What dominates the section
- Insurance liabilities may emerge years later, while tort-law changes could expand Travelers’ claims exposure.
- Investment portfolio tax, real-estate, reinsurance, and credit risks could reduce income, capital, and liquidity.
- Agent conduct, strategic initiatives, acquisitions, and inaccurate pricing models could undermine profitability and growth.
The risks most specific to Travelers Companies
In some instances, emerging issues may not become apparent for some time after we have issued the affected insurance policies. As a result, the full extent of liability under our insurance policies may not be known for many years after the policies are issued
Emerging insurance liabilities may remain unknown for years, and legislation weakening tort reforms could expand claim recoveries or statutes of limitation.
- Financial, Economic and Credit Risks
Our portfolio has benefited from tax exemptions (such as those related to interest from municipal bonds) and certain other tax laws, including, but not limited to, those governing dividends-received deductions and tax credits. Changes in these laws could adversely impact the value of our investment portfolio
Tax-law changes or declining real-estate valuations could reduce the value of municipal bonds, mortgage-related securities, and real-estate investments.
- Financial, Economic and Credit Risks
Because of the risks set forth above, the value of our investment portfolio could decrease, we could experience reduced net investment income and we could experience realized and/or unrealized investment losses, which could materially and adversely affect our results of operations, financial position and/or liquidity
Investment losses, unavailable or uncollectible reinsurance, and credit risk from structured settlements could reduce income, capital, or liquidity.
- Financial, Economic and Credit Risks
Our efforts to mitigate the credit risk that we have to our insureds may not be successful. For example, we may not be able to obtain collateral and any collateral obtained may subsequently have little or no value
Travelers may bear premium-payment shortfalls when independent agents or brokers fail to remit premiums that are legally deemed received.
- Business and Operational Risks
Customers in the past have brought claims against us for the actions of our agents. Even with proper controls in place, actual or alleged errors or inaccuracies by our agents could result in our involvement in disputes, litigation or regulatory actions
Agent errors could trigger disputes, litigation, or regulatory actions, while new products, targeted-market expansion, process changes, or acquisitions may fail.
- Business and Operational Risks
These efforts may require us to make substantial expenditures, which may negatively impact results in the near term, and if not successful, could materially and adversely affect our results of operations
Pricing and capital models may differ materially from actual claims experience, undermining profitability; strategic investments may also require substantial near-term spending.
All 6 risk factors
Headings as the filing states them, in filing order.
Other
- 01In some instances, emerging issues may not become apparent for some time after we have issued the affected insurance policies. As a result, the full extent of liability under our insurance policies may not be known for many years after the policies are issued
Financial, Economic and Credit Risks
- 02Our portfolio has benefited from tax exemptions (such as those related to interest from municipal bonds) and certain other tax laws, including, but not limited to, those governing dividends-received deductions and tax credits. Changes in these laws could adversely impact the value of our investment portfolio
- 03Because of the risks set forth above, the value of our investment portfolio could decrease, we could experience reduced net investment income and we could experience realized and/or unrealized investment losses, which could materially and adversely affect our results of operations, financial position and/or liquidity
- 04Our efforts to mitigate the credit risk that we have to our insureds may not be successful. For example, we may not be able to obtain collateral and any collateral obtained may subsequently have little or no value
Business and Operational Risks
- 05Customers in the past have brought claims against us for the actions of our agents. Even with proper controls in place, actual or alleged errors or inaccuracies by our agents could result in our involvement in disputes, litigation or regulatory actions
- 06These efforts may require us to make substantial expenditures, which may negatively impact results in the near term, and if not successful, could materially and adversely affect our results of operations
Other Travelers Companies 10-Ks
- 2026 10-K risk factors
9 risks. The risk profile is dominated by long-tail insurance liabilities, complex investment portfolio exposures, and regulatory or legal changes. Pricing accuracy depends on assumptions, models, and underwriting criteria like credit scoring.
Filed Feb 12, 2026
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.