Travelers Companies (TRV) AI Stock Analysis

• Market Cap: $58.49B
• Dividend Yield: 1.64%
• Average Volume (3M): 1.32M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.46
• Revenue Growth: 8.54%
• EPS Growth: 43.51%
• Country: US
• Employees: 34,000
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Property & Casualty
• EPS (TTM): 6.51
• Shares Outstanding: 225,133,830
• 10 Day Avg. Volume: 1,517,049
• 30 Day Avg. Volume: 1,315,241
• PEG Ratio: 0.48
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.05
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 1.26
• 1Y Price Target: $292.33
• Price Target Upside: 12.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 78 Outperform
• Price Target: $296.00 ▲(14.32%Upside)

Travelers Companies has a robust financial foundation and is strategically well-positioned within the insurance sector. Strong earnings performance and effective capital management contribute positively to the stock's attractiveness. While technical indicators suggest a neutral short-term outlook, the company's attractive valuation and positive corporate events bolster its long-term investment potential.

Positive Factors

Earnings

Core EPS significantly exceeded expectations, reported at $6.51 compared to the consensus of $3.65.

Reserve Releases

Total reserve releases exceeded estimates, with significant contributions from personal insurance due to favorable loss experience.

Underwriting Performance

Strong underwriting supported the earnings beat, contributing to a better-than-expected performance.

Negative Factors

Business Insurance

Investors may be concerned about the decline in renewal rate change within Business Insurance, driven by a decrease in national property.

Personal Auto Premiums

Personal Auto premiums declined despite favorable combined ratios, raising concerns as competitors are seeing growth.

Premium Growth

Net premiums written growth fell short of expectations at 3.8% versus the anticipated 6.0%, with misses across all segments.

Travelers Companies Business Overview & Revenue Model

Company Description

The Travelers Companies, Inc. (TRV) is a leading provider of property and casualty insurance for individuals, businesses, and government entities. Headquartered in New York City, Travelers operates through three main segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The company offers a wide range of insurance products, including auto, home, and business insurance, as well as surety and financial liability products. With a vast network of independent agents and brokers, Travelers delivers tailored insurance solutions across the United States and internationally.

How the Company Makes Money

Travelers Companies generates revenue primarily through the sale of insurance policies and the collection of premiums from policyholders. The Business Insurance segment provides insurance products and services to a wide variety of commercial, industrial, and institutional customers. The Bond & Specialty Insurance segment offers surety, fidelity, management liability, and professional liability coverages, along with other insurance products. The Personal Insurance segment focuses on providing homeowners and automobile insurance to individual consumers. Key revenue streams include premiums earned from underwriting insurance policies and investment income derived from the company's investment portfolio. Travelers also benefits from strategic partnerships with independent agents and brokers who facilitate the distribution of its insurance products, contributing to the company's broad market reach and customer base.

Travelers Companies Financial Statement Overview

Summary

Travelers Companies exhibits strong financial health with consistent revenue growth, solid profitability margins, and a robust balance sheet. Efficient cash management is evident, supporting strategic flexibility. The low debt levels reduce financial risk, while high equity returns indicate efficient asset utilization. Overall, the company is well-positioned for continued stability and growth in the competitive insurance sector.

Income Statement

The income statement shows strong revenue growth with a TTM increase of 11.4% from the previous year. The Gross Profit Margin remains consistent at 100%, indicative of the company's solid revenue base. The Net Profit Margin improved to 11%, reflecting better operational efficiency. The EBIT and EBITDA margins also demonstrate steady financial health with EBIT at 10.3% and EBITDA at 15.3% in TTM, ensuring robust profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.27, suggesting prudent leverage levels. The Return on Equity (ROE) increased to 17.8% in TTM, highlighting efficient equity usage. The Equity Ratio stands at 21.3%, reflecting a strong equity base, albeit slightly lower than ideal for full stability against liabilities.

