Bob Huang, an analyst from Morgan Stanley, maintained the Hold rating on Travelers Companies. The associated price target remains the same with $269.00.
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Bob Huang has given his Hold rating due to a combination of factors that present a mixed outlook for Travelers Companies. While the company demonstrated strong underwriting results, which led to an earnings beat, the overall growth trajectory is less clear. The pricing environment has posed challenges to premium growth, and there are questions about the necessity of reducing exposures in Business Insurance, despite strong underwriting profitability.
In the Personal Auto segment, despite achieving favorable combined ratios for two consecutive quarters, there was a decline in premiums, which is concerning given the industry’s growth trends. Additionally, while Business Insurance margins improved and exceeded expectations, the net written premium growth was softer than anticipated across all segments. This suggests that although the company is well-positioned in certain areas, there are underlying issues that need to be addressed to achieve stronger growth, justifying the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $274.00 price target.
TRV’s price has also changed slightly for the past six months – from $239.520 to $261.810, which is a 9.31% increase.