Travelers Analyst Expects Margin Expansion To Continue In Both Commercial, Personal Lines

The "excellent margins" achieved by Travelers Companies Inc's TRV commercial lines in the fourth quarter are likely to prove "more sustainable than we once thought," while personal lines profitability is recovering faster than expected, according to Piper Sandler.

The Travelers Companies Analyst: Analyst Paul Newsome upgraded the rating for Travelers Companies from Neutral to Overweight, while raising the price target from $259 to $310.

The Travelers Companies Thesis: The company reported stronger-than-expected fourth-quarter results, with better profitability in both the commercial and personal lines, Newsome said in the upgrade note.

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"Improvement on an underwriting basis in personal lines was particularly strong this quarter" and price increases could enable this trend to continue, he added.

The fourth quarter results also suggest stabilization in the company's reserve development, the analyst stated.

He raised the earnings estimates for 2025 and 2026 from $19.50 per share to $24.85 per share and from $21.60 to $26.30 per share, respectively.

Price Action: Shares of Travelers Companies had risen by 0.36% to $242.39 at the time of publication on Thursday.

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