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OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a+” (Excellent) to $750 million 4.95% senior unsecured notes, due July 2031, issued by the Travelers Companies, Inc. (Travelers) (headquartered in New York, NY). The outlook assigned to this Credit Rating (rating) is stable. The net proceeds of the issuance are expected to be used for general corporate purposes.Through second-quarter 2026, Travelers' financial leverage ratio is 21.4%, as calculated by AM Bes.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Travelers (TRV - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Travelers currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if TRV is a promising momentum pick, let's examine some Momentum Style elements to see if this insurer holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For TRV, shares are up 8.87% over the past week while the Zacks Insurance - Property and Casualty industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 16.62% compares favorably with the industry's 4.36% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of Travelers have risen 19.23%, and are up 38.55% in the last year. In comparison, the S&P 500 has only moved 6.61% and 20.33%, respectively.

Investors should also pay attention to TRV's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. TRV is currently averaging 1,815,762 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with TRV.

Over the past two months, 10 earnings estimates moved higher compared to 2 lower for the full year. These revisions helped boost TRV's consensus estimate, increasing from $27.94 to $30.81 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that TRV is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Travelers on your short list.

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

The Travelers Companies (TRV - Free Report) is a stock many investors are watching right now. TRV is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.6, which compares to its industry's average of 27.00. Over the last 12 months, TRV's Forward P/E has been as high as 14.64 and as low as 11.13, with a median of 12.44.

Investors will also notice that TRV has a PEG ratio of 2.87. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRV's industry has an average PEG of 4.64 right now. Over the last 12 months, TRV's PEG has been as high as 4.80 and as low as 1.01, with a median of 2.83.

Finally, we should also recognize that TRV has a P/CF ratio of 4.84. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.41. Within the past 12 months, TRV's P/CF has been as high as 5.29 and as low as 4.23, with a median of 4.74.

Value investors will likely look at more than just these metrics, but the above data helps show that The Travelers Companies is likely undervalued currently. And when considering the strength of its earnings outlook, TRV sticks out as one of the market's strongest value stocks.

Assetmark Inc. decreased its holdings in The Travelers Companies, Inc. (NYSE:TRV – Free Report) by 7.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 22,279 shares of the insurance provider’s stock after selling 1,730 shares during the period. Assetmark Inc.’s holdings in Travelers Companies were worth $6,498,000 as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the stock. Arbejdsmarkedets Tillaegspension bought a new position in shares of Travelers Companies during the fourth quarter worth about $24,167,000. Rit Capital Partners PLC bought a new position in Travelers Companies during the fourth quarter worth $39,450,000. Robeco Institutional Asset Management B.V. boosted its position in shares of Travelers Companies by 17.3% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 901,938 shares of the insurance provider’s stock worth $261,616,000 after purchasing an additional 133,152 shares in the last quarter. UBS Group AG boosted its holdings in Travelers Companies by 5.3% in the fourth quarter. UBS Group AG now owns 1,774,756 shares of the insurance provider’s stock worth $514,786,000 after acquiring an additional 89,159 shares in the last quarter. Finally, Swiss Life Asset Management Ltd grew its position in Travelers Companies by 41.5% in the 4th quarter. Swiss Life Asset Management Ltd now owns 66,016 shares of the insurance provider’s stock valued at $19,149,000 after purchasing an additional 19,347 shares during the period. 82.45% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Travelers Companies Here are the key news stories impacting Travelers Companies this week:

Positive Sentiment: Travelers jumped after reporting Q2 2026 results that beat expectations, with earnings boosted by investment income, underwriting discipline, reserve releases, and AI-driven improvements rather than premium growth alone. Travelers Stock Surges 10% as Earnings Beat Reveals Underwriting Discipline Positive Sentiment: Truist raised its price target to $425 and kept a buy rating, citing upside from top- and bottom-line momentum. Analyst update on Travelers Positive Sentiment: Citigroup lifted its price target to $385, reflecting confidence in Travelers’ post-earnings outlook even though the rating stayed neutral. Citigroup price target update Positive Sentiment: Travelers was highlighted by Josh Brown as one of the top dividend insurance stocks to own in 2026, reinforcing its appeal as a high-quality income name. Josh Brown names top dividend stocks to own in 2026 Neutral Sentiment: DOWLING & PARTN issued FY2028 EPS estimates of $27.00, slightly below the current consensus of $28.39, which suggests expectations are still fairly well anchored. Travelers stock page Negative Sentiment: Goldman Sachs downgraded Travelers to sell with a $350 target, signaling concern that the stock may have limited upside after the post-earnings rally. Goldman Sachs Downgrades Travelers to Sell Negative Sentiment: Morgan Stanley also kept an underweight rating despite raising its target to $330, suggesting the stock may still be expensive relative to fundamentals. Morgan Stanley price target update Travelers Companies Price Performance Shares of Travelers Companies stock opened at $369.43 on Wednesday. The firm has a market capitalization of $77.05 billion, a PE ratio of 9.89, a price-to-earnings-growth ratio of 3.26 and a beta of 0.46. The Travelers Companies, Inc. has a 12 month low of $252.26 and a 12 month high of $371.94. The business’s 50-day moving average price is $317.19 and its 200-day moving average price is $302.67. The company has a current ratio of 0.33, a quick ratio of 0.35 and a debt-to-equity ratio of 0.27.

Travelers Companies (NYSE:TRV – Get Free Report) last announced its quarterly earnings data on Friday, July 17th. The insurance provider reported $10.04 earnings per share for the quarter, topping analysts’ consensus estimates of $5.41 by $4.63. The firm had revenue of $12.15 billion during the quarter, compared to analyst estimates of $11.26 billion. Travelers Companies had a net margin of 16.95% and a return on equity of 25.41%. The business’s quarterly revenue was up .3% on a year-over-year basis. During the same period in the previous year, the business posted $6.51 EPS. Sell-side analysts forecast that The Travelers Companies, Inc. will post 28.58 EPS for the current fiscal year.

Travelers Companies Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Thursday, September 10th will be given a $1.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $5.00 annualized dividend and a yield of 1.4%. Travelers Companies’s payout ratio is presently 13.39%.

Analyst Ratings Changes TRV has been the subject of a number of analyst reports. Truist Financial lifted their price target on Travelers Companies from $395.00 to $425.00 and gave the company a “buy” rating in a research note on Monday. Deutsche Bank Aktiengesellschaft restated a “hold” rating on shares of Travelers Companies in a report on Tuesday. Evercore set a $329.00 target price on Travelers Companies and gave the company an “in-line” rating in a research note on Friday, July 10th. TD Cowen lowered shares of Travelers Companies from a “hold” rating to a “sell” rating and set a $297.00 price target on the stock. in a research report on Monday, July 13th. Finally, Cantor Fitzgerald increased their price objective on Travelers Companies from $335.00 to $360.00 and gave the stock an “overweight” rating in a report on Thursday, July 9th. Three research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, Travelers Companies presently has an average rating of “Hold” and an average price target of $353.26.

Check Out Our Latest Stock Report on TRV

Insider Buying and Selling at Travelers Companies In other Travelers Companies news, Vice Chairman William H. Heyman sold 1,557 shares of the firm’s stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $310.64, for a total value of $483,666.48. Following the sale, the insider owned 259,590 shares of the company’s stock, valued at $80,639,037.60. This trade represents a 0.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Avrohom J. Kess sold 6,735 shares of the firm’s stock in a transaction dated Tuesday, April 28th. The stock was sold at an average price of $308.78, for a total value of $2,079,633.30. Following the completion of the sale, the insider directly owned 48,737 shares in the company, valued at $15,049,010.86. The trade was a 12.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 18,292 shares of company stock valued at $5,639,800 in the last quarter. Company insiders own 1.39% of the company’s stock.

Travelers Companies Profile (Free Report)

The Travelers Companies, Inc (NYSE: TRV) is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers’ compensation, professional and management liability, surety and inland marine.

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The property and casualty insurance sector is undergoing a distinct shift. After a seven-year "hard market"—a stretch of aggressive rate hikes and tightening coverage—pricing is beginning to soften across the sector.

That leaves many carriers in a precarious position. During the boom, some operators relied heavily on consecutive premium increases to mask underlying operational inefficiencies. But as prices soften, the market effectively runs a stress test, and true structural advantages surface.

Investors must now distinguish between companies that rely on inflation-driven premium hikes and those that generate genuine profits from disciplined underwriting.

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Travelers Opens Its Umbrella Against the BearsThe Travelers Companies NYSE: TRV just delivered a masterclass in navigating this exact transition.

Travelers Companies Today

TRV

Travelers Companies

$366.35 -2.15 (-0.58%)

As of 10:02 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$252.26▼

$371.94Dividend Yield1.36%

P/E Ratio9.78

Price Target$346.53

Following the release of second-quarter 2026 earnings, Travelers' stock price rose nearly 10% to close at $369.50 on Friday, July 17. The catalyst was a historic earnings beat, as the company reported core earnings per share of $10.04, beating Wall Street estimates of $5.41.

Pre-earnings options flow indicated heavily bearish positioning across the sector. Put-call ratios spiked temporarily as traders purchased downside protection, anticipating deteriorating combined ratios, a headwind currently plaguing competitors like Progressive NYSE: PGR. The sheer magnitude of the beat caught the market off guard. This surprise triggered an options-driven short squeeze, amplifying the price action on Friday. However, the real story is how Travelers achieved an 84.1% underlying combined ratio amid a cooling broader pricing environment.

Swapping Premium Hikes for Portfolio YieldsA common narrative surrounding insurance carriers is that profitability stems entirely from raising premiums. Observers often assume carriers pass inflation and climate-risk costs directly onto consumers with absolute pricing impunity. The data tells a different story. Travelers is actively moderating rates to match price to risk rather than blindly chasing top-line revenue at the expense of retention. During the second quarter, renewal premium change in auto was entirely flat. Homeowners pricing moderated to 6.6%, and Business Insurance registered at 4.8%.

If rate hikes are decelerating, profitability must come from elsewhere. A significant portion of the earnings strength came directly from the balance sheet. When older, lower-yielding bonds mature, Travelers reinvests that principal into the current, higher-rate environment. The $100 billion investment portfolio at Travelers is heavily weighted toward investment-grade fixed income. This portfolio captured new money yields approximately 90 basis points above the embedded portfolio yield.

This dynamic drove net investment income up 14% year over year to $883 million after taxes. By successfully monetizing higher interest rates, Travelers effectively subsidized its underwriting operations. The spread between incoming and legacy yields is a multi-year tailwind. This spread generates reliable free cash flow, enabling disciplined risk selection without sacrificing net income.

High-Tech Tailwinds Drive Underwriting MarginsBeyond fixed-income yields, structural margin expansion is materializing through targeted technology investments. Management at The Travelers Companies directly attributed a 0.5-point improvement in the Business Insurance underlying loss ratio to recent deployments of AI. Through its digital platform Travis, Travelers implemented advanced data extraction and automated underwriting rules to generate commercial quotes in seconds.

