\n| \n \n\u00a0<\/p>\n ($ in millions except per share data)<\/i><\/p>\n<\/td>\n | \n Jun 30
\n
2026<\/b><\/p>\n<\/td>\n | \n Jun 30
\n
2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nIncome from continuing operations, net of tax<\/p>\n<\/td>\n | \n \n$980<\/p>\n<\/td>\n | \n \n$938<\/p>\n<\/td>\n | \n \n4%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Income from continuing operations, net of tax per diluted share<\/i><\/p>\n<\/td>\n | \n $3.53<\/i><\/p>\n<\/td>\n | \n $3.24<\/i><\/p>\n<\/td>\n | \n \n9%<\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n \nNet income available to common stockholders<\/p>\n<\/td>\n | \n \n$1,293<\/p>\n<\/td>\n | \n \n$990<\/p>\n<\/td>\n | \n \n31%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Net income available to common stockholders per diluted share1<\/sup><\/i><\/p>\n<\/td>\n| \n $4.68<\/i><\/p>\n<\/td>\n | \n $3.44<\/i><\/p>\n<\/td>\n | \n \n36%<\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n \nCore earnings<\/p>\n<\/td>\n | \n \n$945<\/p>\n<\/td>\n | \n \n$932<\/p>\n<\/td>\n | \n \n1%<\/p>\n<\/td>\n<\/tr>\n | \n| \n Core earnings per diluted share<\/i><\/p>\n<\/td>\n | \n $3.42<\/i><\/p>\n<\/td>\n | \n $3.24<\/i><\/p>\n<\/td>\n | \n \n6%<\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n \nBook value per diluted share<\/p>\n<\/td>\n | \n \n$70.28<\/p>\n<\/td>\n | \n \n$60.02<\/p>\n<\/td>\n | \n \n17%<\/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$78.91<\/p>\n<\/td>\n | \n \n$68.35<\/p>\n<\/td>\n | \n \n15%<\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n \nNet income available to common stockholders’ return on equity (ROE)3<\/sup>, last 12-months<\/p>\n<\/td>\n| \n \n23.8%<\/p>\n<\/td>\n | \n \n19.8%<\/p>\n<\/td>\n | \n \n4.0<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCore earnings ROE3<\/sup>, last 12-months<\/p>\n<\/td>\n| \n \n18.7%<\/p>\n<\/td>\n | \n \n16.0%<\/p>\n<\/td>\n | \n \n2.7<\/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 \nSecond quarter 2026 net income available to common stockholders of $1.3 billion, or $4.68 per diluted share, improved from $990 million in second quarter 2025. Contributing to the results were:<\/p>\n \n- \nAn increase in earnings driven by 5% growth in P&C earned premium and 5% fully insured ongoing premium growth in Employee Benefits.<\/p>\n<\/li>\n
- \nBusiness Insurance loss and loss adjustment expense ratio of 60.4 increased from 56.1 in second quarter 2025, including 2.9 points of less favorable prior year accident year development (PYD) and 0.2 points of higher current accident year catastrophe losses (CAY CATs). Underlying loss and loss adjustment expense ratio* of 58.3 increased from 57.0 in second quarter 2025.<\/p>\n<\/li>\n
- \nPersonal Insurance loss and loss adjustment expense ratio of 63.8 improved from 69.0 in second quarter 2025, including 2.1 points of more favorable PYD and 0.2 points of lower CAY CATs. Underlying loss and loss adjustment expense ratio of 60.0 improved 2.8 points from second quarter 2025.<\/p>\n<\/li>\n
- \nNet favorable PYD of $111 million, before tax, in 2026 declined from net favorable PYD of $187 million in core earnings in 2025. Net favorable PYD in second quarter 2026 was primarily driven by reserve reductions in workers\u2019 compensation, catastrophes, Personal Insurance, and bond, partially offset by an increase in general liability and commercial automobile reserves.<\/p>\n<\/li>\n
- \nP&C CAY CAT losses of $222 million, before tax, in second quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $212 million in second quarter 2025.<\/p>\n<\/li>\n
- \nThe P&C expense ratio of 29.9 increased from 29.5 in second quarter 2025, primarily driven by an increase in the Personal Insurance expense ratio.<\/p>\n<\/li>\n
- \nEmployee Benefits loss ratio of 72.5 increased from 69.1 in second quarter 2025, driven by an increase in the group disability loss ratio.<\/p>\n<\/li>\n
- \nThe Employee Benefits expense ratio of 25.2 improved from 25.7 in second quarter 2025, driven by the impact of earned premium growth and lower commissions, partially offset by higher technology costs.<\/p>\n<\/li>\n
