in cash and restricted cash	(76)		30
Cash and restricted cash at beginning of year	842		699
Cash and restricted cash at end of period	$	766	$	729
Supplemental disclosure of cash flow information
Income taxes paid	$	1,687	$	756
Interest paid	$	324	$	257

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 September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Premiums	$	5,862	$	1,103	$	4,138	$	11,103
Net investment income	766		127		205		1,098
Fee income	118		—		5		123
Other revenues	94		6		22		122
Total segment revenues (1)	6,840		1,236		4,370		12,446
Claims and claim adjustment expenses	3,643		425		2,419		6,487
Amortization of deferred acquisition costs	1,001		215		640		1,856
General and administrative expenses	919		218		432		1,569
Income tax expense	241		69		173		483
Segment income (1)	$	1,036	$	309	$	706	$	2,051

2025
Premiums	$	5,700	$	1,042	$	4,393	$	11,135
Net investment income	727		116		190		1,033
Fee income	114		—		13		127
Other revenues	111		8		29		148
Total segment revenues (1)	6,652		1,166		4,625		12,443
Claims and claim adjustment expenses	3,667		451		2,476		6,594
Amortization of deferred acquisition costs	973		197		679		1,849
General and administrative expenses	894		207		458		1,559
Income tax expense	211		61		205		477
Segment income (1)	$	907	$	250	$	807	$	1,964

(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 nine months ended September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Premiums	$	16,906	$	3,177	$	12,378	$	32,461
Net investment income	2,236		353		587		3,176
Fee income	346		—		24		370
Other revenues	311		17		79		407
Total segment revenues (1)	19,799		3,547		13,068		36,414
Claims and claim adjustment expenses	10,362		1,324		7,105		18,791
Amortization of deferred acquisition costs	2,884		613		1,911		5,408
General and administrative expenses	2,743		655		1,251		4,649
Income tax expense	737		158		564		1,459
Segment income (1)	$	3,073	$	797	$	2,237	$	6,107

2025
Premiums	$	16,710	$	3,058	$	12,998	$	32,766
Net investment income	2,045		325		535		2,905
Fee income	333		—		37		370
Other revenues	288		19		76		383
Total segment revenues (1)	19,376		3,402		13,646		36,424
Claims and claim adjustment expenses	10,956		1,303		9,130		21,389
Amortization of deferred acquisition costs	2,834		579		2,016		5,429
General and administrative expenses	2,616		626		1,298		4,540
Income tax expense	567		180		235		982
Segment income (1)	$	2,403	$	714	$	967	$	4,084

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


(for the three months ended September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Net favorable prior year reserve development	$	41	$	95	$	98	$	234
Catastrophe losses	$	157	$	1	$	380	$	538
2025
Net favorable (unfavorable) prior year reserve development	$	(125)	$	43	$	104	$	22
Catastrophe losses	$	139	$	—	$	263	$	402

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(for the nine months ended September 30, in millions)	Business Insurance		Bond & Specialty Insurance		Personal Insurance		Total Reportable Segments
2026
Net favorable prior year reserve development	$	522	$	235	$	468	$	1,225
Catastrophe losses	$	774	$	13	$	1,030	$	1,817
2025
Net favorable prior year reserve development	$	28	$	191	$	496	$	715
Catastrophe losses	$	1,016	$	24	$	2,555	$	3,595

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 September 30, in millions)	2026		2025
Business Insurance	$	103	$	99
Bond & Specialty Insurance	24		21
Personal Insurance	45		44
Total	$	172	$	164


(for the nine months ended September 30, in millions)	2026		2025
Business Insurance	$	318	$	312
Bond & Specialty Insurance	75		62
Personal Insurance	138		139
Total	$	531	$	513

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

Business Segment Reconciliations


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2026		2025		2026		2025
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	871	$	842	$	2,548	$	2,506
Commercial automobile	1,092		1,011		3,169		2,921
Commercial property	909		942		2,726		2,839
General liability	978		907		2,754		2,630
Commercial multi-peril	1,519		1,474		4,480		4,309
Other	22		20		56		56
Total Domestic	5,391		5,196		15,733		15,261
International	471		504		1,173		1,449
Total Business Insurance	5,862		5,700		16,906		16,710
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	435		378		1,226		1,103
General liability	473		463		1,391		1,374
Other	61		61		180		178
Total Domestic	969		902		2,797		2,655
International	134		140		380		403
Total Bond & Specialty Insurance	1,103		1,042		3,177		3,058
Personal Insurance:
Domestic:
Automobile	1,874		1,987		5,663		5,931
Homeowners and Other	2,264		2,239		6,715		6,563
Total Domestic	4,138		4,226		12,378		12,494
International	—		167		—		504
Total Personal Insurance	4,138		4,393		12,378		12,998
Total earned premiums	11,103		11,135		32,461		32,766
Net investment income	1,098		1,033		3,176		2,905
Fee income	123		127		370		370
Other revenues	122		148		407		383
Total segment revenues	12,446		12,443		36,414		36,424

Net realized investment gains (losses)	(34)		27		75		(28)
Total revenues	$	12,412	$	12,470	$	36,489	$	36,396
Income reconciliation, net of tax
Total segment income	$	2,051	$	1,964	$	6,107	$	4,084
Interest Expense and Other (1)	(104)		(97)		(304)		(270)
Core income	1,947		1,867		5,803		3,814
Net realized investment gains (losses)	(30)		21		33		(22)

Net income	$	1,917	$	1,888	$	5,836	$	3,792

(1)The primary component of Interest Expense and Other was after-tax interest expense of $93 million and $88 million for the three months ended September 30, 2026 and 2025, respectively, and $274 million and $244 million for the nine months ended September 30, 2026 and 2025, respectively.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued


(in millions)	September 30, 2026		December 31, 2025
Asset reconciliation
Business Insurance	$	105,291	$	106,084
Bond & Specialty Insurance	14,523		13,676
Personal Insurance	21,092		22,787
Total assets by reportable segment	140,906		142,547
Other assets (1)	1,183		1,161
Total consolidated assets	$	142,089	$	143,708

(1)The primary components of other assets as of both September 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 September 30, 2026, in millions)			Gains		Losses
U.S. Treasury securities and obligations of U.S. government and government agencies and authorities	$	3,267	$	—	$	—	$	245	$	3,022
Obligations of U.S. states, municipalities and political subdivisions:
Local general obligation	23,649		—		1		3,084		20,566
Revenue	10,306		—		2		1,302		9,006
State general obligation	816		—		1		89		728
Pre-refunded	247		—		—		6		241
Total obligations of U.S. states, municipalities and political subdivisions	35,018		—		4		4,481		30,541
Debt securities issued by foreign governments	420		—		—		12		408
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	13,232		—		8		733		12,507
Corporate and all other bonds	45,486		2		17		2,607		42,894
Total	$	97,423	$	2	$	29	$	8,078	$	89,372

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 $241 million and $416 million as of September 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 $917 million and $779 million during the nine months ended September 30, 2026 and 2025, respectively. Gross gains of $1 million were realized on those sales during both the nine months ended September 30, 2026 and 2025. Gross losses of $45 million and $29 million were realized on those sales during the nine months ended September 30, 2026 and 2025, respectively. Included in net realized investment gains (losses) for the nine months ended September 30, 2026 and 2025 were $15 million and $20 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 September 30, 2026, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	383	$	233	$	9	$	607
Non-redeemable preferred stock	31		2		—		33
Total	$	414	$	235	$	9	$	640


(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 nine months ended September 30, 2026 and 2025, the Company recognized $60 million and $41 million of net gains on equity securities still held as of September 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 September 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 September 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	$	1,835	$	154	$	1,030	$	91	$	2,865	$	245
Obligations of U.S. states, municipalities and political subdivisions	18,275		1,675		11,615		2,806		29,890		4,481
Debt securities issued by foreign governments	313		10		48		2		361		12
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	11,013		528		1,164		205		12,177		733
Corporate and all other bonds	26,757		1,294		13,903		1,313		40,660		2,607
Total	$	58,193	$	3,661	$	27,760	$	4,417	$	85,953	$	8,078


	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 September 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 September 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	933		5		302		476		1,716
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	74		—		—		—		74
Corporate and all other bonds	7		2		—		—		9
Total	$	1,014	$	7	$	302	$	476	$	1,799


	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)	September 30, 2026		September 30, 2025

Balance, beginning of period	$	2	$	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	—		—
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 Nine Months Ended
(in millions)	September 30, 2026		September 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 $0 million for both the three months ended September 30, 2026 and 2025, and $11 million and $2 million for the nine months ended September 30, 2026 and 2025, respectively. Credit losses related to the fixed maturity portfolio for both the three and nine months ended September 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 September 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 $31 million and $32 million for these investments as of September 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 September 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	$	3,022	$	3,022	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	30,541		—		30,541		—
Debt securities issued by foreign governments	408		—		408		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,507		—		12,507		—
Corporate and all other bonds	42,894		—		42,815		79
Total fixed maturities	89,372		3,022		86,271		79
Equity securities
Common stock	607		598		—		9
Non-redeemable preferred stock	33		8		3		22
Total equity securities	640		606		3		31
Other investments	9		9		—		—
Total	$	90,021	$	3,637	$	86,274	$	110


(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 nine months ended September 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 September 30, 2026, in millions)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	5,561	$	5,561	$	830	$	4,680	$	51
Financial liabilities
Debt	$	9,713	$	8,211	$	—	$	8,211	$	—
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 nine months ended September 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 September 30, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2026 and 2025.


	As of and For the Three Months Ended September 30, 2026				As of and For the Three Months Ended September 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	$	12,382	$	61	$	12,042	$	61

Current period change for expected credit losses			24				13
Write-offs of uncollectible premiums receivable			16				16

Balance, end of period	$	12,142	$	69	$	11,621	$	58

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 Nine Months Ended September 30, 2026				As of and For the Nine Months Ended September 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			60				48
Write-offs of uncollectible premiums receivable			49				48
Balance, end of period	$	12,142	$	69	$	11,621	$	58

Reinsurance Recoverables

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


	As of and For the Three Months Ended September 30, 2026				As of and For the Three Months Ended September 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	$	8,009	$	142	$	8,059	$	127


Current period change for estimated uncollectible reinsurance			—				14
Write-offs of uncollectible reinsurance recoverables			—				—

Balance, end of period	$	8,078	$	142	$	8,298	$	141


	As of and For the Nine Months Ended September 30, 2026				As of and For the Nine Months Ended September 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				22
Write-offs of uncollectible reinsurance recoverables			—				—
Balance, end of period	$	8,078	$	142	$	8,298	$	141

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 September 30, 2026, $6.21 billion, or 91%, 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 Company 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 9% of reinsurance recoverables comprised the following: 5% related to captive insurance companies, 1% related to the Company’s participation in voluntary pools and 3% 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 September 30, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and nine months ended September 30, 2026 and 2025.


	As of and For the Three Months Ended September 30, 2026				As of and For the Three Months Ended September 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	$	3,076	$	13	$	3,095	$	17

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

Balance, end of period	$	3,041	$	13	$	3,098	$	17


	As of and For the Nine Months Ended September 30, 2026				As of and For the Nine Months Ended September 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	$	3,041	$	13	$	3,098	$	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)	September 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 September 30, 2026, in millions)	Gross Carrying Amount		Accumulated Amortization		Net
Subject to amortization
Customer-related	$	190	$	104	$	86
Contract-based	201		196		5
Marketing-related	18		8		10
Total subject to amortization	409		308		101
Not subject to amortization	225		—		225
Total	$	634	$	308	$	326


(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)	September 30, 2026		December 31, 2025
Property-casualty	$	68,127	$	67,643
Accident and health	3		3
Less amounts classified as held for sale	—		1,909
Total	$	68,130	$	65,737