This is not abstract technology spending. It represents an immediate and quantifiable return on investment. By automating routine underwriting and claims processing, Travelers creates substantial operating leverage. As premium growth naturally slows in a softening commercial market, this tech-driven expense reduction serves as a critical buffer. This efficiency expands margins organically from the inside out and demonstrates the tangible financial impact of AI in legacy financial sectors.

Reinsurance Shields Block the Heaviest DownpoursTo understand the full scope of the earnings beat, investors must look at how Travelers engineered its risk transfer programs. Catastrophe losses have historically been a volatile headwind for the industry. Yet, Travelers managed to drop pre-tax catastrophe losses to $518 million, down sharply from $927 million in the prior-year quarter.

This reduction was the direct result of a highly deliberate reinsurance restructuring. Management recently upsized a catastrophe bond to $750 million to replace an expiring $575 million bond. At the same time, Travelers absorbed personal lines catastrophe coverage into a highly efficient enterprise-wide program. This new program features a $3 billion attachment point. An attachment point is the financial threshold at which reinsurance coverage activates and begins paying out claims. By tightening retention and utilizing the capital markets to offload tail risk, Travelers successfully shielded its balance sheet from peak weather-related volatility.

The company also recognized a net favorable prior-year reserve development of $578 million pre-tax. When an insurance company sets aside capital to pay future claims, it bases those figures on strict actuarial estimates.

If claims come in lower than expected, the excess capital is released back into earnings as favorable prior-year reserve development. Favorable development across workers' compensation, commercial property, and personal lines signals that Travelers conservatively over-reserved in previous years. Recognizing these redundancies now provides a powerful injection of bottom-line capital right as the pricing cycle shifts. This maneuver demonstrates the conservative nature of Travelers' underwriting models.

Does Travelers Deserve a Spot on Your Watchlist?Generating excess capital is only half the equation. How a management team deploys that capital ultimately dictates long-term shareholder value. Travelers generated a core return on equity of 24.9% for the quarter. This is an elite metric that highlights extreme capital efficiency relative to the sector average.

Travelers Companies Dividend PaymentsDividend Yield1.36%

Annual Dividend$5.00

Dividend Increase Track Record21 Years

Annualized 5-Year Dividend Growth5.24%

Dividend Payout Ratio13.39%

Upcoming Ex-Dividend DateSep. 10

TRV Dividend History

Operating cash flows surpassed $11 billion over the trailing 12 months, fueling aggressive shareholder returns. During the second quarter alone, management executed $1.3 billion in share repurchases under a $5 billion authorization announced in January. Combined with a quarterly dividend of $1.25 per share, yielding roughly 1.35%, Travelers returned over $1.5 billion to shareholders in a single quarter. Approximately $3.9 billion remains available for future buybacks. This establishes a robust floor under the stock price by consistently reducing the outstanding float.

The fundamentals reveal a carrier that has successfully decoupled profitability from the need for constant rate hikes. By leveraging technology to drive down the loss ratio, optimizing reinsurance to cap catastrophe downside, and aggressively returning cash to shareholders, The Travelers Companies is functioning as an efficient capital compounder.

Investors looking to navigate the shifting macroeconomic landscape may want to consider defensive growth stocks that exhibit this level of operational discipline and balance sheet strength. Those with a long-term horizon might consider tracking Travelers' consolidation patterns following the recent earnings surge to identify potential entry points, while keeping a close watch on future fixed-income yields and commercial property pricing trends as leading indicators of continued outperformance.

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Travelers (TRV +9.22%) earned $2.2 billion in the second quarter, up 46% year over year, and its stock jumped about 9% on Friday to close at $368.98. The biggest driver was straightforward: catastrophe losses fell by nearly half.

The rally stood out because of everything around it. Semiconductor stocks sold off hard on Friday as investors questioned lofty artificial intelligence (AI) valuations, dragging the major indexes lower. The insurer rallied anyway.

Image source: Getty Images.

Where the 46% came from Travelers reported second-quarter net income of $10.26 per diluted share, up from $6.53 in the year-ago quarter. Its combined ratio, which measures claims and expenses as a percentage of premiums (lower is better), improved to 83.6% from 90.3%.

The jump was largely driven by three items.

First, catastrophe losses came in at $518 million before taxes, down from $927 million a year earlier -- a far calmer quarter for storms.

Second, the company booked $578 million of favorable prior-year reserve development. In plain terms, claims from past years are costing less than Travelers had set aside for them, and the difference flows back into earnings.

Third, investment income keeps climbing. After-tax net investment income rose 14% year over year to $883 million as higher yields work through the insurer's bond portfolio.

The underlying business improved, too -- just more modestly. The underlying combined ratio, which strips out catastrophes and reserve changes, came in at 84.1%, versus 84.7% a year ago. And net written premiums were about flat at $11.5 billion -- up about 2% excluding a Canadian business Travelers sold earlier this year. So the core engine got a little better, while the volatile items accounted for most of the 46% profit jump.

Today's Change

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Current Price

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What it means for the stock A quarter like this shows Travelers' earnings power when the weather cooperates. Core return on equity reached 24.9%, book value per share climbed 5% from year-end to $158.81, and the company returned about $1.6 billion to shareholders in the quarter, including $1.3 billion of buybacks.

Even after Friday's pop, the stock trades at about 10 times earnings. That's arguably a modest price for this kind of earnings power.

