Download PDF

1. Company Snapshot

1.a. Company Description

The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally.The company operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance.The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products.


This segment operates through select accounts, which serve small businesses; commercial accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and other that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers.The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers.The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals through independent agencies and brokers.


The Travelers Companies, Inc.was founded in 1853 and is based in New York, New York.

Show Full description

1.b. Last Insights on TRV

The Travelers Companies, Inc.'s recent performance was driven by robust Q2 and Q3 2025 results, showcasing consistent strength and rebounding from Q1 losses. The company's disciplined underwriting and strategic sale of its Canadian business enhance capital efficiency. A $700 million allocation for additional share repurchases and $2 billion more in buybacks expected by Q1 2026 underscore its shareholder-friendly strategy. Renewal rate improvements, steady earnings growth, and strong returns also contribute to its positive momentum. (Source: Zacks, 2025)

1.c. Company Highlights

2. Travelers' Q3 Results Exceed Expectations

Travelers reported excellent third-quarter results, with core income of $1.9 billion or $8.14 per diluted share, and a return on equity of 22.6%. The company's underwriting income more than doubled compared to the prior year quarter, driven by lower catastrophe losses and higher underlying underwriting income, resulting in an underlying combined ratio of 83.9%. Investment income also increased, with after-tax net investment income of $850 million, up 15%. The actual EPS of $8.14 beat estimates of $6.39, indicating a strong performance.

Publication Date: Oct -17

📋 Highlights
  • Record Core Income and ROE: Core income reached $1.9B ($8.14/share), with a 22.6% return on equity, driven by underwriting income growth and favorable catastrophe losses.
  • Underwriting Income Surge: Underlying underwriting income more than doubled YoY, supported by a 83.9% combined ratio and lower catastrophe losses.
  • Capital Returns and Buybacks: Returned $878M to shareholders, including $628M in share repurchases, with a $3.5B stock repurchase plan announced for 2025–2026.
  • Business Insurance Growth: Net written premiums rose 3% to $5.7B, with a 8.3% renewal premium change (RPC) in domestic business and 7% new business growth ($391M).
  • Investment Income Expansion: After-tax net investment income increased 15% to $850M, with $885M expected quarterly in 2026 for $3.3B annual fixed income projections.

Segment-wise Performance

The Business Insurance segment income was $134 million, up 3% year-over-year, driven by profitable growth in new products. The core middle market business saw a renewal premium change of 8.3%, with price increases achieved on over three-quarters of accounts. New business was $391 million, up 7% year-over-year. Bond and Specialty delivered a combined ratio of 81.6%, with segment income of $250 million. Personal Insurance segment income was $807 million, with a combined ratio of 81.3%. The underlying combined ratio improved by 5 points in Homeowners and Other and 2.9 points in Auto.

Growth Prospects and Capital Management

The company expects a higher level of share repurchases over the next couple of quarters, with a plan to repurchase around $3.5 billion worth of stock from Q3 2025 through Q1 2026. Adjusted book value per share was $150.55, up 15% from a year ago. The company's capital position is strong, with excess capital generated from earnings exceeding investment needs for growth. The company's philosophy is to deploy excess capital to generate returns, with options including technology investments, M&A, and returning capital to shareholders through dividends and buybacks.

Valuation and Outlook

With a Price-to-Book Ratio of 1.87, the stock appears reasonably valued. The company's return on equity of 22.6% is impressive, and the expected growth in revenues of 3.7% next year provides a positive outlook. Analysts can monitor the Combined Ratio to assess underwriting profitability and the Dividend Yield of 1.63% for income generation. The current valuation multiples suggest that the market has priced in a certain level of performance, and the company's ability to deliver on its growth objectives will be crucial in determining the stock's future performance.

3. NewsRoom

Card image cap

CW Advisors LLC Increases Stock Holdings in The Travelers Companies, Inc. $TRV

Dec -06

Source: defenseworld.net

Card image cap

The Travelers Companies, Inc. $TRV Shares Sold by Arrowstreet Capital Limited Partnership

Dec -03

Source: defenseworld.net

Card image cap

3 P&C Insurance Stocks That Have Outperformed the S&P 500 YTD

Dec -01

Source:

Card image cap

Boston Partners Reduces Position in The Travelers Companies, Inc. $TRV

Nov -26

Source: defenseworld.net

Card image cap

Buy 5 Old Economy Stocks on a Rally in 2025 for More Gains in 2026

Nov -25

Source: zacks.com

Card image cap

Travelers Recognized for Military-Friendly Culture

Nov -24

Source: businesswire.com

Card image cap

Travelers Companies (NYSE:TRV) Hits New 52-Week High – Time to Buy?

Nov -23

Source: defenseworld.net

Card image cap

The Travelers Companies, Inc. $TRV Stake Lessened by Bahl & Gaynor Inc.

Nov -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.90%)

6. Segments

Business Insurance

Expected Growth: 6.2%

The Business Insurance segment is expected to grow slightly above the global average due to its large market share and the potential for increased demand driven by businesses seeking to mitigate risks. Economic recovery and regulatory changes can positively impact this segment.

Personal Insurance

Expected Growth: 5.5%

The Personal Insurance segment is expected to grow, albeit slightly below the global average, due to competitive market pressures and consumer price sensitivity. However, a stable economy and regulatory support can help maintain a steady growth trajectory.

Bond & Specialty Insurance

Expected Growth: 6.5%

The Bond & Specialty Insurance segment is expected to grow above the global average, driven by potential increases in government infrastructure projects and contractual requirements that drive demand for surety bonds and other specialty products.

Unallocated Net Realized Investment Losses

Expected Growth: None%

None

7. Detailed Products

Personal Insurance

Provides coverage for individuals and families, including auto, home, umbrella, and other personal insurance products.

Business Insurance

Offers a range of insurance products and services to businesses of all sizes, including property, liability, workers compensation, and other commercial insurance products.

Bond and Specialty Insurance

Provides specialized insurance products and services, including surety bonds, management liability, and professional liability insurance.

Workers Compensation

Offers insurance coverage for employers to provide wage replacement and medical benefits to employees who are injured on the job.

8. The Travelers Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Travelers Companies, Inc. is medium due to the presence of alternative insurance providers and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the complexity of insurance products and the lack of price sensitivity among customers, giving Travelers an upper hand in negotiations.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple vendors and service providers, but Travelers' large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the insurance industry, including regulatory requirements, capital requirements, and the need for established distribution networks.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors, such as Allstate and State Farm, and the need for Travelers to differentiate itself through product offerings, pricing, and customer service.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.56%
Debt Cost 5.12%
Equity Weight 75.44%
Equity Cost 7.11%
WACC 6.62%
Leverage 32.55%

11. Quality Control: The Travelers Companies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Allstate

A-Score: 7.2/10

Value: 7.3

Growth: 7.9

Quality: 6.6

Yield: 5.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Fairfax Financial Holdings

A-Score: 7.2/10

Value: 7.5

Growth: 6.9

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Travelers

A-Score: 7.0/10

Value: 7.0

Growth: 7.1

Quality: 6.6

Yield: 4.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
CNA Financial

A-Score: 6.8/10

Value: 6.9

Growth: 4.6

Quality: 6.1

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Cincinnati Financial

A-Score: 6.7/10

Value: 5.4

Growth: 6.4

Quality: 7.8

Yield: 4.0

Momentum: 7.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Progressive

A-Score: 6.4/10

Value: 5.6

Growth: 8.4

Quality: 7.0

Yield: 4.0

Momentum: 4.5

Volatility: 9.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

280.89$

Current Price

280.89$

Potential

-0.00%

Expected Cash-Flows