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


	Nine Months Ended September 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	19,861		21,959
Estimated decrease in claims and claim adjustment expenses for claims arising in prior years	(1,148)		(648)
Total increases	18,713		21,311
Claims and claim adjustment expense payments for claims arising in:
Current year	6,254		7,597
Prior years	10,299		10,623
Total payments	16,553		18,220
Net reserves disposed of related to the divestiture of the Canadian business	(1,627)		—
Unrealized foreign exchange (gain) loss	(39)		204
Net reserves at end of period	60,340		59,714
Plus reinsurance recoverables on unpaid losses	7,787		7,987
Claims and claim adjustment expense reserves at end of period	$	68,127	$	67,701

Gross claims and claim adjustment expense reserves as of September 30, 2026 increased by $2.39 billion over December 31, 2025, primarily reflecting the impacts of (i) catastrophe losses in the first nine months of 2026 and (ii) loss cost trends for the current accident year, partially offset by (iii) claim payments made during the first nine 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 nine months ended September 30, 2026 and 2025, estimated claims and claim adjustment expenses incurred included $1.15 billion and $648 million, respectively, of net favorable development for claims arising in prior years, including $1.23 billion and $715 million, respectively, of net favorable prior year reserve development, and $32 million of accretion of discount in each period.

Business Insurance. Net favorable prior year reserve development in the third quarter of 2026 totaled $41 million, primarily driven by better than expected loss experience in all major product lines, primarily for recent accident years, partially offset by an addition to asbestos reserves of $295 million. Net unfavorable prior year reserve development in the third quarter of 2025 totaled $125 million, primarily driven by an addition to asbestos reserves of $277 million, partially offset by better than expected loss experience in the workers’ compensation product line for multiple accident years.

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 nine months of 2026 totaled $522 million, primarily driven by better than expected loss experience in all major product lines, primarily for recent accident years, partially offset by an addition to reserves related to run-off operations, including an addition to asbestos reserves of $295 million. Net favorable prior year reserve development in the first nine months of 2025 totaled $28 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, including an addition to asbestos reserves of $277 million.

Bond & Specialty Insurance. Net favorable prior year reserve development in the third quarter and first nine months of 2026 totaled $95 million and $235 million, respectively, 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 third quarter and first nine months of 2025 totaled $43 million and $191 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 third quarter of 2026 totaled $98 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 third quarter of 2025 totaled $104 million, primarily driven by better than expected loss experience in the automobile product line for recent accident years. Net favorable prior year reserve development in the first nine months of 2026 and 2025 totaled $468 million and $496 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 nine months ended September 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, June 30, 2026	$	(2,145)	$	185	$	(157)	$	(551)	$	(2,668)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(4,405)		—		1		(2)		(4,406)
Amounts reclassified from AOCI, net of tax	13		—		(2)		—		11
Net OCI, current period	(4,392)		—		(1)		(2)		(4,395)
Balance, September 30, 2026	$	(6,537)	$	185	$	(158)	$	(553)	$	(7,063)

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	(4,913)		(1)		1		(37)		(4,950)
Amounts reclassified from AOCI, net of tax	40		—		(9)		356		387
Net OCI, current period	(4,873)		(1)		(8)		319		(4,563)
Balance, September 30, 2026	$	(6,537)	$	185	$	(158)	$	(553)	$	(7,063)

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 September 30,				Nine Months Ended September 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	$	(5,571)	$	1,347	$	(6,186)	$	2,124
Income tax expense (benefit)	(1,179)		286		(1,313)		455
Net of taxes	(4,392)		1,061		(4,873)		1,669
Having credit losses recognized in the consolidated statement of income	—		—		(1)		1
Income tax expense (benefit)	—		—		—		—
Net of taxes	—		—		(1)		1
Net changes in benefit plan assets and obligations	(1)		—		(11)		—
Income tax expense (benefit)	—		—		(3)		—
Net of taxes	(1)		—		(8)		—
Net changes in unrealized foreign currency translation	(2)		(72)		316		217
Income tax expense (benefit)	—		(2)		(3)		14
Net of taxes	(2)		(70)		319		203
Total other comprehensive income (loss)	(5,574)		1,275		(5,882)		2,342
Total income tax expense (benefit)	(1,179)		284		(1,319)		469
Total other comprehensive income (loss), net of taxes	$	(4,395)	$	991	$	(4,563)	$	1,873