Of course, quarters like this won't repeat on schedule. Catastrophe losses swing with the weather, reserve releases aren't guaranteed, and modest premium growth limits how fast the underlying business can compound. Investors shouldn't extrapolate a light-storm quarter into a permanent run rate.

But the durable pieces (disciplined underwriting and rising investment income) were also on display, and those carry forward. That combination is why an insurance stock could rally 9% on a day the market punished nearly everything else.

17.7.2026 22:33

Americké akciové indexy v závěru páteční seance ještě mírně prohloubily předchozí ztráty a uzavřely unisono se zápornou bilancí. Nejhůře si stál technologický Nasdaq, který odepsal 1,4 %, širší index S&P500 pak 1,01 % a Dow Jones -0,77 %.

Všechny segmenty S&P500 vyjma energií (+1,2 %) uzavřely v červených číslech. Se ziskem naopak končily drahé kovy. Zlato přidalo 1 % a uzavřelo na 4010 USD/oz, stříbro zpevnilo o 0,7 % na 55,9 USD/oz. Mírný růst vykázaly také dluhopisy vyjma nejkratších splatností. Výnos 10letého vládního bondu se usadil na 4,555 % (vs. 4,57 % včera). Pěkné zisky vykázaly energie. Ropa na pozadí rostoucích tenzí na Blízkém východě posílila o 4,4 % na 82,4 USD/barel, zemní plyn zpevnil o 2,3 % na 2,93 USD/mmbtu.

Závěrečné hodnoty:

Dow Jones -0,77 % na 52146,42 b.
S&P 500 -1,01 % na 7457,69 b.
Nasdaq Composite -1,4 % na 25520,24 b.

Index S&P 500 -1,01 % na 7457,69 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,2 % Komunikační služby -2,4 % Reality 0 % Zbytná spotřeba -1,6 % Průmysl -0,4 % Informační technologie -1,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Travelers Cos (TRV) +9,2 % Intuitive Surgical (ISRG) -14 % Seagate Technology Holdings (STX) +5,7 % Cadence Design Systems (CDNS) -9,5 % Centene Corp (CNC) +4,0 % Synopsys (SNPS) -7,9 % Casey's General Stores (CASY) +3,9 % Netflix (NFLX) -7,3 % Lumentum Holdings (LITE) +3,8 % Axon Enterprise (AXON) -5,8 %
David Lamač
Fio banka, a.s.
Prohlášení

Travelers Companies Inc (NYSE:TRV) shares rose more than 8% on Friday after the insurer reported second-quarter earnings that significantly exceeded Wall Street expectations, helped by lower catastrophe losses, higher investment income and strong underwriting performance.

The company posted adjusted core earnings of $10.04 per diluted share for the quarter ended June 30, comfortably ahead of the consensus estimate of about $5.39.

Revenue came in at $12.15 billion, broadly in line with analyst expectations.

Net income increased to $2.21 billion, or $10.26 per diluted share, from $1.51 billion, or $6.53 per diluted share, a year earlier. Core income rose to $2.16 billion from $1.50 billion in the prior-year quarter.

Travelers reported a consolidated combined ratio of 83.6%, improving from 90.3% a year earlier and substantially better than analysts had anticipated. The result reflected lower catastrophe losses, which fell to $518 million pre-tax from $927 million a year ago, as well as higher favorable prior-year reserve development and stronger underlying underwriting results.

Net investment income increased 14% year over year to $883 million after tax.

Net written premiums were $11.53 billion, essentially unchanged from the prior-year period, while total revenue edged up to $12.15 billion from $12.12 billion.

During the quarter, Travelers returned $1.58 billion of capital to shareholders, including $1.31 billion through share repurchases.

Travelers CEO Alan Schnitzer said the company delivered strong underwriting and investment performance across its businesses.

"We are pleased to report excellent second quarter results with very strong underwriting performance across all three segments and a terrific result from our investment portfolio," Schnitzer said in a statement.

He added that the company's underwriting income benefited from continued strong underlying profitability and favorable reserve development, while its investment portfolio generated a 14% increase in after-tax net investment income.

U.S. stocks traded lower midway through trading, with the Nasdaq Composite falling more than 200 points on Friday.

The Dow traded down 0.28% to 52,407.20 while the NASDAQ dipped 0.80% to 25,674.10. The S&P 500 also fell, dropping, 0.51% to 7,495.26.

Leading and Lagging Sectors

Energy shares jumped by 1.4% on Friday.

In trading on Friday, communication services stocks fell by 3.1%.

Top Headline

Travelers Companies (NYSE:TRV) reported better-than-expected second-quarter financial results.

Travelers reported quarterly earnings of $10.04 per share which beat the analyst consensus estimate of $5.38 per share. The company reported quarterly sales of $12.153 billion which beat the analyst consensus estimate of $11.346 billion.

Equities Trading UP
           

Equities Trading DOWN

Commodities

In commodity news, oil traded up 4% to $82.06 while gold traded up 0.7% at $4,019.40.

Silver traded down 0.1% to $56.17 on Friday, while copper fell 1.4% to $6.2530.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.5%, while Spain’s IBEX 35 Index fell 0.5% London’s FTSE 100 rose 0.2%, Germany’s DAX declined 0.5%, while France’s CAC 40 dipped 0.5%.

Asia Pacific Markets

Asian markets closed mostly lower on Friday, with Japan’s Nikkei 225 dipping 4.03%, Hong Kong’s Hang Seng index falling 1.78%, China’s Shanghai Composite dipping 3.05% and India’s BSE Sensex gaining 1.25%.

