Travelers: AI improves claims, underwriting efficiency in Q2

AI investments contributed to claims processing gains during a strong quarter, according to Travelers' second-quarter earnings results, released Friday. Travelers reported a 0.5-point increase in its business insurance's underlying loss ratio–attributed to AI and innovation investments by executives.

"We're pleased to report an excellent second quarter and another in a sustained run of successful quarters, with very strong underwriting performance across all three segments and a terrific result from our investment portfolio," said Alan Schnitzer, Travelers chairman and CEO, during an earnings presentation. "Our results continue to reflect steady progress on the innovation front, as many of the initiatives we've shared bear fruit — everything from product enhancements, to the impact of AI on straight-through claims processing. There's more of that to come as we continue to invest with discipline and focus on the initiatives that matter most."

Travelers is also investing in AI-powered underwriting tools and piloting new capabilities for automated submission handling to speed up business for distribution partners. These investments include advanced data extraction, rapid prefill of submission information and the application of advanced underwriting rules to streamline and accelerate quote generation. 

The insurer's bond and specialty line saw a growth of 40% in net written premiums from the prior-year quarter, spanning across its high credit quality portfolio that included a few larger projects and increased bonding for data center development.

"We are pleased that our outstanding team's efforts to build the right customer relationships and our investments to support the long-term success of our portfolio of premier contractors generated such terrific production in this profitable business," said Jeffrey Klenk, the Travelers' executive vice president and president of bond and specialty insurance, during the earnings call. "Bond and specialty insurance delivered strong profitability and excellent growth in the quarter while continuing to make strategic investments in our competitive advantages, including in our market-leading team and important technology and artificial intelligence capabilities to improve risk selection and efficiency."

Travelers reported a net income of $2.208 billion for the second quarter of 2026, compared to $1.509 billion in the same quarter a year earlier. Revenue reached $12.2 billion in the second quarter, compared to $12.1 billion in the same quarter last year. The insurer reported its core income this past quarter was $2.160 billion, compared to $1.504 billion in the prior year quarter. Travelers attributed the core-income increase primarily to lower catastrophe losses, strong underlying underwriting income and prior-year reserve development.