- \nNet investment income of $800 million, before tax, increased from $658 million in second 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 gains of $64 million, before tax, in second quarter 2026 compared with net realized losses of $19 million, before tax, in second quarter 2025.<\/p>\n<\/li>\n
- \nIncome from discontinued operations of $318 million, before tax, increased from $57 million in second quarter 2025, due to a $251 million income tax benefit associated with the sale of Hartford Funds representing the difference between the tax basis and the U.S. GAAP carrying value of Hartford Funds.<\/p>\n<\/li>\n<\/ul>\n
\nSecond quarter 2026 core earnings of $945 million, or $3.42 per diluted share, increased from $932 million of core earnings in second quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses and income from discontinued operations.<\/p>\n \nJune 30, 2026 book value per diluted share of $70.28 increased 6.0%, from $66.31 at Dec. 31, 2025, principally due to net income in excess of stockholder dividends through June 30, 2026, including income from discontinued operations related to the sale of Hartford Funds, 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 $78.91 as of June 30, 2026, increased 7.2%, from $73.62 at Dec. 31, 2025, as the impact from net income in excess of stockholder dividends through June 30, 2026, was partially offset by the dilutive effect of share repurchases.<\/p>\n \nNet income available to common stockholders’ ROE (net income ROE) for the trailing 12-month period ending June 30, 2026, was 23.8%, increasing 4.0 points from June 30, 2025, primarily due to an increase in net income available to common stockholders.<\/p>\n \nCore earnings ROE for the trailing 12-month period ending June 30, 2026, was 18.7%, increasing 2.7 points from June 30, 2025, primarily due to an increase in core earnings.<\/p>\n BUSINESS RESULTS:
\n
<\/b>Business Insurance<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | \n Jun 30
\n
2026<\/b><\/p>\n<\/td>\n | \n Jun 30
\n
2025<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | \n $704<\/b><\/p>\n<\/td>\n | \n $696<\/b><\/p>\n<\/td>\n | \n 1%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | \n $695<\/b><\/p>\n<\/td>\n | \n $697<\/b><\/p>\n<\/td>\n | \n \u2014%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | \n $4,022<\/b><\/p>\n<\/td>\n | \n $3,816<\/b><\/p>\n<\/td>\n | \n 5%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain1<\/sup><\/b><\/p>\n<\/td>\n| \n $316<\/b><\/p>\n<\/td>\n | \n $444<\/b><\/p>\n<\/td>\n | \n (29%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain1<\/sup><\/b><\/p>\n<\/td>\n| \n $393<\/b><\/p>\n<\/td>\n | \n $412<\/b><\/p>\n<\/td>\n | \n (5%)<\/b><\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | \n 60.4<\/b><\/p>\n<\/td>\n | \n 56.1<\/b><\/p>\n<\/td>\n | \n 4.3<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Expenses<\/b><\/p>\n<\/td>\n | \n 30.7<\/b><\/p>\n<\/td>\n | \n 30.6<\/b><\/p>\n<\/td>\n | \n 0.1<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Policyholder dividends<\/b><\/p>\n<\/td>\n | \n 0.3<\/b><\/p>\n<\/td>\n | \n 0.3<\/b><\/p>\n<\/td>\n | \n \u2014<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Combined ratio<\/b><\/p>\n<\/td>\n | \n 91.4<\/b><\/p>\n<\/td>\n | \n 87.0<\/b><\/p>\n<\/td>\n | \n 4.4<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpact of catastrophes and PYD on combined ratio<\/p>\n<\/td>\n | \n \n(2.1)<\/p>\n<\/td>\n | \n \n1.0<\/p>\n<\/td>\n | \n \n(3.1)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | \n 89.3<\/b><\/p>\n<\/td>\n | \n 88.0<\/b><\/p>\n<\/td>\n | \n 1.3<\/b><\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/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 \n58.3<\/p>\n<\/td>\n | \n \n57.0<\/p>\n<\/td>\n | \n \n1.3<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes<\/p>\n<\/td>\n | \n \n3.5<\/p>\n<\/td>\n | \n \n3.3<\/p>\n<\/td>\n | \n \n0.2<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPrior accident year development<\/p>\n<\/td>\n | \n \n(1.4)<\/p>\n<\/td>\n | \n \n(4.3)<\/p>\n<\/td>\n | \n \n2.9<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | \n 60.4<\/b><\/p>\n<\/td>\n | \n 56.1<\/b><\/p>\n<\/td>\n | \n 4.3<\/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 \nSecond quarter 2026 net income of $704 million increased from net income of $696 million in second 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 58.3 in second quarter 2026 increased from 57.0 in second quarter 2025.<\/p>\n<\/li>\n