Economics

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Allstate’s Comeback Is Turning Into a Profit MachineTravelers Companies NYSE: TRV reported what executives described as an “excellent” second quarter of 2026, supported by strong underwriting results across all three business segments, higher investment income and favorable reserve development.

Chairman and Chief Executive Officer Alan Schnitzer said the insurer earned core income of $2.2 billion, or $10.04 per diluted share, and generated a core return on equity of 24.9% for the quarter. Over the trailing four quarters, Travelers produced a core return on equity of 24.2%.

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3 Insurance Stocks That Can Act as a New Inflation Hedge “We’re pleased to report an excellent second quarter and another in a sustained run of successful quarters, with very strong underwriting performance across all three segments and a terrific result from our investment portfolio,” Schnitzer said.

Pre-tax underwriting income totaled $1.7 billion, while the combined ratio improved to 83.6%. The underlying combined ratio improved to 84.1%, which management attributed to a lower underlying loss ratio. Chief Financial Officer Dan Frey said underlying underwriting income reached $1.3 billion after tax, marking the company’s eighth consecutive quarter above $1 billion.

Investment Income and Capital Returns Strengthen Results 3 Insurance Stocks Hitting 52-Week Highs With More Room to RunAfter-tax net investment income rose 14% from the prior-year quarter to $883 million. Frey said fixed income investment income benefited from higher yields and a higher level of invested assets, while alternative investment income also increased. He noted that new money yields at the end of the second quarter were about 90 basis points above the yield embedded in the portfolio.

Travelers expects fixed income net investment income, including earnings from short-term securities, of approximately $840 million in the third quarter and roughly $870 million in the fourth quarter, consistent with prior guidance, Frey said.

Operating cash flow was $1.9 billion for the quarter and surpassed $11 billion over the trailing 12 months. Adjusted book value per share, which excludes unrealized investment gains and losses, was $168.20 at quarter-end, up 16% from a year earlier.

The company returned more than $1.5 billion of capital to shareholders during the quarter, including $266 million of dividends and $1.3 billion of share repurchases. Frey said Travelers had about $3.9 billion remaining under prior board authorizations for buybacks.

Schnitzer emphasized that the company’s capital management priorities remain reinvestment in the business, organic or inorganic, where attractive returns are available, followed by returning excess capital to shareholders.

Business Insurance Posts Record Segment Income Business Insurance generated segment income of $1.2 billion, a second-quarter record, according to Greg Toczydlowski, president of Business Insurance. The segment’s underlying combined ratio was 88.2%, also a second-quarter record.

Net written premiums in Business Insurance reached $6 billion. Excluding the impact of the sale of the company’s Canadian business in the first quarter, net written premiums increased 5% from the prior-year quarter. Toczydlowski said growth was led by a 7% increase in Middle Market and a 4% increase in Select.

National property premiums declined as Travelers maintained disciplined underwriting standards, passing on business where pricing and terms did not align with the company’s view of risk. However, Schnitzer said property premiums were higher in both small commercial and middle market businesses.

Renewal premium change in the segment was 4.8%. Excluding property, renewal premium change was 7.8% and roughly flat sequentially. Retention remained strong at 86%, while new business reached a quarterly record of $805 million, up 8% from the prior-year quarter.

In response to an analyst question about whether Travelers might relax underwriting standards or pricing to accelerate growth given its elevated return on equity, Schnitzer rejected the idea.

“Competing on pricing in this business is a fool’s errand,” Schnitzer said. He added that Travelers’ objective is to compete on franchise value rather than lower prices.

Bond & Specialty Insurance Benefits From Surety Growth Bond & Specialty Insurance reported segment income of $234 million and a combined ratio of 82.8%. Net written premiums rose 14% to a record $1.2 billion.

Jeff Klenk, president of Bond & Specialty Insurance, said domestic management liability retention improved to 88%, while renewal premium change remained consistent. New business in that area increased 8%.

The company’s surety business posted 40% growth in net written premiums, also reaching a record level. Klenk said production was broad across the portfolio and included a small number of large projects as well as increased bonding for data center development.

Asked about the durability of surety growth, Klenk said surety production can vary because most production comes from new bonds rather than renewals. Still, he said Travelers is positioned to benefit from future infrastructure investment, including public spending and data center-related projects.

Personal Insurance Delivers Strong Profitability Personal Insurance generated segment income of $827 million. Michael Klein, president of Personal Insurance, said the result reflected strong underlying underwriting income, modest catastrophe losses and favorable prior-year reserve development.

The segment’s combined ratio was 79.5%, while the underlying combined ratio was 77.3%. Net written premiums totaled $4.3 billion, with solid retention in both automobile and homeowners and higher new business in homeowners.

In automobile, the combined ratio was 82.8%, including a 4.5-point benefit from favorable prior-year reserve development. The underlying combined ratio improved slightly more than three points from the prior-year quarter to 85.8%. Klein said favorable loss experience across coverages contributed to the improvement, including about a two-point benefit from re-estimating the prior quarter in the current year.

In homeowners and other, the combined ratio was 76.7%, reflecting modest catastrophe losses and very strong underlying underwriting income. The underlying combined ratio was 70.1%, comparable with a strong prior-year quarter.

Klein said Travelers continues to pursue profitable growth by adjusting rates to reflect profitability, enhancing product and pricing segmentation, refining eligibility restrictions and seeking new agent appointments and book consolidation opportunities.

Technology, AI and Reinsurance Remain Focus Areas Executives repeatedly pointed to technology and artificial intelligence initiatives as contributors to underwriting performance and efficiency. Schnitzer said Travelers continues to invest more than $1.5 billion annually, including in focused technology initiatives such as AI, to strengthen competitive advantages.

Toczydlowski highlighted AI advancements in Travis, the company’s digital platform for small commercial business, including submission uploads, data extraction, pre-filled submission information and underwriting rules that can generate quotes in seconds.

Frey also discussed reinsurance actions. Travelers replaced an expiring catastrophe bond in May with a new bond, increasing the size from $575 million to $750 million and slightly decreasing the retention. On July 1, the company renewed its Northeast property catastrophe excess-of-loss treaty, which continues to provide $1 billion of occurrence coverage above a $2.75 billion attachment point.

Frey said Travelers chose not to renew the personal lines catastrophe excess-of-loss treaty it had purchased in 2024 and 2025, citing the efficiency of its all-perils enterprise-wide general corporate catastrophe treaty renewed at Jan. 1.

Looking ahead, management said it remains confident in the durability of the company’s underwriting income, investment income and balance sheet strength. Schnitzer said Travelers’ earnings engine is “tuned to continue delivering industry-leading returns at industry-low volatility.”

About Travelers Companies (NYSE:TRV)The Travelers Companies, Inc NYSE: TRV is a leading provider of property and casualty insurance products and services. The company underwrites a broad range of commercial and personal insurance lines, offering coverage designed to protect individuals, small and midsize businesses, and large corporate clients against property loss, liability, and other operational risks. Travelers is known for combining underwriting, claims management and risk control services to help clients prevent losses and recover when incidents occur.

On the commercial side, Travelers writes primary and specialty coverages including property, general liability, commercial auto, workers' compensation, professional and management liability, surety and inland marine.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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For the quarter ended June 2026, Travelers (TRV - Free Report) reported revenue of $12.09 billion, down 0.1% over the same period last year. EPS came in at $10.04, compared to $6.51 in the year-ago quarter.

The reported revenue represents a surprise of -1.46% over the Zacks Consensus Estimate of $12.27 billion. With the consensus EPS estimate being $5.31, the EPS surprise was +89.08%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Travelers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Combined Ratio - Consolidated: 83.6% versus the eight-analyst average estimate of 96.1%.Underwriting Expense Ratio - Consolidated: 29% versus 28.8% estimated by eight analysts on average.Loss and loss adjustment expense ratio - Consolidated: 54.6% versus 67.2% estimated by eight analysts on average.Combined Ratio - Bond & Specialty Insurance: 82.8% compared to the 86.1% average estimate based on six analysts.Total Revenues- Net investment income: $1.07 billion versus $1.03 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +13.6% change.Total Revenues- Fee income: $126 million versus $124.57 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Total Revenues- Premiums: $10.75 billion versus the eight-analyst average estimate of $10.96 billion. The reported number represents a year-over-year change of -1.5%.Total Revenues- Other Revenues: $144 million versus the eight-analyst average estimate of $130.41 million. The reported number represents a year-over-year change of +17.1%.Revenues- Premiums- Business Insurance: $5.55 billion versus the six-analyst average estimate of $5.67 billion. The reported number represents a year-over-year change of +0.1%.Revenues- Premiums- Personal Insurance: $4.15 billion compared to the $4.18 billion average estimate based on six analysts. The reported number represents a change of -4.8% year over year.Revenues- Premiums- Bond & Specialty Insurance: $1.06 billion versus the six-analyst average estimate of $1.08 billion. The reported number represents a year-over-year change of +3.4%.Revenues- Other revenues- Personal Insurance: $25 million versus the five-analyst average estimate of $27.42 million. The reported number represents a year-over-year change of +8.7%.View all Key Company Metrics for Travelers here>>>

Shares of Travelers have returned +9.8% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

NEW YORK--(BUSINESS WIRE)--The Travelers Companies, Inc. today reported net income of $2.208 billion, or $10.26 per diluted share, for the quarter ended June 30, 2026, compared to $1.509 billion, or $6.53 per diluted share, in the prior year quarter. Core income in the current quarter was $2.160 billion, or $10.04 per diluted share, compared to $1.504 billion, or $6.51 per diluted share, in the prior year quarter. Core income increased primarily due to lower catastrophe losses, higher net favor.

Travelers reported adjusted earnings well above the Wall Street view.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Travelers (TRV - Free Report) Established in 1853 and is based in New York, NY, The Travelers Companies Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.

TRV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. TRV has a Momentum Style Score of B, and shares are up 9.5% over the past four weeks.

For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.28 to $28.31 per share. TRV boasts an average earnings surprise of +40.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TRV should be on investors' short list.

The Travelers Companies, Inc. (NYSE:TRV) will release its second quarter earnings report before the opening bell on Friday, July 17.

Analysts expect the New York-based company to report quarterly earnings of $5.33 per share, down from $6.51 per share in the year-ago period. The consensus estimate for Travelers’ quarterly revenue is $10.99 billion. It reported $10.92 billion last year, according to Benzinga Pro.

On April 16, Travelers Companies reported better-than-expected first-quarter results.

Travelers shares fell 1.4% to close at $336.83 on Tuesday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

Considering buying TRV stock? Here’s what analysts think:

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Travelers (TRV - Free Report) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.

This insurer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 21.09%.

For the last reported quarter, Travelers came out with earnings of $7.71 per share versus the Zacks Consensus Estimate of $6.98 per share, representing a surprise of 10.46%. For the previous quarter, the company was expected to post earnings of $8.45 per share and it actually produced earnings of $11.13 per share, delivering a surprise of 31.72%.

Price and EPS Surprise

For Travelers, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Travelers has an Earnings ESP of +0.02% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 17, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Considering buying TRV stock? Here’s what analysts think:

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© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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New AI-powered capability will enable carriers to deliver renewal quotes directly inside agency management systems July 08, 2026 09:00 ET  | Source: Applied Systems

CHICAGO and HARTFORD, Conn., July 08, 2026 (GLOBE NEWSWIRE) -- Applied Systems today announced its submissionless commercial insurance experience, with The Travelers Companies, Inc. (NYSE: TRV) as the first anchor carrier to participate in the initiative. Powered by Cytora, Applied’s agentic AI platform for carriers, the new capability will allow carriers to proactively deliver renewal quotes directly within Applied Epic, the leading agency management system, before the remarketing process begins.

The integration uses agentic AI to identify renewals within an agency’s full renewal portfolio across targeted lines of business and preemptively deliver renewal quotes without agencies needing to initiate remarketing. When a policy becomes eligible, Cytora will digitize risk data stored in Applied Epic and route it automatically to participating carriers’ quoting services. Quotes are returned directly to the management system, creating a connected, frictionless flow of risk information between brokers and insurers. The result is stronger agency engagement and a simpler, faster way to do business.

“Applied sits at the center of the insurance lifecycle, which, along with Cytora’s leading agentic AI technology, allows us to reimagine how the commercial insurance transaction flows,” said Michael Streit, President, Applied Systems Carrier. “As an industry leader and our first anchor carrier, Travelers will help shape how risk flows in the future. We look forward to expanding this capability to more stakeholders, creating more efficient and profitable partnerships for brokers and carriers across the distribution channel.”

“Applied shares our commitment to using AI to simplify the commercial insurance transaction,” said Greg Toczydlowski, Executive Vice President and President of Business Insurance at Travelers. “Delivering renewal quotes before remarketing begins lets our agents and brokers spend less time on process and more time advising customers, which is a win for the customer, for our distribution partners and for us. The capability also plays to our strengths – the visibility into a distribution partner’s full renewal portfolio combined with our data, analytics and product breadth gives us a meaningful competitive advantage in putting it to work.”

About Applied Systems

Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.

About Cytora

Cytora is an agentic AI platform that enables commercial insurers to digitize and decision risk at scale. Acquired by Applied Systems in September 2025, Cytora’s modular platform spans risk digitization, decisioning and workflow automation – processing submissions from any source, enriching them with external data and routing them decision-ready to underwriters. Cytora is deployed across leading commercial carriers globally.

About Travelers

The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of nearly $49 billion in 2025. For more information, visit Travelers.com.

Applied Announces Submissionless Commercial Insurance Experience with Travelers as First Anchor Carrier Partner 

Applied Announces Submissionless Commercial Insurance Experience with Travelers as First Anchor Carr... New AI-powered capability will enable carriers to deliver renewal quotes directly inside agency mana...

Contact Data Lauren Malcolm Applied Systems 678-438-5093 [email protected]

This year, technology stocks have dominated headlines, with the tech-heavy Nasdaq Composite up 12% since the start of the year. The strong performance is driven largely by memory and semiconductor stocks as hyperscalers invest heavily in building out their AI infrastructure.

While tech stocks are grabbing the headlines, insurance stock Travelers (TRV +2.30%) is trading near a record high, underscoring its resilience and fundamental strength. The stock has also increased 15.4% since the start of the year.

Can it continue to rally? Let's dive into what's driving the stock to find out.

Image source: Getty Images.

Travelers' stellar growth is driven by higher interest rates and underwriting discipline Travelers has reached record heights, fueled by a robust business model that demonstrates disciplined insurance underwriting while reaping rewards from elevated interest rates through its investment portfolio.

Unlike cyclical financial stocks, such as banks, Travelers benefits from higher-for-longer interest rates. That's because insurers invest premium float before claims are paid, and elevated bond yields translate directly into growing net investment income, providing growth independent of insurance premiums.

In the first quarter, Travelers' net investment income rose 8% to $1 billion, up from $930 million last year. This solid growth was driven by its fixed maturity portfolio and higher long-term reinvestment yields on its invested assets.

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Net written premium growth was down 2% year over year in the first quarter; however, a large portion of this was due to Travelers' divestment from its Canadian insurance business. When adjusting for this change, the company's premiums grew modestly year over year. Its slower premium growth reflects the softening of the insurance market after years of inflation and hard-market conditions. With that said, insurance underwriters continue to maintain pricing power to offset inflationary pressures.

What stood out for Travelers was its improving profitability, with net income surging 333% to $1.7 billion. The company benefited from easier year-over-year comparisons to 2025, which was punished by the California Palisades and Eaton wildfires.

Travelers' combined ratio, which represents underwriting profitability by dividing claims costs and expenses by total premiums earned, was a stellar 88.6%. This, coupled with favorable reserve developments and growth in interest income, boosted earnings.

Data by YCharts.

Looking ahead, catastrophe expectations look favorable for property insurers like Travelers. Forecasts from NOAA's National Weather Service predict a below-average hurricane season, which would limit large catastrophe losses if projections are accurate.

