Travelers on Thursday said third-quarter net income was $1.26 billion compared to net income of $454 million during the same period a year ago on record net premiums, favorable prior year reserve development, and higher investment income.

The New York-based personal and business insurer recorded underwriting income during the third quarter of $685 million despite $939 million in catastrophe losses mostly from Hurricane Helene as well as wind and hail storms in the U.S.

A year ago, Travelers booked an underwriting loss of $136 million during in the third quarter.

The third-quarter combined ratio improved nearly 8 points to 93.2 from 101 as the insurer reported $126 million in favorable prior-year reserve development compared to unfavorable reserve development of $154 million last year.

Net investment income was $904 million compared to $769 million in Q3 2023.

Comparing third quarters, net premiums written increased 9 percent in business insurance to about $5.5 billion and 7 percent in personal insurance to record of about $4.7 billion on strong renewal premium changes in both segments, Travelers said. Including net premium growth in the company’s bond and specialty insurance segment, overall net premiums written grew 8 percent in the third quarter to a record $11.3 billion.

Travelers’ personal lines segment reversed a $408 million underwriting loss in third-quarter 2023 by booking a gain of $294 million this year, with less catastrophe losses ($595 million compared to $642 million) and higher favorable reserve development driven by better than expected losses in home and auto for recent accident years. Segment income was $384 million in third-quarter 2024, compared to a loss of $193 million a year ago.

The quarter’s combined ratio in personal lines improved 17.5 points to 92.5.

For the year as of September 30, Travelers’ personal lines is now in the black with underwriting income of $20 million and segment income of $451 million compared to losses of $1.32 billion and $648 million, respectively.

In the business insurance segment, Travelers recorded $91 million in unfavorable prior year reserve development from an addition to asbestos reserves of $242 million and offset by better results from multiple accident years in workers’ compensation. Travelers also booked higher third-quarter catastrophe losses in business insurance—$340 million compared to $203 million last year—but still finished with an underwriting gain of $219 million compared to $31 million in 2023.

Third-quarter business segment income went up $230 million to $698 million, and the combined ratio improved 3.3 points to 95.8.

This article was previously published by Insurance Journal. Reporter Chad Hemenway is the national editor of Insurance Journal.