\n| \n ($ in millions except per share data)<\/i><\/p>\n<\/td>\n | | \n\n Sep 30 2026<\/b><\/p>\n<\/td>\n | | \n\n Sep 30 2025<\/b><\/p>\n<\/td>\n | | \n\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nIncome from continuing operations, net of tax<\/p>\n<\/td>\n | | \n\n \n$1,262<\/p>\n<\/td>\n | | \n\n \n$1,021<\/p>\n<\/td>\n | | \n\n \n24%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income from continuing operations, net of tax per diluted share<\/i><\/p>\n<\/td>\n | | \n\n $4.60<\/i><\/p>\n<\/td>\n | | \n\n $3.56<\/i><\/p>\n<\/td>\n | | \n\n \n29%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income available to common stockholders<\/p>\n<\/td>\n | | \n\n \n$1,317<\/p>\n<\/td>\n | | \n\n \n$1,074<\/p>\n<\/td>\n | | \n\n \n23%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income available to common stockholders per diluted share1<\/sup><\/i><\/p>\n<\/td>\n | \n\n $4.82<\/i><\/p>\n<\/td>\n | | \n\n $3.77<\/i><\/p>\n<\/td>\n | | \n\n \n28%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCore earnings<\/p>\n<\/td>\n | | \n\n \n$956<\/p>\n<\/td>\n | | \n\n \n$1,022<\/p>\n<\/td>\n | | \n\n \n(6%)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Core earnings per diluted share<\/i><\/p>\n<\/td>\n | | \n\n $3.50<\/i><\/p>\n<\/td>\n | | \n\n $3.59<\/i><\/p>\n<\/td>\n | | \n\n \n(3%)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value per diluted share<\/p>\n<\/td>\n | | \n\n \n$68.31<\/p>\n<\/td>\n | | \n\n \n$63.86<\/p>\n<\/td>\n | | \n\n \n7%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nBook value per diluted share (ex. accumulated other comprehensive income (AOCI))2<\/sup><\/p>\n<\/td>\n | \n\n \n$82.47<\/p>\n<\/td>\n | | \n\n \n$70.92<\/p>\n<\/td>\n | | \n\n \n16%<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet income available to common stockholders’ return on equity (ROE)3<\/sup>, last 12-months<\/p>\n<\/td>\n | \n\n \n25.0%<\/p>\n<\/td>\n | | \n\n \n20.3%<\/p>\n<\/td>\n | | \n\n \n4.7<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCore earnings ROE3<\/sup>, last 12-months<\/p>\n<\/td>\n | \n\n \n17.9%<\/p>\n<\/td>\n | | \n\n \n17.3%<\/p>\n<\/td>\n | | \n\n \n0.6<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\n| \n [1]<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Includes dilutive potential common shares; for net income available to common stockholders per diluted share, the numerator is net income less preferred dividends<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n [2]<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n [3]<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Return on equity (ROE) is calculated based on last 12 months of net income available to common stockholders and core earnings, respectively; for net income ROE, the denominator is common stockholders\u2019 equity including AOCI; for core earnings ROE, the denominator is common stockholders\u2019 equity excluding AOCI<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThird quarter 2026 net income available to common stockholders of $1.3 billion, or $4.82 per diluted share, improved from $1.1 billion in third quarter 2025. Contributing to the results were:<\/p>\n \n- \nAn increase in earnings driven by 4% growth in P&C earned premium and 4% fully insured ongoing premium growth in Employee Benefits.<\/p>\n<\/li>\n
- \nBusiness Insurance loss and loss adjustment expense ratio of 61.1 increased from 57.3 in third quarter 2025, including 1.7 points of higher current accident year catastrophe losses (CAY CATs) and 0.1 points of less favorable prior accident year development (PYD). Underlying loss and loss adjustment expense ratio* of 59.9 increased from 57.9 in third quarter 2025.<\/p>\n<\/li>\n
- \nPersonal Insurance loss and loss adjustment expense ratio of 67.2 increased from 62.9 in third quarter 2025, including 6.8 points of higher CAY CATs and 0.6 points of less favorable PYD. Underlying loss and loss adjustment expense ratio of 61.1 improved 3.1 points from third quarter 2025.<\/p>\n<\/li>\n
- \nNet favorable PYD of $594 million, before tax, in third quarter 2026 includes a net gain of $497 million from the impact of commuting the asbestos and environmental adverse development cover (A&E ADC). Net core favorable PYD of $97 million was relatively flat compared with net core favorable PYD of $95 million in third quarter 2025.<\/p>\n<\/li>\n
- \nP&C CAY CAT losses of $198 million, before tax, in third quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $70 million in third quarter 2025.<\/p>\n<\/li>\n
- \nThe P&C expense ratio of 29.2 improved from 30.0 in third quarter 2025, primarily driven by a 1.1 point improvement in the Business Insurance expense ratio.<\/p>\n<\/li>\n
- \nEmployee Benefits loss ratio of 74.9 increased from 70.1 in third quarter 2025, driven by an increase in both the group disability and group life loss ratios.<\/p>\n<\/li>\n
- \nThe Employee Benefits expense ratio of 25.4 improved from 26.7 in third quarter 2025.<\/p>\n<\/li>\n
- \nNet investment income of $850 million, before tax, increased from $755 million in third quarter 2025, primarily driven by increased income from limited partnerships and other alternative investments (LPs) and a higher level of invested assets.<\/p>\n<\/li>\n
- \nNet realized losses of $116 million, before tax, in third quarter 2026 compared with net realized losses of $17 million, before tax, in third quarter 2025.<\/p>\n<\/li>\n
- \nIncome from discontinued operations of $61 million, before tax, was relatively flat compared with $59 million in third quarter 2025.<\/p>\n<\/li>\n<\/ul>\n