Cash Flow

Cash flow analysis reveals strong cash generation capabilities with a 6.2% growth in free cash flow in TTM. The Operating Cash Flow to Net Income ratio of 1.84 indicates excellent cash conversion efficiency, and the Free Cash Flow to Net Income ratio of 1.84 underscores the robust liquidity position despite heavy investing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.84B	46.42B	41.36B	36.88B	34.82B	31.98B
Gross Profit	47.84B	46.42B	41.36B	36.88B	34.82B	31.98B
EBITDA	7.32B	6.57B	4.47B	4.53B	5.67B	4.37B
Net Income	5.25B	5.00B	2.99B	2.84B	3.66B	2.70B
Balance Sheet
Total Assets	138.87B	133.19B	125.98B	115.72B	120.47B	116.76B
Cash, Cash Equivalents and Short-Term Investments	92.84B	89.13B	83.59B	75.43B	82.41B	80.23B
Total Debt	8.03B	8.03B	8.03B	7.29B	7.29B	6.55B
Total Liabilities	109.36B	105.33B	101.06B	94.16B	91.58B	87.56B
Stockholders Equity	29.52B	27.86B	24.92B	21.56B	28.89B	29.20B
Cash Flow
Free Cash Flow	9.63B	9.07B	7.71B	6.46B	7.27B	6.52B
Operating Cash Flow	9.63B	9.07B	7.71B	6.46B	7.27B	6.52B
Investing Cash Flow	-7.61B	-7.26B	-6.82B	-3.73B	-5.20B	-4.89B
Financing Cash Flow	-2.11B	-1.75B	-1.05B	-2.67B	-2.04B	-1.42B

Travelers Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 258.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRV, the sentiment is Negative. The current price of 258.92 is below the 20-day moving average (MA) of 259.01, below the 50-day MA of 264.59, and above the 200-day MA of 253.86, indicating a neutral trend. The MACD of -0.87 indicates Negative momentum. The RSI at 47.45 is Neutral, neither overbought nor oversold. The STOCH value of 36.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRV.

Travelers Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	84 Outperform	$26.04B	15.63	20.63%	2.30%	11.40%	15.32%
TRV	78 Outperform	$58.49B	11.49	19.29%	1.64%	8.54%	43.51%
CB	74 Outperform	$107.07B	11.85	14.10%	1.39%	6.74%	-4.05%
MKL	73 Outperform	$25.52B	14.88	10.94%	―	-6.46%	-26.71%
ALL	70 Outperform	$51.35B	13.25	19.88%	2.00%	11.49%	219.86%
PGR	66 Neutral	$141.57B	13.60	34.34%	2.03%	19.58%	51.72%
Sector *	65 Neutral	£5.05B	10.86	6.90%	5.22%	23.81%	1.11%

Travelers Companies Corporate Events

Travelers Companies Issues $1.25 Billion in Senior Notes

On July 21, 2025, Travelers Companies, Inc. entered into an Underwriting Agreement with several financial institutions for the issuance and sale of $1.25 billion in senior notes. This strategic move is expected to impact the company’s financial operations by potentially enhancing its capital structure and market positioning.

The most recent analyst rating on (TRV) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Travelers Companies stock, see the TRV Stock Forecast page.

Travelers Companies Sells Canadian Insurance Business

On May 27, 2025, Travelers Companies announced an agreement to sell its Canadian personal insurance business and most of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. The transaction, expected to close in the first quarter of 2026, will see Travelers retain its Canadian surety business. The company plans to use part of the proceeds for share repurchases, which are anticipated to slightly increase earnings per share over the coming years.

The most recent analyst rating on (TRV) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Travelers Companies stock, see the TRV Stock Forecast page.

Travelers Companies Approves Stock Plan Amendment at Meeting

On May 21, 2025, The Travelers Companies, Inc. held its annual meeting of shareholders, where an amendment to the 2023 Stock Incentive Plan was approved, increasing the shares authorized for issuance by 2,100,000. Additionally, the meeting included the election of directors and the appointment of Russell G. Golden as Chair of the Audit Committee, following the retirement of Mr. Kane. Other proposals, including those related to executive compensation and climate-related pricing, were also voted on, with varying levels of support.

The most recent analyst rating on (TRV) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Travelers Companies stock, see the TRV Stock Forecast page.