Overview

• US property casualty insurer's Q2 core EPS rose sharply, beating analyst expectations

• Q2 revenue was flat yr/yr at $12.15 bln

• Net income and core income increased, driven by lower catastrophe losses and higher investment income

Outlook

• Travelers expects full-year 2026 expense ratio to be approximately 28.5%

Result Drivers

• LOWER CATASTROPHE LOSSES - Core income rose mainly due to lower catastrophe losses compared to the prior year

• HIGHER INVESTMENT INCOME - Net investment income increased 14% from the prior year, driven by higher yields and growth in average invested assets

• FAVORABLE PRIOR YEAR RESERVE DEVELOPMENT - All segments saw net favorable prior year reserve development, contributing to improved underwriting results

Company press release: ID:nBw5nT0FMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 20 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Travelers Companies Inc is $326.50, about 3.4% below its July 16 closing price of $337.82

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.