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 September 30,				Nine Months Ended September 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)	$	16	$	2	$	54	$	50
Income tax benefit (3)	3		—		14		10
Net of taxes	13		2		40		40
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)	—		—		(2)		—
General and administrative expenses (benefit) (4)	(2)		—		(4)		—
Other (2)	—		—		(4)		—
Total	(2)		—		(10)		—
Income tax expense (3)	—		—		(1)		—
Net of taxes	(2)		—		(9)		—
Reclassification adjustment related to foreign currency translation (1) (2)	—		—		356		—
Income tax benefit (3)	—		—		—		—
Net of taxes	—		—		356		—
Total reclassifications	14		2		400		50
Total income tax benefit	3		—		13		10
Total reclassifications, net of taxes	$	11	$	2	$	387	$	40

(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 which the Company divested 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

Debt Issuance. On July 24, 2026, the Company issued $750 million aggregate principal amount of 4.95% senior notes that will mature on July 24, 2031. The net proceeds of the issuance, after the deduction of the underwriting discount and expenses payable by the Company, totaled approximately $744 million. Interest on the senior notes is payable semi-annually in arrears on January 24 and July 24. Prior to June 24, 2031, the senior notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of any senior notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest to but excluding June 24, 2031 on any senior notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate (as defined in the senior notes), plus 10 basis points. On or after June 24, 2031, the senior notes

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

9. DEBT, Continued

may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, at a redemption price equal to 100% of the principal amount of any senior notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

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 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 September 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 September 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 nine months ended September 30, 2026, the Company repurchased 4.0 million and 14.3 million common shares, respectively, under its share repurchase authorizations for total cost of $1.50 billion and $4.60 billion, respectively. The average cost per share repurchased during the three and nine months ended September 30, 2026 was $376.01 and $322.60, respectively. In addition, the Company acquired 22,146 and 0.6 million shares for a total cost of $8 million and $204 million during the three and nine months ended September 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% federal excise tax imposed on common share repurchase activity, net of common share issuances, as part of the Inflation Reduction Act of 2022. As of September 30, 2026, the Company had $2.42 billion of capacity remaining under its share repurchase authorizations.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

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 September 30,				Nine Months Ended September 30,
(in millions, except per share amounts)	2026		2025		2026		2025
Basic and Diluted
Net income, as reported	$	1,917	$	1,888	$	5,836	$	3,792
Participating share-based awards — allocated income	(13)		(13)		(41)		(27)
Net income available to common shareholders — basic and diluted	$	1,904	$	1,875	$	5,795	$	3,765
Common Shares
Basic
Weighted average shares outstanding	206.9		224.1		210.9		225.6
Diluted
Weighted average shares outstanding	206.9		224.1		210.9		225.6
Weighted average effects of dilutive securities — stock options and performance shares	3.7		3.4		3.3		3.3
Total	210.6		227.5		214.2		228.9
Net Income per Common Share
Basic	$	9.20	$	8.37	$	27.48	$	16.69
Diluted	$	9.04	$	8.24	$	27.05	$	16.45

12. SHARE-BASED INCENTIVE COMPENSATION

The following information relates to fully vested stock option awards as of September 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)	4,910,726	$	177.84	5.3 years	$	877
Exercisable at end of period	3,665,554	$	154.71	4.3 years	$	740

(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 $62 million and $59 million for the three months ended September 30, 2026 and 2025, respectively, and $210 million and $199 million for the nine months ended September 30, 2026 and 2025, respectively. The related tax benefits recognized in the consolidated statement of income were $10 million and $11 million for the three months ended September 30, 2026 and 2025, respectively, and $34 million and $33 million for the nine months ended September 30, 2026 and 2025, respectively.

The total unrecognized compensation cost related to all nonvested share-based incentive compensation awards as of September 30, 2026 was $314 million, which is expected to be recognized over a weighted-average period of 1.8 years.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

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 September 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended September 30, in millions)	2026		2025		2026		2025
Net Periodic Benefit Cost (Benefit):
Service cost	$	30	$	28	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	42		44		1		1
Expected return on plan assets	(74)		(71)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		—		—
Net actuarial (gain) loss	1		4		(3)		(3)
Total non-service cost (benefit)	(31)		(23)		(2)		(2)
Net periodic benefit cost (benefit)	$	(1)	$	5	$	(2)	$	(2)

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 September 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the three months ended September 30, in millions)	2026		2025		2026		2025
Service Cost:
Claims and claim adjustment expenses	$	11	$	11	$	—	$	—
General and administrative expenses	19		17		—		—
Total service cost	30		28		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(12)		(9)		(1)		(1)
General and administrative expenses	(19)		(14)		(1)		(1)
Total non-service cost (benefit)	(31)		(23)		(2)		(2)
Net periodic benefit cost (benefit)	$	(1)	$	5	$	(2)	$	(2)

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

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


	Pension Plans				Postretirement Benefit Plans
(for the nine months ended September 30, in millions)	2026		2025		2026		2025
Net Periodic Benefit Cost (Benefit):
Service cost	$	90	$	85	$	—	$	—
Non-service cost (benefit):
Interest cost on benefit obligation	127		132		2		2
Expected return on plan assets	(223)		(211)		—		—

Amortization of unrecognized:
Prior service benefit	—		—		(1)		(1)
Net actuarial (gain) loss	3		11		(8)		(9)
Total non-service cost (benefit)	(93)		(68)		(7)		(8)
Net periodic benefit cost (benefit)	$	(3)	$	17	$	(7)	$	(8)

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 nine months ended September 30, 2026 and 2025.


	Pension Plans				Postretirement Benefit Plans
(for the nine months ended September 30, in millions)	2026		2025		2026		2025
Service Cost:
Claims and claim adjustment expenses	$	34	$	33	$	—	$	—
General and administrative expenses	56		52		—		—
Total service cost	90		85		—		—
Non-Service Cost (Benefit):
Claims and claim adjustment expenses	(35)		(26)		(3)		(3)
General and administrative expenses	(58)		(42)		(4)		(5)
Total non-service cost (benefit)	(93)		(68)		(7)		(8)
Net periodic benefit cost (benefit)	$	(3)	$	17	$	(7)	$	(8)

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.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

14. LEASES, Continued

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 September 30,						Nine Months Ended September 30,
(in millions)	2026			2025				2026			2025
Lease cost
Operating leases	$	15		$	16			$	44		$	48
Short-term leases (1)	1			1				3			2

Lease expense	16			17				47			50
Less: sublease income (2)	—			—				—			—
Net lease cost	$	16		$	17			$	47		$	50

Other information on operating leases

Cash payments to settle a lease liability reported in cash flows	$	18		$	19			$	54		$	55
Right-of-use assets obtained in exchange for new lease liabilities	$	21		$	9			$	32		$	25
Weighted average discount rate	4.27		%	4.00		%		4.27		%	4.00		%
Weighted average remaining lease term	5.4 years			5.4 years				5.4 years			5.4 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 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.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

15. CONTINGENCIES, COMMITMENTS AND GUARANTEES, Continued

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 $1.70 billion and $1.41 billion as of September 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 September 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 September 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 nine months ended September 30, 2026 and 2025 in connection with its stock compensation plan which resulted in noncash financing transactions totaling $45 million and $43 million, respectively, from the net share settlement of employee stock options. There were no other material noncash investing or financing activities during the nine months ended September 30, 2026 and 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

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