- \nNet favorable PYD of $52 million, before tax, in second quarter 2026, declined from $146 million in second quarter 2025. The net favorable PYD in second quarter 2026 primarily includes reserve reductions in workers\u2019 compensation, catastrophes, and bond, partially offset by an increase in general liability and commercial auto liability reserves. Net PYD in the 2025 period includes a $24 million, before-tax, benefit due to the amortization of the deferred gain related to the Navigators ADC.<\/p>\n<\/li>\n
- \nCAY CAT losses of $129 million, before tax, in second quarter 2026, primarily from tornado, wind and hail events, increased from CAY CAT losses of $114 million in second quarter 2025.<\/p>\n<\/li>\n
- \nNet investment income of $556 million, before tax, increased from $449 million in second quarter 2025.<\/p>\n<\/li>\n
- \nNet realized gains of $12 million, before tax, in second quarter 2026 compared with net realized losses of $20 million, before tax, in second quarter 2025.<\/p>\n<\/li>\n<\/ul>\n
\nBusiness Insurance core earnings of $695 million in second quarter 2026 declined slightly from $697 million in second quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.<\/p>\n \nCombined ratio of 91.4 increased from 87.0 in second quarter 2025, primarily due to 2.9 points of less favorable net PYD and 0.2 points of higher CAY CATs. Underlying combined ratio of 89.3 increased from 88.0 in second quarter 2025, primarily due to a 1.3 point increase in the underlying loss and loss adjustment expense ratio.<\/p>\n \n- \nSmall Business combined ratio of 85.9 improved from 89.7 in second quarter 2025, including 1.3 points of lower CAY CATs, partially offset by 0.1 points of less favorable PYD. Underlying combined ratio of 86.5 improved from 89.0 in second quarter 2025, primarily due to lower non-CAT property losses and the impact of earned premium growth on the expense ratio.<\/p>\n<\/li>\n
- \nMiddle & Large Business combined ratio of 101.9 increased from 86.6 in second quarter 2025, including a change from favorable to unfavorable PYD and 2.0 points of higher CAY CATs. Underlying combined ratio of 95.3 increased from 89.1 in second quarter 2025, including higher non-CAT property losses and a change in business mix.<\/p>\n<\/li>\n
- \nGlobal Specialty combined ratio of 89.5 increased from 85.9 in second quarter 2025, including 2.1 points of less favorable PYD and 0.4 points of higher CAY CATs. The 2025 combined ratio included 2.6 points of more favorable PYD due to the amortization of the deferred gain related to the Navigators ADC. Underlying combined ratio of 85.8 increased from 84.8 in second quarter 2025, primarily due to an increase in the international loss ratio and a higher expense ratio, driven by technology costs.<\/p>\n<\/li>\n
- \nThe Business Insurance expense ratio of 30.7 was generally consistent with the second quarter of 2025.<\/p>\n<\/li>\n<\/ul>\n
\nSecond quarter 2026 written premiums of $4.0 billion were up 5% from second quarter 2025, with growth across the segment. Small Business delivered a 7% increase in written premiums, supported by double\u2011digit new business growth, while Middle & Large and Global Specialty each reported single\u2011digit written premium growth.<\/p>\n Personal Insurance<\/b><\/p>\n\n\n| \n \n\u00a0<\/p>\n<\/td>\n | \n Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0<\/p>\n ($ in millions, unless otherwise noted)<\/i><\/p>\n<\/td>\n | \n Jun 30
\n
2026<\/b><\/p>\n<\/td>\n | \n Jun 30
\n
2025<\/b><\/p>\n<\/td>\n | \n Change<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Net income<\/b><\/p>\n<\/td>\n | \n $130<\/b><\/p>\n<\/td>\n | \n $91<\/b><\/p>\n<\/td>\n | \n 43%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Core earnings<\/b><\/p>\n<\/td>\n | \n $128<\/b><\/p>\n<\/td>\n | \n $94<\/b><\/p>\n<\/td>\n | \n 36%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Written premiums<\/b><\/p>\n<\/td>\n | \n $915<\/b><\/p>\n<\/td>\n | \n $980<\/b><\/p>\n<\/td>\n | \n (7%)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underwriting gain<\/b><\/p>\n<\/td>\n | \n $90<\/b><\/p>\n<\/td>\n | \n $55<\/b><\/p>\n<\/td>\n | \n 64%<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Underlying underwriting gain<\/b><\/p>\n<\/td>\n | \n $124<\/b><\/p>\n<\/td>\n | \n $112<\/b><\/p>\n<\/td>\n | \n 11%<\/b><\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | \n 63.8<\/b><\/p>\n<\/td>\n | \n 69.0<\/b><\/p>\n<\/td>\n | \n (5.2)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Expenses<\/b><\/p>\n<\/td>\n | \n 26.3<\/b><\/p>\n<\/td>\n | \n 25.1<\/b><\/p>\n<\/td>\n | \n 1.2<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Combined ratio<\/b><\/p>\n<\/td>\n | \n 90.1<\/b><\/p>\n<\/td>\n | \n 94.1<\/b><\/p>\n<\/td>\n | \n (4.0)<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nImpact of catastrophes and PYD on combined ratio<\/p>\n<\/td>\n | \n \n(3.8)<\/p>\n<\/td>\n | \n \n(6.1)<\/p>\n<\/td>\n | \n \n2.3<\/p>\n<\/td>\n<\/tr>\n | \n| \n Underlying combined ratio<\/b><\/p>\n<\/td>\n | \n 86.3<\/b><\/p>\n<\/td>\n | \n 88.0<\/b><\/p>\n<\/td>\n | \n (1.7)<\/b><\/p>\n<\/td>\n<\/tr>\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<\/tr>\n | \n| \n Losses and loss adjustment expense ratio<\/b><\/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 \n60.0<\/p>\n<\/td>\n | \n \n62.8<\/p>\n<\/td>\n | \n \n(2.8)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nCurrent accident year catastrophes<\/p>\n<\/td>\n | \n \n10.3<\/p>\n<\/td>\n | \n \n10.5<\/p>\n<\/td>\n | \n \n(0.2)<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nPrior accident year development<\/p>\n<\/td>\n | \n \n(6.5)<\/p>\n<\/td>\n | \n \n(4.4)<\/p>\n<\/td>\n | \n \n(2.1)<\/p>\n<\/td>\n<\/tr>\n | \n| \n Total Losses and loss adjustment expense ratio<\/b><\/p>\n<\/td>\n | \n 63.8<\/b><\/p>\n<\/td>\n | \n 69.0<\/b><\/p>\n<\/td>\n | \n (5.2)<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nNet income of $130 million in second quarter 2026 increased from net income of $91 million in second quarter 2025. Contributing to the results were:<\/p>\n \n- \n3% decline in earned premium largely driven by a competitive market environment that continues to pressure new business growth, partially offset by modest improvement in automobile policy retention as the pace of renewal written price increases moderated.<\/p>\n<\/li>\n
- \nAn underlying loss and loss adjustment expense ratio of 60.0 in second quarter 2026, which improved 2.8 points from 62.8 in second quarter 2025, driven by the impact of earned pricing increases outpacing loss cost trends.<\/p>\n<\/li>\n
- \n$59 million, before tax, of favorable PYD in second quarter 2026 increased from $41 million of favorable PYD in second quarter 2025. The net favorable PYD in second quarter 2026 includes reserve reductions in both automobile and homeowners.<\/p>\n<\/li>\n
- \nCAY CAT losses of $93 million, before tax, in second quarter 2026, including losses from tornado, wind and hail events, decreased from $98 million of CAY CAT losses in second quarter 2025.<\/p>\n<\/li>\n
- \nNet investment income of $67 million, before tax, in second quarter 2026 increased from $58 million in second quarter 2025.<\/p>\n<\/li>\n
- \nNet realized gains of $4 million, before tax, in second quarter 2026 compared with net realized losses of $4 million, before tax, in second quarter 2025.<\/p>\n<\/li>\n<\/ul>\n
\nPersonal Insurance core earnings of $128 million increased from core earnings of $94 million in second quarter 2025, primarily reflecting the same drivers as net income, excluding the impact of realized gains and losses.<\/p>\n \nCombined ratio of 90.1 in second quarter 2026 improved from 94.1 in second quarter 2025, primarily due to a 5.2 point improvement in the loss and loss adjustment expense ratio, including a 2.8 point improvement in the underlying loss and loss adjustment expense ratio, 2.1 points of more favorable PYD, and 0.2 points of lower CAY CAT losses. Underlying combined ratio of 86.3 improved 1.7 points from 88.0 in second quarter 2025, primarily due to improvement in the underlying loss and loss adjustment expense ratios in both automobile and homeowners.<\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |