UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________

FORM 10-Q

_________________________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

___________________________________________________________________

Commission file number: 001-10898

___________________________________________________________________

The Travelers Companies, Inc.

(Exact name of registrant as specified in its charter)

____________________________________________________________________


Minnesota						41-0518860
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

485 Lexington Avenue

New York, NY 10017

(Address of principal executive offices) (Zip Code)

(917) 778-6000

(Registrant’s telephone number, including area code)

_________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, without par value

TRV

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	ý	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ý

The number of shares of the Registrant’s Common Stock, without par value, outstanding at July 10, 2026 was 208,575,022.

The Travelers Companies, Inc.

Quarterly Report on Form 10-Q

For Quarterly Period Ended ~~March~~June 3130, 2026

_________________________________________________________

TABLE OF CONTENTS

		Page
	Part I — Financial Information
Item 1.	Financial Statements:
	Consolidated Statement of Income (Unaudited) — Three Months Ended March 31, 2026 and 2025	3
	Consolidated Statement of Income (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	3
	Consolidated Statement of Comprehensive Income (Unaudited) — Three Months Ended March 31, 2026 and 2025	4
	Consolidated Statement of Comprehensive Income (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	4
	Consolidated Balance Sheet — March 31, 2026 (Unaudited) and December 31, 2025	5
	Consolidated Balance Sheet — June 30, 2026 (Unaudited) and December 31, 2025	5
	Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) — Three Months Ended March 31, 2026 and 2025	6
	Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) — Three and Six Months Ended June 30, 2026 and 2025	6
	Consolidated Statement of Cash Flows (Unaudited) — Three Months Ended March 31, 2026 and 2025	7
	Consolidated Statement of Cash Flows (Unaudited) — Six Months Ended June 30, 2026 and 2025	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2934
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5666
Item 4.	Controls and Procedures	5666
	Part II — Other Information
Item 1.	Legal Proceedings	5666
Item 1A.	Risk Factors	5767
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	5767
Item 5.	Other Information	5767
Item 6.	Exhibits	5868
	SIGNATURES	5969

PART 1 — FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

(in millions, except per share amounts)

	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
	2026		2025		2026		2025
Revenues
Premiums	$	10,~~605~~753	$	10,~~710~~921	$	21,358	$	21,631
Net investment income	1,~~008~~070		~~930~~942		2,078		1,872
Fee income	~~121~~126		~~119~~124		247		243
Net realized investment gains (losses)	4960		~~(61)~~6		109		(55)
Other revenues	~~141~~144		~~112~~123		285		235
Total revenues	1112,~~924~~153		1112,~~810~~116		24,077		23,926
Claims and expenses
Claims and claim adjustment expenses	65,~~382~~922		86,~~006~~789		12,304		14,795
Amortization of deferred acquisition costs	1,~~766~~786		1,~~778~~802		3,552		3,580
General and administrative expenses	1,~~541~~565		1,~~459~~545		3,106		3,004
Interest expense	~~116~~113		99		229		198
Total claims and expenses	9,~~805~~386		1110,~~342~~235		19,191		21,577
Income before income taxes	2,~~119~~767		~~468~~1,881		4,886		2,349
Income tax expense	~~408~~559		73372		967		445
Net income	$	12,~~711~~208	$	~~395~~1,509	$	3,919	$	1,904
Net income per share
Basic	$	710.8941	$	16.7363	$	18.28	$	8.35
Diluted	$	710.7826	$	16.7053	$	18.01	$	8.23
Weighted average number of common shares outstanding
Basic	~~215~~210.25		~~226~~225.9		212.9		226.4
Diluted	~~218~~213.46		~~230~~229.43		216.0		229.7
Cash dividends declared per common share	$	1.1025	$	1.0510	$	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 COMPREHENSIVE INCOME (Unaudited)

(in millions)

	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
	2026		2025		2026		2025
Net income	$	12,~~711~~208	$	~~395~~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	~~(1,146)~~531		~~436~~341		(615)		777
Having credit losses recognized in the consolidated statement of income	—(1)		1—		(1)		1
Net changes in benefit plan assets and obligations	(82)		—		(10)		—
Net changes in unrealized foreign currency translation	~~327~~(9)		61228		318		289
Other comprehensive income (loss) before income taxes	~~(827)~~519		~~498~~569		(308)		1,067
Income tax expense (benefit)	~~(249)~~109		9986		(140)		185
Other comprehensive income (loss), net of taxes	~~(578)~~410		~~399~~483		(168)		882
Comprehensive income	$	12,~~133~~618	$	~~794~~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)

	March 31,2026		December 31,2025
	June 30,2026		December 31,2025
	(Unaudited)
Assets
Fixed maturities, available for sale, at fair value (amortized cost $93,742 and $91,717; allowance for expected credit losses of $3 and $3)	$	90,736	$	89,833
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 $428 and $457)	591		618
Equity securities, at fair value (cost $410 and $457)	652		618
Real estate investments	~~899~~884		900
Short-term securities	64,~~660~~579		5,716
Other investments	4,~~092~~142		4,115
Total investments	~~102~~103,~~978~~179		101,182
Cash (including restricted cash of $134 and $132)	615		842
Cash (including restricted cash of $139 and $132)	621		842
Investment income accrued	~~801~~911		877
Premiums receivable (net of allowance for expected credit losses of $60 and $58)	11,423		10,992
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 $130 and $129)	7,988		7,886
Reinsurance recoverables (net of allowance for estimated uncollectible reinsurance of $142 and $129)	8,009		7,886
Ceded unearned premiums	1,~~877~~674		1,283
Deferred acquisition costs	3,~~587~~713		3,518
Deferred taxes	1,~~101~~041		887
Contractholder receivables (net of allowance for expected credit losses of $14 and $16)	3,051		3,010
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	~~331~~325		336
Other assets	4,~~497~~589		4,279
Assets held for sale	—		4,550
Total assets	$	~~142~~143,~~309~~580	$	143,708
Liabilities
Claims and claim adjustment expense reserves	$	6667,~~912~~226	$	65,737
Unearned premium reserves	2223,~~772~~327		22,431
Contractholder payables	3,~~065~~089		3,026
Payables for reinsurance premiums	1,~~123~~016		529
Debt	9,~~268~~068		9,267
Other liabilities	76,~~183~~733		7,282
Liabilities held for sale	—		2,542
Total liabilities	110,~~323~~459		110,814
Shareholders’ equity
Common stock (1,750.0 shares authorized; 212.6 and 217.5 shares issued and outstanding)	26,092		25,910
Common stock (1,750.0 shares authorized; 208.6 and 217.5 shares issued and outstanding)	26,186		25,910
Retained earnings	5658,~~404~~346		54,931
Accumulated other comprehensive loss	(32,~~078~~668)		(2,500)
Treasury stock, at cost (582.5 and 575.9 shares)	(47,432)		(45,447)
Treasury stock, at cost (586.8 and 575.9 shares)	(48,743)		(45,447)
Total shareholders’ equity	3133,~~986~~121		32,894
Total liabilities and shareholders’ equity	$	~~142~~143,~~309~~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 EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
	2026		2025		2026		2025
Common stock
Balance, beginning of period	$	2526,~~910~~092	$	25,~~452~~584	$	25,910	$	25,452
Employee share-based compensation	9534		4987		129		136
Compensation amortization under share-based plans and other changes	8760		8357		147		140
Balance, end of period	26,~~092~~186		25,~~584~~728		26,186		25,728
Retained earnings
Balance, beginning of period	5456,~~931~~404		49,~~630~~784		54,931		49,630
Net income	12,~~711~~208		~~395~~1,509		3,919		1,904
Dividends	(~~238~~266)		(~~241~~252)		(504)		(493)
Balance, end of period	5658,~~404~~346		4951,~~784~~041		58,346		51,041
Accumulated other comprehensive loss, net of tax
Balance, beginning of period	(23,~~500~~078)		(4,~~967~~568)		(2,500)		(4,967)
Other comprehensive income (loss)	~~(578)~~410		~~399~~483		(168)		882
Balance, end of period	(32,~~078~~668)		(4,~~568~~085)		(2,668)		(4,085)
Treasury stock, at cost
Balance, beginning of period	(4547,~~447~~432)		(42,~~251~~609)		(45,447)		(42,251)
Treasury stock acquired — share repurchase authorizations	(1,~~800~~300)		(~~250~~500)		(3,100)		(750)
Net shares acquired related to employee share-based compensation plans	(~~185~~11)		(~~108~~57)		(196)		(165)
Balance, end of period	(4748,~~432~~743)		(4243,~~609~~166)		(48,743)		(43,166)
Total shareholders’ equity	$	3133,~~986~~121	$	2829,~~191~~518	$	33,121	$	29,518
Common shares outstanding
Balance, beginning of period	~~217~~212.56		226.6		217.5		226.6
Treasury stock acquired — share repurchase authorizations	(64.03)		(1.08)		(10.3)		(2.8)
Net shares issued under employee share-based compensation plans	10.13		1.0.3		1.4		1.3
Balance, end of period	~~212~~208.6		~~226~~225.61		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)

	Three Months Ended March 31,
	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities
Net income	$	13,~~711~~919	$	~~395~~1,904
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized investment (gains) losses	(49109)		6155
Depreciation and amortization	~~193~~363		~~188~~352
Deferred federal income tax expense	51		31
Deferred federal income tax benefit	(7)		(52)
Amortization of deferred acquisition costs	13,~~766~~552		13,~~778~~580
Equity in income from other investments	(2398)		(5395)
Premiums receivable	(~~434~~1,395)		(~~459~~897)
Reinsurance recoverables	(~~108~~131)		(9719)
Deferred acquisition costs	(13,~~837~~749)		(13,~~822~~739)
Claims and claim adjustment expense reserves	1,~~211~~530		12,~~818~~543
Unearned premium reserves	~~351~~910		~~419~~914
Other	(~~634~~671)		(~~899~~852)
Net cash provided by operating activities	24,~~198~~114		13,~~360~~694
Cash flows from investing activities
Proceeds from maturities of fixed maturities	35,~~014~~977		25,~~801~~872
Proceeds from sales of investments:
Fixed maturities	~~251~~385		~~253~~601
Equity securities	52116		68100
Other investments	60		63
Real estate investments	17		—
Other investments	125		142
Purchases of investments:
Fixed maturities	(510,~~356~~155)		(49,~~296~~143)
Equity securities	(2556)		(2560)
Real estate investments	(1222)		(713)
Other investments	(69181)		(96176)
Net (purchases) sales of short-term securities	(945)		239
Net sales of short-term securities	1,136		24
Securities transactions in the course of settlement	~~430~~30		~~308~~372
Proceeds from the divestiture of the Canadian business	2,384		—
Other	(~~119~~256)		(~~116~~243)
Net cash used in investing activities	(~~335~~500)		(~~808~~2,524)
Cash flows from financing activities
Treasury stock acquired — share repurchase authorizations	(13,~~785~~098)		(~~250~~750)
Treasury stock acquired — net employee share-based compensation	(~~149~~154)		(~~102~~124)
Dividends paid to shareholders	(~~237~~500)		(~~240~~490)
Issuance of common stock — employee share options	86		57
Payment of debt	(200)		—
Net cash used in financing activities	(2,085)		(535)
Issuance of common stock — employee share options	124		127
Effect of exchange rate changes on cash and restricted cash	(5)		8
Net cash used in financing activities	(3,828)		(1,237)
Net increase (decrease) in cash and restricted cash	(227)		25
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	$	~~615~~621	$	~~724~~659
Supplemental disclosure of cash flow information
Income taxes paid	$	121,112	$	24562
Interest paid	$	94230	$	61197

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

(for the three months ended March 31, in millions)	BusinessInsurance		Bond & SpecialtyInsurance		PersonalInsurance		TotalReportableSegments
2026
Premiums	$	5,493	$	1,018	$	4,094	$	10,605
Net investment income	708		113		187		1,008
Fee income	111		—		10		121
Other revenues	104		5		32		141
Total segment revenues (1)	6,416		1,136		4,323		11,875
Claims and claim adjustment expenses	3,531		441		2,410		6,382
Amortization of deferred acquisition costs	938		194		634		1,766
General and administrative expenses	912		219		397		1,528
Income tax expense	196		28		178		402
Segment income (1)	$	839	$	254	$	704	$	1,797
2025
Premiums	$	5,465	$	995	$	4,250	$	10,710
Net investment income	656		102		172		930
Fee income	108		—		11		119
Other revenues	82		6		24		112
Total segment revenues (1)	6,311		1,103		4,457		11,871
Claims and claim adjustment expenses	3,705		434		3,867		8,006
Amortization of deferred acquisition costs	917		187		674		1,778
General and administrative expenses	847		205		396		1,448
Income tax expense (benefit)	159		57		(106)		110
Segment income (loss) (1)	$	683	$	220	$	(374)	$	529

________________________________________________________

(1)Segment revenues for reportable business segments exclude net realized investment gains (losses) and revenues included in “interest expense and other.” Segment income (loss) 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

~~Prior~~The ~~year~~following ~~reserve~~tables ~~development~~summarize the components of the Company’s revenues, income and ~~catastrophe~~total ~~losses~~assets by reportable business segments ~~were as follows:~~.

(for the three months ended March 31, in millions)	BusinessInsurance		Bond & SpecialtyInsurance		PersonalInsurance		Total Reportable Segments
(for the three months ended June 30, in millions)	BusinessInsurance		Bond & SpecialtyInsurance		PersonalInsurance		TotalReportableSegments
2026
Net favorable prior year reserve development	$	162	$	65	$	186	$	413
Premiums	$	5,551	$	1,056	$	4,146	$	10,753
Catastrophe losses	$	379	$	8	$	374	$	761
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
Net favorable prior year reserve development	$	74	$	67	$	237	$	378
Premiums	$	5,545	$	1,021	$	4,355	$	10,921
Catastrophe losses	$	509	$	19	$	1,738	$	2,266
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

The following table presents 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 (loss) by reportable business segment).________________________________________________________

(for the three months ended March 31, in millions)	2026		2025
Business Insurance	$	114	$	113
Bond & Specialty Insurance	27		23
Personal Insurance	50		50
Total	$	191	$	186

(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 EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Revenue reconciliation
Earned premiums
Business Insurance:
Domestic:
Workers’ compensation	$	~~831~~846	$	~~823~~841	$	1,677	$	1,664
Commercial automobile	1,~~024~~053		~~942~~968		2,077		1,910
Commercial property	~~907~~910		~~937~~960		1,817		1,897
General liability	~~890~~886		~~861~~862		1,776		1,723
Commercial multi-peril	1,~~465~~496		1,~~400~~435		2,961		2,835
Other	17		1917		34		36
Total Domestic	5,~~134~~208		45,~~982~~083		10,342		10,065
International	~~359~~343		~~483~~462		702		945
Total Business Insurance	5,~~493~~551		5,~~465~~545		11,044		11,010
Bond & Specialty Insurance:
Domestic:
Fidelity and surety	~~385~~406		~~358~~367		791		725
General liability	~~455~~463		~~452~~459		918		911
Other	5960		5859		119		117
Total Domestic	~~899~~929		~~868~~885		1,828		1,753
International	~~119~~127		~~127~~136		246		263
Total Bond & Specialty Insurance	1,~~018~~056		~~995~~1,021		2,074		2,016
Personal Insurance:
Domestic:
Automobile	1,~~892~~897		1,~~964~~980		3,789		3,944
Homeowners and Other	2,~~202~~249		2,~~121~~203		4,451		4,324
Total Domestic	4,~~094~~146		4,~~085~~183		8,240		8,268
International	—		~~165~~172		—		337
Total Personal Insurance	4,~~094~~146		4,~~250~~355		8,240		8,605
Total earned premiums	10,~~605~~753		10,~~710~~921		21,358		21,631
Net investment income	1,~~008~~070		~~930~~942		2,078		1,872
Fee income	~~121~~126		~~119~~124		247		243
Other revenues	~~141~~144		~~112~~123		285		235
Total segment revenues	1112,~~875~~093		1112,~~871~~110		23,968		23,981
Net realized investment gains (losses)	4960		~~(61)~~6		109		(55)
Total revenues	$	1112,~~924~~153	$	1112,~~810~~116	$	24,077	$	23,926
Income reconciliation, net of tax
Total segment income	$	12,~~797~~259	$	~~529~~1,591	$	4,056	$	2,120
Interest Expense and Other (1)	(~~101~~99)		(8687)		(200)		(173)
Core income	12,~~696~~160		~~443~~1,504		3,856		1,947
Net realized investment gains (losses)	1548		~~(48)~~5		63		(43)
Net income	$	12,~~711~~208	$	~~395~~1,509	$	3,919	$	1,904

_________________________________________________________

(1)The primary component of Interest Expense and Other was after-tax interest expense of $9289 million and $78 million for the three months ended ~~March~~June 3130, 2026 and 2025, respectively., and $181 million and $156 million for the six months ended June 30, 2026 and 2025, respectively.

1113

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

2. SEGMENT INFORMATION, Continued

(in millions)

~~March~~June 3130,2026

December 31,2025

Asset reconciliation

Business Insurance

106,~~397~~841

106,084

Bond & Specialty Insurance

1314,~~790~~326

13,676

Personal Insurance

2021,~~969~~244

22,787

Total assets by reportable segment

~~141~~142,~~156~~411

142,547

Other assets (1)

1,~~153~~169

1,161

Total consolidated assets

~~142~~143,~~309~~580

143,708

_________________________________________________________

(1)The primary components of other assets as of both ~~March~~June 3130, 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 March 31, 2026, in millions)

Gains

Losses

(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,~~475~~380

—

94100

3,~~383~~281

Obligations of U.S. states, municipalities and political subdivisions:

Local general obligation

22,~~523~~923

—

93182

1,~~394~~095

2122,~~222~~010

Revenue

10,~~171~~252

—

3579

~~645~~515

9,~~561~~816

State general obligation

~~861~~808

—

3625

~~828~~788

Pre-refunded

~~369~~444

—

~~369~~443

Total obligations of U.S. states, municipalities and political subdivisions

3334,~~924~~427

—

~~134~~268

21,~~078~~638

3133,~~980~~057

Debt securities issued by foreign governments

~~362~~399

—

~~358~~397

Mortgage-backed securities, collateralized mortgage obligations and pass-through securities

12,~~839~~647

—

~~165~~145

~~156~~173

12,~~848~~619

Corporate and all other bonds

4344,~~142~~548

~~222~~185

1,~~194~~163

4243,~~167~~568

Total

9395,~~742~~401

~~524~~600

3,~~527~~077

9092,~~736~~922

1214

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 $~~369~~443 million and $416 million as of ~~March~~June 3130, 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 $~~251~~385 million and $~~253~~601 million during the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025, respectively. Gross gains of $1 million ~~were~~and ~~realized~~$3 onmillion ~~those sales during both the three months ended March 31, 2026~~ and ~~2025.~~gross ~~Gross~~ losses of $1930 million and $1226 million were realized on those sales during the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025, respectively. Included in net realized investment gains (losses) for the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025 were $014 million and $1823 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 March 31, 2026, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
(as of June 30, 2026, in millions)	Cost		Gross Gains		Gross Losses		Fair Value
Common stock	$	~~397~~379	$	~~168~~243	$	73	$	~~558~~619
Non-redeemable preferred stock	31		2		—		33
Total	$	~~428~~410	$	~~170~~245	$	73	$	~~591~~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 ~~three~~six months ended ~~March~~June 3130, 2026 and 2025, the Company recognized $576 million and $221 million of net ~~losses~~gains on equity securities still held as of ~~March~~June 3130, 2026 and 2025, respectively.

1315

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 ~~March~~June 3130, 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 March 31, 2026, in millions)

FairValue

GrossUnrealizedLosses

FairValue

GrossUnrealizedLosses

FairValue

GrossUnrealizedLosses

(as of June 30, 2026, in millions)

FairValue

GrossUnrealizedLosses

FairValue

GrossUnrealizedLosses

FairValue

GrossUnrealizedLosses

Fixed maturities

U.S. Treasury securities and obligations of U.S. government and government agencies and authorities

1,~~166~~636

1621

1,~~401~~136

7879

2,~~567~~772

94100

Obligations of U.S. states, municipalities and political subdivisions

105,~~195~~578

~~198~~58

13,~~253~~281

1,~~880~~580

2318,~~448~~859

21,~~078~~638

Debt securities issued by foreign governments

~~178~~149

5752

~~235~~201

Mortgage-backed securities, collateralized mortgage obligations and pass-through securities

23,~~654~~297

2436

1,~~319~~273

~~132~~137

34,~~973~~570

~~156~~173

Corporate and all other bonds

1114,~~925~~060

~~155~~167

1514,~~564~~842

~~1,039~~996

2728,~~489~~902

1,~~194~~163

Total

2624,~~118~~720

~~396~~283

3130,~~594~~584

32,~~131~~794

5755,~~712~~304

3,~~527~~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

1416

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 ~~March~~June 3130, 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 March 31, 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
(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	~~399~~2		2205		—3		~~382~~337		~~783~~547
Debt securities issued by foreign governments	—		—		—		—		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	—		—		—		—		—
Corporate and all other bonds	2		—		—		5—		72
Total	$	~~401~~4	$	2205	$	—3	$	~~387~~337	$	~~790~~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.

1517

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

3. INVESTMENTS, Continued

Impairment Charges

The following ~~table~~tables ~~presents~~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)	~~March~~June 3130, 2026		~~March~~June 3130, 2025
Balance, beginning of period	$	3	$	24
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	$	32	$	4

Total net impairment charges, including credit impairments, reported in net realized investment gains (losses) in the consolidated statement of income were $4 million and $2 million for the three months ended March 31, 2026 and 2025, respectively. Credit losses related to the fixed maturity portfolio for both the three months ended March 31, 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.


	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.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

4. FAIR VALUE MEASUREMENTS, Continued

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 ~~March~~June 3130, 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 ~~March~~June 3130, 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.

(as of March 31, 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	$	3,383	$	3,383	$	—	$	—
Obligations of U.S. states, municipalities and political subdivisions	31,980		—		31,980		—
Debt securities issued by foreign governments	358		—		358		—
Mortgage-backed securities, collateralized mortgage obligations and pass-through securities	12,848		—		12,848		—
Corporate and all other bonds	42,167		—		41,907		260
Total fixed maturities	90,736		3,383		87,093		260
Equity securities
Common stock	558		550		—		8
Non-redeemable preferred stock	33		7		4		22
Total equity securities	591		557		4		30
Other investments	8		8		—		—
Total	$	91,335	$	3,948	$	87,097	$	290

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 ~~three~~six months ended ~~March~~June 3130, 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 March 31, 2026, in millions)	CarryingValue		FairValue		Level 1		Level 2		Level 3
(as of June 30, 2026, in millions)	CarryingValue		FairValue		Level 1		Level 2		Level 3
Financial assets
Short-term securities	$	64,~~660~~579	$	64,~~660~~579	$	~~598~~823	$	63,~~011~~706	$	5150
Financial liabilities
Debt	$	98,~~168~~968	$	8,~~330~~214	$	—	$	8,~~330~~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 ~~three~~six months ended ~~March~~June 3130, 2026 or the year ended December 31, 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

5. ALLOWANCE FOR EXPECTED CREDIT LOSSES

Premiums Receivable

The following ~~table~~tables ~~presents~~present the balances of premiums receivable, net of the allowance for expected credit losses, as of ~~March~~June 3130, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and six months ended ~~March~~June 3130, 2026 and 2025.

	As of and For the Three Months Ended March 31, 2026				As of and For the Three Months Ended March 31, 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	$	1011,~~992~~423	$	5860	$	11,~~110~~575	$	58
Current period change for expected credit losses			18				1619
Write-offs of uncollectible premiums receivable			1617				16
Balance, end of period	$	1112,~~423~~382	$	6061	$	1112,~~575~~042	$	5861

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 ~~table~~tables ~~presents~~present the balances of reinsurance recoverables, net of the allowance for estimated uncollectible reinsurance, as of ~~March~~June 3130, 2026 and 2025, and the changes in the allowance for estimated uncollectible reinsurance for the three and six months ended ~~March~~June 3130, 2026 and 2025.

As of and For the Three Months Ended March 31, 2026

As of and For the Three Months Ended March 31, 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,~~886~~988

~~129~~130

8,~~000~~105

~~119~~128

Current period change for estimated uncollectible reinsurance

112

9(1)

Write-offs of uncollectible reinsurance recoverables

—

Balance, end of period

78,~~988~~009

~~130~~142

8,~~105~~059

~~128~~127

Of the total reinsurance recoverables as of March 31, 2026, $5.97 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, 94% 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.


	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

1922

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 ~~table~~tables ~~presents~~present the balances of contractholder receivables, net of the allowance for expected credit losses, as of ~~March~~June 3130, 2026 and 2025, and the changes in the allowance for expected credit losses for the three and six months ended ~~March~~June 3130, 2026 and 2025.

	As of and For the Three Months Ended March 31, 2026				As of and For the Three Months Ended March 31, 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,~~010~~051	$	1614	$	3,~~171~~193	$	1817
Current period change for expected credit losses			(21)				~~(1)~~—
Write-offs of uncollectible contractholder receivables			—				—
Balance, end of period	$	3,~~051~~076	$	1413	$	3,~~193~~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)	~~March~~June 3130,2026		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 March 31, 2026, in millions)	GrossCarryingAmount		AccumulatedAmortization		Net
(as of June 30, 2026, in millions)	GrossCarryingAmount		AccumulatedAmortization		Net
Subject to amortization
Customer-related	$	184	$	95100	$	8984
Contract-based	201		~~195~~196		65
Marketing-related	18		7		11
Total subject to amortization	403		~~297~~303		~~106~~100
Not subject to amortization	225		—		225
Total	$	628	$	~~297~~303	$	~~331~~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

6. GOODWILL AND OTHER INTANGIBLE ASSETS, Continued

(as of December 31, 2025, in millions)	GrossCarryingAmount		AccumulatedAmortization		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

7. INSURANCE CLAIM RESERVES

Claims and claim adjustment expense reserves were as follows:

(in millions)	~~March~~June 3130,2026		December 31,2025
Property-casualty	$	6667,~~908~~222	$	67,643
Accident and health	4		3
Less amounts classified as held for sale	—		1,909
Total	$	6667,~~912~~226	$	65,737

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

Three Months Ended March 31,

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

613,~~739~~192

815,~~338~~392

Estimated decrease in claims and claim adjustment expenses for claims arising in prior years

(~~385~~939)

(~~360~~650)

Total increases

612,~~354~~253

714,~~978~~742

Claims and claim adjustment expense payments for claims arising in:

Current year

13,~~174~~501

14,~~856~~504

Prior years

47,~~146~~487

47,~~415~~763

Total payments

510,~~320~~988

612,~~271~~267

Net reserves disposed of related to the divestiture of the Canadian business

(1,627)

—

Unrealized foreign exchange (gain) loss

(3237)

59272

Net reserves at end of period

59,~~221~~447

5859,~~185~~166

Plus reinsurance recoverables on unpaid losses

7,~~687~~775

7,~~787~~771

Claims and claim adjustment expense reserves at end of period

6667,~~908~~222

6566,~~972~~937

Gross claims and claim adjustment expense reserves as of ~~March~~June 3130, 2026 increased by $1.1849 billion over December 31, 2025, primarily reflecting the impacts of (i) catastrophe losses in the first ~~three~~six months of 2026 and (ii) loss cost trends for the current accident year, partially offset by (iii) claim payments made during the first ~~three~~six months of 2026 and (iv) net favorable prior year reserve development.

21Prior 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

~~Prior~~Net ~~Year~~favorable ~~Reserve~~prior ~~Development~~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.

~~The~~Bond & ~~following~~Specialty ~~disclosures~~Insurance. ~~regarding~~Net favorable prior year reserve development ~~are~~in onthe asecond ~~“net~~quarter of ~~reinsurance”~~2026 ~~basis~~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.

~~For~~Personal ~~the~~Insurance. ~~three~~Net ~~months~~favorable ~~ended~~prior ~~March~~year ~~31,~~reserve development in the second quarter of 2026 ~~and~~totaled ~~2025~~$184 million, ~~estimated~~primarily ~~claims~~driven ~~and~~by ~~claim~~better ~~adjustment~~than ~~expenses~~expected ~~incurred~~loss ~~included~~experience ~~$385~~in ~~million~~both the homeowners and ~~$360~~other ~~million,~~and ~~respectively,~~automobile ofproduct ~~net~~lines for recent accident years. Net favorable ~~development~~prior ~~for~~year ~~claims~~reserve ~~arising~~development in ~~prior~~the ~~years,~~first ~~including~~six ~~$413 million~~months ~~and~~of 2026 totaled $~~378~~ 370 million, ~~respectively,~~primarily ofdriven ~~net~~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 $11155 million ofand ~~accretion~~$392 ofmillion, ~~discount~~respectively, primarily driven by better than expected loss experience in ~~each~~both ~~period~~the automobile and homeowners and other product lines for recent accident years.

Business Insurance. Net favorable prior year reserve development in the first quarter of 2026 totaled $162 million, primarily driven by better than expected loss experience in the commercial property and workers’ compensation product lines for multiple accident years. Net favorable prior year reserve development in the first quarter of 2025 totaled $74 million, primarily driven by better than expected loss experience in the workers’ compensation product line for multiple accident years.

