NEW YORK: Travelers posted a sharp rise in first-quarter profit, helped by strong underwriting performance and lower catastrophe losses than a year earlier, when results were heavily hit by the Los Angeles wildfires.
The insurer’s earnings are closely watched as a bellwether for the sector and a guide to broader underwriting trends.
Global insurance spending remained resilient in the first quarter of 2026 as heightened geopolitical risks supported demand for protection, even as military escalation in the Middle East drove up energy prices and added to inflation pressures.
Industry data showed strong demand for both personal and commercial policies.
Travelers reported core profit of $1.7 billion, or $7.71 per share, compared with $443 million, or $1.91 per share, a year earlier.
Its underwriting gain totalled $1.17 billion, compared with an underwriting loss of $305 million in the same period a year ago.
The company’s catastrophe losses, net of reinsurance, fell to $761 million in the quarter ended March 31, from $2.27 billion a year earlier.
“These results, along with our exceptionally strong balance sheet, enabled us to return more than $2.2 billion of excess capital to our shareholders during the quarter, including $2.0 billion of share repurchases,” Chief Executive Alan Schnitzer said in a statement.
The company also has a diversified investment portfolio, with a large share allocated to fixed income, helping it generate stable returns even during market weakness such as that seen in the first three months of 2026.
Net investment income rose 9 per cent after tax to $833 million in the first quarter.
Shares in the company have gained about 3.2 per cent so far this year, outperforming broader markets.__ Reuters
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