Bank of America Cuts Travelers (TRV) Target, Citing Weak P&C Pricing Trends

The Travelers Companies, Inc. (NYSE:TRV) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, Bank of America lowered its price target on The Travelers Companies, Inc. (NYSE:TRV)  to $262 from $265 and kept an Underperform rating.

The firm said that pricing trends across P&C insurance products still look weak, similar to what played out in 2025. Pricing in liability lines remains supportive, but loss costs are climbing faster than prices. Personal auto rates have largely flattened, even as some investors are starting to expect declines after a period of strong profitability. BofA also noted that underwriter valuations do not look expensive, despite fundamentals moving in the “wrong direction.”

On January 2, The Travelers Companies, Inc. (NYSE:TRV) said that it completed the sale of its personal insurance business and most of its commercial insurance business in Canada to Definity Financial Corporation for about $2.4 billion. Travelers, the largest surety writer in North America, kept its Canadian surety operations as part of the deal.

The company plans to use roughly $0.7 billion of the net proceeds for additional share repurchases in 2026. The remaining cash will support ongoing operations and general corporate needs. Travelers expects the transaction and related buybacks to be accretive to earnings per share in 2026 and over the following years.

Jefferies LLC and Przygoda & Co. LLC acted as financial advisors on the transaction. Legal advice was provided by Skadden, Arps, Slate, Meagher & Flom LLP, and Stikeman Elliott LLP.

The Travelers Companies, Inc. (NYSE:TRV) provides property and casualty insurance across auto, home, and business lines. Its operations are organized into Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.

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