Bond & Specialty Insurance. Net favorable prior year reserve development in the first quarter of 2026 totaled $65 million, primarily driven by better than expected loss experience in the fidelity and surety product line for multiple accident years. Net favorable prior year reserve development in the first quarter of 2025 totaled $67 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.

Personal Insurance. Net favorable prior year reserve development in the first quarter of 2026 totaled $186 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 first quarter of 2025 totaled $237 million, 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 ~~table~~tables ~~presents~~present the changes in the Company’s accumulated other comprehensive income (loss) (AOCI) for the three and six months ended ~~March~~June 3130, 2026.

	Changes in Net Unrealized Gains (Losses) on Investment Securities
(in millions)	Having No CreditLosses Recognized inthe ConsolidatedStatement of Income		Having Credit Losses Recognized in the ConsolidatedStatement of Income		Net Benefit Plan Assets andObligationsRecognized inShareholders’ Equity		Net UnrealizedForeign CurrencyTranslation		Total AccumulatedOtherComprehensiveIncome (Loss)
Balance, December 31, 2025	$	(1,664)	$	186	$	(150)	$	(872)	$	(2,500)
Other comprehensive income (loss) (OCI) before reclassifications, net of tax	(902)		—		—		(28)		(930)
Amounts reclassified from AOCI, net of tax	2		—		(6)		356		352
Net OCI, current period	(900)		—		(6)		328		(578)
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)

2226

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 EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 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	$	~~(1,146)~~531	$	~~436~~341	$	(615)	$	777
Income tax expense (benefit)	~~(246)~~112		9673		(134)		169
Net of taxes	~~(900)~~419		~~340~~268		(481)		608
Having credit losses recognized in the consolidated statement of income	—(1)		1—		(1)		1
Income tax expense (benefit)	—		—		—		—
Net of taxes	—(1)		1—		(1)		1
Net changes in benefit plan assets and obligations	(82)		—		(10)		—
Income tax expense (benefit)	(21)		—		(3)		—
Net of taxes	(61)		—		(7)		—
Net changes in unrealized foreign currency translation	~~327~~(9)		61228		318		289
Income tax expense (benefit)	(12)		313		(3)		16
Net of taxes	~~328~~(7)		58215		321		273
Total other comprehensive income (loss)	~~(827)~~519		~~498~~569		(308)		1,067
Total income tax expense (benefit)	~~(249)~~109		9986		(140)		185
Total other comprehensive income (loss), net of taxes	$	~~(578)~~410	$	~~399~~483	$	(168)	$	882

2327

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 EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 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)	$	731	$	3117	$	38	$	48
Income tax benefit (3)	56		64		11		10
Net of taxes	225		2513		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)~~—		—		(4)		—
Total	(62)		—		(8)		—
Income tax expense (3)	—(1)		—		(1)		—
Net of taxes	(61)		—		(7)		—
Reclassification adjustment related to foreign currency translation (1) (2)	~~356~~—		—		356		—
Income tax benefit (3)	—		—		—		—
Net of taxes	~~356~~—		—		356		—
Total reclassifications	~~357~~29		3117		386		48
Total income tax benefit	5		64		10		10
Total reclassifications, net of taxes	$	~~352~~24	$	2513	$	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. ~~COMMON SHARE REPURCHASES~~DEBT

~~During~~Credit ~~the~~Agreement. ~~three~~On ~~months~~May ~~ended March 31~~15, 2026, the Company ~~repurchased~~entered 6into a five-year $1.02 billion ~~million~~revolving ~~common~~credit ~~shares~~agreement ~~under~~with ~~its~~a ~~share~~syndicate ~~repurchase~~of ~~authorizations~~financial ~~for~~institutions, areplacing ~~total~~its ~~cost~~existing offive-year $1.80 0 billion. ~~The~~revolving ~~average~~credit ~~cost~~agreement, ~~per~~which ~~share~~was ~~repurchased~~terminated ~~was~~on ~~$300.30. In~~May ~~addition~~15, ~~the Company acquired 0~~2026.6 ~~million~~Pursuant ~~shares~~to ~~for~~the acredit ~~total~~agreement ~~cost~~covenants, ofthe ~~$185~~Company ~~million~~must ~~during~~maintain ~~the~~an ~~three~~excess ~~months~~of ~~ended~~consolidated ~~March 31~~net worth, ~~2026~~defined ~~that~~as ~~were~~shareholders’ ~~not~~equity ~~part~~determined ofin ~~the~~accordance ~~publicly~~with ~~announced~~GAAP ~~share~~(excluding ~~repurchase~~accumulated ~~authorizations.~~other ~~These~~comprehensive ~~shares~~income ~~consisted~~(loss)) ofplus ~~shares~~(a) ~~retained~~trust topreferred ~~cover~~securities ~~payroll~~(not ~~withholding~~to ~~taxes~~exceed in15% ~~connection~~of ~~with~~total ~~the~~capital) ~~vesting~~and of(b) ~~restricted~~mandatorily ~~stock~~convertible ~~unit~~securities ~~awards~~(combined ~~and~~with ~~performance~~trust ~~share~~preferred ~~awards~~securities, ~~and~~not ~~shares used by employees~~ to ~~cover~~exceed ~~the~~25% ~~exercise~~of ~~price~~total capital), asover ~~well~~goodwill asand ~~the~~other ~~related~~intangible ~~payroll~~assets. ~~withholding~~The ~~taxes,~~minimum ~~with~~consolidated ~~respect~~net toworth ~~certain~~requirement ~~stock~~is ~~options~~fixed ~~that~~during ~~were~~the ~~exercised. Included~~term inof the ~~cost~~credit ofagreement ~~treasury~~at ~~stock~~an ~~acquired~~amount ~~pursuant~~equal to ~~common~~$17.8 billion ~~share~~(57.5% ~~repurchases~~of is the 1%Company’s ~~federal~~net ~~excise~~worth ~~tax~~as ~~imposed~~defined onabove ~~common~~as ~~share~~of ~~repurchase~~March ~~activity~~31, ~~net~~2026). ofIn ~~common share issuances~~addition, ~~as part of~~ the ~~Inflation~~credit ~~Reduction~~agreement ~~Act~~contains ofother ~~2022.~~customary Asrestrictive ofcovenants ~~March 31,~~as ~~2026,~~well ~~the~~as ~~Company~~certain ~~had~~customary ~~$5.22~~events ~~billion~~ of ~~capacity~~default, ~~remaining~~including ~~under~~with ~~its~~respect ~~share~~to ~~repurchase~~a ~~authorizations.~~change

2428

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

109. ~~EARNINGS~~ DEBT, ~~PER SHARE~~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 EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions, except per share amounts)	2026		2025		2026		2025
Basic and Diluted
Net income, as reported	$	12,~~711~~208	$	~~395~~1,509	$	3,919	$	1,904
Participating share-based awards — allocated income	(1215)		(311)		(28)		(14)
Net income available to common shareholders — basic and diluted	$	12,~~699~~193	$	~~392~~1,498	$	3,891	$	1,890
Common Shares
Basic
Weighted average shares outstanding	~~215~~210.25		~~226~~225.9		212.9		226.4
Diluted
Weighted average shares outstanding	~~215~~210.25		~~226~~225.9		212.9		226.4
Weighted average effects of dilutive securities — stock options and performance shares	3.21		3.54		3.1		3.3
Total	~~218~~213.46		~~230~~229.43		216.0		229.7
Net Income per Common Share
Basic	$	710.8941	$	16.7363	$	18.28	$	8.35
Diluted	$	710.7826	$	16.7053	$	18.01	$	8.23

~~11. SHARE-BASED INCENTIVE COMPENSATION~~29

~~The~~THE ~~following~~TRAVELERS ~~information relates to fully vested stock option awards as of March 31~~COMPANIES, ~~2026~~ INC. AND SUBSIDIARIES

Stock Options	Number	WeightedAverageExercisePrice		WeightedAverageContractualLifeRemaining	AggregateIntrinsicValue($ in millions)
Vested at end of period (1)	5,478,656	$	174.08	5.6 years	$	644
Exercisable at end of period	4,219,228	$	152.72	4.7 years	$	586

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 $8761 million and $8357 million for the three months ended ~~March~~June 3130, 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 $1311 million ~~for~~ ~~both~~and $9 million for the three months ended ~~March~~June 3130, 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 ~~March~~June 3130, 2026 was $~~425~~367 million, which is expected to be recognized over a weighted-average period of 2.20 years.

25 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

1213. PENSION PLANS, RETIREMENT BENEFITS AND SAVINGS PLANS, Continued

The following table ~~summarizes~~indicates the ~~components~~line ofitems ~~net~~in ~~periodic~~which ~~benefit cost (benefit) for~~ the ~~Company’s~~respective ~~pension~~service cost and ~~postretirement~~non-service cost (benefit) ~~plans~~are ~~recognized~~presented in the consolidated statement of income for the three months ended ~~March~~June 3130, 2026 and 2025.

	Pension Plans				Postretirement Benefit Plans
(for the three months ended March 31, in millions)	2026		2025		2026		2025
(for the three months ended June 30, in millions)	2026		2025		2026		2025
Net Periodic Benefit Cost (Benefit):
Service Cost:
Service cost	$	30	$	28	$	—	$	—
Claims and claim adjustment expenses	$	12	$	11	$	—	$	—
Non-service cost (benefit):
General and administrative expenses	18		18		—		—
Interest cost on benefit obligation	42		44		1		1
Total service cost	30		29		—		—
Expected return on plan assets	(74)		(70)		—		—
Non-Service Cost (Benefit):
Amortization of unrecognized:
Claims and claim adjustment expenses	(11)		(9)		(1)		(1)
Prior service benefit	—		—		—		(1)
General and administrative expenses	(20)		(14)		(2)		(2)
Net actuarial (gain) loss	1		4		(3)		(3)
Total non-service cost (benefit)	(31)		(23)		(3)		(3)
Total non-service cost (benefit)	(31)		(22)		(2)		(3)
Net periodic benefit cost (benefit)	$	(1)	$	6	$	(3)	$	(3)
Net periodic benefit cost (benefit)	$	(1)	$	6	$	(2)	$	(3)

The following table ~~indicates~~summarizes the ~~line~~components ~~items~~of innet ~~which~~periodic ~~the~~benefit ~~respective~~cost ~~service~~(benefit) ~~cost~~for ~~and~~the ~~non-service~~Company’s ~~cost~~pension (and postretirement benefit) ~~are~~plans ~~presented~~recognized in the consolidated statement of income for the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025.

	Pension Plans				Postretirement Benefit Plans
(for the three months ended March 31, in millions)	2026		2025		2026		2025
(for the six months ended June 30, in millions)	2026		2025		2026		2025
Service Cost:
Net Periodic Benefit Cost (Benefit):
Claims and claim adjustment expenses	$	11	$	11	$	—	$	—
Service cost	$	60	$	57	$	—	$	—
General and administrative expenses	19		17		—		—
Non-service cost (benefit):
Total service cost	30		28		—		—
Interest cost on benefit obligation	85		88		1		1
Non-Service Cost (Benefit):
Expected return on plan assets	(149)		(140)		—		—
Claims and claim adjustment expenses	(12)		(8)		(1)		(1)
Amortization of unrecognized:
General and administrative expenses	(19)		(14)		(1)		(2)
Prior service benefit	—		—		(1)		(1)
Total non-service cost (benefit)	(31)		(22)		(2)		(3)
Net actuarial (gain) loss	2		7		(5)		(6)
Net periodic benefit cost (benefit)	$	(1)	$	6	$	(2)	$	(3)
Total non-service cost (benefit)	(62)		(45)		(5)		(6)
Net periodic benefit cost (benefit)	$	(2)	$	12	$	(5)	$	(6)

13The 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. ~~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.


	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)

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. 31

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited), Continued

1314. 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 EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(in millions)	2026			2025				2026			2025
Lease cost
Operating leases	$	1514		$	16			$	29		$	32
Short-term leases (1)	1			1—				2			1
Lease expense	1615			1716				31			33
Less: sublease income (2)	—			—				—			—
Net lease cost	$	1615		$	1716			$	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	$	83		$	79			$	11		$	16
Weighted average discount rate	4.1318		%	3.8794		%		4.18		%	3.94		%
Weighted average remaining lease term	5.54 years			5.65 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.

1415. 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~~32

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

1415. 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

Other Commitments and Guarantees

Commitments

~~Investment~~Unfunded Commitments — The Company has unfunded commitments to private equity limited partnerships, real estate partnerships and other ~~investments~~parties. These commitments totaled $1.4755 billion and $1.41 billion as of ~~March~~June 3130, 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 ~~March~~June 3130, 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 ~~March~~June 3130, 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.

1516. NONCASH INVESTING AND FINANCING ACTIVITIES

The Company issued common stock during the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025 in connection with its stock compensation plan which resulted in noncash financing transactions totaling $3642 million and $641 million, respectively, from the net share settlement of employee stock options. There were no other material noncash investing or financing activities during the ~~three~~six months ended ~~March~~June 3130, 2026 and 2025.

2833

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion and analysis of the Company’s financial condition and results of operations.

FINANCIAL HIGHLIGHTS

2026 ~~First~~Second Quarter Consolidated Results of Operations

•Net income of $12.7121 billion, or $710.8941 per share basic and $710.7826 per share diluted

•Net earned premiums of $10.6175 billion

•Catastrophe losses of $~~761~~518 million ($~~601~~410 million after-tax)

•Net favorable prior year reserve development of $~~413~~578 million ($~~325~~456 million after-tax)

•Combined ratio of 8883.6%

•Net investment income of $1.0107 billion ($~~833~~883 million after-tax)

•Net realized investment gains of $4960 million ($1548 million after-tax)

•Operating cash flows of $21.2092 billion

2026 ~~First~~Second Quarter Consolidated Financial Condition

•Total investments of $~~102~~103.9818 billion; fixed maturities and short-term securities comprised 9594% of total investments

•Total assets of $~~142~~143.3158 billion

•Total debt of $9.2707 billion, resulting in a debt-to-total capital ratio of 2221.5% (2120.25% excluding net unrealized investment losses, net of tax)

•Total capital returned to shareholders of $21.2258 billion, comprising $1.9931 billion of share repurchases and $~~238~~266 million of dividends

•Shareholders’ equity of $3133.9912 billion

•Net unrealized investment losses of $32.0148 billion ($21.3896 billion after-tax)

•Book value per common share of $~~150~~158.4281

•Holding company liquidity of $2.3851 billion

2934

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

CONSOLIDATED OVERVIEW

Consolidated Results of Operations

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(in millions, except ratio and per share amounts)	2026			2025			2026			2025
Revenues
Premiums	$	10,~~605~~753		$	10,~~710~~921		$	21,358		$	21,631
Net investment income	1,~~008~~070			~~930~~942			2,078			1,872
Fee income	~~121~~126			~~119~~124			247			243
Net realized investment gains (losses)	4960			~~(61)~~6			109			(55)
Other revenues	~~141~~144			~~112~~123			285			235
Total revenues	1112,~~924~~153			1112,~~810~~116			24,077			23,926
Claims and expenses
Claims and claim adjustment expenses	65,~~382~~922			86,~~006~~789			12,304			14,795
Amortization of deferred acquisition costs	1,~~766~~786			1,~~778~~802			3,552			3,580
General and administrative expenses	1,~~541~~565			1,~~459~~545			3,106			3,004
Interest expense	~~116~~113			99			229			198
Total claims and expenses	9,~~805~~386			1110,~~342~~235			19,191			21,577
Income before income taxes	2,~~119~~767			~~468~~1,881			4,886			2,349
Income tax expense	~~408~~559			73372			967			445
Net income	$	12,~~711~~208		$	~~395~~1,509		$	3,919		$	1,904
Net income per share
Basic	$	710.8941		$	16.7363		$	18.28		$	8.35
Diluted	$	710.7826		$	16.7053		$	18.01		$	8.23
Combined ratio
Loss and loss adjustment expense ratio	5954.6		%	7461.27		%	57.1		%	67.9		%
Underwriting expense ratio	29.0			28.36			29.0			28.4
Combined ratio	8883.6		%	~~102~~90.53		%	86.1		%	96.3		%

The following discussions of the Company’s net income and segment income are presented on an after-tax basis. Discussions of the components of net income and segment income are presented on a pre-tax basis, unless otherwise noted. Discussions of net income per common share are presented on a diluted basis.

Overview

Diluted net income per share of $710.7826 in the ~~first~~second quarter of 2026 increased by ~~358~~57% over diluted net income per share of $16.7053 in the same period of 2025. Net income of $12.7121 billion in the ~~first~~second quarter of 2026 increased by ~~333~~46% over net income of $~~395~~1.51 ~~million~~billion in the same period of 2025. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes in the ~~first~~second quarter of 2026 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) ~~net~~higher ~~realized investment gains compared to~~ net ~~realized~~favorable ~~investment~~prior ~~losses~~year inreserve ~~the same period of 2025~~development, (iii) higher net investment income, ~~and~~ (iv) higher net ~~favorable~~realized ~~prior~~investment ~~year~~gains ~~reserve~~and ~~development, partially offset by~~ (v) ~~lower~~higher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”). Catastrophe losses in the ~~first~~second quarters of 2026 and 2025 were $~~761~~518 million and $~~2.27~~927 ~~billion~~million, respectively. Net favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 was $~~413~~578 million and $~~378~~315 million, respectively. The ~~lower~~higher underlying underwriting margins in the ~~first~~second quarter of 2026 were driven by ~~Business~~Personal Insurance and ~~Bond~~Business ~~& Specialty~~ Insurance, partially offset by ~~Personal~~Bond & Specialty Insurance. Income tax expense in the ~~first~~second quarter of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in income before income taxes.

The Company has insurance operations in the United Kingdom, the Republic of Ireland, Canada and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil through a joint venture. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months ended March 31, 2026 and 2025, changes in foreign currency exchange rates impacted reported line items 35

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Diluted net income per share of $18.01 in the ~~statement~~first six months of 2026 increased by 119% over diluted net income per share of $8.23 in the same period of 2025. Net income of $3.92 billion in the first six months of 2026 increased by ~~insignificant~~106% ~~amounts~~over net income of $1.90 billion in the same period of 2025. The higher rate of increase in diluted net income per share reflected the impact of ~~these~~share ~~changes~~repurchases ~~was~~in ~~not~~recent ~~material~~periods. toThe increase in income before income taxes primarily reflected the ~~Company’s~~pre-tax impacts of (i) lower catastrophe losses, (ii) higher net ~~income~~favorable orprior ~~segment~~year reserve development, (iii) higher net investment income ~~for~~and (iv) net realized investment gains compared to net realized investment losses in the ~~periods~~same ~~reported~~period of 2025, partially offset by (v) lower underlying underwriting margins. Catastrophe losses in the first six months of 2026 and 2025 were $1.28 billion and $3.19 billion, respectively. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $991 million and $693 million, respectively. The lower underlying underwriting margins in the first six months of 2026 were driven by Business Insurance and Bond & Specialty Insurance, partially offset by Personal Insurance. Income tax expense in the first six months of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in income before income taxes.

The Company has insurance operations in the United Kingdom, the Republic of Ireland, Canada and throughout other parts of the world as a corporate member of Lloyd’s, as well as in Brazil through a joint venture. Because these operations are conducted in local currencies other than the U.S. dollar, the Company is subject to changes in foreign currency exchange rates. For the three months and six months ended June 30, 2026 and 2025, changes in foreign currency exchange rates impacted reported line items in the statement of income by insignificant amounts. The impact of these changes was not material to the Company’s net income or segment income for the periods reported.

Revenues

Earned Premiums

Earned premiums in the ~~first~~second quarter of 2026 were $10.6175 billion, $~~105~~168 million or 12% lower than in the same period of 2025. Earned premiums in the second quarter of 2025 included $266 million related to the Canadian operations divested by the Company in the first quarter of 2026. Earned premiums in the first six months of 2026 were $21.36 billion, $273 million or 1% lower than in the same period of 2025. Earned premiums in the first six months of 2025 included $~~258~~524 million related to the Canadian operations divested by the Company in the first quarter of 2026. In Business Insurance, earned premiums in the ~~first~~second quarter and first six months of 2026 ~~increased~~were bycomparable 1%with ~~over~~ the same ~~period~~periods of 2025. In Bond & Specialty Insurance, earned premiums in the ~~first~~second quarter and first six months of 2026 both increased by 23% over the same ~~period~~periods of 2025. In Personal Insurance, earned premiums in the ~~first~~second quarter and first six months of 2026 decreased by 5% and 4%, respectively, from the same ~~period~~periods of 2025. Factors contributing to the changes in earned premiums in each segment are discussed in more detail in the segment discussions that follow.

Net Investment Income

The following table sets forth information regarding the Company’s investments.

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(dollars in millions)	2026			2025			2026			2025
Average investments (1)	$	~~106~~107,~~666~~067		$	~~101~~102,~~000~~173		$	106,843		$	101,634
Pre-tax net investment income	1,~~008~~070			~~930~~942			2,078			1,872
After-tax net investment income	~~833~~883			~~763~~774			1,716			1,537
Average pre-tax yield (2)	34.80		%	3.7		%	3.9		%	3.7		%
Average after-tax yield (2)	3.13		%	3.0		%	3.2		%	3.0		%

_______________________________________________

(1)Excludes net unrealized investment gains and losses and reflects cash, receivables for investment sales, payables on investment purchases and accrued investment income.

(2)Excludes net realized and net unrealized investment gains and losses.

Net investment income in the ~~first~~second quarter of 2026 was $1.0107 billion, $78128 million or 814% higher than in the same period of 2025. Net investment income ~~from fixed maturity investments~~ in the first ~~quarter~~six months of 2026 was $~~899~~2.08 ~~million~~billion, $87206 million or 11% higher than in the same period of 2025. ~~The~~Net ~~increase~~investment inincome ~~the first quarter of 2026 primarily resulted~~ from ~~higher long-term average yields and a higher average level of~~ fixed maturity investments. ~~Net~~in ~~investment~~the ~~income~~second ~~from~~quarter ~~short-term~~and ~~securities in the~~ first ~~quarter~~six months of 2026 was $75930 million and $1.83 billion, respectively, $1897 million and $184 million higher, respectively, than in the same ~~period~~periods of 2025. The ~~increase~~increases in ~~the~~both ~~first~~periods ~~quarter~~ of 2026 primarily resulted from a higher ~~average level of short~~long-term ~~securities,~~average ~~partially~~yields ~~offset~~and bya ~~lower~~higher ~~short-term~~ average ~~yields.~~level ~~The~~of ~~Company’s~~fixed ~~remaining~~maturity ~~investment~~investments. ~~portfolios~~Net ~~had net~~ investment income offrom ~~$47~~short-term ~~million~~securities in the ~~first~~second quarter of 2026 was $53 million, $292 million lower than in the same period of 2025, ~~primarily~~driven ~~reflecting~~by lower ~~private~~short-term ~~equity~~average ~~partnership returns~~yields. ~~Included~~Net 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.~~

~~Fee Income~~36

Fee income in the first quarter of 2026 was $121 million, $2 million higher than in the same period of 2025. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

short-term securities in the first six months of 2026 was $128 million, $16 million higher than in the same period of 2025, driven by a higher average level of short-term securities, partially offset by lower short-term average yields. The Company’s remaining investment portfolios had net investment income of $100 million and $147 million, respectively, in the second quarter and first six months of 2026, $33 million and $4 million higher, respectively, than in the same period of 2025. The increases in both periods of 2026 primarily reflected higher private equity partnership returns. 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.

Fee Income

Fee income in the second quarter of 2026 was $126 million, $2 million higher than in the same period of 2025. Fee income in the first six months of 2026 was $247 million, $4 million higher than in the same period of 2025. The National Accounts market in Business Insurance is the primary source of the Company’s fee-based business and is discussed in the Business Insurance segment discussion that follows.

Net Realized Investment Gains (Losses)

The following table sets forth information regarding the Company’s net realized investment gains (losses).

	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Impairment gains (losses):
Fixed maturities	$	(39)	$	~~(2)~~—	$	(12)	$	(2)
Net realized investment gains (losses) on equity securities still held	~~(5)~~81		~~(22)~~23		76		1
Other net realized investment gains (losses), including from sales	57(12)		(3717)		45		(54)
Total	$	4960	$	~~(61)~~6	$	109	$	(55)

Net realized investment ~~losses~~gains on equity securities still held of $581 million and $2276 million in the second quarter and first ~~quarters~~six months of 2026 ~~and 2025~~, respectively, were driven by the impact of changes in fair value attributable to ~~unfavorable~~favorable equity markets. Net realized investment gains on equity securities still held of $23 million in the second quarter of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets. Net realized investment gains on equity securities still held of $1 million in the first six months of 2025 were driven by the impact of changes in fair value attributable to favorable equity markets, largely offset by a net unfavorable change in fair value on an individual security held in the Company’s portfolio.

Other net realized investment gains in the first ~~quarter~~six months of 2026 were driven by net realized investment gains related to the Canadian operations divested by the Company in the first quarter of 2026, partially offset by net realized investment losses related to fixed maturity investments.

Other Revenues

Other revenues in the ~~first~~second quarter of 2026 were $~~141~~144 million, $2921 million higher than in the same period of 2025. Other revenues in the first six months of 2026 were $285 million, $50 million higher than in the same period of 2025. Other revenues include revenues from Simply Business, installment premium charges and other policyholder service charges.

Claims and Expenses

Claims and Claim Adjustment Expenses

Claims and claim adjustment expenses in the ~~first~~second quarter of 2026 were $65.3892 billion, $~~1.62~~867 ~~billion~~million or 2013% lower than in the same period of 2025, driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Claims and claim adjustment expenses in the ~~first~~second quarter of 2025 included $~~182~~180 million related to the Canadian operations divested by the Company in the first quarter of 2026. Catastrophe losses in the ~~first~~second ~~quarter~~quarters of both 2026 ~~primarily resulted from severe wind~~ and ~~hail storms and winter storms in multiple states. Catastrophe losses in the first quarter of~~ 2025 primarily resulted from ~~the January 2025 wildfires and~~ severe wind and hail storms in multiple states. ~~Factors contributing to the changes in claims and claim adjustment expenses in each segment are discussed in more detail in the segment discussions that follow.~~

Factors contributing to net prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.37

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Claims and claim adjustment expenses in the first six months of 2026 were $12.30 billion, $2.49 billion or 17% lower than in the same period of 2025, driven by Personal Insurance and Business Insurance, partially offset by Bond & Specialty Insurance. Claims and claim adjustment expenses in the first six months of 2025 included $362 million related to the Canadian operations divested by the Company in the first quarter of 2026. Catastrophe losses in the first six months of 2026 included the second quarter events described above, as well as severe wind and hail storms and winter storms in multiple states in the first three months of 2026. Catastrophe losses in the first six months of 2025 included the second quarter events described above, as well as the January 2025 California wildfires and severe wind and hail storms in multiple states in the first three months of 2025. Factors contributing to the changes in claims and claim adjustment expenses in each segment are discussed in more detail in the segment discussions that follow.

Factors contributing to net favorable prior year reserve development during the second quarters and first six months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.

Significant Catastrophe Losses

The following table presents the amount of losses recorded by the Company for significant catastrophes that occurred in the three months and six months ended ~~March~~June 3130, 2026 and 2025, the amount of net unfavorable (favorable) prior year reserve development recognized in the three months and six months ended ~~March~~June 3130, 2026 and 2025 for significant catastrophes that occurred in 2025 and 2024, and the estimate of ultimate losses for those catastrophes at ~~March~~June 3130, 2026 and December 31, 2025. For purposes of the table, a significant catastrophe is an event for which the Company estimates its ultimate losses will be $100 million or more after reinsurance and before taxes. The Company’s threshold for disclosing catastrophes is primarily determined at the reportable segment level and for 2026 ranged from $20 million to $30 million of losses before reinsurance and taxes. For the Company’s definition of a catastrophe, refer to “Part II—Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations— Consolidated Overview” in the Company’s 2025 Annual Report.

3238

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

	Losses Incurred/Unfavorable (Favorable)Prior Year Reserve Development
	Three Months EndedMarch 31,
	Three Months EndedJune 30,		Six Months EndedJune 30,
			~~Estimated Ultimate Losses~~			Estimated Ultimate Losses
(in millions, pre-tax and net of reinsurance)	2026	2025	2026	2025	~~March 31, 2026~~	June 30,2026	~~December 31, 2025~~	December 31,2025
2024
PCS Serial Number:
26 — Severe wind and hail storms	(24)	(23)	(6)	(5)		~~249~~245		251
39 — Severe wind and hail storms	(24)	(26)	(6)	(8)		~~241~~237		243
42 — Severe wind and hail storms	~~(1)~~2	(37)	1	(10)		~~148~~150		149
44 — Severe wind and hail storms	—	(1)	—	—		170		170
45 — Severe wind and hail storms	1(2)	36	(1)	9		~~175~~173		174
46 — Severe wind and hail storms	31	18	4	9		~~194~~195		191
61 — Severe wind and hail storms	~~(2)~~—	(19)	(2)	(10)		125		127
77 — Hurricane Helene	(92)	(2919)	(11)	(48)		~~656~~654		665
2025
PCS Serial Number:
11 — California wildfire – Palisades fire	(7316)	~~1,339~~(5)	(89)	1,334		1,~~271~~255		1,344
12 — California wildfire – Eaton fire	~~(43)~~—	~~392~~(1)	(43)	391		334		377
24 — Severe wind and hail storms	—(4)	~~315~~23	(4)	338		~~337~~333		337
29 — Severe wind and hail storms	—(4)	~~n/a~~142	(4)	142		~~137~~133		137
37 — Severe wind and hail storms	—(2)	~~n/a~~222	(2)	222		~~227~~225		227
39 — Severe wind and hail storms	—(7)	~~n/a~~93	(7)	93		~~101~~94		101
43 — Severe wind and hail storms	(54)	~~n/a~~75	(9)	75		9288		97
45 — Severe wind and hail storms	(56)	~~n/a~~127	(11)	127		~~102~~96		107
2026
PCS Serial Number:
13 — Severe winter storm	~~199~~(11)	n/a	188	n/a		~~199~~188		n/a
24 — Severe wind and hail storms	~~226~~21	n/a	247	n/a		~~226~~247		n/a
33 — Severe wind and hail storms	142	n/a	142	n/a		142		n/a
36 — Severe wind and hail storms	225	n/a	225	n/a		225		n/a

_______________________________________________

n/a: not applicable.

Amortization of Deferred Acquisition Costs

Amortization of deferred acquisition costs in the ~~first~~second quarter of 2026 was $1.7779 billion, $1216 million or 1% lower than in the same period of 2025. ~~The~~Amortization ~~decrease~~of deferred acquisition costs in the first six months of 2026 was $3.55 billion, $28 million or 1% lower than in the same period of 2025. The decreases in both periods were generally consistent with the ~~decrease~~decreases in earned premiums. Amortization of deferred acquisition costs is discussed in more detail in the segment discussions that follow.

General and Administrative Expenses

General and administrative expenses in the ~~first~~second quarter of 2026 were $1.5457 billion, $8220 million or 61% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $3.11 billion, $102 million or 3% higher than in the same period of 2025. The increases in both periods of 2026 primarily ~~reflecting~~reflected normal quarter-to-quarter variability. General and administrative expenses are discussed in more detail in the segment discussions that follow.

Interest Expense

Interest expense in the ~~first~~second quarter and first six months of 2026 was $~~116~~113 million and $229 million, respectively, compared with $99 million and $198 million, respectively, in the same ~~period~~periods of 2025.

~~Income Tax Expense~~39

Income tax expense in the first quarter of 2026 was $408 million, $335 million or 459% higher than in the same period of 2025, primarily reflecting the impact of the $1.65 billion increase in income before income taxes in the first quarter of 2026.

The Company’s effective tax rate was 19% and 16% in the first quarters of 2026 and 2025, respectively. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Income Tax Expense

Income tax expense in the second quarter of 2026 was $559 million, $187 million or 50% higher than in the same period of 2025, primarily reflecting the impact of the $886 million increase in income before income taxes in the second quarter of 2026. Income tax expense in the first six months of 2026 was $967 million, $522 million or 117% higher than in the same period of 2025, primarily reflecting the impact of the $2.54 billion increase in income before income taxes in the first six months of 2026.

The Company’s effective tax rate was 20% in both the second quarters of 2026 and 2025. The Company’s effective tax rate was 20% and 19% in the first six months of 2026 and 2025, respectively. The effective tax rate for all periods reflected the impact of tax-exempt investment income on the calculation of the Company’s income tax provision.

Combined Ratio

The combined ratio of 8883.6% in the ~~first~~second quarter of 2026 was 136.97 points lower than the combined ratio of ~~102~~90.53% in the same period of 2025. The loss and loss adjustment expense ratio of 5954.6% in the ~~first~~second quarter of 2026 was 147.61 points lower than the loss and loss adjustment expense ratio of 7461.27% in the same period of 2025. The underwriting expense ratio of 29.0% in the ~~first~~second quarter of 2026 was 0.74 points higher than the underwriting expense ratio of 28.36% in the same period of 2025. ~~The Company expects the full year 2026 expense ratio to be approximately 28.5%.~~

Catastrophe losses in the ~~first~~second quarters of 2026 and 2025 accounted for 74.29 points and 218.25 points, respectively, of the combined ratio. Net favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 provided 35.94 points and 32.59 points of benefit, respectively, to the combined ratio. The combined ratio excluding prior year reserve development and catastrophe losses (“underlying combined ratio”) in the ~~first~~second quarter of 2026 was 0.56 points ~~higher~~lower than the 2025 ratio on the same basis, primarily reflecting the ~~impacts~~impact of ~~a higher expense ratio in Business Insurance and Bond & Specialty Insurance, partially offset by~~ lower losses in Personal Insurance.

The combined ratio of 86.1% in the first six months of 2026 was 10.2 points lower than the combined ratio of 96.3% in the same period of 2025. The loss and loss adjustment expense ratio of 57.1% for the first six months of 2026 was 10.8 points lower than the loss and loss adjustment expense ratio of 67.9% in the same period of 2025. The underwriting expense ratio of 29.0% for the first six months of 2026 was 0.6 points higher than the underwriting expense ratio of 28.4% in the same period of 2025. The Company expects the full year 2026 expense ratio to be approximately 28.5%.

Catastrophe losses in the first six months of 2026 and 2025 accounted for 6.0 points and 14.8 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2026 and 2025 provided 4.6 points and 3.2 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2026 was comparable with the 2025 ratio on the same basis.

The combined ratio continues to be impacted by the tort environment, including more aggressive attorney involvement in insurance claims.

Written Premiums

Consolidated gross and net written premiums were as follows:

	Gross Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Business Insurance	$	6,~~806~~531	$	6,~~740~~385	$	13,337	$	13,125
Bond & Specialty Insurance	1,~~211~~333		1,~~129~~166		2,544		2,295
Personal Insurance	34,~~748~~341		4,~~021~~700		8,089		8,721
Total	$	1112,~~765~~205	$	1112,~~890~~251	$	23,970	$	24,141

	Net Written Premiums
	Three Months EndedMarch 31,
(in millions)	2026		2025
Business Insurance	$	5,786	$	5,698
Bond & Specialty Insurance	1,066		999
Personal Insurance	3,486		3,818
Total	$	10,338	$	10,515

Gross and net written premiums in the first quarter of 2026 decreased by 1% and 2%, respectively, from the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $238 million and $223 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross written premiums increased by 1% over the same period of 2025 and net written premiums increased slightly over the same period of 2025. Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued


	Net Written Premiums
	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Business Insurance	$	5,984	$	5,792	$	11,770	$	11,490
Bond & Specialty Insurance	1,237		1,085		2,303		2,084
Personal Insurance	4,308		4,666		7,794		8,484
Total	$	11,529	$	11,543	$	21,867	$	22,058

Gross and net written premiums in the second quarter of 2026 were both comparable with the same period of 2025. Gross and net written premiums in the second quarter of 2025 included $283 million and $273 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both increased by 2% over the same period of 2025.

Gross and net written premiums in the first six months of 2026 both decreased by 1% from the same period of 2025. Gross and net written premiums in the first six months of 2025 included $521 million and $496 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both increased by 1% over the same period of 2025.

Factors contributing to the changes in gross and net written premiums in each segment are discussed in more detail in the segment discussions that follow.

RESULTS OF OPERATIONS BY SEGMENT

Business Insurance

Results of Business Insurance were as follows:

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(dollars in millions)	2026			2025			2026			2025
Revenues
Earned premiums	$	5,~~493~~551		$	5,~~465~~545		$	11,044		$	11,010
Net investment income	~~708~~762			~~656~~662			1,470			1,318
Fee income	~~111~~117			~~108~~111			228			219
Other revenues	~~104~~113			8295			217			177
Total revenues	6,~~416~~543			6,~~311~~413			12,959			12,724
Total claims and expenses	5,~~381~~045			5,~~469~~403			10,426			10,872
Segment income before income taxes	1,~~035~~498			~~842~~1,010			2,533			1,852
Income tax expense	~~196~~300			~~159~~197			496			356
Segment income	$	~~839~~1,198		$	~~683~~813		$	2,037		$	1,496
Loss and loss adjustment expense ratio	6356.35		%	6663.87		%	59.8		%	65.3		%
Underwriting expense ratio	30.53			29.49			30.4			29.6
Combined ratio	9386.8		%	9693.26		%	90.2		%	94.9		%

Overview

Segment income in the ~~first~~second quarter of 2026 was $~~839~~1.20 ~~million~~billion, $~~156~~385 million or 2347% higher than segment income of $~~683~~813 million in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) ~~lower catastrophe losses, (ii)~~ higher net favorable prior year reserve development, (ii) lower catastrophe losses and (iii) higher net investment income,. ~~partially~~Net ~~offset~~favorable byprior ~~(iv)~~year ~~lower~~reserve ~~underlying~~development ~~underwriting margins. Catastrophe losses~~ in the ~~first~~second quarters of 2026 and 2025 ~~were~~was $~~379~~319 million and $~~509~~79 million, respectively. ~~Net~~Catastrophe ~~favorable~~losses ~~prior year reserve development~~ in the ~~first~~second quarters of 2026 and 2025 ~~was~~were $~~162~~238 million and $74368 million, respectively. The lower underlying underwriting margins primarily reflected the impacts of (i) higher general and administrative expenses and (ii) lower business volumes, partially offset by (iii) the benefit of earned pricing. Income tax expense in the ~~first~~second quarter of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in segment income before income taxes.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Segment income in the first six months of 2026 was $2.04 billion, $541 million or 36% higher than segment income of $1.50 billion in the same period of 2025. The increase in segment income before income taxes primarily reflected the pre-tax impacts of (i) higher net favorable prior year reserve development, (ii) lower catastrophe losses and (iii) higher net investment income, partially offset by (iv) lower underlying underwriting margins. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $481 million and $153 million, respectively. Catastrophe losses in the first six months of 2026 and 2025 were $617 million and $877 million, respectively. The lower underlying underwriting margins primarily reflected the impacts of higher general and administrative expenses, partially offset by the benefit of earned pricing. Income tax expense in the first six months of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in segment income before income taxes.

Revenues

Earned Premiums

Earned premiums in the ~~first~~second quarter of 2026 were $5.4955 billion, $286 million orhigher 1%than in the same period of 2025. Earned premiums in the first six months of 2026 were $11.04 billion, $34 million higher than in the same period of 2025,. The increases in both periods of 2026 primarily ~~reflecting~~reflected the increase in net written premiums over the preceding twelve months. Earned premiums in the ~~first~~second quarter and first six months of 2025 included $7980 million and $159 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026.

Net Investment Income

Net investment income in the ~~first~~second quarter of 2026 was $~~708~~762 million, $52100 million or 815% higher than in the same period of 2025. Net investment income in the first six months of 2026 was $1.47 billion, $152 million or 12% higher than in the same period of 2025. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the ~~increase~~increases in the Company’s consolidated net investment income in the ~~first~~second quarter and first six months of 2026 compared with the same ~~period~~periods of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.

Fee Income

National Accounts is the primary source of fee income due to revenue from its large deductible policies and service businesses, which include risk management, claims administration, loss control and risk management information services provided to third parties, as well as policy issuance and claims management services to workers’ compensation residual market pools. Fee income in the ~~first~~second quarter of 2026 was $~~111~~117 million, $36 million or 35% higher than in the same period of 2025. Fee income in the first six months of 2026 was $228 million, $9 million or 4% higher than in the same period of 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Other Revenues

Other revenues in the ~~first~~second quarter of 2026 were $~~104~~113 million, $2218 million higher than in the same period of 2025. Other revenues in the first six months of 2026 were $217 million, $40 million higher than in the same period of 2025. Other revenues include revenues from Simply Business, premium installment charges and other policyholder service charges.

Claims and Expenses

Claims and Claim Adjustment Expenses

Claims and claim adjustment expenses in the ~~first~~second quarter of 2026 were $3.5319 billion, $~~174~~396 million or 511% lower than in the same period of 2025, primarily reflecting the impacts of (i) ~~lower~~higher ~~catastrophe~~net ~~losses~~favorable prior year reserve development, (ii) lower ~~business~~catastrophe ~~volumes~~losses, (iii) ~~higher~~lower ~~net~~business ~~favorable~~volumes ~~prior year reserve development~~ and (iv) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (v) loss cost trends.

~~Factors~~Claims ~~contributing~~and toclaim adjustment expenses in the first six months of 2026 were $6.72 billion, $570 million or 8% lower than in the same period of 2025, primarily reflecting the impacts of (i) higher net favorable prior year reserve development, ~~during~~(ii) ~~the~~lower ~~first~~catastrophe ~~quarters~~losses, of(iii) ~~2026~~lower business volumes and ~~2025~~(iv) ~~are~~the ~~discussed~~Canadian inoperations ~~more~~divested ~~detail~~by the Company in ~~note~~the 7first quarter of ~~the~~2026, ~~notes~~partially tooffset ~~the~~by ~~unaudited~~(v) ~~consolidated~~loss ~~financial~~cost ~~statements~~trends.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Amortization of Deferred Acquisition Costs

Amortization of deferred acquisition costs in the ~~first~~second quarter of 2026 was $~~938~~945 million, $211 million higher than the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $1.88 billion, $22 million or 21% higher than the same period of 2025,. The increases in both periods of 2026 were generally consistent with the ~~increase~~increases in earned premiums.

General and Administrative Expenses

General and administrative expenses in the ~~first~~second quarter of 2026 were $912 million, $6537 million or 84% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $1.82 billion, $102 million or 6% higher than in the same period of 2025. The increases in both periods of 2026 primarily ~~reflecting~~reflected normal quarter-to-quarter variability.

Income Tax Expense

Income tax expense in the ~~first~~second quarter of 2026 was $~~196~~300 million, $37103 million or 2352% higher than the same period of 2025, primarily reflecting the impact of the $~~193~~488 million increase in income before income taxes. Income tax expense in the first six months of 2026 was $496 million, $140 million or 39% higher than in the same period of 2025, primarily reflecting the impact of the $681 million increase in income before income taxes.

Combined Ratio

The combined ratio of 9386.8% in the ~~first~~second quarter of 2026 was 26.48 points lower than the combined ratio of 9693.26% in the same period of 2025. The loss and loss adjustment expense ratio of 6356.35% in the ~~first~~second quarter of 2026 was 37.52 points lower than the loss and loss adjustment expense ratio of 6663.87% in the same period of 2025. The underwriting expense ratio of 30.53% in the ~~first~~second quarter of 2026 was 10.14 points higher than the underwriting expense ratio of 29.49% in the same period of 2025.

Catastrophe losses in the ~~first~~second quarters of 2026 and 2025 accounted for 64.93 points and 96.37 points, respectively, of the combined ratio. Net favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 provided 25.97 points and 1.34 points of benefit, respectively, ofto the combined ratio. The underlying combined ratio in the ~~first~~second quarter of 2026 was 10.61 points ~~higher~~lower than the 2025 ratio on the same basis~~, primarily reflecting a higher expense ratio~~.

The combined ratio of 90.2% in the first six months of 2026 was 4.7 points lower than the combined ratio of 94.9% in the same period of 2025. The loss and loss adjustment expense ratio of 59.8% in the first six months of 2026 was 5.5 points lower than the loss and loss adjustment expense ratio of 65.3% in the same period of 2025. The underwriting expense ratio of 30.4% for the first six months of 2026 was 0.8 points higher than the underwriting expense ratio of 29.6% in the same period of 2025.

Catastrophe losses in the first six months of 2026 and 2025 accounted for 5.6 points and 8.0 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of 2026 and 2025 provided 4.4 points and 1.4 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first six months of 2026 was 0.7 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio.

Written Premiums

Business Insurance’s gross and net written premiums by market were as follows:

	Gross Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Select Accounts	$	1,~~081~~044	$	1,~~045~~008	$	2,125	$	2,053
Middle Market	3,~~851~~537		3,~~682~~351		7,388		7,033
National Accounts	~~537~~453		~~511~~429		990		940
National Property and Other	~~823~~938		~~873~~993		1,761		1,866
Total Domestic	65,~~292~~972		65,~~111~~781		12,264		11,892
International	~~514~~559		~~629~~604		1,073		1,233
Total Business Insurance	$	6,~~806~~531	$	6,~~740~~385	$	13,337	$	13,125

3643

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

	Net Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Select Accounts	$	1,~~006~~040	$	~~976~~1,004	$	2,046	$	1,980
Middle Market	3,~~329~~235		3,~~166~~034		6,564		6,200
National Accounts	~~343~~344		~~312~~329		687		641
National Property and Other	~~691~~866		~~720~~885		1,557		1,605
Total Domestic	5,~~369~~485		5,~~174~~252		10,854		10,426
International	~~417~~499		~~524~~540		916		1,064
Total Business Insurance	$	5,~~786~~984	$	5,~~698~~792	$	11,770	$	11,490

Gross and net written premiums in the ~~first~~second quarter of 2026 increased by 12% and 23%, respectively, over the same period of 2025. Gross and net written premiums in the ~~first~~second quarter of 2025 included $7783 million and $6779 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums increased by 24% and 35%, respectively, over the same period of 2025.

~~Select~~Gross ~~Accounts. Net~~and net written premiums ~~of $1.01 billion~~ in the first ~~quarter~~six months of 2026 both increased by 32% over the same period of 2025. ~~Retention~~Gross ~~rates~~and ~~remained~~net ~~strong~~written premiums in the first ~~quarter~~six months of ~~2026~~2025 included $160 million and ~~increased~~$146 ~~over~~million, ~~the~~respectively, ~~same~~related ~~period~~to ofthe ~~2025.~~Canadian ~~Renewal~~operations ~~premium~~divested ~~changes~~by the Company in the first quarter of 2026. ~~remained~~Excluding ~~positive~~the ~~but~~impact ~~were~~of ~~lower than~~ the ~~same~~sale, ~~period~~gross ofand ~~2025.~~net ~~New~~written ~~business~~ premiums inincreased ~~the~~by ~~first~~3% ~~quarter~~and of4%, ~~2026~~respectively, ~~decreased~~over ~~slightly from~~ the same period of 2025.

~~Middle~~Select ~~Market~~Accounts. Net written premiums of $31.3304 billion and $2.05 billion in the ~~first~~second quarter and first six months of 2026, respectively, increased by 54% and 3%, respectively, over the same ~~period~~periods of 2025. Retention rates remained strong in the ~~first~~second quarter and first six months of 2026 and ~~were~~increased ~~comparable~~over ~~with~~ the same ~~period~~periods of 2025. Renewal premium changes in the ~~first~~second quarter and first six months of 2026 remained positive but were lower than the same ~~period~~periods of 2025. New business premiums in the ~~first~~second quarter and first six months of 2026 increased slightly over the same ~~period~~periods of 2025.

~~National~~Middle ~~Accounts~~Market. Net written premiums of $~~343~~3.24 ~~million~~billion and $6.56 billion in the ~~first~~second quarter and first six months of 2026, respectively, increased by 107% and 6%, respectively, over the same ~~period~~periods of 2025. Retention rates remained strong in the ~~first~~second quarter and first six months of 2026 and were comparable with the same ~~period~~periods of 2025. Renewal premium changes in the ~~first~~second quarter and first six months of 2026 remained positive but were lower than the same ~~period~~periods of 2025. New business premiums in the ~~first~~second quarter and first six months of 2026 ~~decreased~~increased ~~from~~over the same ~~period~~periods of 2025.

National ~~Property and Other~~Accounts. Net written premiums of $~~691~~344 million and $687 million in the ~~first~~second quarter and first six months of 2026, ~~decreased~~respectively, increased by 45% ~~from~~and 7%, respectively, over the same periods of 2025. Retention rates remained strong in the second quarter of 2026 and increased over the same period of 2025. Retention rates remained strong in the first ~~quarter~~six months of 2026 and were comparable with the same period of 2025. Renewal premium changes in the ~~first~~second quarter and first six months of 2026 remained positive but were lower than the same ~~period~~periods of 2025. New business premiums in the ~~first~~second quarter and first six months of 2026 ~~increased~~decreased ~~over~~from the same ~~period~~periods of 2025.

~~International~~National Property and Other. Net written premiums of $~~417~~866 million and $1.56 billion in the ~~first~~second quarter and first six months of 2026 decreased by 202% and 3%, respectively, from the same ~~period~~periods of 2025. Retention ~~Net~~rates ~~written~~remained ~~premiums~~strong in the ~~first~~second quarter ofand ~~2025~~first ~~included~~six ~~$67~~months ~~million~~of ~~related~~2026 toand increased over the ~~Canadian~~same ~~operations~~periods ~~divested~~of by2025. ~~the~~Renewal ~~Company~~premium changes in the ~~first~~second quarter and first six months of 2026. ~~Excluding~~were lower than the ~~impact~~same periods of 2025. New business premiums in the ~~sale,~~second ~~net~~quarter ~~written~~and ~~premiums~~first ~~decreased~~six bymonths 9%of 2026 decreased from the same ~~period~~periods of 2025.

37International. Net written premiums of $499 million and $916 million in the second quarter and first six months of 2026 decreased by 8% and 14%, respectively, from the same periods of 2025. Net written premiums in the second quarter and first six months of 2025 included $79 million and $146 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums in the second quarter of 2026 increased by 8% over the same period of 2025, and net written premiums in the first six months of 2026 were comparable with the same period of 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Bond & Specialty Insurance

Results of Bond & Specialty Insurance were as follows:

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(dollars in millions)	2026			2025			2026			2025
Revenues
Earned premiums	$	1,~~018~~056		$	~~995~~1,021		$	2,074		$	2,016
Net investment income	113			~~102~~107			226			209
Other revenues	56			65			11			11
Total revenues	1,~~136~~175			1,~~103~~133			2,311			2,236
Total claims and expenses	~~854~~880			~~826~~827			1,734			1,653
Segment income before income taxes	~~282~~295			~~277~~306			577			583
Income tax expense	2861			5762			89			119
Segment income	$	~~254~~234		$	~~220~~244		$	488		$	464
Loss and loss adjustment expense ratio	43.0		%	4340.25		%	43.0		%	41.8		%
Underwriting expense ratio	4039.38			39.38			40.0			39.6
Combined ratio	8382.38		%	8280.53		%	83.0		%	81.4		%

Overview

Segment income in the ~~first~~second quarter of 2026 was $~~254~~234 million, $3410 million or 154% ~~higher~~lower than segment income of $~~220~~244 million in the same period of 2025. The ~~increase~~decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower ~~catastrophe~~underlying ~~losses~~underwriting margins and (ii) ~~higher~~lower net ~~investment~~favorable ~~income~~prior year reserve development, partially offset by (iii) ~~lower~~higher ~~underlying~~net ~~underwriting~~investment ~~margins~~income. ~~Catastrophe~~Net ~~losses~~favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 ~~were~~was $875 million and $1981 million, respectively. ~~Net~~Catastrophe ~~favorable~~losses ~~prior year reserve development~~ in the ~~first~~second quarters of 2026 and 2025 ~~was~~were $654 million and $675 million, respectively. The lower underlying underwriting margins primarily reflected ~~(i)~~a ~~higher~~loss ~~general~~event ~~and~~in ~~administrative expenses and (ii)~~ the ~~impact~~international ofmanagement ~~earned~~liability ~~pricing, partially offset by (iii) higher~~ business ~~volumes~~. Income tax expense in the ~~first~~second quarter of 2026 was lower than in the same period of 2025, primarily reflecting ~~a tax benefit related to~~ the ~~Canadian operations divested by the Company in the first quarter of 2026, partially offset by the~~ impact of the ~~increase~~decrease in segment income before income taxes.

Segment income in the first six months of 2026 was $488 million, $24 million or 5% higher than segment income of $464 million in the same period of 2025. The decrease in segment income before income taxes primarily reflected the pre-tax impacts of (i) lower underlying underwriting margins and (ii) lower net favorable prior year reserve development, partially offset by (iii) higher net investment income and (iv) lower catastrophe losses. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $140 million and $148 million, respectively. Catastrophe losses in the first six months of 2026 and 2025 were $12 million and $24 million, respectively. The lower underlying underwriting margins primarily reflected higher general and administrative expenses and the impact of earned pricing. Income tax expense in the first six months of 2026 was lower than in the same period of 2025, primarily reflecting a tax benefit related to the Canadian operations divested by the Company in the first quarter of 2026 and the impact of the decrease in segment income before income taxes.

Revenues

Earned Premiums

Earned premiums in the ~~first~~second quarter of 2026 were $1.0206 billion, $2335 million or 23% higher than in the same period of 2025. Earned premiums in the first six months of 2026 were $2.07 billion, $58 million or 3% higher than in the same period of 2025. The increases in both periods of 2026 primarily ~~reflecting~~reflected increases in net written premiums in prior quarters, including the impact of longer duration surety bonds and multi-year management liability policies. Earned premiums in the ~~first~~second quarter and first six months of 2025 included $14 million and $28 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Net Investment Income

Net investment income in the ~~first~~second quarter of 2026 was $113 million, $116 million or 116% higher than in the same period of 2025. Net investment income in the first six months of 2026 was $226 million, $17 million or 8% higher than in the same period of 2025. Included in Bond & Specialty Insurance are certain legal entities whose invested assets and related net investment income are reported exclusively in this segment and not allocated among all business segments. Refer to the “Revenues—Net Investment Income” section of “Consolidated Results of Operations” herein for a discussion of the factors contributing to the ~~increase~~increases in the Company’s consolidated net investment income in the ~~first~~second quarter and first six months of 2026 compared with the same ~~period~~periods of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.

Claims and Expenses

Claims and Claim Adjustment Expense

Claims and claim adjustment expenses in the ~~first~~second quarter of 2026 were $~~441~~458 million, $740 million or 210% higher than in the same period of 2025, primarily reflecting the impacts of (i) a loss ~~cost~~event ~~trends~~in ~~and~~the international management liability business, (ii) higher business volumes, ~~partially~~(iii) ~~offset~~loss bycost trends and (~~iii~~iv) lower ~~catastrophe~~net ~~losses~~favorable ~~and~~prior year reserve development, partially offset by (ivv) the Canadian operations divested by the Company in the first quarter of 2026.

38Claims and claim adjustment expenses in the first six months of 2026 were $899 million, $47 million or 6% higher than in the same period of 2025, primarily reflecting the impacts of (i) loss cost trends, (ii) higher business volumes and (iii) lower net favorable prior year reserve development, partially offset by (iv) lower catastrophe losses and (v) the Canadian operations divested by the Company in the first quarter of 2026.

~~THE~~Factors ~~TRAVELERS~~contributing ~~COMPANIES, INC.~~to ~~AND~~net ~~SUBSIDIARIES~~favorable prior year reserve development during the second quarters and first six months of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Factors contributing to net favorable prior year reserve development during the first quarters of 2026 and 2025 are discussed in more detail in note 7 of the notes to the unaudited consolidated financial statements.

Amortization of Deferred Acquisition Costs

Amortization of deferred acquisition costs in the ~~first~~second quarter of 2026 was $~~194~~204 million, $79 million or 45% higher than in the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $398 million, $16 million or 4% higher than in the same period of 2025. The increases in both periods of 2026 were generally consistent with the ~~increase~~increases in earned premiums.

General and Administrative Expenses

General and administrative expenses in the ~~first~~second quarter of 2026 were $~~219~~218 million, $144 million or 72% higher than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $437 million, $18 million or 4% higher than in the same period of 2025. The increases in both periods of 2026 were primarily in support of business growth.

Income Tax Expense

Income tax expense in the ~~first~~second quarter of 2026 was $2861 million, $291 million or 512% lower than in the same period of 2025, primarily reflecting the impact of the $11 million decrease in segment income before income taxes. Income tax expense in the first six months of 2026 was $89 million, $30 million or 25% lower than in the same period of 2025, primarily reflecting a tax benefit related to the Canadian operations divested by the Company in the first quarter of 2026, ~~partially~~and ~~offset by~~ the impact of the $56 million ~~increase~~decrease in segment income before income taxes.

Combined Ratio

The combined ratio of 8382.38% in the ~~first~~second quarter of 2026 was 02.85 points higher than the combined ratio of 8280.53% in the same period of 2025. The loss and loss adjustment expense ratio of 43.0% in the ~~first~~second quarter of 2026 was 0.2.5 points ~~lower~~higher than the loss and loss adjustment expense ratio of 4340.25% in the same period of 2025. The underwriting expense ratio of 4039.38% in the ~~first~~second quarter of 2026 was ~~1.0~~comparable ~~points~~with ~~higher than~~ the ~~underwriting expense ratio of 39.3% in the~~ same period of 2025.

Net favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 provided 67.42 points and 68.70 points of benefit, respectively, to the combined ratio. Catastrophe losses in the ~~first~~second quarters of 2026 and 2025 accounted for 0.84 and 10.95 points of the combined ratio. The underlying combined ratio in the ~~first~~second quarter of 2026 was 1.68 points higher than the 2025 ratio on the same basis, primarily reflecting a ~~higher~~loss ~~expense~~event ~~ratio~~in the international management liability business.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

The combined ratio of 83.0% in the first six months of 2026 was 1.6 points higher than the combined ratio of 81.4% in the same period of 2025. The loss and loss adjustment expense ratio of 43.0% in the first six months of 2026 was 1.2 points higher than the loss and loss adjustment expense ratio of 41.8% in the same period of 2025. The underwriting expense ratio of 40.0% in the first six months of 2026 was 0.4 points higher than the underwriting expense ratio of 39.6% in the same period of 2025.

Net favorable prior year reserve development in the first six months of 2026 and 2025 provided 6.8 points and 7.3 points of benefit, respectively, to the combined ratio. Catastrophe losses in the first six months of 2026 and 2025 accounted for 0.6 points and 1.2 points, respectively, of the combined ratio. The underlying combined ratio in the first six months of 2026 was 1.7 points higher than the 2025 ratio on the same basis, primarily reflecting a higher expense ratio and the impact of earned pricing.

Written Premiums

The Bond & Specialty Insurance segment’s gross and net written premiums were as follows:

	Gross Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Management Liability	$	~~644~~680	$	~~615~~653	$	1,324	$	1,268
Surety	~~441~~501		~~391~~351		942		742
Total Domestic	1,~~085~~181		1,~~006~~004		2,266		2,010
International	~~126~~152		~~123~~162		278		285
Total Bond & Specialty Insurance	$	1,~~211~~333	$	1,~~129~~166	$	2,544	$	2,295

	Net Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Management Liability	$	~~572~~611	$	~~553~~589	$	1,183	$	1,142
Surety	~~381~~480		~~333~~342		861		675
Total Domestic	~~953~~1,091		~~886~~931		2,044		1,817
International	~~113~~146		~~113~~154		259		267
Total Bond & Specialty Insurance	$	1,~~066~~237	$	~~999~~1,085	$	2,303	$	2,084

39Gross and net written premiums in the second quarter of 2026 both increased by 14% over the same period of 2025. Gross and net written premiums in the second quarter of 2025 both included $16 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both increased by 16% over the same period of 2025.

Gross and net written premiums in the first six months of 2026 both increased by 11% over the same period of 2025. Gross and net written premiums in the first six months of 2025 included $27 million and $26 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both increased by 12% over the same period of 2025.

Domestic. Net written premiums of $1.09 billion and $2.04 billion in the second quarter and first six months of 2026 increased by 17% and 12%, respectively, over the same periods of 2025. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the second quarter of 2026 and increased over the same period of 2025. Retention rates remained strong in the first six months of 2026 and were comparable with the same period of 2025. Renewal premium changes in the second quarter and first six months of 2026 remained positive but were lower than the same periods of 2025. New business premiums in the second quarter and first six months of 2026 increased over the same periods of 2025.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

~~Gross~~International. Net ~~and net~~ written premiums of $146 million and $259 million in the ~~first~~second quarter and first six months of 2026, ~~both~~respectively, ~~increased~~decreased by 75% ~~over~~and 3%, respectively, from the same ~~period~~periods of 2025. ~~Gross~~Net ~~and net~~ written premiums in the ~~first~~second quarter and first six months of 2025 included $1116 million and $1026 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, ~~gross and~~ net written premiums ~~both~~ increased by 86% and 7%, respectively, over the same ~~period~~periods of 2025.

Domestic. Net written premiums of $953 million in the first quarter of 2026 increased by 8% over the same period of 2025. Excluding the surety line of business, for which the following are not relevant measures, retention rates remained strong in the first quarter of 2026 but decreased from the same period of 2025. Renewal premium changes in the first quarter of 2026 remained positive but were lower than the same period of 2025. New business premiums in the first quarter of 2026 decreased from the same period of 2025.

International. Net written premiums of $113 million in the first quarter of 2026 were comparable with the same period of 2025. Net written premiums in the first quarter of 2025 included $10 million related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, net written premiums increased by 10% over the same period of 2025.

Personal Insurance

Results of Personal Insurance were as follows:

	Three Months EndedMarch 31,
	Three Months EndedJune 30,						Six Months EndedJune 30,
(dollars in millions)	2026			2025			2026			2025
Revenues
Earned premiums	$	4,~~094~~146		$	4,~~250~~355		$	8,240		$	8,605
Net investment income	~~187~~195			~~172~~173			382			345
Fee income	109			1113			19			24
Other revenues	3225			2423			57			47
Total revenues	4,~~323~~375			4,~~457~~564			8,698			9,021
Total claims and expenses	3,~~441~~335			43,~~937~~894			6,776			8,831
Segment income (loss) before income taxes	882			(480)
Segment income before income taxes	1,040			670			1,922			190
Income tax expense (benefit)	178			(106)
Income tax expense	213			136			391			30
Segment income (loss)	$	704		$	(374)
Segment income	$	827		$	534		$	1,531		$	160
Loss and loss adjustment expense ratio	5854.89		%	9164.0		%	56.9		%	77.4		%
Underwriting expense ratio	24.16			24.24			24.3			24.3
Combined ratio	8279.95		%	~~115~~88.24		%	81.2		%	101.7		%

Overview

Segment income in the ~~first~~second quarter of 2026 was $~~704~~827 million, ~~compared~~$293 ~~with~~million aor 55% higher than segment ~~loss~~income of $~~374~~534 million in the same period of 2025. The increase in segment income before income taxes was driven by the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underlying underwriting margins, ~~and~~ (iii) higher net ~~investment~~favorable ~~income,~~prior ~~partially~~year ~~offset~~reserve bydevelopment and (iv) ~~lower~~higher net ~~favorable~~investment ~~prior year reserve development~~income. Catastrophe losses in the ~~first~~second quarters of 2026 and 2025 were $~~374~~276 million and $~~1.74~~554 ~~billion~~million, respectively. Net favorable prior year reserve development in the ~~first~~second quarters of 2026 and 2025 was $~~186~~184 million and $~~237~~155 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) ~~the~~lower ~~benefit~~losses ~~of earned pricing~~ in the ~~homeowners~~automobile ~~and other~~ product line, and (ii) lower non-catastrophe weather-related losses in the homeowners and other product line ~~and (iii) lower losses in the automobile product line~~, partially offset by (iviii) ~~the~~higher ~~impact~~non-weather oflosses ~~earned pricing~~ in the ~~automobile~~homeowners and other product line. ~~The~~Income ~~segment recorded income~~ tax expense in the ~~first~~second quarter of 2026 ~~compared~~was ~~with~~higher anthan ~~income tax benefit~~ in the same period of 2025., ~~The change~~ primarily ~~reflected~~reflecting the impact of the increase in segment income before income taxes.

40Segment income in the first six months of 2026 was $1.53 billion, $1.37 billion or 857% higher than segment income of $160 million in the same period of 2025. The increase in segment income before income taxes was driven by the pre-tax impacts of (i) lower catastrophe losses, (ii) higher underlying underwriting margins and (iii) higher net investment income. Catastrophe losses in the first six months of 2026 and 2025 were $650 million and $2.29 billion, respectively. Net favorable prior year reserve development in the first six months of 2026 and 2025 was $370 million and $392 million, respectively. The higher underlying underwriting margins primarily reflected the impacts of (i) lower losses in the automobile product line and (ii) lower non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iii) higher non-weather losses in the homeowners and other product line. Income tax expense in the first six months of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in segment income before income taxes.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Revenues

Earned Premiums

Earned premiums in the ~~first~~second quarter of 2026 were $4.0915 billion, $~~156~~209 million or 45% lower than in the same period of 2025. Earned premiums in the first six months of 2026 were $8.24 billion, $365 million or 4% lower than in the same period of 2025. Earned premiums in the second quarter and first six months of 2025 included $~~165~~172 million and $337 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026.

Net Investment Income

Net investment income in the ~~first~~second quarter of 2026 was $~~187~~195 million, $1522 million or 913% higher than in the same period of 2025. Net investment income in the first six months of 2026 was $382 million, $37 million or 11% higher than in the same period of 2025. Refer to the “Revenues—Net Investment Income” section of the “Consolidated Results of Operations” discussion herein for a description of the factors contributing to the ~~increase~~increases in the Company’s consolidated net investment income in the ~~first~~second quarter and first six months of 2026 compared with the same ~~period~~periods of 2025. In addition, refer to note 2 of the notes to the consolidated financial statements in the Company’s 2025 Annual Report for a discussion of the Company’s net investment income allocation methodology.

Other Revenues

Other revenues in the ~~first~~second quarters and first six months of 2026 and 2025 primarily consisted of installment premium charges.

Claims and Expenses

Claims and Claim Adjustment Expenses

Claims and claim adjustment expenses in the ~~first~~second quarter of 2026 were $2.4128 billion, $~~1.46~~511 ~~billion~~million or 3818% lower than in the same period of 2025, primarily reflecting the impacts of (i) lower catastrophe losses, (ii) lower losses in the automobile product line, (iii) higher net favorable prior year reserve development and (iiiv) the Canadian operations divested by the Company in the first quarter of 2026, partially offset by (~~iii~~v) loss cost trends ~~and (iv) lower net favorable prior year reserve development~~.

~~Factors~~Claims ~~contributing~~and toclaim ~~net~~adjustment ~~favorable~~expenses ~~prior~~in ~~year~~the ~~reserve~~first ~~development~~six ~~during~~months of 2026 were $4.69 billion, $1.97 billion or 30% lower than in the ~~first~~same ~~quarters~~period of ~~2026~~2025, ~~and~~primarily ~~2025~~reflecting ~~are~~the ~~discussed~~impacts inof ~~more~~(i) ~~detail~~lower catastrophe losses, (ii) lower losses in ~~note~~the 7automobile ofproduct line and (iii) the ~~notes~~Canadian tooperations divested by the ~~unaudited~~Company ~~consolidated~~in ~~financial~~the ~~statements~~first quarter of 2026, partially offset by (iv) loss cost trends and (v) lower net favorable prior year reserve development.

Amortization of Deferred Acquisition Costs

Amortization of deferred acquisition costs in the ~~first~~second quarter of 2026 was $~~634~~637 million, $4026 million or 64% lower than in the same period of 2025. Amortization of deferred acquisition costs in the first six months of 2026 was $1.27 billion, $66 million or 5% lower than in the same period of 2025. The decreases in both periods of 2026 were generally consistent with the ~~decrease~~decreases in earned premiums.

General and Administrative Expenses

General and administrative expenses in the ~~first~~second quarter of 2026 were $~~397~~422 million, $122 million ~~higher~~or 5% lower than in the same period of 2025. General and administrative expenses in the first six months of 2026 were $819 million, $21 million or 3% lower than in the same period of 2025.

Income Tax Expense ~~(Benefit)~~

Income tax expense in the ~~first~~second quarter of 2026 was $~~178~~213 million, ~~compared~~$77 ~~with~~million anor 57% higher than in the same period of 2025, primarily reflecting the impact of the $370 million increase in segment income before income taxes. Income tax ~~benefit~~expense in the first six months of 2026 was $~~106~~391 million, $361 million higher than in the same period of 2025, primarily reflecting the impact of the $1.3673 billion increase in segment income before income taxes.

~~Combined Ratio~~49

The combined ratio of 82.9% in the first quarter of 2026 was 32.3 points lower than the combined ratio of 115.2% in the same period of 2025. The loss and loss adjustment expense ratio of 58.8% in the first quarter of 2026 was 32.2 points lower than the loss and loss adjustment expense ratio of 91.0% in the same period of 2025. The underwriting expense ratio of 24.1% in the first quarter of 2026 was 0.1 points lower than the underwriting expense ratio of 24.2% in the same period of 2025.

Catastrophe losses in the first quarters of 2026 and 2025 accounted for 9.1 points and 40.9 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first quarters of 2026 and 2025 provided 4.5 points and 5.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the first quarter of 2026 was 1.6 points lower than the 2025 ratio on the same basis, primarily reflecting the impacts of (i) the benefit of earned pricing in the homeowners and other product line, (ii) lower non-catastrophe weather-related losses in the homeowners and other product line and (iii) lower losses in the automobile product line, partially offset by (iv) the impact of earned pricing in the automobile product line.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Combined Ratio

The combined ratio of 79.5% in the second quarter of 2026 was 8.9 points lower than the combined ratio of 88.4% in the same period of 2025. The loss and loss adjustment expense ratio of 54.9% in the second quarter of 2026 was 9.1 points lower than the loss and loss adjustment expense ratio of 64.0% in the same period of 2025. The underwriting expense ratio of 24.6% in the second quarter of 2026 was 0.2 points higher than the underwriting expense ratio of 24.4% in the same period of 2025.

Catastrophe losses in the second quarters of 2026 and 2025 accounted for 6.7 points and 12.7 points, respectively, of the combined ratio. Net favorable prior year reserve development in the second quarters of 2026 and 2025 provided 4.5 points and 3.6 points of benefit, respectively, to the combined ratio. The underlying combined ratio in the second quarter of 2026 was 2.0 points lower than the 2025 ratio on the same basis, primarily reflecting the impacts of (i) lower losses in the automobile product line and (ii) lower non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iii) higher non-weather losses in the homeowners and other product line.

The combined ratio of 81.2% in the first six months of 2026 was 20.5 points lower than the combined ratio of 101.7% in the same period of 2025. The loss and loss adjustment expense ratio of 56.9% in the first six months of 2026 was 20.5 points lower than the loss and loss adjustment expense ratio of 77.4% in the same period of 2025. The underwriting expense ratio of 24.3% in the first six months of 2026 was comparable with the same period of 2025.

Catastrophe losses in the first six months of 2026 and 2025 accounted for 7.9 points and 26.6 points, respectively, of the combined ratio. Net favorable prior year reserve development in the first six months of both 2026 and 2025 provided 4.5 points of benefit to the combined ratio. The underlying combined ratio in the first six months of 2026 was 1.8 points lower than the 2025 ratio on the same basis, primarily reflecting the impacts of (i) lower losses in the automobile product line and (ii) lower non-catastrophe weather-related losses in the homeowners and other product line, partially offset by (iii) higher non-weather losses in the homeowners and other product line.

Written Premiums

Personal Insurance’s gross and net written premiums were as follows:

	Gross Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Automobile	$	1,~~767~~861	$	1,~~867~~973	$	3,628	$	3,840
Homeowners and Other	12,~~981~~480		2,~~004~~543		4,461		4,547
Total Domestic	34,~~748~~341		34,~~871~~516		8,089		8,387
International	—		~~150~~184		—		334
Total Personal Insurance	$	34,~~748~~341	$	4,~~021~~700	$	8,089	$	8,721

	Net Written Premiums
	Three Months EndedMarch 31,
	Three Months EndedJune 30,				Six Months EndedJune 30,
(in millions)	2026		2025		2026		2025
Domestic:
Automobile	$	1,~~756~~858	$	1,~~859~~968	$	3,614	$	3,827
Homeowners and Other	12,~~730~~450		12,~~813~~520		4,180		4,333
Total Domestic	34,~~486~~308		34,~~672~~488		7,794		8,160
International	—		~~146~~178		—		324
Total Personal Insurance	$	34,~~486~~308	$	34,~~818~~666	$	7,794	$	8,484

Gross and net written premiums in the first quarter of 2026 decreased by 7% and 9%, respectively, from the same period of 2025. Gross and net written premiums in the first quarter of 2025 included $150 million and $146 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums decreased by 3% and 5%, respectively, from the same period of 2025.50

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Gross and net written premiums in the second quarter of 2026 both decreased by 8% from the same period of 2025. Gross and net written premiums in the second quarter of 2025 included $184 million and $178 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both decreased by 4% from the same period of 2025.

Gross and net written premiums in the first six months of 2026 decreased by 7% and 8%, respectively, from the same period of 2025. Gross and net written premiums in the first six months of 2025 included $334 million and $324 million, respectively, related to the Canadian operations divested by the Company in the first quarter of 2026. Excluding the impact of the sale, gross and net written premiums both decreased by 4% from the same period of 2025.

Domestic

Automobile net written premiums of $1.7686 billion and $3.61 billion in the ~~first~~second quarter and first six months of 2026, respectively, both decreased by 6% from the same ~~period~~periods of 2025. Retention rates remained strong in the ~~first~~second quarter and first six months of 2026 and increased over the same ~~period~~periods of 2025. Renewal premium changes in the ~~first~~second quarter ofand ~~2026~~first ~~remained~~six ~~positive~~months ~~but~~of 2026 were lower than in the same ~~period~~periods of 2025. New business premiums in the ~~first~~second quarter and first six months of 2026 ~~increased~~decreased ~~over~~slightly from the same ~~period~~periods of 2025.

Homeowners and Other net written premiums of $12.7345 billion and $4.18 billion in the ~~first~~second quarter and first six months of 2026, respectively, decreased by 53% and 4%, respectively, from the same ~~period~~periods of 2025. Retention rates remained strong in the ~~first~~second quarter and first six months of 2026 and increased over the same ~~period~~periods of 2025. Renewal premium changes in the ~~first~~second quarter and first six months of 2026 remained positive but were lower than in the same ~~period~~periods of 2025. New business premiums in the ~~first~~second quarter and first six months of 2026 increased ~~slightly~~ over the same ~~period~~periods of 2025.

For its Domestic business, Personal Insurance had approximately 8.32 million and 8.76 million active policies at ~~March~~June 3130, 2026 and 2025, respectively.

International

Personal Insurance had approximately ~~412~~386,000 active policies as of ~~March~~June 3130, 2025 for the Canadian operations divested by the Company in the first quarter of 2026.

42Interest Expense and Other


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Income (loss)	$	(99)	$	(87)	$	(200)	$	(173)

The Income (loss) for Interest Expense and Other for the second quarters of 2026 and 2025 was $(99) million and $(87) million, respectively. Pre-tax interest expense for the second quarters of 2026 and 2025 was $113 million and $99 million, respectively. After-tax interest expense for the second quarters of 2026 and 2025 was $89 million and $78 million, respectively. The Income (loss) for Interest Expense and Other in the first six months of 2026 and 2025 was $(200) million and $(173) million, respectively. Pre-tax interest expense in the first six months of 2026 and 2025 was $229 million and $198 million, respectively. After-tax interest expense in the first six months of 2026 and 2025 was $181 million and $156 million, respectively.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

Interest Expense and Other

	Three Months EndedMarch 31,
(in millions)	2026		2025
Income (loss)	$	(101)	$	(86)

The Income (loss) for Interest Expense and Other for the first quarters of 2026 and 2025 was $(101) million and $(86) million, respectively. Pre-tax interest expense for the first quarters of 2026 and 2025 was $116 million and $99 million, respectively. After-tax interest expense for the first quarters of 2026 and 2025 was $92 million and $78 million, respectively.

ASBESTOS CLAIMS AND LITIGATION

The Company believes that the property and casualty insurance industry has suffered from court decisions and other trends that have expanded insurance coverage for asbestos claims far beyond the original intent of insurers and policyholders. The Company has received and continues to receive a significant number of asbestos claims. Factors underlying these claim filings include continued intensive advertising by lawyers seeking asbestos claimants and the focus by plaintiffs on defendants, such as manufacturers of talcum powder, who were not traditionally sued and/or primary targets of asbestos litigation. Many defendants have also been subject to increased settlement demands, in part due to the bankruptcy of many traditional primary targets of asbestos litigation. Currently, in many jurisdictions, those who allege very serious injury and who can present credible medical evidence of their injuries are receiving priority trial settings in the courts, while those who have not shown any credible disease manifestation are having their hearing dates delayed or placed on an inactive docket. Prioritizing claims involving credible evidence of injuries, along with the focus on defendants who were not traditionally primary targets of asbestos litigation, contributes to the claims and claim adjustment expense payment patterns experienced by the Company. The Company’s asbestos-related claims and claim adjustment expense experience also has been impacted by the unavailability of other insurance sources potentially available to policyholders, whether through exhaustion of policy limits or through the insolvency of other participating insurers.

The Company continues to be involved in disputes, including litigation, with a number of policyholders, some of whom are in bankruptcy, over coverage for asbestos-related claims. Many coverage disputes with policyholders are only resolved through settlement agreements. Because many policyholders make exaggerated demands, it is difficult to predict the outcome of settlement negotiations. Settlements involving bankrupt policyholders may include extensive releases which are favorable to the Company, but which could result in settlements for larger amounts than originally anticipated. Although the Company has seen a reduction in the overall risk associated with these disputes, it remains difficult to predict the ultimate cost of these claims. As in the past, the Company will continue to pursue settlement opportunities.

In addition to claims against policyholders, proceedings have been launched directly against insurers, including the Company, by individuals challenging insurers’ conduct with respect to the handling of past asbestos claims and by individuals seeking damages arising from alleged asbestos-related bodily injuries. While the number of direct actions has decreased significantly over time, it is possible that other direct actions against insurers, including the Company, could be filed in the future. It is difficult to predict the outcome of these proceedings, including whether the plaintiffs would be able to sustain these actions against insurers based on novel legal theories of liability. The Company believes it has meritorious defenses to any such claims and has received favorable rulings in certain jurisdictions.

Because each policyholder presents different liability and coverage issues, the Company generally conducts an in-depth asbestos claim review on an annual basis, including a review of domestic policyholders with open claims and litigation cases for potential product and “non-product” liability. Policyholders are identified for this review based upon, among other factors: a combination of past payments and current case reserves in excess of a specified threshold (currently $100,000), perceived level of exposure, number of reported claims, products/completed operations and potential “non-product” exposures, size of policyholder and geographic distribution of products or services sold by the policyholder.

Among the factors the Company may consider in the course of this review are: available insurance coverage, including the role of any umbrella or excess insurance the Company has issued to the policyholder; limits and deductibles; an analysis of the policyholder’s potential liability, including as a result of the bankruptcy of other defendants; the jurisdictions involved, including any trends, judicial rulings or legislative actions in those jurisdictions; past and anticipated future claim activity and loss development on pending claims; past settlement values of similar claims; allocated claim adjustment expense; the potential role of other insurance; the role, if any, of non-asbestos claims or potential non-asbestos claims in any resolution process; and applicable coverage defenses or determinations, if any, including the determination as to whether or not an asbestos claim is a products/completed operation claim subject to an aggregate limit and the available coverage, if any, for that claim.

43The Company also reviews its asbestos reserves quarterly. These reviews include, as appropriate, an analysis of exposure and claim payment patterns by policyholder, as well as recent settlements, policyholder bankruptcies, judicial rulings and legislative actions. The Company also analyzes developing payment patterns among policyholders and the assumed reinsurance component of reserves, as well as projected reinsurance billings and recoveries. In addition, the Company reviews its historical gross and net loss and expense paid experience, year-by-year, to assess any emerging trends, fluctuations, or characteristics suggested by the aggregate paid activity. Conventional actuarial methods are not utilized to establish asbestos reserves, and the Company’s evaluations have not resulted in a reliable method to determine a meaningful average asbestos defense or indemnity payment.

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

applicable coverage defenses or determinations, if any, including the determination as to whether or not an asbestos claim is a products/completed operation claim subject to an aggregate limit and the available coverage, if any, for that claim.

The Company also reviews its asbestos reserves quarterly. These reviews include, as appropriate, an analysis of exposure and claim payment patterns by policyholder, as well as recent settlements, policyholder bankruptcies, judicial rulings and legislative actions. The Company also analyzes developing payment patterns among policyholders and the assumed reinsurance component of reserves, as well as projected reinsurance billings and recoveries. In addition, the Company reviews its historical gross and net loss and expense paid experience, year-by-year, to assess any emerging trends, fluctuations, or characteristics suggested by the aggregate paid activity. Conventional actuarial methods are not utilized to establish asbestos reserves, and the Company’s evaluations have not resulted in a reliable method to determine a meaningful average asbestos defense or indemnity payment.

Over the past decade, the property and casualty insurance industry, including the Company, has experienced net unfavorable prior year reserve development with regard to asbestos reserves, but the Company believes that over that period there has been a reduction in the volatility associated with the Company’s overall asbestos exposure as the overall asbestos environment has evolved from one dominated by exposure to significant litigation risks, particularly coverage disputes relating to policyholders in bankruptcy who were asserting that their claims were not subject to the aggregate limits contained in their policies, to an environment primarily driven by a frequency of litigation related to individuals with mesothelioma. The Company’s overall view of the current underlying asbestos environment is essentially unchanged from recent periods, and there remains a high degree of uncertainty with respect to future exposure to asbestos claims.

Net asbestos paid loss and loss adjustment expenses in the first ~~three~~six months of 2026 and 2025 were $62140 million and $59103 million, respectively. Net asbestos reserves were $1.2922 billion and $1.2824 billion as of ~~March~~June 3130, 2026 and 2025, respectively.

The following table displays activity for asbestos losses and loss adjustment expenses and reserves:.

(as of and for the three months ended March 31, in millions)	2026		2025
(as of and for the six months ended six June 30, in millions)	2026		2025
Beginning reserves:
Gross	$	1,700	$	1,708
Ceded	(345)		(370)
Net	1,355		1,338
Incurred losses and loss adjustment expenses:
Gross	—		—
Ceded	—		—
Net	—		—
Paid loss and loss adjustment expenses:
Gross	77175		72155
Ceded	(1535)		(1352)
Net	62140		59103
Foreign exchange and other:
Gross	—		—2
Ceded	—		—
Net	—		—2
Ending reserves:
Gross	1,~~623~~525		1,~~636~~555
Ceded	(~~330~~310)		(~~357~~318)
Net	$	1,~~293~~215	$	1,~~279~~237

UNCERTAINTY REGARDING ADEQUACY OF ASBESTOS RESERVES

As a result of the processes and procedures discussed above, management believes that the reserves carried for asbestos claims are appropriately established based upon known facts, current law and management’s judgment. However, the uncertainties surrounding the final resolution of these claims continue, and it is difficult to determine the ultimate exposure for asbestos claims and related litigation. As a result, these reserves are subject to revision as new information becomes available and as claims develop. The continuing uncertainties include, without limitation:

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

claims and related litigation. As a result, these reserves are subject to revision as new information becomes available and as claims develop. The continuing uncertainties include, without limitation:

•the risks and lack of predictability inherent in complex litigation;

•a further increase in the cost to resolve, and/or the number of, asbestos claims beyond that which is anticipated;

•the emergence of a greater number of asbestos claims than anticipated as a result of extended life expectancies resulting from medical advances and lifestyle improvements;

•the role of any umbrella or excess policies we have issued;

•the resolution or adjudication of disputes concerning coverage for asbestos claims in a manner inconsistent with our previous assessment of these disputes;

•the number and outcome of direct actions against us;

•future developments pertaining to our ability to recover reinsurance for asbestos claims;

THE TRAVELERS COMPANIES, INC. AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued

•any impact on asbestos defendants we insure due to the bankruptcy of other asbestos defendants;

•the unavailability of other insurance sources potentially available to policyholders, whether through exhaustion of policy limits or through the insolvency of other participating insurers; and

•uncertainties arising from the insolvency or bankruptcy of policyholders.

Changes in the legal, regulatory and legislative environment may impact the future resolution of asbestos claims and result in adverse loss reserve development. The emergence of a greater number of asbestos claims beyond that which is anticipated may result in adverse loss reserve development. Changes in applicable legislation and future court and regulatory decisions and interpretations, including the outcome of legal challenges to legislative and/or judicial reforms establishing medical criteria for the pursuit of asbestos claims, could affect the settlement of asbestos claims. It is also difficult to predict the ultimate outcome of complex coverage disputes until settlement negotiations near completion and significant legal questions are resolved or, failing settlement, until the dispute is adjudicated. This is particularly the case with policyholders in bankruptcy where negotiations often involve a large number of claimants and other parties and require court approval to be effective. As part of its continuing analysis of asbestos reserves, the Company continues to study the implications of these and other developments.

Because of the uncertainties set forth above, additional liabilities may arise for amounts in excess of the Company’s current reserves. In addition, the Company’s estimate of claims and claim adjustment expenses may change. These additional liabilities or increases 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 operating results in future periods.

INVESTMENT PORTFOLIO

The Company’s invested assets as of ~~March~~June 3130, 2026 were $~~102~~103.9818 billion, of which 9594% was invested in fixed maturity and short-term investments, 01% in equity securities, 1% in real estate investments and 4% in other investments. Because the primary purpose of the investment portfolio is to fund future claims payments, the Company employs a thoughtful investment philosophy that focuses on appropriate risk-adjusted returns. A significant majority of funds available for investment are deployed in a widely diversified portfolio of high quality, liquid, taxable U.S. government, tax-exempt and taxable U.S. municipal and taxable corporate and U.S. agency mortgage-backed bonds.

The carrying value of the Company’s fixed maturity portfolio as of ~~March~~June 3130, 2026 was $9092.7492 billion. The Company closely monitors the duration of its fixed maturity investments, and investment purchases and sales are executed with the objective of having adequate funds available to satisfy the Company’s insurance and debt obligations. The weighted average credit quality of the Company’s fixed maturity portfolio was “Aa3” and “Aa2” as of ~~March~~June 3130, 2026 and December 31, 2025, respectively. Below investment grade securities represented 1.1% and 1.2% of the total fixed maturity investment portfolio as of ~~both March~~June 3130, 2026 and December 31, 2025, respectively. The weighted average effective duration of fixed maturities and short-term securities was 45.90 (5.32 excluding short-term securities) as of ~~March~~June 31

Filing Compare · TRAVELERS COMPANIES, INC.