\nThird quarter 2026 core earnings of $956 million, or $3.50 per diluted share, decreased from $1,022 million of core earnings in third quarter 2025, primarily reflecting the same drivers as net income, excluding the change in non-core PYD of $497 million resulting from commuting the A&E ADC, the impact of realized gains and losses and income from discontinued operations.<\/p>\n \nSept. 30, 2026, book value per diluted share of $68.31 increased 3.0%, from $66.31 at Dec. 31, 2025, principally due to net income in excess of stockholder dividends through Sept. 30, 2026, partially offset by the dilutive effect of share repurchases and a decrease in AOCI, primarily driven by an increase in net unrealized losses on available-for-sale (AFS) securities.<\/p>\n \nBook value per diluted share (excluding AOCI) of $82.47 as of Sept. 30, 2026, increased 12.0%, from $73.62 at Dec. 31, 2025, as the impact from net income in excess of stockholder dividends through Sept. 30, 2026, was partially offset by the dilutive effect of share repurchases.<\/p>\n \nNet income available to common stockholders’ ROE (net income ROE) for the trailing 12-month period ending Sept. 30, 2026, was 25.0%, increasing 4.7 points from Sept. 30, 2025, primarily due to an increase in net income available to common stockholders.<\/p>\n \nCore earnings ROE for the trailing 12-month period ending Sept. 30, 2026, was 17.9%, increasing 0.6 points from Sept. 30, 2025, primarily due to an increase in core earnings.<\/p>\n BUSINESS RESULTS:
\n
<\/b>Business Insurance<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Sep 30 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Sep 30 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $637<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $710<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (10%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | | \n\n $731<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $723<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | | \n\n $3,772<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $3,573<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 6%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain1<\/sup><\/b><\/p>\n<\/td>\n | \n\n $327<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $397<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (18%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain1<\/sup><\/b><\/p>\n<\/td>\n | \n\n $372<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $376<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (1%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n 61.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 57.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 3.8<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Expenses<\/b><\/p>\n<\/td>\n | | \n\n 30.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 31.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (1.1)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Policyholder dividends<\/b><\/p>\n<\/td>\n | | \n\n 0.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 0.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \u2014<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 91.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 88.8<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 2.5<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpact of catastrophes and PYD on combined ratio<\/p>\n<\/td>\n | | \n\n \n(1.2)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1.8)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 90.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 89.4<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 0.7<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnderlying loss and loss adjustment expense ratio<\/p>\n<\/td>\n | | \n\n \n59.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n57.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n2.0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes<\/p>\n<\/td>\n | | \n\n \n2.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.7<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPrior accident year development<\/p>\n<\/td>\n | | \n\n \n(1.6)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(1.7)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.1<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n 61.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 57.3<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 3.8<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n| \n [1]<\/i><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Denotes financial measure not calculated in accordance with generally accepted accounting principles (non-GAAP); definitions of non-GAAP measures and reconciliations to their closest U.S. GAAP measures can be found in this news release under the heading Discussion of Non-GAAP Financial Measures<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThird quarter 2026 net income of $637 million decreased from net income of $710 million in third quarter 2025. Contributing to the results were:<\/p>\n \n- \n7% growth in earned premium.<\/p>\n<\/li>\n
- \nAn underlying loss and loss adjustment expense ratio of 59.9 in third quarter 2026 increased from 57.9 in third quarter 2025.<\/p>\n<\/li>\n
- \nNet favorable PYD of $61 million, before tax, in third quarter 2026, was relatively flat compared with $60 million in third quarter 2025. The net favorable PYD in third quarter 2026 primarily includes reserve reductions in workers\u2019 compensation and commercial property.<\/p>\n<\/li>\n
- \nCAY CAT losses of $106 million, before tax, in third quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $39 million in third quarter 2025.<\/p>\n<\/li>\n
- \nNet investment income of $589 million, before tax, increased from $519 million in third quarter 2025.<\/p>\n<\/li>\n
- \nNet realized losses of $117 million, before tax, in third quarter 2026 compared with net realized losses of $26 million, before tax, in third quarter 2025.<\/p>\n<\/li>\n<\/ul>\n
\nBusiness Insurance core earnings of $731 million in third quarter 2026 increased from $723 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.<\/p>\n \nCombined ratio of 91.3 increased from 88.8 in third quarter 2025, primarily due to 1.7 points of higher CAY CATs and 0.1 points of less favorable net PYD. Underlying combined ratio of 90.1 increased from 89.4 in third quarter 2025, primarily due to a 2.0 point increase in the underlying loss and loss adjustment expense ratio.<\/p>\n \n- \nSmall Business combined ratio of 84.5 improved from 87.9 in third quarter 2025, including flat PYD and 1.2 points of higher CAY CATs. Underlying combined ratio of 85.2 improved from 89.8 in third quarter 2025, primarily due to lower non-CAT property losses and a lower expense ratio.<\/p>\n<\/li>\n
- \nMiddle & Large Business combined ratio of 101.7 increased from 90.8 in third quarter 2025, including 2.5 points of higher CAY CATs and 0.3 points of less favorable PYD. Underlying combined ratio of 99.5 increased from 91.4 in third quarter 2025, including a higher loss ratio in workers’ compensation and higher non-CAT property losses, partially offset by a lower expense ratio.<\/p>\n<\/li>\n
- \nGlobal Specialty combined ratio of 89.1 increased from 86.9 in third quarter 2025, including 1.7 points of higher CAY CATs and 0.3 points of less favorable PYD. The 2025 combined ratio included 0.8 points of more favorable PYD due to the amortization of the deferred gain related to the Navigators ADC. Underlying combined ratio of 86.1 was relatively consistent with third quarter 2025.<\/p>\n<\/li>\n
- \nThe Business Insurance expense ratio of 30.0 improved 1.1 points from 31.1 in third quarter 2025, driven by the impact of earned premium growth and lower staffing costs, partially offset by higher technology costs.<\/p>\n<\/li>\n<\/ul>\n
\nThird quarter 2026 written premiums of $3.8 billion were up 6% from third quarter 2025, driven by growth across all businesses. Small Business and Global Specialty each delivered 7% written premium growth, while Middle & Large increased 3%, including 5% growth in Middle Market.<\/p>\n Personal Insurance<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | | \n\n Sep 30 2026<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Sep 30 2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | | \n\n $93<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $139<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (33%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | | \n\n $105<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $143<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (27%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | | \n\n $950<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $987<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (4%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain<\/b><\/p>\n<\/td>\n | | \n\n $62<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $107<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (42%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain<\/b><\/p>\n<\/td>\n | | \n\n $118<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n $95<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 24%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n 67.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 62.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 4.3<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Expenses<\/b><\/p>\n<\/td>\n | | \n\n 26.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 25.8<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 0.2<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 93.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 88.7<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 4.5<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpact of catastrophes and PYD on combined ratio<\/p>\n<\/td>\n | | \n\n \n(6.2)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(7.4)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | | \n\n 87.1<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 90.0<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n (2.9)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nUnderlying loss and loss adjustment expense ratio<\/p>\n<\/td>\n | | \n\n \n61.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n64.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(3.1)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes<\/p>\n<\/td>\n | | \n\n \n10.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n3.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n6.8<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPrior accident year development<\/p>\n<\/td>\n | | \n\n \n(3.9)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(4.5)<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n0.6<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | | \n\n 67.2<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 62.9<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n 4.3<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet income of $93 million in third quarter 2026 decreased from net income of $139 million in third quarter 2025. Contributing to the results were:<\/p>\n \n- \nEarned premium decline of 4%, driven by an 8% decline in automobile reflecting continued pressure on new business growth in a competitive market environment, partially offset by 5% earned premium growth in homeowners, including 20% new business growth.<\/p>\n<\/li>\n
- \nAn underlying loss and loss adjustment expense ratio of 61.1 in third quarter 2026, which improved 3.1 points from 64.2 in third quarter 2025, driven by the impact of earned pricing increases outpacing loss cost trends.<\/p>\n<\/li>\n
- \nNet favorable PYD of $36 million, before tax, in third quarter 2026 decreased from $43 million of net favorable PYD in third quarter 2025. The net favorable PYD in third quarter 2026 includes reserve reductions in both automobile and homeowners.<\/p>\n<\/li>\n
- \nCAY CAT losses of $92 million, before tax, in third quarter 2026, including losses from tornado, wind and hail events, increased from $31 million of CAY CAT losses in third quarter 2025.<\/p>\n<\/li>\n
- \nNet investment income of $67 million, before tax, in third quarter 2026 was flat compared with third quarter 2025.<\/p>\n<\/li>\n
- \nNet realized losses of $15 million, before tax, in third quarter 2026 compared with net realized losses of $4 million, before tax, in third quarter 2025.<\/p>\n<\/li>\n<\/ul>\n
\nPersonal Insurance core earnings of $105 million decreased from core earnings of $143 million in third quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.<\/p>\n \nCombined ratio of 93.2 in third quarter 2026 increased from 88.7 in third quarter 2025, primarily due to a 4.3 point increase in the loss and loss adjustment expense ratio, including a 3.1 point improvement in the underlying loss and loss adjustment expense ratio, 6.8 points of higher CAY CAT losses and 0.6 points of less favorable PYD. Underlying combined ratio of 87.1 improved 2.9 points from 90.0 in third quarter 2025, primarily due to improvement in the underlying loss and loss adjustment expense ratios in both automobile and homeowners.<\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |