Argus Raises Travelers (TRV) Target After Strong Q4 Earnings Beat

The Travelers Companies, Inc. (NYSE:TRV) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 26, Argus analyst Kevin Heal lifted his price target on The Travelers Companies, Inc. (NYSE:TRV) to $295 from $287 and reiterated a Buy rating after the company delivered a strong fourth-quarter earnings beat. Heal said results came in well ahead of expectations, helped by lower catastrophe losses and a meaningful boost from net investment income. Argus also sees room for margins to improve as Travelers continues raising prices on auto and homeowners policies while keeping customer retention steady.

According to Reuters, Travelers easily exceeded Wall Street’s fourth-quarter profit estimates on January 21, driven by solid underwriting performance and stronger investment returns. Insurance spending has remained resilient even as businesses and consumers pull back in other areas, as demand for coverage against financial risk, natural disasters, and unexpected losses continues to hold up. Net written premiums in the quarter edged up 1% to $10.86 billion.

Catastrophe losses totaled $95 million on a pre-tax basis, largely tied to winter storms that hit several states. For US insurers, catastrophe losses remain a key swing factor, with earnings often shaped by the timing and severity of major weather events. Travelers has been deliberately reducing exposure to large property risks where pricing does not fully compensate for catastrophe exposure, sticking to disciplined underwriting while some competitors continue to prioritize volume.

Underlying profitability improved as well. The company’s combined ratio declined by 1.8 percentage points to 82.2%, a level that signals premiums collected more than covered claims and expenses.

The Travelers Companies, Inc. (NYSE:TRV) provides property and casualty insurance across auto, home, and business lines, operating through its Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.

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