Travelers is a smart stock that can provide diversification Travelers' stock is trading near all-time highs and priced cheaply at around 11.8 times forward earnings. Insurance stocks tend to trade at low multiples, but the stock remains attractively priced despite its new highs. Looking ahead, the company stands to benefit if Treasury yields remain elevated while also having pricing power to adapt if inflationary pressures persist.

The company continues to post stellar underwriting results, and its future performance hinges on maintaining underwriting discipline, as growing interest income isn't guaranteed. With this in mind, Travelers' stock is more defensive and an excellent choice for investors looking to diversify away from volatile technology stocks.

HARTFORD, Conn.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE: TRV) today announced that it has developed TravelersLLM, a proprietary large language model tailored to its property casualty business. Built by Travelers engineers and data scientists, TravelersLLM was trained on millions of company documents and amplifies Travelers' leading domain expertise by, among other things, enhancing underwriting analysis, accelerating research and model development, facilitating access to decades o.

The Travelers Companies, Inc. (NYSE: [url="]TRV[/url]) today announced that the 2026 Travelers Championship generated more than $5 million for more than 270 ch

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Travelers (TRV - Free Report) Established in 1853 and is based in New York, NY, The Travelers Companies Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.

TRV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. TRV has a Growth Style Score of B, forecasting year-over-year earnings growth of 1.5% for the current fiscal year.

For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.30 to $28.00 per share. TRV boasts an average earnings surprise of +40.4%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TRV should be on investors' short list.

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Travelers (TRV - Free Report) Established in 1853 and is based in New York, NY, The Travelers Companies Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.

TRV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. TRV has a Momentum Style Score of A, and shares are up 1.4% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.17 to $28.00 per share. TRV also boasts an average earnings surprise of +40.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TRV should be on investors' short list.

Key Takeaways Travelers' net investment income complements underwriting and supports earnings stability. TRV's investment income increased at a 12.19% CAGR from 2020 to 2025 on higher yields. Travelers expects fixed income net investment income to rise through Q4 2026. The Travelers Companies, Inc.’s (TRV - Free Report) net investment income is a material contributor to the company’s results of operations, consistently providing a reliable source of earnings that complements its underwriting activities.

The majority of the Travelers' investments is comprised of a widely diversified portfolio of high-quality, liquid, taxable U.S. government, tax-exempt and taxable U.S. municipal, taxable corporate and U.S. agency mortgage-backed bonds. The insurer also invests smaller amounts in equity securities, real estate, private equity, hedge funds, and real estate partnerships and joint ventures, which pose the potential for higher returns.

Net investment income acts as a second earnings engine for this property and casualty insurer after underwriting profit. Thus, even if underwriting profit weakens because of higher catastrophe losses, solid net investment income can help offset earnings pressure. The metric is most significantly influenced by interest rates, portfolio size, asset mix, market performance and underwriting-generated cash flow.

The insurer’s investment income has shown continuous improvement. The metric has delivered a five-year (2020-2025) CAGR of 12.19%, driven by higher long-term average yields and higher average levels of fixed-maturity investments.

Travelers’ guidance for fixed income net investment income by quarter, which includes earnings from short-term securities, is around $810 million after tax in the second quarter of 2026. The figure is projected to grow to nearly $840 million in the third quarter and approximately $870 million in the fourth quarter. For 2026, Travelers should continue to benefit from a growing investment portfolio that strengthens its overall financial performance.

Net investment income significantly boosts top-line growth for Travelers, one of the leading writers of auto and homeowners’ insurance, by generating steady earnings from investing policyholder premiums in bonds and other income-producing assets. Travelers has also consistently returned capital to shareholders through buybacks and dividend increases, supported partly by stronger investment earnings and operating cash flow. Therefore, this additional income stream not only improves profitability and provides financial stability but also supports shareholder returns and long-term growth.

What About Other Insurers?Chubb Limited's (CB - Free Report) net investment income is an important earnings contributor. The metric benefits from higher interest rates and stronger portfolio yields, providing a steady source of earnings beyond underwriting profits. This helps improve profitability, offset claim volatility and strengthen overall financial performance.

Cincinnati Financial Corporation (CINF - Free Report) has been witnessing net investment income growth over the past few years. Investment income, net of expenses, is driven by higher interest income and solid cash flow, in addition to higher bond yields. The company expects its investment philosophy and initiatives to drive investment income growth and generate a total return on equity investment portfolio over a five-year period that exceeds the five-year return of the S&P 500 Index. Cincinnati Financial believes that its investment portfolio mix provides an appropriate balance of income stability and growth, with capital appreciation potential.

TRV’s Price PerformanceShares of TRV have gained 13.5% in the past year, outperforming the industry.

Image Source: Zacks Investment Research

TRV’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.98, higher than the industry average of 1.32. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for TRVThe Zacks Consensus Estimate for TRV’s first-quarter 2026 and second-quarter 2026 EPS has moved up 0.6% and 0.1%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 2.6% and 0.8%, respectively, in the past 30 days.

The consensus estimate for TRV’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.

Image Source: Zacks Investment Research

TRV stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Travelers (TRV - Free Report) Established in 1853 and is based in New York, NY, The Travelers Companies Inc., a holding company, is principally engaged, through its subsidiaries, in providing a wide variety of property and casualty insurance and surety products and services to businesses, organizations and individuals in the United States. and select international markets.

TRV is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. TRV has a Growth Style Score of B, forecasting year-over-year earnings growth of 1.6% for the current fiscal year.

For fiscal 2026, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.77 to $28.03 per share. TRV boasts an average earnings surprise of +40.4%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TRV should be on investors' short list.