Morgan Stanley Maintains An Equal Weight Rating On The Travelers Companies, Inc. (TRV)

Core Insights - The Travelers Companies, Inc. (NYSE:TRV) is recognized as one of the 12 Best Performing Dow Stocks in 2025 [1] - Morgan Stanley has raised its price target for TRV from $285 to $295 while maintaining an Equal Weight rating, anticipating a softening cycle in the property-and-casualty market until 2026 [3] Financial Performance - In Q3, net written premiums for The Travelers Companies reached $11.5 billion, with Business Insurance increasing by 3% year-over-year to $5.7 billion, Bond & Specialty Insurance totaling $1.1 billion, and Personal Insurance at $4.7 billion [4] - The company expects an expense ratio of 28.5% for 2025 and plans to maintain this level in 2026 [5] - Fixed-income net investment income is projected to be approximately $810 million after taxes for Q4 2025, with expectations to exceed $3.3 billion in 2026 [5] Strategic Initiatives - The Travelers Companies plans to increase share repurchases to around $1.3 billion in Q4 2025, reflecting an improved capital position and investment income outlook [6] - The company benefits from a strong economic moat due to its robust commercial insurance business, offering a diverse range of solutions in both commercial and personal insurance lines [6]